What kind of investors can move FX market?

Discussion in 'Forex' started by neowang, Jul 29, 2009.

  1. neowang


    In stock market, often an investment bank, a hedge fund or even an individual investor is able to move the price of a stock and make money by control the price movement.

    What about FX market? an individual investor is obviously not able to move the price of a currency pair. How about a hedge fund? or a bank? Are they using the same way to make money in FX market as what they do in stock market?

  2. WinSum


    Each Sovereign Government can move their own currency.
  3. neowang


    Through their central bank I suppose? Do they do this everyday?
  4. cls7430


    Commercial Banks, Investment Banks, Central Banks, Trading Institutions, Hedge Funds, Corporations, & Individual Investors as well as Meetings, Interest Rates, Expectation of future interest rates, Geopolitical Events, Economic Indicators, and commodity markets just to name a few.
  5. kxvid


    A hedge fund can do it. Perhaps even an individual speculator on a low volume time with a non major.
  6. neowang


    Have you seen it on the chart?
  7. like the Liberia - Lesotho currency pair? :D
  8. intervention obviously.. and large traders ..same as any other market..
  9. dvmo


    Supply & demand, political changes of the country that belongs the relevant currency, changes of interest rates, international stock news, inflation, changes in international investments, polices adopted by governments/central banks ect...

  10. kxvid


    No. Give me a million dollars in a futures brokerage account and I will move the Aussie 10 pips or more after hours.

    Not against the trend if there is one, but with it. Manipulators go with the general direction of the market, on what otherwise they think would be a "good trade". But due to their huge buying power, they move the market in their favor. This very move entices speculators to take the same position and extend the move. All the while the manipulators are dumping their positions in the market to those speculators. This is rinse and repeat many times daily.

    Since there is no oversight or regulation of the FX markets, manipulation runs rampant.
    #10     Aug 1, 2009