Similar to investment funds which invest in traditional asset classes, such as the equity and bond markets, PrivateForexTrader seek to profit from the currency markets by employing a variety of approaches and strategies. However, unlike the equity and bond markets, there are some characteristics of the foreign exchange market which create inherent market inefficiencies, and create opportunities for profit making.
As opposed to the stock market, where the vast majority of participants are seeking to make a profit, there are many entities operating in the currency market whose primary motivation is not to seek a profit. For example, multi-national corporations may contract to buy or sell currencies for the primary reason of hedging against currency risk on future earnings or expenses. Governments too, are active in the currency market as they manage their currency reserves. Even tourists are active currency market particpants.
These market characteristics may lead to market inefficiencies and therefore create profit opportunities. PrivateForexTrader actively seek out these opportunities, and seek to provide investors with consistently profitable returns over a medium to long term investment horizon.