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You are here: Home / Archives for Education / Famous traders

The Richest Trader in the World – Billionaire Traders

by Fxigor

Forex is the largest financial market in the world. You would probably know a few things about this fascinating field, where people trade their preferred currencies on an intraday and swing basis. You may be thrilled to know that around 5 trillion dollars worth of transactions takes place daily on forex. Its dynamic nature and plenty of opportunities attract traders worldwide to jump into this ocean of currencies.

 

Well, we have got you. This article has written the success story of top billionaire traders across the globe like George Soros, Carl Icahn, Ray Dalio, David Tepper, and James Simons. It would give you an idea of becoming a professional trader, what mistakes to avoid, and what thoughts to keep in mind.

Billionaire traders are the richest traders in the world who earned from trade assets more than 1.000.000.000 dollars. The most famous billionaire traders are George Soros, Carl Icahn, Ray Dalio, David Tepper, James Simons.

The Richest active traders in the World list are:

  • George Soros (8.3 billion dollars)
  • Paul Tudor Jones II (5.1 billion dollars)
  • John Paulson (4.2 billion dollars)
  • Andreas Halvorsen (3.7 billion dollars)
  • Bill Ackman (1.6 billion dollars)

Investors and active traders are different notions because investors are looking for a larger return over an extended period through buying and holding. Active traders take advantage of rising and falling markets to enter and exit positions over a shorter timeframe, taking smaller, more frequent profits.

The top 10 Richest Investors in the World are:

  1. Warren Buffett
  2. Michael Bloomberg
  3. George Soros
  4. .Carl Icahn
  5. .Joseph Safra
  6. .Thomas Peterffy
  7. .James Simon
  8. .Ray Dalio
  9. Abigail Johnson
  10. Steve Cohen

Please see the video of how the fortune of the richest forex traders grows during the years:

In this video above, we can see George Soros’s net worth overtime in the last 10 years.

 

Top 5 Billionaire Traders in the World

george soros1. George Soros

 

“If investing is entertaining,

if you are having fun,

you’re probably not making money. Good investing is boring.”

 

The richest active trader globally is George Soros which fortune is 8.3 billion dollars ($ 8.300.000.000). Warren Buffet You can read the biography of how did George Soros make his fortune.

George Soros is the first billionaire trader on our list. Regardless of being new or experienced, everyone would have heard about George Soros for being the most versatile and richest trader in the world and how he broke the Bank of England. But what’s the aftermath? Let us shade light onto it.

George Soros used to be a famous hedge fund manager and managed his clients’ money from 1969 to 2011 in New York. His own hedge fund, which he started in 1973, became popular as the Quantum Fund. Though, the event that happened in 1992 changed his life.

He made a bet against the British Pound and created a fortune of $1 billion. After this, he got famous as the man who broke the Bank of England. He also made history for creating such a huge amount in just one day. Fascinating, isn’t it?

He runs his firm and is a founding member of Soros Fund Management, LLC, a hedge fund managing firm. Since its inception, the firm has already generated earnings of $40 billion. They have also started Central and Eastern Europe-focused Open Society Foundations and Quantum Fund, which is said to have a grant of more than $14 billion.

Soros is known to have given its organization the belief to support individuals and organizations worldwide and support the right of equality, freedom of speech, and much more. He also donated $18 billion in 2017 to its foundation to pursue future projects. Soros is also indulged in philanthropy and gives his share to make this world a better place by donating money and sharing wisdom. Traders around the globe widely follow his views and thoughts on investing, trading, and economies.

Though time was not this kind to Soros initially, he was born in a Hungarian family but to avoid getting deported; they took shelter in a Nazi Concentration Camp. At the age of 17, he left the nation to fulfill his dreams and goals. He got started as a railway porter and a waiter at a nightclub in the London School of Economics. And from there, his career started paving the way for the future hedge fund tycoon.

His hard work and dedication prove that no matter what your background is, no matter what your past is, if you have the fuel of passion and the willingness to work hard, you can achieve anything you want. It is on you to make your own fortune!

Carl Celian Icahn - investor2. Carl Icahn

“The cardinal rule is to have enough capital at the end of the day.”

Carl Icahn is another billionaire trader on our list. There are so many traders on Wall Street, but the question is, how many of them succeed? Well, Carl Icahn surely did. His wisdom and intelligence made him an investment icon so much that his comparison with Warren Buffet is not new. Some even claim him to be better and smarter than Warren Buffet!

Icahn was born in a teacher’s family in New York. His uncle M. Elliot Schnall, with whom he was close, helped buy him a seat at the New York Stock Exchange by giving him a loan worth $ 4,00,000. That is what started the history of this typical New Yorker. 

Icahn bought TWA (Trans World Airlines) in the mid-80s. It was the diciest investment that he had ever taken, as the company filed bankruptcy in 1992, though it came out of it just a year later.

