Foreign Exchange Markets

Participants in FX Markets

Dealer

Price maker, quotes two-way bid/offer prices

Broker

Price taker, matches bids and offers

Firms trading internationally

Purchases/sells foreign currency from imports/exports

Investors in foreign markets

Purchase currency to invest in foreign markets/ sell proceeds

Speculators

Betting on exchange rate movements

Arbitrageurs

Taking advantage of price differentials

Transaction Timeframes

Maturity Dates

Quotations