The main participants in the forward markets are __________.

Forward markets are mainly used for trading customized contracts where two parties agree to buy or sell an asset at a future date for a fixed price. The key participants in these markets include commercial banks, which act as intermediaries;... Read More

1 FINANCE MCQS

The main participants in the forward markets are __________.

  • Commercial banks
  • Broker-dealers
  • Investment banks
  • All of the above
Correct Answer: D. All of the above

Detailed Explanation

Forward markets are mainly used for trading customized contracts where two parties agree to buy or sell an asset at a future date for a fixed price. The key participants in these markets include commercial banks, which act as intermediaries; broker-dealers, who connect buyers and sellers; and investment banks, which facilitate large transactions and manage risk for corporate clients. Together, they provide liquidity, price discovery, and risk management in forward contracts.

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