so here we'll talk about why market move, what does it mean when market goes in a direction (up or down), who buy, who sell, and why.
first of all, market partecipants.
there are two kind of people:
the speculators, that are retail traders, institutional traders, hedgefunds, investors, banks (some time), central banks (some time).
we are the speculators, we buy and sell currencies (or cfd) because we want to make money.
the commercials, that are the guys who sell to or buy from us.
commercials, or market makers, or liquidity providers (you choose a name) are banks and companies that make the market, basically if you want to buy eurusd, you need to buy it from somebody, right?
well, you buy it from one of those guys (through your broker), so when you are buying eurusd, these guys are selling it to you, in other words the moment you buy, they sell.
fx liquidity providers are mostly banks (google or wikipedia to find out more).
next post will be about the anatomy of price movements, why price moves (up or down) and what does it mean.
first of all, market partecipants.
there are two kind of people:
the speculators, that are retail traders, institutional traders, hedgefunds, investors, banks (some time), central banks (some time).
we are the speculators, we buy and sell currencies (or cfd) because we want to make money.
the commercials, that are the guys who sell to or buy from us.
commercials, or market makers, or liquidity providers (you choose a name) are banks and companies that make the market, basically if you want to buy eurusd, you need to buy it from somebody, right?
well, you buy it from one of those guys (through your broker), so when you are buying eurusd, these guys are selling it to you, in other words the moment you buy, they sell.
fx liquidity providers are mostly banks (google or wikipedia to find out more).
next post will be about the anatomy of price movements, why price moves (up or down) and what does it mean.