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How Currency Markets Work
An Insider's Guide to a System Driven by Geopolitics and Trader Psychology

Andrew Nissenbaum (Author), Patrick Cullen (Author)

9781394335176, Wiley

Hardback, published 13 April 2026

256 pages
23.1 x 16 x 3 cm, 0.454 kg

An insider’s original take on how global currency markets operate in the real world

In How Currency Markets Work, a veteran currency trader and a geopolitical risk analyst deliver a comprehensive and street-smart guide for understanding currency markets. The authors combine insights from the worlds of trading, economics, and geopolitics to create an eye-opening and original new take on how currency prices are determined.

This book bridges the gap between how currency markets are taught and how they actually trade, using character-driven narratives built on real-world market events and data to explain currency trading successes and failures in intuitive and practical ways.

Inside the book:

  • Actionable tools and tested strategies for currency trading you can apply immediately to improve your returns and your portfolio’s risk profile
  • Clear real-world examples of how geopolitical events, wars, and political shifts impact currency values
  • Profiles of the speculators, corporate hedgers, and central banks whose interplay shapes exchange rates
  • Advanced strategies for options, volatility trading, and exploiting mathematical relationships in currency markets

A deeply insightful and accessible exploration of a much-discussed topic, How Currency Markets Work is a powerful new resource for academics, researchers, hedge fund managers, bank traders, policymakers, and practicing and aspiring forex traders.

Preface xiii

Acknowledgments xv

Chapter 1 The Global Currency Market 1

Chapter 2 Speculators: The Bank of China, Proprietary Desks, Hedge Funds, and Retail Traders 17

Chapter 3 Corporate Hedgers: The Hidden Giants of Currency Markets 39

Chapter 4 Market Structure: The Architecture of Major and Emerging Currencies 59

Chapter 5 Trading Political and Geopolitical Risk 81

Chapter 6 The Psychology of Currency Trading 101

Chapter 7 How Traders React to Market Events 123

Chapter 8 Liquidity, Volatility, Basis, and Tail: A Trader’s Guide 141

Chapter 9 Stocks, Bonds, and the Currency Markets 159

Chapter 10 Mathematical Patterns in Triangles, Convexity, and Forward Gaps 177

Chapter 11 Advanced Trading: Probability, Volatility, and Speed 195

Appendix 217

Glossary 221

About the Authors 231

Index 233

 

Subject Areas: Finance & accounting [KF]

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