Forex Market Participants
The biggest chunk of the market consists of central banks (yes, they do have trading desks of their own) and commercial banks (through their treasury departments they are effectively buying and selling currencies for the day to day operations), large investment houses and institutional players, and retail traders. The latest Internet developments changed the face of Forex trading for good in the sense that online trading spread worldwide and now with a secure Internet connection one can trade these markets. To have an idea about the size of the retail market when it comes to Forex trading, it represents only” 5% of the whole market, so what moves a currency pair is definitely not the action of a retail trader. Robots or expert advisors or trading algorithms are part of this market as well as they are instructed to buy or sell specific currency pairs based on economic events that are about to be released or based on what a specific central bank will do.