Forex Secret Trading

Does secret Forex trading occur? Does secret Forex trading move the markets? Can Forex trading really be a secret? Are all Forex transactions debited or credited with the Bank of International Settlements? The Triennial Central Bank survey published by the Bank of International Settlements provides a broad and comprehensive view of Forex trading. However, it is certainly possible to move money from country to country without the Bank of International Settlements of anyone else being aware. This sort of Forex Secret Trading, if done in sufficient volume, could serve to change the fundamentals of Forex trading without the market being immediately aware of it. How to enter profitable trades in Forex could be altered substantially by a large amount of Forex Secret Trading.

A variation of Forex Secret Trading might be the decision of a company or individual to use one currency to buy stock in a foreign company. The individual or company then swaps the stock for other assets in another country. Thereafter the individual or company may receive currency in the host country for selling the new asset he or they own. This sort of convoluted movement of assets could amount to Forex Secret Trading. Certainly it is the concern of many government agencies when secret organizations, organized crime, and other entities move assets illegally. However, one does not need to be engaging in illegal activities in order to move assets in such a way. How to invest in Euro versus dollars can be altered by a substantial secret cash flow upsetting foreign currency trading.

One manner of Forex Secret Trading, of a sort, is the continual trading of small amounts of assets. The idea would be to trade in such small amount that the market does not react and drive prices one way or the other. This sort of trading is not really secret or a foreign currency scheme but could be a way of divesting oneself of a substantial amount of a given currency without alerting the general market.

To the extent that large central banks exchange currency it might be considered Forex Secret Trading to the extent that the overall market is not aware of what is going on. Because the role of central banks is to carry out the monetary policy of their countries they may have what they consider to be valid reasons to hide their currency swaps or trading. Again, this may not necessarily be illegal, but it may cause changes in the Forex markets that will be difficult if not impossible to anticipate or profit from. Whether one trades with an eye on Forex and interest rates or employment statistics in first world countries trading is typically more profitable if you understand the fundamentals. To the degree that Secret Forex Trading is responsible for large movements of currency it might not only upset the currency markets but also cause losses for many traders. In this regard the trade will be better advised to watch the technical side of the market rather than the fundamentals, if in fact his view of the fundamentals is obscured by Forex Secret Trading.