Those who are skeptical of buy-and-hold trading in Forex argue that it is a fool’s errand because money does not have the advantages of a commodity. A company’s value may increase due to entering a new market or gaining interest in one of its products. At the same time, currencies rarely correlate with each other, except when the currencies of developing countries lose value due to political or economic crises. However, others believe that a buy and hold strategy is possible for experienced forex traders. Below we will guide you to understand why. Main Insights While the results are not as controversial as the products, there are good reasons for experienced traders to adopt and maintain strategies in Forex trading. Traders who understand the long-term economics of one country versus another can buy a currency and hold it for months or years to profit from the trade. Buy-and-hold Forex trading can also be done with other investments, such as American traders purchasing shares of European companies. Arbitrage trading occurs when an investor sells a currency offering a low interest rate and buys a currency offering a high interest rate. Investors consider central bank policies, global sentiment and unemployment when implementing long-term trading strategies.