Fundamentals

Forex has a diverse population of participants,ranging from Japanese
housewives to powerful central bankers.The objectives of the partici-
pants differ,and the irindividual actions may have dramatic affects on
the market.It is important to remember that the forex market is an off-
exchange marketplace; there is no central exchange where all orders are
cleared,as on the New York Stock Exchange or the Chicago Mercantile
Exchange.The bulk of trading is done between trading partners on the
interbank;however,small retail traders are unable to trade directly with
partners on the interbank.Therefore,some participants in the forex mar-
ket exist to create a market place for others.Currency dealers create a
market for smaller retail speculators and offset their risk by trading with
their larger partners on the interbank.There is a definite food chain among forex
market participants,with interbank members on top and retail speculators
on the bottom