What is a Cambist?

Malcolm Tatum

Cambists are financial professionals who happen to be experts with issues relating to exchange rates. A cambist may be an investor with a working knowledge of how to use the current state of an exchange rate to his or her best interest, or a foreign currency trader who is able to broker deals on behalf of one or more clients.

Cambists are experts with issues relating to exchange rates.
Cambists are experts with issues relating to exchange rates.

The actual term of cambist has its roots in the language of Latin. Derived from the word cambiere, meaning “to exchange,” the cambist usually acquires the skill to anticipate fluctuations in the exchange rate between various currencies. This ability can help the cambist to broker deals that will yield a potentially higher return. By understanding various market indicators that seem to project the possible shift in a rate of exchange that will impact the way that one or more currencies will shortly be trading against one another, the cambist can engage in buying and selling currency and make a profit.

A cambist can be very helpful to anyone who is interested in engaging in international trade, especially if the trading directly involves buying and selling currency. Acquiring cash assets in one national currency and then exchanging them for another foreign currency before the rate of exchange shifts can result in growing the worth of the asset. Achieving a level of proficiency with this type of activity comes with time, and requires the ability to carefully consider market conditions, as well as social and political factors that can impact the perception of a country and its currency on the world market. A cambist that demonstrates a high rate of success with his or her projections is often high sought by persons who wish to trade in currency exchange as one of their main investment strategies.

Some investors are accomplished cambists in their own right. When this is the case, the cambist normally devotes a portion of his or her assets to the task of currency trading, while still continuing to pursue other types of investments as well. Maintaining some degree of diversity in the portfolio helps the investor enjoy the benefits of employing his or her skills as a cambist, as well as generate profit by the acquisition of stocks and bonds as well.

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