4 Types of Market Players in Forex Trading

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4 Types of Market Players in Forex Trading

Do you know who are the players in the forex market?. Before we discuss it further, we first divide several categories of forex traders. The forex market, is a ‘fictitious’ market that has a variety of different people. This difference lies in purpose, needs, behavior, understanding, mindset and much more.

forex market

Some retail traders have a goal to look for profits, and other actors have a goal to secure the value of their assets (hedge funds). And an actor called a big player has a goal for value stability.

Judging from the differences in the actors who have their respective characters, the forex market is the most dynamic market. As a retail trader, players who want to make a profit in this forex market, of course we need to understand the characters of other market players. As in traditional markets, you can see traders offering discounts with the aim of attracting buyers. While on the other hand there are also traders who set high prices with the aim of getting maximum profits. He knew that the item was wanted by the buyer.

So, what are the types of market players in forex trading? Many say there are at least 4 groups of forex market players, including:


Hedger, Is a market player who views the forex market as the right place where they can protect the value of their assets. For those international business people, the forex market is the right place to protect their assets. Then how do you do it? These business people will usually look for assets that have a correlation with the assets they currently have.


Speculators, is the opposite of Hedger. When hedgers view the forex market as a place to protect asset values ​​and reduce the risk of decreasing asset values. Speculators see that the forex market is the right place to seek profits and take risks. As the name suggests, these market participants speculate about the direction in which they believe that an asset will move according to their expectations. If the assets move exactly as expected, they will get profits. If not, the risk of loss that they will get.



Manipulators are actors who have a purpose in manipulating prices. You don’t think negatively first. Manipulators certainly cannot manipulate prices according to their own will. Manipulators are those who try to make prices move stably in accordance with what they want. Who is the manipulator, of course the central bank.

The central bank tries to intervene in the direct forex market with the aim of stabilizing currency values. But keep in mind again, they also cannot directly move prices according to their wishes. The last case is when the BoJ intends to stabilize the value of the Yen when a Brexit Referendum is completed. The value of the Yen was invaded by investors and market players, making the JPY value too high and considered unnatural.


Facilitator, who are they? Yes they are conventional brokers and banks. They are not looking for profit when trading on the forex market. They benefit from service fees where when traders who want to transact in the forex market need services from them.

Now, you already know about the 4 types of market participants in forex trading and their respective goals. As a retail trader, of course we are a type of speculator, who seeks profit by taking risks. So always use the margin level according to the many risks that you dare to experience.

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