Pending order strategy

es and destabilizing speculation (2007), UNCTAD Trade and development report 2007 (Chapter 1B).
Jump up ^ http://www.bis.org/press

^ Jump up to: a b c 2013 Triennial Central Bank Survey, Bank for International Settlements.
Jump up ^ "What is Foreign Exchange?". Published by t

A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. The options market is the deepest, largest and most liquid market for options of any kind in the world.

Gregory Millman reports on an opposing view, comparing speculators to "vigilantes" who simply help "enforce" international agreements and anticipate the effects of basic economic "laws" in order to profit.[83]

Currency speculation is considered a highly suspect activity in many countries.[where?] While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation

Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, economists including Milton Friedman have argued that speculators ultimately are a stabilizing influence on the market and perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do.[78] Other economists such as Joseph Stiglitz consider this argument to be based more on politics and a free market philosophy than on economics.[79]

Currency futures contracts are contracts specifying a standard volume of a particular currency to be exchanged on a specific settlement date. Thus the currency futures contracts are similar to forward contracts in terms of their obligation, but differ from forward contracts in the way they are traded. They are commonly used by MNCs to hedge their currency positions. In addition they are traded by speculators who hope to capitalize on their expectations of exchange rate movements.

Main article: Foreign exchange option
Speculation[edit]
Large hedge funds and other well capitalized "position traders" are the main professional speculat

Option[edit]ors. According to some economists, individual traders could act as "noise traders" and have a more destabilizing role

Jump up ^ S Homer, Richard E Sylla A History of Interest Rates John Wiley & Sons, 29 Aug 2005 Retrieved 2012-07-14 ISBN 0471732834
Jump up ^ T Southcliffe Ashton – An Economic Hist

ithin 1.2 Value Terms] John Wiley & Sons, 22 Nov 2011 Retrieved 2102-07-27 ISBN 1119994896
Jump up ^ T Hong – Foreign Exchange Control in China: First

Jump up ^ J Atkin – The Foreign Exchange Market Of London: Development Since 1900 Psychology Press, 2005 Retrieved 2012-07-13 ISBN 04

Jump up ^ J Wake – Kleinwort, Benson: The History of Two Families in Banking Oxford University Press, 27 Feb 1997 Retrieved 2012-0

Jump up ^ G Gandolfo – International Finance and Open-Economy Macroeconomics Springer, 2002 Retrieved 2012-07-15 ISBN 354043459

Jump up ^ City of London: The History Random House, 31 Dec 2011 Retrieved 2012-07-15 ISBN 1448114721
Jump up ^ C Robles – How To Profit