There are a lot of things to think about when performing a forex system comparison. There are many forex system providers out there, this list will assist you to pick the one right for you.
1. History - Does the system vendor provide a history? A good system provider should provide details on the systems monthly results for at least the past year. If the system hasn't been running for a year, you should ask what the back-test results were.
2. Draw-down - Unfortunately Draw-downs are unavoidable in forex trading. There are many forex systems making 1000's of pips per year, but they fail to inform you that you would have lost all/most of your account before making those 1000's of pips. Always ask what what draw-downs the system has had in the past and use this information to determine how many lots you are going to trade to ensure your account is not wiped out. Think about how the draw-down would have affected you emotionally, would you have stuck with it?
3. Reviews - Search to see if others are trading the same forex system. Have a look what others are saying about the system. Find out if the system has its own forum and check the feedback the system is getting. Often existing users have tweaked the system and found a better way to trade it, ask if there are any new settings before you get started.
4. Win Ratio - Professional traders generally have a win ratio of close to 50%. The profit is in how they manage the trade, by keeping losses short and letting profits run. Systems that have an unusually high win ratio are not necessarily better and can be too good to be true.
5. Stop/Limit Orders - Find out that the system uses stop orders. A stop order is set to minimize your loss in case the trade turns against you. Without a stop order set your losses could be huge.
6. Paper Trade - Prior to trading any system with real money you should paper trade it, or trade it with a demo account. This will give you an opportunity to get used to the system until you feel comfortable with it, and will give you an idea if you should trade it with real money. Often systems can also be back-tested to give you an idea of how the system performed in the past.
7. Timing - Find out what time commitment the system requires and think about if this will fit in with your schedule. You should also ask when you need to be at your computer to trade the system.
8. Money Management - What kind of money management system does the system use? Systems that recommend you double up after a loss are not generally recommended by the trading community.
9. Additional Costs - Find out what additional costs you will incur to run the system. Does the system require a specific charting package or data feed to run?
10. Refund - Find out if a refund is offered and what the conditions are.
Good luck with your forex system comparison.
Nov 22, 2008
Some key Strategies in Forex Trading
Develop Your Own Forex Trading Strategy
Both technical analysis and fundamental analysis in isolation has failed to keep pace with the globalization of financial markets. The advent of personal computers and modern global communication systems coupled with the explosive growth of the Internet has resulted in global financial markets being interconnected. Now seemingly unrelated events happening in one market have profound effect on markets elsewhere. This is one reason why you should focus on formulating a forex trading strategy.There is yet another profound reason to have your own forex trading strategy.When you invest in equities (stocks) and bonds, your investment is based on the intrinsic value of the product you buy. For example, for any equity you buy the intrinsic value of the stock stems from the dividends possibly declared on those stocks. You could then evaluate the income streams and correlate it to stock prices. But such an approach is not possible when you invest in forex currencies. That is because, if you make a forex investment and then leave it idle perse, it isn’t going to produce an income for you automatically. In other words, as a beginner you would find it difficult to figure out the intrinsic value of your forex investment.There is no dearth of strategies in forex trading. The Internet is full of different kinds of forex gurus advising you on all kinds of esoteric forex strategies. The point is, you must select a forex strategy that suits your trading style. A strategy that just does not fit in with your trading style is simply useless. Therefore, it is better you evolve your own unique forex strategy after rummaging through different strategies you might come across on the Internet. This article is an attempt to make you understand a couple of vital forex strategies that you could of course keep at the back of your mind while working out your own strategy to make wealth in forex markets.
Forex and Gold Prices
The importance of gold in the development of the monetary system over the last century is a vital strategy parameter you ought to consider. In an earlier article we talked of the relationship between oil and oil prices to forex trading. Apart from oil, there are other commodities whose prices have a strong co-relation to currency movements in the forex markets. Gold is one such commodity equally important as oil in its relevance to forex trading.For several centuries, gold has been the cornerstone of monetary systems worldwide. Until 1914, the British Gold Standard was prevalent, and that period in time was reckoned as a period of stability in financial markets. Thereafter it was only in 1944 that the US Gold Exchange Standard was brought in place. This meant having a system of fixed exchange rates, with the fixing of the US Dollar at $35 per ounce of gold and then fixing the price of other currencies to the dollar. In other words, this system allowed non-US Central banks to convert their US dollars to gold whenever they feared erosion in the purchasing power of the dollar. However in 1971, this system was terminated and consequently the World monetary system came off the US Gold Standard enacted earler in 1944. Nevertheless an informal relationship between gold prices and currency movements do exist to this day.The price of gold usually follows that of oil. In other words, if the price of oil goes up, the price of gold too goes up usually. The same is the situation when the price of oil goes down-it relates to dipping gold prices. One of the reasons why gold is relevant to forex trading is the fact that historically people have used gold as a good bet against inflation, especially as the price of gold always seems to keep rising.
