As with other transactions, forex trading involves buyers, sellers and intermediaries.While buyers and sellers in this market could be banks, hedge funds, investment management firms, commercial companies and retail investors, the intermediaries are brokers. Forex brokers act as market makers and place bid and ask prices for a currency pair on behalf of a buyer or a seller.
Buyers make money by purchasing a currency at a lower price and selling it later at a higher price. All transactions by individual traders in theforex market occur through brokers. However, most of the forex trade is conducted between banks.
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