Banking Institutions

TradingKey19 hours ago

Banking institutions serve both the majority of commercial transactions and significant volumes of speculative trading on a daily basis. The range of forex products provided by different banking institutions varies based on their size. Some banks may only offer spot exchange and currency forwards, while larger institutions provide a wider array of products, including currency options, currency swaps, currency futures, and option-dated currency forwards.

A large bank can engage in trading worth billions of dollars each day, much of which is executed on behalf of clients, although some trading is performed by proprietary desks, meaning trading for the bank’s own benefit.

A study conducted by Greenwich Associates indicates that the leading foreign exchange dealers are primarily banking institutions such as Deutsche Bank, UBS, Citigroup, Barclays, and the Royal Bank of Scotland. While the precise percentage of daily global forex turnover attributed to banking institutions is not specified, it is known that Deutsche Bank and UBS each hold more than 10% of the market share.

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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