Through Icahn Enterprises, known as the holding firm of Icahn, he invested in diverse international and American companies like Netflix, Apple, Revlon, Motorola, Time Warner, Viacom, etc. His witty and timely investments soon made him a fortune of $17 billion, and he became the richest trader in the world.

Traders get fascinated by Icahn’s trading strategies and how he never feared taking a risk and finding profitable opportunities. His trade always worked out the best for him, like magic. Though one should not underestimate his experience and knowledge in this field for just an illusion called a miracle! It was his hard work and dedication.

Carl Icahn is known to have active and aggressive trading strategies. His active trading often led to changes in his investing positions, but that always led to an increase in his stock positions’ value. Just like Soros, Icahn is a philanthropist. He is an economic advisor, too.

He often states a quote to his fellow investors – “Don’t always believe what the market tells you. If you think you’re right, stick to your instinct.”

Ray Dalio3. Ray Dalio

“It is far more common for people to allow ego to stand in the way of learning.”

Ray Dalio is another story of success. He grew up on Long Island in a middle-class family and started his market journey when he was just 12. He used to earn money as tips while being a golf caddy. The turning point was that most of these golfers were working on Wall Street, and that’s how he started feeling interested in the realm of the market.

In 1975, he got the degree of MBA from Harvard Business School and launched Bridgewater – his company he started from his two-bedroom house in New York! The company got successful in the 80’s era, and in 2011, it became the largest hedge fund in the world. Bridgewater currently handles assets worth $160 billion. Ray Dalio’s own net worth is $12.5 billion.

Another interesting story about him is that he predicted the Global Financial Crisis in 2007. He explained the same in his essay “How the Economic Machine Works: A Template for Understanding What Is Happening Now.” In addition to his essay, his book – “Principles” is also trendy among the traders and investors in which he goes into philosophy after his investment moved. He also dwells on his experience of self-analysis and corporate experience.

Many of his principles resonate with the young generation of traders and business people on how they should keep their authenticity, integrity, listen around, and observe the events better at their job. He says that money was never a driving force for him in his book, but it led to an exciting and memorable life for him.

Ray Dalio believes in sharing his success story with other traders and investors. He has also donated more than $700 million for different philanthropic moves. His Dalio Foundation also provides support to inner-city education, nature conservation, and microfinance.

david tepper trader4. David Tepper

“I think people should be self-reliant. You should work and be self-sufficient. That’s what I did.”

If we are talking about billionaire traders, how can we forget, including David Tepper, aka the world’s greatest hedge fund manager!

He was born in 1957 in Pittsburgh, Pennsylvania. He completed his graduation with Economics honors, after which he initiated jumping into the world of investment. Yes, at quite a young age. His career started as a credit analyst who helped him understand the concept of investment and management. He also learned deeply about the credit structures of troubled companies.

His forte of selecting a distressed company and converting it into a profitable one is what made him so famous. He did the same with bonds, buying bonds from banks on the edge of getting bankrupt around the ’80s. But when those banks sustained the bond market crash, he ended up making a fortune over his thoughtful investments.

In the ’90s, he founded the popular hedge fund company, Tepper’s Appaloosa Management, which handles more than $15 billion.

Just like other richest traders in the world, Tepper too is known beyond the world of stocks. He is involved in giving his fair share back to society by activities like donating to schools, universities, academic institutes, and sponsoring scholarship programs for students.

jim simons teaching5. James Simons

“Past performance is the best predictor of success.”

James Simons is a known and very intriguing figure on the billionaire traders list. We wrote intriguingly as Simons is a hedge fund manager and a mathematician, and a quantitative investor. He is famous for his work on pattern recognition and string theory development. He is also famous as the world’s smartest billionaire.

He was born in Newton, Massachusetts, in 1938. He worked at a garden supply store when he was a teenager. Though with his determination, hard work, and curiosity to do something, he earned a Ph.D. in Mathematics at 23.

He started a team consisting of professors, engineers, and scientists to fulfill his passion for mathematics and trading by building an algorithm that could predict a change in any financial instrument price. And, that is what we can call the foundation of Quantitative Analysis.

Simons has also founded Renaissance Technologies, which earned him the tag of the world’s richest trader. The company is a very famous hedge fund managing firm across the globe.

James Simons has expertise in finding patterns using mathematical models. It has also helped him analyze hedge funds with top mist accuracy. He is truly a talent overachiever. His love and passion for mathematics can be seen in his investment techniques and strategies as well.

His philanthropic work includes donating $2.7 billion for various good causes. His net worth at present is said to be around $20 billion.

Conclusion

“There is no real substitute for common sense except for good luck, which is a perfect substitute for everything.”

The common thing we saw among these top 5 richest traders in the world is their passion and knowledge about this realm. We hope that our list has helped you in getting inspiration and provided you with insightful stories. These billionaire traders are self-made and have made their empire from scratch with their hard work, consistency, and never give up attitude.

