Central bank is a bank which hold an important role internationally in foreign markets. The central bank in charge on controlling the money supply, ensuring the availability of money and interest rates. Central banks played a big role in the forex trading, and the three largest forex market is in Tokyo, New York and London. This three countries are not trading center, but among the largest of which are involved in the market strategy. Trading in the forex market sometimes will cause banks, commercial investors and central banks suffer huge losses that impact to the investor. But sometimes investors and banks will get a big advantage.
From research conducted, mostly forex trading done in the interbank. Almost 50% of banks activity done in the forex market. The Bank will enter the forex market to gain benefit for their shareholders or get a great barter and deal of the bank’s business, but they also do not forget that still have less money for the small investor that use it to increase the amount of interest paid to accounts.
The movement of the forex trading market is rotating between countries, between the country’s currency and in foreign investment particularly currency. Forex trading market between countries are usually equipped with a broker or finance company. Many people involved in the trade, which is similar to the stock trading market, but the scale of forex trading at the closing much larger overall. Most of the trade do not occur between banks, governments, brokers and a number of small retail trade that took place with people involved in the trade who are often known as audience. What determines the foreign exchange market rose or fell each day is a state of financial markets and the financial condition globally. Millions of dollars are traded every day between many major countries and will also include some amount of trade in these countries that are smaller.
Commercial companies as well as many participating in the forex market. Commercial firms, among others, Deutsche Bank, UBS, Citigroup, HSBC, Braclays, Merrill Lynch, JP Morgan Chase, Goldman Sachs, ABN Amro, Morgan Stanley is actively enter and participate in trading in the forex markets to increase shareholder wealth. Many small companies which may not be involved in the forex market extensively as those who are a big company. But actually the choice and opportunity remains open in the forex market.