FX Player Types

Question 1

Who are the main FX player types? (Name 3)

Answer 1

• FX Analysts (Buy-Side)
• FX Analysts (Sell-Side)
• FX Trader (Buy Side)
• FX Trader (Sell-Side)
• FX Salesperson
• Central Banks + Governments
• Corporate treasurers

Question 2

What does a Sell-Side FX trader do?

Answer 2

• Facilitate currency trades for clients
• Make markets by providing bid and ask quotes
• Buy and sell currencies on behalf of clients
• Provide market insights to clients

Question 3

What does a Buy-Side FX trader do?

Answer 3

• Buy and sell currencies to support the institution’s strategies/needs
• Analyze macro trends and IR to inform trading decisions
• Work with sell-side to get best exec prices and liquidity

Question 4

What does a sell-side FX analyst do?

Answer 4

• Provide research, forecasts, and trading recs
• Monitor macro trends, central bank policies and IRs
• Advise clients & traders
• Develop models & tools to analyze trends

Question 5

What does a buy-side FX analyst do?

Answer 5

• Carries out research to support internal trading decisions
• Develop models & tools to analyze trends
• Provide trade exec support to traders

Question 6

What does an FX salesperson do?

Answer 6

• Act as main PoC between FX traders and clients
• Generate business by offering pricing, trade execution, and market insights
• Build and manage client relationships
• Advise clients on FX Strategies

Question 7

What does a Corporation Treasurer do?

Answer 7

• Manages a company’s financial assets and liabilities
• Manages cash assets to make sure there’s enough to meet obligations
• Financial risk management