Who Are The Market Participants In The Foreign Exchange Market?

Discussion in 'Forex' started by anniecalvert, Mar 14, 2018.

  1. DepthTrade

    DepthTrade

    Good observation, I saw the same on Wikipedia, then tried to find more information on their trading and couldn't find any. Thought it was kind of strange they'd be taking on risk like that.
    I think my modified list is more accurate.
     
    #11     Mar 14, 2018
    Xela likes this.
  2. hoffmanw

    hoffmanw

    Pretty much most big banks, hedge funds, international companies, big insurance companies and prime fx brokers from every part of the world. I have seen many big banks from Turkey, Middle East, Japan, China, India, Eygpt, etc... are trading against each other. Of course, there are these big traders like Goldman Sachs, Credit Suisse.

    Traders pretty much hate each other's gut. Given them a chance, they would not hesitate to destroy others for their own survival.
     
    Last edited: Mar 14, 2018
    #12     Mar 14, 2018
  3. lovethetrade

    lovethetrade Guest

    No surprise, pure capitalists are always such lovely people.
     
    #13     Mar 14, 2018
    comagnum likes this.
  4. :D:D
     
    #14     Mar 15, 2018
  5. Quiet1

    Quiet1

    Kevin Rodgers's book 'Why Aren't They Shouting?' is indirectly quite good on this. It's more of a wander through how fx trading changed since the 1990s, in particular via technology (he became head of FX at Deutsche Bank). As others have said the list above are all brokers with very little directional betting.
     
    #15     Mar 15, 2018
  6. tomorton

    tomorton


    Any indications of how much trading by e.g. his bank, Deutsche, is at their discretion? i.e. how much of their capital deployed is in trades DB select and how much as directed by their clients?
     
    #16     Mar 15, 2018
  7. Quiet1

    Quiet1

    From memory not discussed much. It sounded as if it was just about all they could manage to keep up with the pace of technological change. And the technological direction was all about the market becoming more and more concentrated among a few big plays and the never ending compression of spreads. I remember he does mention them getting picked off by fast hedge funds and it being a constant battle to avoid adverse selection.
     
    #17     Mar 15, 2018
  8. Quiet1

    Quiet1

    Seem to remember a famous academic(?) paper a good few years ago which examined Citibank's fx trading. It found that they made 100+X% of their profit from the spread, ie they lost on aggregate on positioning decisions they made.
     
    #18     Mar 15, 2018
    lovethetrade and tomorton like this.
  9. lovethetrade

    lovethetrade Guest

    Why do you reckon this is the case?
     
    #19     Mar 15, 2018
  10. Quiet1

    Quiet1

    #20     Mar 15, 2018