Derivatives and the Forex Market

You may decide that one or two of the instruments just described are worth using. You also should know how other players use these instruments and how that plays out in the Forex market.

In late November 2001, I noticed that the yen had been steadily weakening against the U.S. dollar for the entire month. On the third Friday of the month, I was surprised to see the yen move in a strange fashion. It would start gaining value rapidly, and just as it appeared to break out into a higher trading value, it would suddenly fall back to lower levels.