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Hello dear friends! Today we will continue with more deep exploration on the Market Trades and more specifically on the FOREX speculations. Rarely discussed this is one of the topics that I find really important for the achievement of the whole market picture. Why is this you may ask. On first place, every details has importance. Despite the advertisements that FOREX is almost like a game without significant risks I would insist that actually it the World Currency Market is actually so complicated that jumping in “the game” without being aware with all influences you may soon fall into one of the traps that are so hidden that on first sight you will miss them for sure! So, let’s continue below with the explanation of our friends from Wikipedia.org:

Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, many economists (e.g. Milton Friedman) argue that speculators perform the important function of providing a market for hedgers and transferring risk from those people who don’t wish to bear it, to those who do. Other economists (e.g. Joseph Stiglitz) however, may consider this argument to be based more on politics and a free market philosophy than on economics.

Large hedge funds and other well capitalized “position traders” are the main professional speculators.

Currency speculation is considered a highly suspect activity in many countries. While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation does not, according to this view; it is simply gambling, that often interferes with economic policy. For example, in 1992, currency speculation forced the Central Bank of Sweden to raise interest rates for a few days to 150% per annum, and later to devalue the krona. Former Malaysian Prime Minister Mahathir Mohamad is one well known proponent of this view. He blamed the devaluation of the Malaysian ringgit in 1997 on George Soros and other speculators.

Gregory Millman reports on an opposing view, comparing speculators to “vigilantes” who simply help “enforce” international agreements and anticipate the effects of basic economic “laws” in order to profit.

In this view, countries may develop unsustainable financial bubbles or otherwise mishandle their national economies, and forex speculators only made the inevitable collapse happen sooner. A relatively quick collapse might even be preferable to continued economic mishandling. Mahathir Mohamad and other critics of speculation are viewed as trying to deflect the blame from themselves for having caused the unsustainable economic conditions.

Well, short but interesting topic isn’t it? I encourage you to follow the links appearing on this articles to learn more about the persons mentioned in it as well about the specific terms in the article. You can contact me anytime as you know, I will be glad to help or answer any FOREZ related question. Have a successful play!

Wow that’s something interesting I found on the net. I don’t believe that the FOREX market is expanding so fast! Few years ago this was in its very first beginning. Now FOREX is really vital part of our economical system. Anyway, let’s not distract myself and you as well and read below:

(PRWEB) February 2, 2007 — FXYARD LIMITED has gone global with its strategic partnership with ACT FOREX. FXYARD LIMITED, best known as the online forex trading company based out of Nicosia, Cyprus went full steam ahead with this partnership in order to provide international forex investors with a top tier trading platform via the internet. FXYARD, as known by its customers as FOREXYARD utilizes the trading system to automate complex scripts involving the speed of execution, a cornerstone of any trader’s needs.

The company provides its customer a premier choice in forex trading by combining its strategic partner’s technology and execution with the support traders need in order to succeed in the markets. By providing dealing desk access to any and all customers, thereby eliminating the demands made by other brokers for large deposits or volume limitations, FOREXYARD has opened the floodgates to all types of customers.

FOREXYARD actually has customers from nearly every nation in the world as well as a multitude of types of clients, ranging from “supermini” customers with only $100 to invest all the way to customers with investments in the hundreds of thousands of dollars. With the technology provided, FOREXYARD can provide its customers cutting edge technology, real time inter-bank spreads, and the best service available!

For additional information on the news that is the subject of this release contact, Lee More or visit www.forexyard.com

FOREXYARD
Is operates from its headquarters in Nicosia, Cyprus and has branches in Canada, South Africa, Australia, and soon in a number of other countries.

Before we continue digging deeply inside the techniques, the intuition and the market tricks related to FOREX I decided to supply some clarifications on the Forex Scam. Again, Wikipedia helped me to outline some of the most dangerous and tricking techniques that can expose you to ID theft, money loss and even bankruptcy. Let;s outline once again what does “FOREX Scam” means:

“A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to profit by trading in the foreign exchange market. These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits, improperly managed “managed accounts”, false advertising, Ponzi schemes and outright fraud. It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment.The U.S. Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in the non-bank foreign exchange industry.

An official of the National Futures Association was quoted as saying, “Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also increased dramatically…” Between 2001 and 2006 the U.S. Commodity Futures Trading Commission has prosecuted more than 80 cases involving the defrauding of more than 23,000 customers who lost $300 million, mostly in managed accounts. CNN also quoted Godfried De Vidts, President of the Financial Markets Association, a European body, as saying, “Banks have a duty to protect their customers and they should make sure customers understand what they are doing. Now if people go online, on non-bank portals, how is this control being done?”

The highly technical nature of retail forex industry, the OTC nature of the market, and the loose regulation of the market, leaves retail speculators vulnerable. Defrauded traders and regulatory authorities, can find it very difficult to prove that market manipulation has occurred since there is no central currency market, but rather a number of more or less interconnected marketplaces provided by interbank market makers.

Well, this is enough as introduction. Please make sure that you will follow all of the links I have noted in the article, because it is vital to pay closer attention to the details and all associations that are related to FOREX and the markets in general. In the next part of the course we will review closer the most important cases that could cost you much more than little trouble. This is a serious game and we all should be well prepared for everything! Thank you for visiting us and stay tuned for more information.