How forward markets and spot markets operate in fx market

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Reference no: EM133781077

Problem: Foreign Exchange Markets

Market participants that comprise the foreign exchange (FX) market can be categorized into five groups: international banks, bank customers, non-bank dealers, FX brokers, and central banks. It is important to understand the roles of these components of the FX market to fully understand international finance.

A. Explain the role that each of these five groups has within the FX market:

a. international banks,
b. bank customers,
c. non-bank dealers,
d. FX brokers, and
e. central banks.

B. Provide an example of a market participant for each of the five FX market groups.

C. Describe how forward markets and spot markets operate in the FX market. Be sure to provide examples.

Reference no: EM133781077

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