With the evolution of the financial market, many online platforms are also available now for forex trading. It also makes it easier for common people and small traders to enter the market and hold their position. With the digital era and a plethora of information and research papers available, one can learn how to trade with ease. It also inspires individuals to taste their knowledge of this field.

Whether you are a new trader or an experienced one, the ultimate goal remains the same – to earn a profit. But in the end, doesn’t everyone want to be a millionaire trader? You would like to see yourself as the richest trader in the world at some point in time, right?

As a trader, you can learn a lot by observing such successful traders and investors. Their experience, knowledge, and learnings are vital and fascinating. They teach us that money can not be made overnight; you work hard over the years. An overnight success, too, would miracle after years of dedicating your life to your goals. We hope that this list would come in handy to you, and you get success on your path to becoming another successful trader. Who knows, the next time, you might be on our list?

Filed Under: Famous traders

Forex Trading Mentors in South Africa

by Fxigor

Forex Trading in South Africa is prevalent, enabling many young minds to pave their way to success. Many may believe that Forex Trading is a hazardous business as there are chances of losing a huge sum of money in just a matter of seconds. For many, Forex Trading has been a gift being able to make huge profits in a small period. Some are born with the art of multiplying their funds by making Forex Trade, and many have learned through experience. Below mentioned are some of the details of these top FOREX TRADING MENTORS IN SOUTH AFRICA.

Forex Trading Mentors in South Africa are successful traders that decided to share strategies and knowledge with other traders. 

Top Traders and Forex Trading Mentors in South Africa:

SANDILE SHEZI forex trading mentor program:

He started investing in foreign exchange at a very tender age with money received for tuition. To this day, he is the most successful Forex Trader in the country. He used to live in the ghetto and attended school. One day, he decided to take the considerable risk of investing all the money he had in Forex Trading. This investment made him very successful, and slowly he came to be known as one of the most prominent traders in the country.

Sandile Shezi now owns the Global Forex Institute, wherein he trains young minds regarding the forex trading methods. He also runs a foundation known as the Sendile Shezi Foundation, which is very popular in South Africa. This organization is especially working to provide South African people with proper education, health, and wealth.

GEORGE VAN DER REIT:

George was born in the capital, Cape Town, then later decided to do his further studies in Manchester. Here he took Finance as a study and gradually came closer to the trading world. He had worked in a bank and then joined the Forex Industry, where he got enlightened to the trading world. George slowly started making it big in the Forex industry and today is one of the most professional individuals in the industry.

To this day, George leads the Forex industry, and along with other top trading, mentors help young minds in the country learn to trade.

REF WAYNE forex trading mentor program

He is among the most popular names in the Forex trading industry in the country. He has been able to divert his knowledge about trading to form a business and earn huge profits. Ref Wayne had practically no career development opportunities while growing up, which made him focus completely on Forex trading. Slowly this became the main force that drove Ref Wayne to success, and today, he is a multimillionaire. He was a multimillionaire at the age of 22, which is amazing.

Ref Wayne is the first person in South Africa to create a cryptocurrency. The name of this cryptocurrency is Pip Coin, which and is very popular in South Africa.

Filed Under: Famous traders

Richest Forex Woman in South Africa

by Fxigor

As we look at Forex trading, which many online entrepreneurs have benefited from, you’ll realize from our today story that it is not just a scam, but a real way of making money online. Forex trading is done worldwide, so if you get a question today of which woman in South Africa could be the riches forex trader, would you answer? Well, that’s what we shall look at entirely in this article.

So, who is the richest Forex Woman In South Africa?

Richest forex woman in South Africa is Nobuhle Catherine Anajemba. Her education is not related to financial markets as she holds a degree in media. However, Nobuhle Catherine Anajemba based on internet websites Nobuhle Catherine Anajemba net wroth is around R100 million in 2018. year.

Breaking the circle prevents hasn’t been such a simple task, but a dedicated person like Nobuhle Catherine Anajemba always makes it through. So, the only question we should be asking now is who is this Nobuhle Catherine Anajemba, and how did she manage to hold “Elite” Status? As online marketing and business are taking root, people seek to make quick money without clearly understanding the effort and struggle involved.

This section brings us back to a well-known 24 years south African Nobuhle Catherine Anajemba accolade with “Elite Status” to surpass the $1 million thresholds in assets. According to the 2018 report, she had a net worth of R100 million. She has been captured as an iconic figure and an inspiration to individuals with dreams of investing in forex trading. However, many of her counterparts fear here because she is too aggressive towards forex trading.

ABOUT NOBUHLE CATHERINE ANAJEMBA

She was having been born for the dusty street. Hence, Emnambithi, Uthukela, KZN, Nobuhle dreamed of a feature where she could make life better and break the circle of poverty that was circumnavigating her family. She is a graduate of Boston City campus with a Diploma in Media, and a hunting job was another work altogether.

