Managed Forex Accounts

  

Categories: Managed Funds, Forex

Managed forex accounts are like regular forex (foreign exchange) accounts, except they're managed...for a fee. If a trader has a managed forex account, it means they’re paying somebody to try to beat the foreign exchange market.

The foreign exchange market means making money off of foreign exchange...basically, exploiting currency differences, a.k.a. arbitrage. This contrasts to making money by holding stocks and assets, which is investment, whereas arbitrage is more of a speculation game. Investors are in it for the long-haul, while traders are doing short-term investments, buying and selling quickly to reap profits...if you dare.

Trading is a fast-paced, risky game, but for those who can afford to have a managed forex account, more power to you, pal.

Related or Semi-related Video

Finance: What is a Yankee Bond?36 Views

00:00

Finance allah shmoop what is a yankee bond We're safe

00:08

We're sound we're saying at least that's how we look

00:11

financially when you know the u s has compared with

00:15

most of the rest of the world that's why a

00:17

bunch of countries issue their own bonds denominated in u

00:22

s dollars you know countries like panama el salvador micronesia

00:27

and macron asia Well ours is ah hard currency and

00:30

that we don't or at least haven't historically created massive

00:34

ten percent a month inflation to deflate the value of

00:38

our own currency and well that would make it super

00:40

easy for our government to pay off its ludicrously high

00:44

death but we don't do that We respect the people

00:46

who loaned money to us including our own citizens So

00:49

we have a hard currency It just kind of stays

00:51

where it is Yes there's inflation Yes we raise the

00:53

rates a little bit here and there defended but generally

00:55

just kind of does its thing So we fight hard

00:58

to keep that trust that the rest of the world

01:00

often values more than well trust in their own governments

01:04

or at least their own government's ability to manage their

01:06

currency when they issue say argentinean bonds payable in u

01:11

s dollars Well then that's a yankee bond And we 00:01:14.819 --> [endTime] are the banker And well they are the yankee

Up Next

Finance: What is a Dual Currency Bond?
33 Views

What is a Dual Currency Bond? Multinational corporations often find their books filled with foreign currencies from countries where they have busin...

Finance: What is Inflation: Adjusted, Hyper, Currency, Commodity?
21 Views

What is inflation, and if we poke it with a pin, will it pop?

Find other enlightening terms in Shmoop Finance Genius Bar(f)