Forex Commerce and Wall Street - A Terse Version
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.
High profile players love the Forex market since they don't get locked out due to 24 hour trading. The huge liquidity allows for easy inexpensive entry and exit points.
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.
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. - 23217
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.
High profile players love the Forex market since they don't get locked out due to 24 hour trading. The huge liquidity allows for easy inexpensive entry and exit points.
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.
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. - 23217
About the Author:
Acquiring timely economic intelligence that you can trust and bet on is foremost on the minds of traders. Secure a Barrons subscription or buy Wall Street Journal subscription now. Barrons, Investors Business Daily and the Wall Street Journal have led the way for unbiased reporting and analysis. Get ahead of the line.
posted by X - Men @ 2:17 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home