Forex Network and Wall Street - A Short And Sweet History
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.
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.
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.
Making money on Forex is a matter of predicting price and using an effective exit strategy. Many systems exist that allow speculators to capture profits as certain conditions develop.
Successful day traders and professional traders predict moves, place their bet and move out of the trade. They do it several times a day, hence the name "day" traders. Huge Wall Street companies like Goldman, Citi Group and JP Morgan Chase do this every single day. They employ thousands of professionals that do it for them.
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. - 23199
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.
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.
Making money on Forex is a matter of predicting price and using an effective exit strategy. Many systems exist that allow speculators to capture profits as certain conditions develop.
Successful day traders and professional traders predict moves, place their bet and move out of the trade. They do it several times a day, hence the name "day" traders. Huge Wall Street companies like Goldman, Citi Group and JP Morgan Chase do this every single day. They employ thousands of professionals that do it for them.
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. - 23199
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posted by X - Men @ 4:54 AM
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