A while ago, Tianye Jun discussed with friends whether there is a banker in the foreign exchange market, and today Tianye Jun will discuss this issue with you. We all know that there are so-called dealers in stock trading, and retail investors must guess the practice of the dealers, otherwise it is likely to become leeks to be cut.

In our common external publicity, we basically talk about the fairness of the foreign exchange market, that is, the theory of no banker. But after making a trade, traders who are often swept by key positions will wonder whether there is a banker who intentionally did it.

In fact, there are bookmakers in the forex market, and many of them! Those who say "there are no makers in the forex market" are propaganda and misleading with ulterior motives.

By their nature, forex market makers fall into two categories:

A. Country Village

b, the institution

What is National Village?

For the national bank, I believe most people agree that currency is a special commodity. From the time of its birth, its issuer (the national central bank) will make the most basic pricing of the currency exchange rate. The market can recognize this pricing or not, but regardless of whether it is recognized or not, the currency issuer has the ability to directly make a mandatory pricing of the currency exchange rate. If the market does not recognize this exchange rate, the central bank and its government can impose exchange controls or use extreme measures such as politics or even war to force market recognition.

Under the free floating exchange rate mechanism, the central bank and its government have considerable responsibility for its currency exchange rate, and will use various means to make the exchange rate stable to a certain extent. The biggest maker in terms of its ability to influence markets is the US government. Therefore, it is necessary to study the attitude of the US government towards the trend of the dollar.

Of course, National Village has several characteristics:

1, not for the purpose of profit, but mainly to regulate the domestic economy and foreign trade situation as the goal;

2, the country looks very strong, but in fact, it often fails to control, the Japanese government is the most like to intervene in the foreign exchange trend of the government. But history shows that intervention can cause quick changes in the short and medium term, but it is also very likely to be completely swallowed up by market sentiment.

So what is an institution?

The daily turnover of more than $5 trillion in the forex market makes many people overlook the role of institutions, but in fact, many institutions are still very capable.

Some institutions can not only change the exchange rate of a country's currency, but even have the ability to change a country. They hide behind national, class, social, racial, and group interests. Do not think that the daily trading volume of more than 5 trillion US dollars is an unshakable force. In fact, there are many ways for institutions to find the weak points of the market. It was his insight into the differences between the EU and UK economies that beat the Bank of England.

Institutions generally magnify funds and create public opinion to guide the market through leverage effects (Lenovo 98 Southeast Asian financial crisis). Therefore, there is no absolute thing in the world, in the current most popular and classic financial market trading theory, any transaction may lead to the collapse of the market, although the probability of its occurrence is extremely low, such as we often say in case (0.01%), but it does not mean that it will not happen...

The behavior of institutions is full of predatory, is not like to see the state, but on the financial battlefield, who is strong and weak, is not certain. What we do know is that the foreign exchange market, the existence of the makers, they use the most top team and the most technological means in this money game, profit, but also in the 24-hour impact on the market.

Of course, having said that, the essential difference between forex and stock makers is that there is no possibility that one or two institutions can cover the whole world alone, so relatively speaking, the forex market is indeed much fairer than the domestic stock market.

Of course, all fairness in the world is relative, absolute things are in theory, can only be pursued relentlessly, and there is no end