Are FX price movements random chance, and the market a gamble?
A. There are technical and fundamental factors affecting the value of a currency. Most currencies define their price relative to the US dollar. Micro price fluctuations are unavoidable and unpredictable. However there is nothing like a special FX-sensitive event to drive the market all one way — like elections, interest-rate changes, publication of economic indicators, Fed Chairman Greenspan’s speech. Anyone however humble who correctly forecasts the market can make sizeable profits. One day in October 1992, financier George Soros correctly judged the British pound was indefensibly overpriced. He fearlessly sold sterling against the dollar and made 2 billion dollars of profit within a few hours. The FOREX market is so immense no individual can manipulate prices, not even the central banks. But private individuals can correctly identify then anticipate price trends thus making large profits employing small leveraged capital, depositing only 1% margin upfront. Actual price movement of a
