Soros
International Currency Markets
How did George Soros make money in the international currency markets? Was it something to do with his understanding of the international financial system, or just good luck?
Hungarian-born George Soros started making a name in financial speculation in the late 1960s, when he started investing with his own fund known as the Quantum Fund. Soros's speculations began making big news and he was able to gather a rather large following. The bulk of his fortune came from attacks on major currencies. For example, he was able to off major attacks on the currencies of Great Britain and Italy by speculating against them. Soros would bet against the currencies on the exchange rate market in a big way. The news of Soros's moves would also gather a lot of publicity that furthered his cause. Once the market knew that Soros had bet against these countries then many investors became panicked and followed Soros's led.
On Black Wednesday, September 16, 1992, Soros bet $10 billion that the British pound would fall. This was a move that he had...
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