Foreign exchange strategies and tips for upcoming pros. Big trades in foreign exchange normally remain unknown because the market is too george akrivos forex market to spot individual traders.
Also, it is highly unlikely that a single trader can influence entire economies. However, George Soros is an exception. Learn how he shattered entire economic regions and made huge profits by betting on their weakness. Uncover the trading strategies and analysis of his biggest and most notorious forex trades ever. 1 billion profit on Black Wednesday in 1992, he suffered major losses on the same currency after the Brexit vote! Britain’s vote to leave the European Union on Friday. US dollar since the referendum in June and is the worst performing currency in the world this year.
It fixed the pound’s rate to the deutsche mark in order to make the investments between Britain and Europe more predictable and stable. But as the political and financial situation in Germany changed during its unification, many ERM currencies were under big pressure to keep their currencies within the agreed limits. And then you buy back the sterling when the loan expires. 5 million USD, thus keeping the difference of 0. In order to sustain the fixed rate, the Bank of England was buying 2 billion GBP an hour, which was an unprecedented amount. The policies of the ERM demanded that the countries with the strongest currencies have to sell their currencies and buy the weakest to help maintain the equilibrium. In this case, the Bank of Germany had to sell deutsche marks and buy pounds.
790 million, crashes the Thai baht and triggers the Asian crisis The second most notorious trade of Soros came in 1997 when he saw a possibility that the Thai baht could go down. Soros goes short on the baht. 7 billion to protect the baht against speculations. Soros sells all his baht resources and publicly warns people about its possible fall and ensuing crisis. On July 2, Thailand is forced to give up the fixed rate of the baht and it starts to float freely. Thailand takes on hard austerity measures to secure the loan from the IMF.