Who are the participants (players) in the Forex Market?

There’s a lot of confusion and misunderstanding in the market with regards to who exactly are the players that constitute our industry. Some call Affiliates IBs or vice versa, some don’t understand the nature of publisher networks and some can’t really tell the difference between one broker and another, including their modus operandi.

• Traders – most basic unit of the Forex market, these are private individuals, institutions, sophisticated investors and other who actually trade Forex.
• Affiliates and IBs – are those who ‘introduce’ traders to Brokers
• Money Managers (CTAs) – those who manage money on behalf of traders
• Brokers – those who allow traders to access the Forex market

Other than that, there are Regulators, Advertisement Networks (Forex content websites), Software Providers (trading platforms, automatic robot developers, charts, etc.) and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Providers to name a few.

Each player has their own perception of the market, their own interests and business models. Some profit from other’s losses and some gain regardless of result

Bottom Line: Everybody’s making money from Forex except the traders themselves.

Michael