So, she traveled to the city to fight for her survival from where she got into what we call “Airtime and eWellat scheme.” The scheme mainly involves creating media accounts and inclusion of sexy and eye appeasing pictures, and videos are included. As men get attracted and seek to establish a long-lasting relationship, they become victims.

By sending some credits which are later turned into cash, the schemers get something to take home. The truth is that schemer never turns up, making it a perfect business. According to Nobuhle, they could get R100 until time changed everything.

HOW DID NOBUHLE CATHERINE ANAJEMBA START FOREX TRADING?

It all started in 2015 when she posted a video of a famous Forex more tired on her social media page; this video still exists here Facebook. Out of the 23000 followers, she inquired about their opinions on Forex trading even though she wasn’t interested. However, here first referral earned her R1000, which was far much better than the R100 she used to get from her previous anonymous business.

It’s the page she used on the olden days that she change into Women in Forex and she had been managing it anonymously because some according to her statement, some guys were still waiting for hook up as promised. However, she says, here, former business saved her from many things. But as she rooted in forex business, she scolded her identity. This person lived in Sandton, and they were sure of earning much until the hope becomes an imagination as the person never paid them as she and Faith, a close friend of her expected.

However, she got some interviews to venture into forex trading, so a friend of hers, known as Owen, trained her about all the tips tricks, ups, and downs of Forex trading. As a dedicated person with a hope to make tomorrow better, she officially ventured into Forex Trading in 2016.

WHAT MADE HER SUCCESSFUL?

Sometimes you don’t need to stay in your comforts zone because you’ll never feel the gap. And this is the step taken by Nobuhle as she joined the Multilevel marketing (MLM) in the year 2018. Having some good leadership qualities, she managed to get Diamond 4 in four days, Diamond 5 in 14 days, Diamond 6 in two months, and Diamond 7 in four months, which is considered a 32-year history and she has held that record up to today.

From this smart dealing, she started farming in an R15.8milliion farm that is rumored she might have paid in cash for the farm situated in Mpumalanga province. Today is known as the “boss lady,” Nobuhle, who is also the founder of Women in Forex Global (WIF), which mentors many young entrepreneurs seeking to make good money through forex trading.

Unlike the in-person training, as many people do suggest, she carries out all her training online, and telegram has become here office from which she meets clients and able-minded entrepreneurs. WIF does more than just forex training; to be more specific, it trains mentors and trains people in Crypto Currencies and Binary Option.

Furthermore, there are other Women in Forex subsidiaries which provides a signal subscription for those forest traders that aren’t making much profit . from her company, many young entrepreneurs that trained under her guidance have thrived and made good money, a clear indication that indeed she is good at what she does.

NOBUHLE CATHERINE ANAJEMBA NET WORTH

It’s not clear today how much she is worth, but as of 2018, she had already worth R100 million. For here, age and struggle, this something amazing and surely, Forex can be a better way of making some great money within a short period. But with her effort and commitment, she broke the circle of poverty, and currently, she is very popular in South Africa. It is clear from her success that poverty and financial instability aren’t a fixed state, and anyone can overcome that situation and make life better.

CONCLUSION

Now when it comes to forex trading, there much more to learn from Nobuhle as she is currently a high profiled Forex trader and knows the ins and outs of Forex. With her motivating and is an inspiring story, many people have been inspired and become successful through training and coaching as she takes advantage of the online platform to teach her customers. So when looking for the richest Forex woman in South America, then stories of Nobuhle success won’t miss in your search result because she appears in several manages and online writings.

Filed Under: Famous traders

What is Forex?

by Fxigor

Whether you are a trader or not, everyone has heard of the term ‘Forex Trading.’ Trading or exchanging currencies with the hope of making a profit is not a new concept. In 1982, investors realized the potential of exploring currency variations, and the first currency pair was traded. Controlled by a few professionals at that time, Forex trading has come a long way. Today, it is an open market where millions of traders, both novice and experienced, use currencies’ fluctuating strength to make a profit.

Forex is recognized as the marketplace that allows you to engage in the trading of many diverse types of currencies of the world’s nations. The forex market is considered to be the market that is the largest one on the globe at this present time that provides the highest level of liquidity as a result of the many trades being conducted in the number of trillions of dollars daily. For this market, it is noted that there is no existence of a location that is centralized. Instead, the forex market is set up to function as an electronic network that connects banks, institutions, brokers, and personal traders who conduct trades primarily via the usage of banks or brokers. So, what is forex?

Forex definition:

Forex or foreign exchange is the largest and most liquid asset global marketplace for exchanging national currencies against one another. In the foreign exchange process, traders change one currency into another currency for commerce, trading, or tourism. The forex trading market is open 24 hours a day, five days a week, except for holidays. In the trading industry, traders attempt to profit by buying and selling currencies by speculating (predicting) on the direction currencies are likely to take in the near or distant future.

Forex is simply exchanging the currency of one country for the currency of another country. Generally, when you need to travel abroad, you need Forex. You give your home currency to the exchange and use its value to get the country’s currency that you are visiting. For example, if you live in the United States of America and wish to visit France, you will give USD to the exchange and get France used.