When do you take in the profits?
A key facet or strategy of forex trading is the timing of your own decision in raking in the profits. For example, when do you decide it is time to garner the profits of a particular trade? When you buy currency in the low and you are ahead in trading, it simply means that your currency has surged ahead—it is now time to realize the profits.Otherwise you might well see a reversal of trend and loose out in the bargain. Remember, there is always the potential to buy currencies low and sell high in forex markets, which is the business rationale that has led you to invest in forex markets. So the moment you are ahead, rake in the profits by closing the deal. Initially this would certainly be a good strategy to adopt. But as you gain experience in forex trading, you could refine this strategy and stay a bit more on the profit curve before deciding to close the deal and make the profits. The point is, you should fine tune your strategy as to how long you could safely remain on the profit curve before you decide to make the profits. A lot of this comes from experience. There is no substitute to that. So to summarize, firstly begin forex trading in a prudent way. Gain experience, and from that experience formulate your own trading strategies.
Related Posts
Both technical analysis and fundamental analysis in isolation has failed to keep pace with the globalization of financial markets. The advent of personal computers and modern global communication systems coupled with the explosive growth of the Internet has resulted in global financial markets being interconnected. Now seemingly unrelated events happening in one market have profound effect on markets elsewhere. This is one reason why you should focus on formulating a forex trading strategy.There is yet another profound reason to have your own forex trading strategy.When you invest in equities (stocks) and bonds, your investment is based on the intrinsic value of the product you buy. For example, for any equity you buy the intrinsic value of the stock stems from the dividends possibly declared on those stocks. You could then evaluate the income streams and correlate it to stock prices. But such an approach is not possible when you invest in forex currencies. That is because, if you make a forex investment and then leave it idle perse, it isn’t going to produce an income for you automatically. In other words, as a beginner you would find it difficult to figure out the intrinsic value of your forex investment.There is no dearth of strategies in forex trading. The Internet is full of different kinds of forex gurus advising you on all kinds of esoteric forex strategies. The point is, you must select a forex strategy that suits your trading style. A strategy that just does not fit in with your trading style is simply useless. Therefore, it is better you evolve your own unique forex strategy after rummaging through different strategies you might come across on the Internet. This article is an attempt to make you understand a couple of vital forex strategies that you could of course keep at the back of your mind while working out your own strategy to make wealth in forex markets.
Forex and Gold Prices
The importance of gold in the development of the monetary system over the last century is a vital strategy parameter you ought to consider. In an earlier article we talked of the relationship between oil and oil prices to forex trading. Apart from oil, there are other commodities whose prices have a strong co-relation to currency movements in the forex markets. Gold is one such commodity equally important as oil in its relevance to forex trading.For several centuries, gold has been the cornerstone of monetary systems worldwide. Until 1914, the British Gold Standard was prevalent, and that period in time was reckoned as a period of stability in financial markets. Thereafter it was only in 1944 that the US Gold Exchange Standard was brought in place. This meant having a system of fixed exchange rates, with the fixing of the US Dollar at $35 per ounce of gold and then fixing the price of other currencies to the dollar. In other words, this system allowed non-US Central banks to convert their US dollars to gold whenever they feared erosion in the purchasing power of the dollar. However in 1971, this system was terminated and consequently the World monetary system came off the US Gold Standard enacted earler in 1944. Nevertheless an informal relationship between gold prices and currency movements do exist to this day.The price of gold usually follows that of oil. In other words, if the price of oil goes up, the price of gold too goes up usually. The same is the situation when the price of oil goes down-it relates to dipping gold prices. One of the reasons why gold is relevant to forex trading is the fact that historically people have used gold as a good bet against inflation, especially as the price of gold always seems to keep rising.
When do you take in the profits?
A key facet or strategy of forex trading is the timing of your own decision in raking in the profits. For example, when do you decide it is time to garner the profits of a particular trade? When you buy currency in the low and you are ahead in trading, it simply means that your currency has surged ahead—it is now time to realize the profits.Otherwise you might well see a reversal of trend and loose out in the bargain. Remember, there is always the potential to buy currencies low and sell high in forex markets, which is the business rationale that has led you to invest in forex markets. So the moment you are ahead, rake in the profits by closing the deal. Initially this would certainly be a good strategy to adopt. But as you gain experience in forex trading, you could refine this strategy and stay a bit more on the profit curve before deciding to close the deal and make the profits. The point is, you should fine tune your strategy as to how long you could safely remain on the profit curve before you decide to make the profits. A lot of this comes from experience. There is no substitute to that. So to summarize, firstly begin forex trading in a prudent way. Gain experience, and from that experience formulate your own trading strategies.
