The Forex market involves trading between two countries and it involves currencies of both the countries that is involved. Almost 90% of the trade takes place between governments, banks, brokers and also some little amount involves the retail. The individual who is involved in Forex market is known as spectator. Various financial conditions is what makes the Forex market to go up and down on a daily basis.
Interbank, this is a form of trade in Forex which is done between two banks across the world. Almost 50% of the Forex trading is done between banks Banks use Forex trading to improve their businesses and to earn money for the stock holders. They do Forex trading to increase the money in their kitty.
Even many commercial groups are often involved in Forex markets. Many bigger commercial groups like UBS, HSBC, Citigroup, Deutsche Bank, Merrill Lynch, Barclays, JP Morgan Chase are involved in Forex trading. These bigger establishments fill the 90% of the Forex trading companies, while the rest involves smaller companies. Although there were options for the smaller companies to be involved with foreign exchange only a handful is involved in it. The central banks are ones who play a major role in Forex markets. They control the supply, availablitity of money and the interest rates.
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