Chapter 3
Who Trades Currencies? Meet the Players
In This Chapter
Understanding where currency rates come from
Stepping onto a trading floor
Hedging and investing through the forex market
Understanding that speculating is the name of the game
Managing foreign currency reserves
The forex market is regularly referred to as the largest financial market in the world based on trading volumes. But this massive market was unknown and unavailable to most individual traders and investors until the late 1990s.
That leaves a lot of people in the dark when it comes to exactly what the currency market is: how it’s organized, who’s trading it, and why. In this chapter, I discuss how the FX market is structured and who the major players are. Along the way, I clue you in to how they go about their business and what it means for your trading in the currency market.
If you believe that information is the lifeblood of financial market trading, which I certainly do, I think you’ll appreciate this guide ...
