The 3 Biggest Trades in History Explained

5 April 2023 - 17:43

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Here are the three largest and most successful financial operations in history, capable of significantly impacting global financial markets.

The 3 Biggest Trades in History Explained

Financial trading has been an integral part of the world economy for centuries. Over the years, traders have made some of the largest financial trades and most successful in history. Not only have these trades created great opportunities (and ruin) for traders, they have also had a significant impact on the financial markets globally.

In this article, XTB experts will examine the three largest financial operations in history, capable of severely impacting entire economies or even the world. While some traders have managed to make large fortunes from these events, others have also suffered significant losses. These operations serve as a reminder of the risks and benefits of financial trading and the importance of solid economic policies, as well as the cruciality of correct financial training and the use of good money management rules, as the XTB broker advises to do to all its customers. Before starting, if you are interested in the world of trading and investments, we suggest you take a look at XTB’s offer.

XTB is a world-class regulated investment broker, with a global presence in over 13 countries. This financial intermediary is authorized by Consob and regulated by the main financial regulatory institutions. The XTB platform offers access to more than 5,800 financial instruments - both real shares and ETFs, as well as CFD-type derivative instruments, as well as access to free and comprehensive training.

1) George Soros’ bet against the British pound in 1992

George Soros is one of the most famous traders in the world. It is renowned for its ability to predict and profit from major market movements. In 1992, Soros made one of the most successful trades in history betting against the British Pound.

Soros believed that the pound was overvalued and that the Bank of England should devalue the currency. Because of this, he began selling the pound in massive quantities, plunging its value. In just one day, the pound fell 10% and Soros made a profit of over $1 billion.

Soros’ trade against the pound was so successful that it is often referred to as "Black Wednesday" in Britain. The British government was forced to withdraw from the European Exchange Rate Mechanism and the value of the pound continued to decline. Soros’ bet against the pound made him one of the richest people in the world and solidified his reputation as one of the most successful traders in history.

2) The 2008 subprime mortgage crisis

The 2008 mortgage crisis was one of the most significant financial events in history. The crisis was caused by the collapse of the housing market in the United States and the subsequent collapse of global financial markets.

In the years leading up to the crisis, banks were giving out mortgages to people who couldn’t afford them. These mortgages were bundled together and sold as Mortgage Backed Securities to investors. As the housing market began to decline, many of these mortgages defaulted, sending the value of the securities plummeting.

The crisis has been exacerbated by the use of derivatives, such as credit default swaps, which have allowed investors to bet against the value of securities. As more and more investors started betting against the bonds, their value continued to decline, leading to huge losses for banks and investors.

The 2008 mortgage crisis led to the largest government bailout in history, with governments around the world injecting trillions of dollars into their economies to stabilize financial markets. The crisis has had a profound impact on the global economy, resulting in widespread job losses and a prolonged period of economic stagnation.

3) The Japanese asset price bubble

In the 1980s, Japan experienced one of the most significant economic booms in history. The Japanese economy was growing at an unprecedented pace and the country was seen as a model for other economies to follow.

However, the boom was built on an unsustainable foundation of cheap credit and speculation. Banks lent money at extremely low rates and investors poured money into the stock market and real estate market.

By the late 1980s, the Japanese asset price bubble had reached unsustainable levels. The stock market was overvalued and real estate prices were astronomical. When the bubble finally burst in the early 1990s, the Japanese economy entered a prolonged period of stagnation and deflation.

The Japanese asset price bubble is often cited as one of the most significant financial events in history. The collapse of the Japanese economy had a profound impact on the global economy, and it took Japan over a decade to recover from the crisis.


In conclusion, these three great trades that have made history have been able to have a huge impact on the financial markets worldwide. Today, they remind us of the importance of taking into consideration not only the potential benefits but also the potential risks associated with financial trading. Where some traders - as in the case of the three trades just illustrated - have been able to make large fortunes, others have recorded significant losses.

If you are interested in learning more about the world of trading and investing, we suggest the educational section of XTB:

Original article published on Italy 2023-03-31 11:01:38. Original title: I 3 trade piĆ¹ grandi della storia

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