The Secret Currency Technique that Banks Use to Make Billions
The currency markets are the backbone of global economy and the banks are riding it like a bucking bronco. The banks don’t make their money from speculating or trading the currency markets they make their money from being the currency market. What I mean by the banks is being the market is that they will make money whether you win or lose on a trade. This happens because the banks make money from the pip spreads on the front end and are always in a hedged position when a currency transaction occurs. So it does not matter what the market ultimately the banks wins regardless. Well if the banks hedge there position to protect them selves, why don’t we as traders do the same.
Sz. Daniela