Forex Traffic and Wall Street - A Concise Run-down
Approximately 25 percent of large companies that are exposed to foreign currency fluctuations don't do anything to hedge their risk. Larger companies however do hedge in the currency markets.
Consider a large company with an international reach when the dollar is strong within the reporting period. You'll find that information within the pages of a Wall Street Journal subscription. Foreign revenues that are large could lead to negative results without market hedging strategies.
It has been estimated that 5-10% of the activity on the Forex market is done because of business hedging and government involvement. Governments and businesses need to convert one currency into another to buy and sell goods and services. The other 90-95% is pure speculation.
Warren Buffet, George Soros and other celebrity players have made fortunes consistently off Forex trades. Speculators love large liquid markets where they can trade in and out of without fear of getting locked out.
Since the currencies are traded 24 hours there are certain times that are more liquid than others for the various currency pairs. For instance, between the hours of 8 AM and 5 PM EST, New York Wall Street accounts for about 15% to 17% of all Forex transactions. On the other side of the globe, 10% of Forex transactions take place between Tokyo's trading hours from 7 PM to 3 AM EST.
The way to make money in the Forex market is by accurately predicting a price movement of a currency pair and investing right before and exiting right after. This usually happens a few times in a day.
Professional Wall Street traders usually use a system that allows them to place trades several times a day. Because they trade several times a day, they are called day traders.
The Wall Street Journal offers newswires and Market Watch services from Dow Jones online. You'll find complete currency data and comprehensive viewpoints to consider. Timely currency news is available to subscribers of the Wall Street Journal. - 23310
Consider a large company with an international reach when the dollar is strong within the reporting period. You'll find that information within the pages of a Wall Street Journal subscription. Foreign revenues that are large could lead to negative results without market hedging strategies.
It has been estimated that 5-10% of the activity on the Forex market is done because of business hedging and government involvement. Governments and businesses need to convert one currency into another to buy and sell goods and services. The other 90-95% is pure speculation.
Warren Buffet, George Soros and other celebrity players have made fortunes consistently off Forex trades. Speculators love large liquid markets where they can trade in and out of without fear of getting locked out.
Since the currencies are traded 24 hours there are certain times that are more liquid than others for the various currency pairs. For instance, between the hours of 8 AM and 5 PM EST, New York Wall Street accounts for about 15% to 17% of all Forex transactions. On the other side of the globe, 10% of Forex transactions take place between Tokyo's trading hours from 7 PM to 3 AM EST.
The way to make money in the Forex market is by accurately predicting a price movement of a currency pair and investing right before and exiting right after. This usually happens a few times in a day.
Professional Wall Street traders usually use a system that allows them to place trades several times a day. Because they trade several times a day, they are called day traders.
The Wall Street Journal offers newswires and Market Watch services from Dow Jones online. You'll find complete currency data and comprehensive viewpoints to consider. Timely currency news is available to subscribers of the Wall Street Journal. - 23310
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posted by Mr. Forex at
2:09 AM
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