Most profits or losses on foreign trading for FIs come from
A)open positions or speculation.
B)market making.
C)acting as agents for retail customers.
D)acting as agents for wholesale customers.

Question

Quizplus · Accepted Answer

Open positions or speculation refer to when FIs trade in foreign currencies with the intention of making a profit from the fluctuations in exchange rates. This type of trading carries a higher risk but also has the potential for higher profits or losses compared to market making or acting as agents for retail or wholesale customers.

Most Profits or Losses on Foreign Trading for FIs Come