Currency Traders Fired

According to the Forex news, Deutsche Bank is another bank that has fired or suspended currency traders. Previously Standard Chartered, JP Morgan, RBS, and Citigroup had currency traders fired. This is part of an ongoing Forex investigation of currency market manipulation, a wide spread Forex conspiracy across continents. It turns out that a large number of currency traders seem to have been sharing information about what they were trading, when they were trading, and specifics about pricing. This apparently allowed for manipulation of the markets to the benefit of those involved. With currency traders fired right and left, the British Financial Conduct Authority and U.S. Justice Department continue their probe into illegal manipulation of currency markets.

What about Forex Trading in the Wake of a Forex Conspiracy?

With currency traders fired, the ones who were possibly at fault, is all OK in the Forex markets? Investment banks like Deutsche Bank and UBS are reshuffling their foreign exchange trading operations and taking top level managers off their jobs. Removal of those at fault for collusion in the exchange markets is a good thing but are they merely sweeping dirty dealings under the rug? We hope that major banks are keeping a watchful eye on operations but just how high do the problems go? Banks are hiring lawyers to represent them as each individual Forex investigation proceeds. Usually worries about a Forex conspiracy have to do with governments and shadowy figures with untold riches. With guilty currency traders fired the issue may resolve itself if it simply has to do with greed. For the trader at his trade station it is a matter of beating the Forex conspiracy. With all of the wealth, power and now connivance of large investment banks on one side what does the average trader do to beat this Forex conspiracy? What are the best currencies to trade in Forex when all trading may be tainted?

Safe Havens in a Storm

Is there such a thing as safe haven Forex trading when the likes of Deutsche Bank are implicated in a Forex trading conspiracy? Traders focus on the fact that trillions of dollars of currencies are traded every day on Forex markets. However, Forex markets were developed to facilitate international trade. The benchmarks set in Forex trading affect trillions of dollars in international trade. If Forex rates are fixed it affects the entire world economy. The answer to dealing with this apparent Forex conspiracy lies in two aspects of Forex trading. One is trading currency options. The other is Forex fundamentals. Options trading allows traders to purchase insurance on potential trades. Call and put contracts give traders the right to buy in the case of calls and sell in the case of puts if conditions are right. Loss is limited to the price of the options contract. No matter whether there is a Forex conspiracy or not, traders can execute options contracts if and when they result in profits or successfully hedge risk. And, fundamentals are what drive the Forex market. If the numbers do not make sense consider whether or not a Forex conspiracy is altering the market. If so simply sit on the sidelines until the matter is straightened out, perhaps simply with more currency traders fired at the big banks.