Back forex trading session times September 1992, George Soros made a successful trade that is still legendary in Forex circles today. A successful trade by George Soros is still a legend in forextradingmarket cashback forex circles to this day He carefully studied the fundamentals underpinning the pound forextradingtime concluded that the Bank of England would not be able to support its own currency if it was strongly shorted He did what he said he would do and invested his own money to short the pound, eventually making a profit of $1 billion for sniping the Bank of England Spotlight on Foreign Exchange When George Soros sniped the Bank of England, foreign exchange was an unconventional investment that few investors could get involved in. When George Soros sniped the Bank of England, foreign exchange was an unconventional investment that few investors could get involved in, and even fewer small investors did so More than two decades later, the world has changed The size of the foreign exchange market dwarfs other financial markets, and within minutes you can start trading online However, most retail foreign exchange trading volume is driven by technical analysis, with traders studying charts to find patterns that signal future Typically, trades occur very frequently, with investors opening and closing positions on a daily, or even hourly, basis Many of these investors pay little or no attention to macroeconomic drivers, instead relying on mathematical signals to execute trades Fundamental analysis Soros was different He studied the fundamentals and conditions in the market and discovered the pounds Although few of us have the resources to trade like Soros, fundamental analysis can still be used as a powerful investment tool in the foreign exchange market Time and time again, currencies reflect these fundamentals For example, the euro has weakened as a result of the ongoing economic crisis in the eurozone Recently the Canadian dollar has fallen rapidly against the U.S. dollar, mostly due to concerns about falling oil prices Strong Economic performance, coupled with expectations of higher interest rates, has pushed the dollar higher against most other major currencies Use open-end index funds to invest in foreign exchange We can absolutely invest directly in the foreign exchange market by buying and selling foreign exchange through a foreign exchange broker Whether you use fundamental analysis or technical analysis, it works However, if you want to invest and dont feel you have the George Soross skills and contacts, then foreign exchange-traded funds (also known as open-ended index funds ETFs) are a good option Forex ETFs are like stocks, you can buy and sell them in the same way, but you are actually buying and selling shares in an investment fund Some Forex ETFs specialize in clear fundamental strategies in the Forex market, giving you the opportunity to trade based on For example, some funds invest in high interest rate currencies and short low interest rate currencies, which is known as hedging, a strategy Soros has utilized for many years On the other hand, you can also consider buying a foreign exchange ETF fund that simply tracks currency performance For example, some foreign exchange ETFs track the U.S. dollar index– that is, a weighted index of the value of the dollar against some other major currencies