Such an exchange is done for a practical purpose. This is how many companies work with overseas clients, individuals, and even central banks to convert currencies. When the same exchange is done with profit-making motives, we call it trading. Forex is also known as FX trading and foreign exchange. Most traders are engaged in FX trading, averaging the daily trading at $5 trillion. Let’s explore the term ‘Forex trading’ further.

Currency needs are experienced by many people and organizations, such as personal investors and financial agencies. These people and organizations may conduct speculations regarding the movement of a designated pair of currencies. They place their orders to purchase and sell currencies via the forex market to have interactions about other orders regarding currencies that have been placed by other people and organizations.

What is Forex Trading?

In general, forex trading represents the conversion of one currency into another. Forex trading as a business represents a process when a network of sellers and buyers transfers or exchanges currencies among themselves at an agreed price with the hope of gaining from it.

Forex is a volatile asset, with some currencies having more momentum than the others. This volatility of currency depends on the amount of currency that is being converted every day. Volatile currencies are desirable as they offer an increased scope of making profits. However, one must keep in mind that volatility furthers the risk involved in trading.

What is the forex market?

So, let we see forex market meaning, forex market definition:

The forex market is a global network of computers and brokers worldwide, and it can be divided into the interbank markets and the over-the-counter (OTC) market. The interbank market is a market where large banks trade currencies on behalf of clients. The OTC market is a market where individual traders trade through online platforms and brokers.

Foreign exchange is made every single day. Ordinary people and business owners convert currency when they pay for goods and services abroad. For example, if you buy some products from the UK in GBP, you need to convert your dollars to buy that product. You did a foreign exchange.

But if you are a trader, you use a platform for buying and selling currency pairs, and you are part of the (OTC) market.

Working of Currency Markets

Forex trading takes place directly between individuals or parties. There is an over-the-counter, or OTC, which is different from the exchanges used for commodity or share trading. Legal Forex trading is highly regularized and is run by an international network of banks. There are four major Forex trading centers in the world in different time zones. These four time zones pertain to London, Sydney, Tokyo, and New York. Forex trading takes place 24*7 as there is a lack of a central location.

Types of Forex Markets

Depending on the types of exchange and contacts, Firex markets can be classified into three categories. These are:

1. Spot Forex Market

This includes the exchange of physical currencies. This exchange of a currency pair takes place on the spot, i.e., within a short period of time. The rates are agreed upon, and the exchange is made. Nothing happens at a later date.

2. Forward Forex Market

In this, two parties enter a contract where they agree to trade a fixed amount of Forex later. They set the exchange price and the date(s) on which the exchange will occur. No trade happens on the spot.

3. Future Forex Market

A futures contract is similar to a forward contract. The parties fix the prices, terms of exchange, and date on which the trade will occur. The most important difference between the two is that a futures contract is enforceable by law.

Understanding Currency Pairs

In FX trading, currencies are exchanged in pairs. Every trader selects a currency pair before entering the market. The first currency of the pair is called the base currency, and the second one is known as the quote currency. Traders have to sell one of the two currencies and buy the other one. A currency pair’s price is determined by how much a first currency unit is worth when converted to the quote currency.

The currencies are represented by three letters; the first two for their respective regions and the third one stands for the currency’s name. For example;

  • GBP – Great Britain pound
  • USD – United States dollar
  • SGD – Singapore dollar
  • JPY – Japanese yen, and more

The currency pairs are formed by using these codes of two countries. For example, if you are trading the Great Britain pound and the US dollar, the currency pair will be GBP/USD, with GBP being the base currency and USD being the quote currency.

The Currency Pair

Forex trading is based on buying one currency while selling the other. Let’s see what this is and how this is calculated by taking GBP/USD as our currency pair example.

Let’s assume that it is trading at 1.35361. Since GBP is the base currency and USD is the quote currency, we will say that 1 GBP is equivalent to 1.35361 USD.

The value of the currency pair depends majorly on the base currency. In this example, if GBP strengthens and its value increases against USD, the entire pair’s value will increase. In this situation, traders buy the currency pair. It is called holding a long position. Similarly, if GBP’s value decreases, traders will prefer to sell the pair by holding a short position.

Types of Pairs

While you can trade almost every currency, some currency pairs are more popular than the rest. It may be because of their value, volatility, or other aspects. To avoid any confusion, these currency pairs are classified into types. You can choose from the following:

Major Currency pairs

More than 180 currencies are traded globally, but only seven of these currencies account for 80% of the overall trade. The currency pairs made by these currencies are called major pairs, including EUR/USD, GBP/USD, USD/CAD, AUD/USD, USD/CHF, and USD/JPY.

Minor Currency Pairs

These currency pairs may not be traded as frequently as the major currency pairs; these are still considered important as they feature prominent currencies. The lack of popularity is because these currency pairs are exclusive of USD. Some of the minor pairs are EUR/CHF, EUR/GBP, and GBP/JPY.

