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Speculators

Speculators include everyone who jumps into the Forex market to make some money. They tend to operate under the radar. Hedge funds, individuals with large reserves of money, small investors, and traders all play the Forex market as a way to turn a quick trade into big profits.

Speculators are like the outlaws of the Wild West: They make their own rules. They are not interested in good or bad or how their investment affects individuals. They want to make money, and to do that they determine a currency's true value. They also trade a lot—up to 90 percent of the daily turnover is from speculators. In this sense they are vital to the market. With their relentless intensity, they keep the markets honest. Some writers compare speculators to Robin Hood, pulling down the elaborate veils of power and secrecy governments erect to protect themselves. If the Forex markets are a financial democracy, speculators are a powerful block of voters.


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