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How Do Banks Trade The Forex?
By admin | May 19, 2008
Together the commercial and investment banks represent the cornerstone of the forex market because, as well as trading on behalf of themselves and their customers, they are also the channel through which everybody else has got to trade. In essence when it comes to the question of how do banks trade the forex it is perhaps more accurate to ask how to banks control the forex because they are the primary sellers within the foreign currency exchange market. The commercial and investment banks of course have a special interest in the forex market because they do not simply trade on behalf of their customers, but also trade on their own behalf with the objective of realizing a profit for the bank. The banks possess a special and unique knowledge of the marketplace and, as a result, are able to monitor the activities of other players.
Topics: Business |