Exotic Currency Pairs

These are the currency pairs where a popular base currency is paired with a quote currency from an emerging or small economy. For example, GBP/MXN (Sterling vs. Mexican peso), USD/PLN (US dollar vs. Polish zloty), and more.

Regional Currency Pairs

These are the pairs that belong to a region, such as Australasia and Scandinavia. Some of the currency pairs are AUD/NZD, EUR/NOK, and AUD/SGD.

Factors That Affect the Forex Market

Since there is no central location where the trade occurs, predicting the price movements can be challenging. Understanding the strengths and weaknesses of a currency is more difficult than predicting the price movements of stocks and shares. Many variables need to be considered. Although, just like other assets and securities, Forex is also influenced by supply and demand. Therefore, it is important to understand the supply-demand, which can be done with the help of the following:

Central Bank Policies

The central bank of a country controls the currency supply. It makes certain policies and takes measures targeted to influence the strength of the currency. For example, quantitive easing is done to drop the price of a currency. It involves pushing more money in the country, hence, decreasing the demand.

News Reports

You cannot write an email to the country’s president if you have doubts about the currency. To know whether you are putting your money in the right trade or not, you need to know more about the economy and its strength. You can economy-related information from the news reports. Positive information increases demand the currency as more people are willing to invest. This will increase the price of that currency, given that there isn’t a parallel increase in the supply.

Market Sentiment 

Market sentiment, a reaction to the news report, plays an important role in deciding a currency’s price movement. By buying or selling a currency in large numbers, traders can convince others to follow their footsteps, thus, driving the demand in their chosen direction.

Economic Data

Every country releases economic data that is integral to fundamental analysis. This data is crucial when it comes to analyzing how the country is performing. This is crucial for traders, facilitating them while understanding the central bank’s next move.

For example, let’s suppose inflation has risen above 2% in the Eurozone, which the ECB wants to maintain. This can be done by increasing interest rates. Traders can use this information, and they will buy more euros with the hope that its price will increase.

Credit Ratings

Every investor wishes to maximize profits while minimizing the risk involved. They would not want to invest in the currency of a country that has a poor reputation when it comes to repaying debts. Therefore, they will look at the country’s credit rating. Higher credit ratings are associated with lower risk.

Making the Trade

You can trade Forex in various ways, but they all include buying and selling currencies simultaneously. Forex trading was only done via brokers in the initial years, but the shift from offline trading to online trading has brought a significant change to the status quo. Now, you can take advantage of price movements without being dependant on anyone. CFD trading is one of the derivatives that you can use for the same.

CFDs allow you to open a position without complete investment. As these are leveraged products, you can move ahead by employing a fraction of your trade’s complete value. Leveraged products do not give you ownership of the assets. You can simply open a position based on your calculations about the market movements.

Keep in mind that leverage open doors to both profits and losses. Think of leveraged products as borrowed money that you have to return irrespective of whether you make it again or not.

Forex Trading Spread

When it comes to assets, we always pay more when buying them and getting less when selling them. The same applies to Forex as well. When you open a long position, that is, buy a currency, you pay more than the market price of the respective currency, but when you open a short position, that is, sell a currency, you get less than its market price. This difference between the buying and the selling prices is called the spread. The tighter the spread, the higher the profit.

A Lot in Forex Trading

You might be trading a few units of currency, but in reality, they are traded in lots or batches. The standard size of a lot is 100,000 units of the first currency. This is too much for an individual trader. This is why most of the Forex trades are leveraged.

Forex lots

When there is the conducting of trades on the forex market, this happens in lots. They are referred to as being micro lots, mini lots as well as standard lots. A micro lot is categorized as being a value of 1000 of a particular currency. Then a mini lot is categorized as being a value of 10.000 concerning a designated currency. Finally, it is noted that a standard lot is regarded as being a value of 100,000 of a particular currency. This is not the same as when you enter a bank to conduct the transaction of exchanging four hundred and fifty dollars for a trip. In such cases where there is the conducting of trades on the forex market, which are done electronically, set blocks of currency are applied for the trades’ placement. However, you can conduct the trading of any number of blocks according to your desires and preferences. For example, consider that it is possible to conduct trades for seven micro-lots, which would be a total of seven thousand, or three mini lots for a total of thirty thousand. Or you can also conduct trades of seventy-five standard lots for a total of seven hundred and fifty thousand.

Size of Forex

It cannot be denied that the forex market is distinctive from other markets. This is due primarily to its massive size. Normally, the volume of trading that is conducted here is ultra-large. For example, the Bank for International Settlements indicated that the daily average of trades was noted as being over five trillion dollars back in April of 2016. London, Singapore, Tokyo, New York, Sydney, Hong Kong, and Frankfurt have been deemed the largest foreign exchange markets.

