Forecasting and Hedging in the Foreign Exchange Markets

Historical and recent developments at international financial markets show that it is easy to loose money, while it is difficult to predict future developments and op— mize decision—making towards maximizing returns and minimizing risk. One of the reasons of our inability to make reliable predictions and to make optimal decisions is the growing complexity of the global economy. This is especially true for the f— eign exchange market (FX market) which is considered as one of the largest and ...