Related Posts
List of countries by foreign exchange reserves
Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term foreign exchange reserves in popular usage (such as this list) commonly includes foreign exchange and gold, SDRs and IMF reserve position as this total figure is more readily available, however it is accurately deemed as official reserves or international reserves. The list excludes currency swaps conducted by central banks.
These are assets of the central banks which are held in different reserve currencies such as the dollar, euro, yen and pound, and which are used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions. Before the end of the gold standard, gold was the preferred reserve. Some nations are converting foreign exchange reserves into sovereign wealth funds, which can rival foreign exchange reserves in size.
This is a list of countries and territories by foreign exchange reserves in US dollar equivalence. Some nations have multiple monetary authorities, counted separately, such as the People's Republic of China, which has three (mainland China, Hong Kong, and Macau). Exchange rate fluctuations can have significant impact on these numbers.
[edit] List of states by foreign exchange reserves
For consistency, forward currency swap contracts are not included in this list until they mature, figures that include them may be higher than those listed here. Currently, a third of all world reserves are held by majority Chinese nations, i.e. Macau, Hong Kong, Mainland China, Taiwan and Singapore.
Rank
Country/Monetary Authority
Foreign exchange reserves(millions of USD)
Figures as of
—
World (sum of all countries)
$ 7,373,084
--
1
People's Republic of China (does not include Hong Kong SAR Macau SAR)
$ 1,905,600
Sept 2008
2
Japan
$ 977,700
Oct 2008
-
Eurozone (EU member states which have adopted the euro, incl. ECB)
$ 530,173
Sep 2008
3
Russia
$ 453,500
Nov 2008
4
Republic of China (Taiwan)
$ 278,150
Oct 2008
5
India
$ 246,349
Nov 2008
6
South Korea
$ 212,250
Oct 2008
7
Brazil
$ 201,223
Oct 2008
8
Singapore
$ 168,802
Sep 2008
9
Hong Kong
$ 160,557
Sep 2008
10
Algeria
$ 149,806
Sep 2008
11
Germany
$ 142,938
Oct 2008
12
France
$ 113,058
Aug 2008
13
Italy
$ 104,215
Sep 2008
14
Thailand
$ 101,700
Oct 2008
15
Malaysia
$ 99,700
Nov 2008
16
Iran
$ 81,000
May 2008
17
Mexico
$ 80,864
Nov 2008
18
Libya
$ 79,000
Sep 2007
19
Switzerland
$ 74,309
Sep 2008
20
Poland
$ 74,266
Sep 2008
21
Turkey
$ 73,800
Oct 2008
22
United States
$ 71,245
Oct 2008
23
United Kingdom
$ 68,980
Sep 2008
—
European Central Bank (ECB, not owned by any single EU member)
$ 60,707
Sep 2008
24
Nigeria
$ 58,430
Oct 2008
25
Indonesia
$ 50,580
Oct 2008
26
Argentina
$ 45,462
Nov 2008
27
Norway
$ 44,266
Sep 2008
28
Canada
$ 42,980
Oct 2008
29
Romania
$ 40,194
Sep 2008
30
Venezuela
$ 39,745
Nov 2008
31
Czech Republic
$ 36,358
Sep 2008
32
Denmark
$ 36,285
Sep 2008
33
Israel
$ 36,259
Sep 2008
34
Philippines
$ 35,700
Oct 2008
35
Ukraine
$ 34,200
Oct 2008
36
Egypt
$ 32,915
Feb 2008
37
South Africa
$ 32,110
Oct 2008
38
Sweden
$ 32,075
Aug 2008
39
Peru
$ 31,950
Nov 2008
40
Saudi Arabia
$ 31,320
Oct 2007
41
United Arab Emirates
$ 29,620
2007 est.
42
Netherlands
$ 29,527
Sep 2008
43
Australia
$ 28,815
Sep 2008
44
Morocco
$ 26,558
Aug 2008
45
Hungary
$ 25,505
Aug 2008
46
Chile
$ 24,204
Oct 2008
47
Colombia
$ 23,724
Sep 2008
48
Iraq
$ 21,260
2007 est.
49
Kazakhstan
$ 21,953
Sep 2008
50
Bulgaria
$ 21,056
Sep 2008
51
Vietnam
$ 20,700
Jun 2008
52
Spain
$ 19,747
Sep 2008
53
Kuwait
$ 19,630
2007 est.
