Corporate foreign exchange news
Small investors 'driving global forex trading'
Thursday, 02 September 2010 09:25:23 GMT

Published by Mark Smith-HalvorsenThe popularity of global forex trading, which has extended its position as the world's most actively traded market, is partly attributable to keen interest among small investors.According to MarketWatch, US investors in particular are increasingly seeking returns outside of the conventional stocks and real estate markets, which have been flat over the last decade and under intense pressure in recent years.In Japan too, there are many small investors who have long preferred to trade in currencies, helping to contribute to the still-burgeoning forex market, which is now worth $4 trillion a day, according to this week's triennial Bank for International Settlements figures.However, MarketWatch was careful to remind investors that forex trading is suffuse with its own inherent risks."Because speculating in currencies is like betting for or against specific countries - or regions, in the euro's case - almost any event can impact prices," the group explained, pointing to the yen, which is trading near a 15-year high, as evidence of how fluctuating global markets can distort individual currencies.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.

