Forex Trading for Bankers and Large Fund Managers

Forex trading for bankers and large funds works on the principle of low to medium risk taking. Being large doesn’t not make a fund any less exposed to risk.

Forex Trading for Bankers and Wise Fund Managers

Forex trading for bankers and fund managers can be based on key proprietary methods and ideas. These people have to take risk to trade the forex market just like small traders do. The risk of getting wiped out is always there, as is the pressure for generating profits. Bankers engage in all kinds of trading, hedged trading and Carry trading strategies. Different bankers and fund managers have many different ideas, just like small traders have. Forex trading for bankers and fund managers will always be somewhat successful. Not because they trade better than anyone else, but because if a bank or fund trader fails, they are replaced in no time. Independent traders on the other hand, no matter how small. Can perfectly match or even exceed the performance of these institutional traders through the use of online CFD trading. These CFD trading platforms, in the hands of competent traders can facilitate very advanced trading, including hedging trades. The net result is better profitability, at the same risk. Moreover, independent traders have more trading secrets and proprietary strategies than any institutional trader. And then, there is the factor of decision making speed. When things go wrong, or market volatility changes too much, trading can become extremely difficult for all. Some banks and investment funds allow their traders to make fast decisions, and propose a change of strategy. But usually, the larger a bank or fund is, the slower such changes are. They still cannot match the agility of the small independent trader.

Forex Trading for Bankers Focusing on Global Affairs

Forex trading for bankers with a strong background in economics and world geopolitical analysis is another way of investing. These traders do forex trading in more complicated ways than forex brokers offer to their clients. They look at all kinds of factors impacting currencies around the world, in the long term. And they can hedge part of the risk, in those trades, through other complicated financial instruments. They use their economics models to model risk, these are not perfect. But in general one can mimic their whole strategy 100% through a good CFD broker, right from their home, and for up to $100 per pip. The difference is in that these bankers invest much more than $100 per pip, hence they have to use other instruments to hedge part of the risk. The big difference between bankers and small traders, is trade size. But as far as trading competence goes, small independent CFD traders are actually ahead in the game. And some of them end up becoming institutional traders themselves. As long as they have good trading records to show, and advanced degrees in those fields of economics.