Talk about paradigm shifts! Since the advent of the high-speed internet, FOREX trading has escalated to astounding levels. With more than 6 million people online everyday, 24/7, investments accounts have increased dramatically. There are more start up firms now as compared to ten years ago and more and more people are getting into the groove with what they now call the “New Economy.” The clear winner? Of course, the customer.
Forex trading is an opportunity, even if it is challenging. Here the there can be above average returns made available to those learned and experienced investors who will be willing to take risks over and above the usual. But, if you are deciding to join the Forex Trading, you should weigh your options and goals in investments. You need to be level headed to gain the experience through risky activities. To join Forex Trading you need to be trained, you need to learn, you need to analyze and you need the funds.
What are Hedge Funds?
Hedge funds are investment portfolios which are aggressively managed using strategies such as leverage, and long and short derivative positions for domestic and international markets. The goal of the hedge funds is to generate high profits amounting to tens of millions or billions.
The Central Banks and the Role they Play on the FOREX
There are several players on the Forex and they all play a role on the markets. One of these main players in the Forex Market are the national central banks who ultimately control the monetary supply and have either an official or unofficial target rates for the currencies they control. Many of these central banks usually have a vast foreign exchange reserves and they have significant powers including interventions. The central banks have a lot of responsibilities, one of the most important of which is the restoration of an orderly market in times of highly active exchange rate unpredictability.