Forex or the Foreign Exchange Market has become very popular in the last few years due to the 24 hour availability of the international market. Forex operates on an international basis with trading centers in Europe, Asia, and North America. These centers operate on Coordinated Universal Time (UTC). This means that when the Asian Market closes the European market is preparing it’s trading day. When the European Market closes the North American Market is opening for it’s trading session. The only time forex is closed is during the weekend.
Forex was designed to regulate the trade of one currency to another on the international market. With this regulation system the foreign exchange, to a certain extent, is able to keep it’s eye on any manipulation by large traders. Hedge funds, on the other hand, have found a powerful niche in this system that is legal and profitable.
Hedge fund speculators like trading in the foreign exchange market because of the extreme liquidity in the market place. Many aspects of the forex market which also appeal to hedge fund traders include: no lock-up on many accounts, quick monthly liquidity on short notice, as well as regular performance reports. Low management and performance fees are also a big plus.
On the possible downside, unlike regular forex trading which offers many low cost programs, forex hedge funds don’t come without a price. Investments of at least $15,000.00 are generally required.
The rules of forex hedge funds are in a state of change at the current time. Lack of regulation by the U.S. Securities Exchange Commission and the U.S. Commodity Futures Commission have caused congress to seek a mandate for control of the forex hedge fund market. Due to this action many forex hedge fund investors are turning to offshore forex traders who are beyond jurisdiction by these commissions. However, offshore trading are not available to all speculators.
Various forms of forex hedge funds are available to the speculator, such as the, Spot, Forward, and Swap hedge funds. Each offer different benefits with a certain delayed time trade.
Besides the various types of forex hedge funds, this market also offers the hedge fund speculator the most transparency of the forex market. Forex has a liquid flexibility that appeals to hedge fund investors in that it allows them the opportunity to trade in major currencies as well as in the emerging economies of world nations.

Comments are closed