Leverage in Forex

Since currencies are not traded in small batches and paying a huge amount is impossible for every individual, trades are made by employing leverage. It allows you to operate a larger amount in the market by investing a smaller amount. It means that you are not expected to pay for the full value of trade upfront. You have to keep a minimum deposit with your broker, also known as margin, based on which you can open a position with a larger amount. When a position is closed, you take home the profit or loss that you made on the amount that you were operating in the market. Let’s understand each of these components:

Margin: Margin is a prerequisite for availing leverage. This is the minimum deposit that you have to keep with a broker while opening an account. You will get leverage on this deposit, and it needs to be maintained till you close a position or an account. The margin amount requirement differs from broker to broker. It could even be as low as $100.

Leverage Ratio: Leverage ratio decides how much you can operate in the market by your margin amount. For example, let’s assume that a broker offers you a leverage ratio of 1:10, with $500 being your minimum deposit. A leverage ratio of 1:10 means that you can operate $10 in the market for every dollar you deposit with your broker. In over case, you can operate 10 times $500, that is $5000. This ratio is also subjective. The broker decides it.

Pips in Forex

A pip is the smallest change in the price of a currency pair. This change takes place at the fourth decimal place of the price. For example, if GBP/USD is currently priced at $1.34351, which moves to $1.34361 tomorrow, we will say that this currency’s price has increased by one pip. The units after the fourth decimal place are called pipettes or fractional pips.

The rule of considering the fourth decimal place is overlooked when the quote currency is in a significantly smaller denomination, like in the EUR/JPY currency pair. For this pair, we consider the second decimal place as one pip. For example, if the prices move from ¥106.472 to ¥106.482, it will be regarded as one pip movement.

Frequently Asked Questions

Q1. Who regulates the Forex market?

Since there is no central office where the trade place and this market operates 24/7, no one agency or authority can regulate this expansive market. Several individual regulatory bodies regulate Forex trading of their respective countries.

Q2. What is the volume of daily Forex trading

Forex trading is a very active market with a 24/7 engagement. The approximate worth of daily transactions is $5 trillion, equivalent to $220 billion an hour.

Forex trading time

The forex market operates twenty-four hours per day for five days each week. But it is to be noted that these operational hours do not apply to holidays. Yet, the reality is that there may be the conducting of trades for some currency types during a holiday time in such cases that the country or global market is regarded as being open for the sake of business purposes.

Those who are retail traders have the option to engage in opening an account on the forex market. They are then equipped to conduct the purchasing and selling of various currencies and trade two currencies against each other. The difference in the price that the pair of currencies purchased or sold for will determine if there is the provision of a profit or a loss.

There is another manner in which participation in the forex market can become a reality via forwards and futures. It is noted that there is the customization of forwards regarding currencies being exchanged following times of expiration. On the other hand, it is not possible to apply any form of customization to futures, and they are more widely applied by those who engage in conducting speculations. At the same time, it is understood that the positions frequently experience closure before the expiration time to prevent the formation of a settlement.

It is comprehended that the market in the financial sector, which is ranked as being the largest on the globe, is recognized as being the forex market. In general, retail traders do not desire to conduct the complete sum of currency for which they are conducting trades. They rather desire to profit concerning the differences between the various currencies over a span of time. Since this is the case, brokers conduct the rolling over of placements daily.

Pairs and quotes for forex

You can learn more about How To Read A Forex Quote in our previous article. When there is the conducting of trades in various currencies, pairs are used to list the currencies. Some examples of this include USD/JPY, EUR/USD as well as USD/CAD. It is noted that such listings provide a representation of the US dollar compared to the Japanese Yen, the Euro compared to the US dollar. Finally, the US dollar compared to the Canadian dollar.

Foreign exchange in modern times

The fact is that the forex market operates twenty-four hours per day for five days per week within the context of key centers of finance around the world. This denotes the reality that you can conduct the purchasing and the selling of currencies at your preferred time during the week.

From the historical perspective, it is realized that in past times, trading regarding foreign exchange was only made possible for hedge funds, major corporations, and governments. However, in modern society at this present time, it is rather easy to conduct the trading of various currencies with simply the click of a mouse. Therefore, access to the ability to trade on the forex is no longer a complex problem. This means that anyone who desires to engage in the conducting of trades on the forex market has the opportunity to do so. A wide range of banks offers individuals the opportunity, investment agencies, and retail forex brokers to engage in the opening of accounts for the sake of conducting trades of various forms of currency.

In such cases that you conduct trades on the forex market, this means that you are conducting the purchasing or selling of a designated type of currency for a specific nation about another form of currency. However, it is noted that no exchange of physical money transpires between two entities. This is what takes place at a kiosk that deals in foreign exchange. But since the forex is an electronic market, traders normally make a placement regarding a designated form of currency, hoping that there will be the experiencing of movement in the upward direction that would strengthen the currency that they are purchasing for the sake of obtaining a profit. Or if they are selling, they would hope for a weakness in the other form of currency to profit.

