Anyone who exchanges money for a foreign currency when they are away from their home country is said to be trading Forex. Whether it is shopping, transportation, accommodation or food, any expense that you incur while you are in a foreign country is a part of trading. Most people prefer using credit cards to make these payments as it is more convenient. When they do that, the banks are exchanging currency on your behalf.

Business owners who deal with imports or outsource services also trade in Forex. There are many businesses that also outsource their processes or work to foreign countries. The payments made for this purpose are also a part of Forex trading so even such business owners trade Forex. These trades may be day to day or long term and the exchange rates may be in the favor of seller or buyer depending on market conditions.

The biggest Forex traders are the banks. In the interbank market, all banks trade in foreign currencies with the help of electronic networks. Banks also act as dealers for various clients. The percentage of spreads in these transactions is the amount of profit that the banks earn. Even Central Banks trade in order to stabilize the competition in the nation’s economy. The process involves hedging, weakening currency ofr profits or increasing competition and so on. This is done for depreciation and appreciation of currencies in the international markets.

Other Forex traders include investors, speculators, fundamental traders and technical traders. Forex trading involves a wide range of buyers and sellers of different origin. These days the Forex market is accessible by any individual who has an internet connection along with a computer, platform or software for trading and Forex account.