World Forex

ontroversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, economists including Milton Friedman have argued that speculators ultimately are a stabilizing influence on the market and perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do.^[15] Other economists such as Joseph Stiglitz consider this argument to be based more on politics and a free market philosophy than on economics.^[16]

Large hedge funds and other well capitalized "position traders" are the main professional speculators.