Forex Network and Wall Street - A Short And Sweet Saga
A large number of commercial companies are actively involved in the Forex market. About twenty-five percent of large corporations hedge against currency fluctuations in this manner.
For an US based company, when the dollar is strong during their reporting period, accounting for its foreign earned revenue can result in a negative performance. That's because foreign-currency denominated revenue will exchange for fewer dollars when converted and reflect negatively for the accounting period. Having a Wall Street Journal subscription will help find this data.
By some estimates, five to ten percent of Forex activity is the result of pure hedging activity by governments and business. The rest of trading activity is blatant 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.
Make money in Forex is made by having a formula that predicts price movements of a currency pair. Have an exit strategy that is effective can capture a profit often a few times a day.
Day traders move in and out of trades several times a day capturing a portion of the profit. Large Wall Street companies employ thousands of professional traders that take advantage of daily fluctuations.
There are many financial news services to choose from. The Wall Street Journal's reputation for acute accurate market coverage is legendary. In order to stay abreast of the constantly changing financial landscape, it pays to subscribe to the Wall Street Journal.
For an US based company, when the dollar is strong during their reporting period, accounting for its foreign earned revenue can result in a negative performance. That's because foreign-currency denominated revenue will exchange for fewer dollars when converted and reflect negatively for the accounting period. Having a Wall Street Journal subscription will help find this data.
By some estimates, five to ten percent of Forex activity is the result of pure hedging activity by governments and business. The rest of trading activity is blatant 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.
Make money in Forex is made by having a formula that predicts price movements of a currency pair. Have an exit strategy that is effective can capture a profit often a few times a day.
Day traders move in and out of trades several times a day capturing a portion of the profit. Large Wall Street companies employ thousands of professional traders that take advantage of daily fluctuations.
There are many financial news services to choose from. The Wall Street Journal's reputation for acute accurate market coverage is legendary. In order to stay abreast of the constantly changing financial landscape, it pays to subscribe to the Wall Street Journal.
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