Hello everybody. Every transaction in Forex has a counter party. So it is possible to profit in Forex when there is a losing side of your transaction. The losing side can be a speculative player or a non-speculative player. A non-speculative player cares less about the price, he generally needs to exchange one currency into another (like the tourists who visit foreign countries, etc). So the bigger the volume of non-speculative money in forex the easier to profit for speculants, as non-speculative players care less about the price and they easier accept worse price. In this case does anyone know what % of money involved in forex is speculative? thanks.
- #4
- Sep 9, 2008 1:21pm Sep 9, 2008 1:21pm
- Joined Jul 2007 | Status: 33 y/o Investor/Trader/Programmer | 5,016 Posts
- #6
- Sep 9, 2008 2:41pm Sep 9, 2008 2:41pm
- Joined Jul 2007 | Status: 33 y/o Investor/Trader/Programmer | 5,016 Posts
- #8
- Sep 10, 2008 12:52pm Sep 10, 2008 12:52pm
Almost all of it is speculation.
"...Unlike the various bond and equity markets, the Forex market is not generally utilized as an investment medium. While speculation has a critical role in its proper function, the lion’s share of Forex transactions are done as a function of international business..."
http://www.forexfactory.com/showpost...16&postcount=2
and onother opinion on this topic by one senior member :
"....you need to understand that forex speculators only make a tiny percentage of the daily trading volume.... Darkstar's sticky on "the structure of forex brokers" shows that most trading is done by banks (pushing economic agendas) and corporations (exchanging salary payments to a global workforce.) this is important because it introduces chaos not found in normal free markets...."
http://www.forexfactory.com/showpost...90&postcount=7
so I am confused when you say "Almost all of it is speculation"
Maybe some senior expert can clarify this question.
They can’t. Not factually, anyway, because the spot forex market is decentralized, so there isn’t any way for anyone to measure that.
But there are maybe indications from authority sites like Investopedia, which assess the speculative volume at various different figures all above 90%. Still only guesses, though.
I see the thread’s 18 years old, though it was bumped a couple of days ago. Which perhaps shows that it’s still an interesting, long term question?
(And since this is my first post here, Hello from a new member, also! I hope this will be friendlier than the last forum I tried ...
).
Hello from a new member, also! I hope this will be friendlier than the last forum I tried ...
I’m about 17,000km away from you, but I hear you, there: I also left another forum and joined this one because of rudeness, aggression and frankly disgusting behavior at the previous one.
The worst that’s happened to me here, so far - 8 months but only 12 posts later - was wrongly being accused of being two(!!) other people, but I’ve since found out that many, perhaps even most, new female members here get such aspersions cast. They’re temporary, and you can always put such people on your ignore list anyway.
Looking forward to hearing more from you. How long have you been trading?
Only a few months, so far (still very much a student, both at uni and of trading), but now completing and finally close to passing one of those funding evaluations.
