Amazing Forex trades George Soros ever made

The 3 most amazing Forex trades George Soros ever made

Who is George Soros? This may be your initial reaction. Well, George Soros is a Hungary born business tycoon who earned in billions through Forex trading and also, contributed to the service of mankind in billions. He’s the chairman of the Soros Fund Management.

Three amazing forex trades of George Soros:

• Black Wednesday Currency Crisis, 1992:After the reunion of Germany the unified country’s economy became stronger thanBritain. But, the ruling government of the Britain fixed pound’s valuation at 2.7 German marks. This negatively impacted Britain’s economy taking both interest and inflation rates high there. Britain also entered the European ERM (Exchange Rate Mechanism) demanding the fixed 2.7 German marks to a pound.

Among many George Soros saw this as an opportunity of making some quick bucks. He kept on taking short positions against the pound over the months as he knew Britain’s claim of maintaining a fixed exchange rate against the market forces would soon be proved null and void.Britain started losing investors’ confidence and to attract them back Britain revised the interest rate to double digit.At the same time The Bank of England kept on aggressively buying the pounds back with the purpose of creating artificial demand in the market.

Soon the British government realized its mistake and devalued pounds while exited ERM. The value of pound depreciated heavily against the mark.Soros saw this as an opportunity to offload his holdings and gained at least $1.5 billion.

• Asian financial crisis, 1997:The crisis originated in Thailand. The Soros Fund Management understood the untenable deficit between the trade account and the capital account. They then sold off Thai baht and the Malaysian ringgit in early 1997with short maturities like six months and one year.Soros Fund Management thus earned hefty profits.
• Insider trading conviction, 2006: This is yet another interesting story of George Soros. He was accused of insider trading conviction in 2006 by the French Supreme Court.

Bottom Line:

George Soros is a legend in forex trading who made his fortune here. According to him, it is his ability to diagnose mistakes and incorporating quick corrective measures that helped him amass wealth.