During the conducting of trades, there is the trading of a particular type of currency in correlation to another form of currency. This is always the case. When you conduct the selling of a type of currency, you are, in actuality conducting the purchasing of another form of currency. In terms of the trading world in the electronic realm, there is the achievement of a profit that is based on the differences in the prices of the currencies for which you conducted transactions.

Filed Under: Famous traders, FAQ

How Did George Soros Make His Fortune?

by Fxigor

One of the most intriguing traders on the planet is George Soros.

In this text, we will see important steps and decisions and how George Soros made his fortune.

George Soros made his fortune because of many excellent decisions at the right moment, such as the right education, school choice, the right moment to create his own company, cooperation with Stan Druckenmiller, and investing in currency markets the moment when governments make bad decisions.


Step 1: George Soros got survival skills during the War

George Soros’s Jewish father, Tivadar Schwartz, was a prisoner in the first world war, the Russian revolution, and escaped Russia to reach his family in Budapest, Hungary. Soros was born on 12th August 1930 in Budapest. To avoid problems related to their Jewish religion, his father changed their last name from Schwartz to Soros. During the Nazi occupation, Soros experienced the increasing persecution of the Jews. To help people escape from the Hungary Nazi holocaust, he helped his father in forging documents. His family often went into hiding to escape atrocities. This period helped Soros improve his survival skills.

Step 2: George Soros picked the Right School at the right time

Soros joined the London School of Economics in 1947. Karl Popper, the philosopher who propounded the concept of open society opposing dictatorship, was his mentor. Popper influenced the philosophical, philanthropic attitude of Soros, who realized how brutal the dictatorships were. After completing his graduation, Soros got a finance-related job at a bank in London. Soros relocated to the United States in 1956 and started working as an arbitrage trader at F.M. Mayer, a firm in New York. He later worked as an analyst and trader at multiple firms on Wall Street. However, his major career break was in 1967, at Arnold&S. Bleichroeder, where he managed the First Eagle Fund, an offshore fund for the first time. This fund’s success led to the launch in 1969 of the Double-Eagle Fund, his second fund.

Step 3: At the right moment, Soros formed his own company – Quantum fund

In 1973, Soros left his job and formed his own company, Soros Fund Management, with his assistant Jim Rogers’s help. The hedge fund was initially renamed the Soros fund, and in 1978, it was renamed, Quantum Fund. Compared to the 47% returns over a ten year period for the S&P 500 Index, the fund earned investors 4200% returns. Though Jim Rogers left the hedge fund in 1980, in 1981, Quantum Fund’s assets were valued at $381 million, while Soros was worth approximately $100 million. Though his investor profile hailed him as the greatest money manager in the world in 1981, Quantum fund made its first loss that year. It also faced redemptions, which reduced its capital by half. Soros allowed others to manage the hedge fund and took a break. In 1984, he returned to investing full time. In 1985, the fund generated 122% returns, and in 1986, the assets managed exceeded $1.57 billion.

Step 4: Excellent move to bring Stan Druckenmiller to manage the fund and make growth

Soros recruited Stan Druckenmiller to manage the Quantum fund in 1988. In the next few years, the returns were modest, peaking at 68.8%. However, Druckenmiller and Soros decided to short the British pound in summer 1992, resulting in a $1 billion profit. Similarly, the Swedish krona was also shorted in November 1992, leading to an additional $1 billion profit. The personal fortune of Soros increased by approximately $650 million in 1992. As a result, the assets managed by the Quantum fund increased to $8.3 billion in 1993.

Soros made a fortune investing in currency pairs at the moment when governments made bad decisions (bad forex market intervention or non-intervention). It was something like “sure bet on human stupidity.”

Soros Fund stopped accepting funds from outside investors and returned approximately $1 billion in client funds in 2011. It also was converted into a family office. The fund earned its investors a total of $43.9 billion, which was only exceeded by the $58.5 billion made by the Bridgewater fund of Ray Dalio. The Soros Fund now mainly exists to provide money to Soros’s charity, the Open Society Foundation. Soros has donated a total of $32 billion to the foundation, contributing $18 billion and appointing Dawn Fitzpatrick as its chief investment officer(CIO). She manages $25 billion of the organization’s assets and aims to make $1 billion annually to fund its activities.

And today…

George Soros is the founder of Soros Fund Management LLC and also its chairman. In April 2020, his net worth was estimated at $8.3 billion. According to Forbes, Soros is ranked 56th among the richest persons in the United States and 162nd globally. Soros is considered one of the greatest speculators in the financial markets globally, and this helps to make a huge amount of money quickly. In 1992, he bet against the British pound and made profits of more than $1 billion, earning the title of the person who “broke” the Bank of England. For 25 years, his Quantum fund gave investors annualized returns of more than 35%. Through his philanthropic activities are acclaimed, his political statements remain controversial. More details on how Soros became a billionaire are discussed.

Filed Under: Famous traders

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