FX Market Participants

FX market participants are the various entities that buy and sell currencies to facilitate international trade, investment, and risk management. These include commercial banks, central banks, multinational corporations, hedge funds, currency traders, and individual investors. Banks and central banks influence currency values directly through trading and monetary policy, while corporations use the market to convert currencies for business operations. Hedge funds and traders speculate on currency movements to profit. Overall, these participants create a liquid, dynamic market where currency prices fluctuate based on economic indicators, political events, and market sentiment.