Within the Gambit of Forex Market Structure, Forex Market players can be also looked upon by the role they played in the market. Some of the main roles are as follows:

Arbitrageurs: The process of taking advantage of a price difference between two markets is called Arbitrage. offsetting positions can be taken in the two markets or derivatives. Arbitrageurs take offsetting positions in order to take advantage of price differences between markets. They may do this so that they don’t get too involved in any one asset.

Hedgers : Hedgers lock in a price for an item, protecting themselves from price fluctuations. for example Hedgers try to reduce the risk of losing money by buying stocks in anticipation of a drop in prices and then selling them when the prices rebound. A hedger usually takes positions in one market in order to hedge an investment in another market.

Betting on the future direction : Speculators Firms or Traders try to make money by betting on the future direction of the market, If there is a chance of making a profit, speculators are willing to bet on it. Since they are not always concerned about the long term implications of their investments, they are often blamed for causing prices to fluctuate unpredictably. Those who bet on the future direction of an asset are called Speculators.