At $4 Trillion A Day, And At 50X Leverage, Fx Trading Volume (And Risk) Dwarfs That Of Equities And Treasuries

[Bloo Loo]

how do you buy money with no money?

I suppose, it appears they mean they buy a derivative of real money.

[JustYield]

What's the worst that can happen to you in FX? As long as you're prepared to emigrate, you can't lose!

[easy2012]

What's the worst that can happen to you in FX? As long as you're prepared to emigrate, you can't lose!

Yup yup... that is for the real stuffs. Most FX are effectively contract of differences or some sort of derivative :-)

Most FX provider imposes pretty strict margin enforcement though so don't really see these stuffs blowing up At peak

of the crisis, Yen was moving like 7-8% in a day and nothing blew up. Further, the central banks now have the currencies swap lines.

[interestrateripoff]

Is this where the QE money has ended up?

Once huge currency merry-go-round?

[Dave Spart]

how do you buy money with no money?

I suppose, it appears they mean they buy a derivative of real money.

To make money you must start with money - because you have to copy the design exactly.

(Steven Wright)