The speculators are the major speculators in the forex market.
Banks dealing are the major speculators in the forex markets with a view to make profit on account of favorable movement in exchange rate, take position i.e. if they feel that rate of particular currency is likely to go up in short term. They buy that currency and sell it as soon as they are able to make quick profit.
Corporations particularly Multinational Corporation and transnational corporations having business operations beyond their national frontiers and on account of their cash flows being large and in multi currencies get in to foreign exchange exposures.
With a view to make advantage of exchange rate movement in their favor they either delay covering exposures or do not cover until cash flow materialize. Sometimes they take positions so as to take advantage of the exchange rate movement in their favor and for undertaking this activity, they have state of the art dealing rooms. In India, some of the big corporate are as the exchange control have been loosened, booking, and canceling forward contracts, and at times the same borders on speculative activity.
Governments borrow or invest in foreign securities and delay coverage of the exposure on account of such deals.
Individuals like share dealings also undertake the activity of buying and selling of foreign exchange for booking short term profits. They also buy foreign currency stocks, bonds and other assets without covering the foreign exchange exposure risk. This also results in speculations.
Corporate entities take positions in commodities whose prices are expressed in foreign currency. This also adds to speculative activity.
Banks dealing are the major speculators in the forex markets with a view to make profit on account of favorable movement in exchange rate, take position i.e. if they feel that rate of particular currency is likely to go up in short term. They buy that currency and sell it as soon as they are able to make quick profit.
Corporations particularly Multinational Corporation and transnational corporations having business operations beyond their national frontiers and on account of their cash flows being large and in multi currencies get in to foreign exchange exposures.
With a view to make advantage of exchange rate movement in their favor they either delay covering exposures or do not cover until cash flow materialize. Sometimes they take positions so as to take advantage of the exchange rate movement in their favor and for undertaking this activity, they have state of the art dealing rooms. In India, some of the big corporate are as the exchange control have been loosened, booking, and canceling forward contracts, and at times the same borders on speculative activity.
Governments borrow or invest in foreign securities and delay coverage of the exposure on account of such deals.
Individuals like share dealings also undertake the activity of buying and selling of foreign exchange for booking short term profits. They also buy foreign currency stocks, bonds and other assets without covering the foreign exchange exposure risk. This also results in speculations.
Corporate entities take positions in commodities whose prices are expressed in foreign currency. This also adds to speculative activity.