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COVER STORY

Market Makers in the 

Currency or Forex Market

Forex market makers are large financial 
companies and banks whose transactions 
make up a significant portion of the total 
volume of Forex trading, giving them 
influence on currency exchange rates. 
Large international banks that trade 
currency worth tens of billions of U.S. 
dollars on a daily basis are usually referred 
to as market makers.

The largest and best known market makers 
include: Deutsche Bank, Barclays Capital, 
UBS AG, etc. A bank’s share in overall 
trading volume is more important than 
its total capital in determining whether or 
not the bank is a market maker.  In other 
words, what matters is a bank’s actual 
ability to influence movement on the 
market by offering its buy and sell prices. 
Even small and medium-sized financial 
companies can be forex market makers. 

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$

$

Large Market Participants

Market Makers

Traders

AAPL

GOOG

GS

BAC

YHOO

Trades

Between

Market

Makers

Market Makers

Trader’s

Tranactions

(buy/sell)