54
Lebanon
$ 19,400
2007 est.
55
Slovakia
$ 18,504
Sep 2008
56
Austria
$ 17,950
Sep 2008
57
Serbia
$ 15,864
Feb 2008
58
Belgium
$ 14,988
Oct 2008
59
Macau SAR
$ 14,740
Jul 2008
60
New Zealand
$ 14,654
Sep 2008
61
Croatia
$ 14,502
Aug 2008
62
Portugal
$ 12,441
Sep 2008
63
Angola
$ 12,290
2007 est.
64
Botswana
$ 10,000
May 2008
65
Azerbaijan
$ 9,316
Apr 2008
66
Finland
$ 8,344
Sep 2008
67
Tunisia
$ 8,236
Jun 2008
68
Jordan
$ 8,005
Jan 2008
69
Yemen
$ 7,871
2007 est.
70
Bolivia
$ 7,629
Nov 2008
71
Oman
$ 7,004
2007 est.
72
Trinidad and Tobago
$ 8,100
2008 est.
73
Pakistan
$ 6,750
Oct 2008
74
Lithuania
$ 6,505
Sep 2008
75
Ecuador
$ 6,500
Oct 2008
76
Qatar
$ 6,368
2007 est.
77
Latvia
$ 6,239
Sep 2008
78
Uruguay
$ 6,230
Aug 2008
79
Cyprus
$ 6,176
2007 est.
80
Syria
$ 6,039
2007 est.
81
Uzbekistan
$ 5,600
2007 est.
82
Bangladesh
$ 5,170
Oct 2008
83
Bosnia and Herzegovina
$ 5,151
Jan 2008
84
Guatemala
$ 4,559
2007 est.
85
Cuba
$ 4,247
2007 est.
86
Belarus
$ 4,051
Oct 2008
87
Equatorial Guinea
$ 3,928
2007 est.
88
Costa Rica
$ 3,915
2007 est.
89
Turkmenistan
$ 3,644
2007 est.
90
Estonia
$ 3,642
Sep 2008
91
Malta
$ 3,522
2007 est.
92
Burma
$ 3,500
Aug 2008
93
Bahrain
$ 3,474
2007 est.
94
Greece
$ 3,573
Sep 2008
96
Ghana
$ 2,837
2007 est.
97
Kenya
$ 2,800
Oct 2008
98
Iceland
$ 2,792
Feb 2008
99
Sri Lanka
$ 2,600
Oct 2008
100
Dominican Republic
$ 2,525
2007 est.
101
Côte d'Ivoire
$ 2,500
2007 est.
102
Paraguay
$ 2,463
2007 est.
103
Tanzania
$ 2,441
2007 est.
104
Cameroon
$ 2,341
2007 est.
95
Honduras
$ 2,336
Oct 2008
105
El Salvador
$ 2,263
Sep 2008
106
Republic of Macedonia
$ 2,243
Nov 2007
107
Congo
$ 2,242
2007 est.
108
Papua New Guinea
$ 2,193
Dec 2007
109
Uganda
$ 2,100
2007 est.
110
Mauritius
$ 1,772
2007 est.
111
Albania
$ 1,615
Dec 2007
112
Moldova
$ 1,610
Oct 2008
113
Cambodia
$ 1,600
Dec 2007
114
Armenia
$ 1,585
Sep 2008
115
Jamaica
$ 1,490
Dec 2007
116
Mozambique
$ 1,470
Nov 2007
117
Gabon
$ 1,459
2007 est.
118
Senegal
$ 1,350
2007 est.
119
Georgia
$ 1,300
2008 est.
120
Panama
$ 1,260
2007 est.
121
Sudan
$ 1,245
2007 est.
122
Zimbabwe
$ 1,222
Mar 2008
123
Kyrgyzstan
$ 1,278
Sep 2008
124
Zambia
$ 1,100
2007 est.
125
Slovenia
$ 1,076
Jan 2008
126
Nicaragua
$ 1,075
2007 est.
127
Mongolia
$ 1000
Jul 2007
128
Chad
$ 997
2007 est.
129
Ireland
$ 934
Oct 2008
130
Burkina Faso
$ 897
2007 est.
131
Lesotho
$ 889
2007 est.
132
Ethiopia
$ 840
2007 est.
133
Benin
$ 825
2007 est.
134
Namibia
$ 750
2007 est.
135
Madagascar
$ 745
2007 est.
136
Luxembourg
$ 713
Sep 2008
137
Barbados
$ 620
2007 est
138
Laos
$ 514
2007 est.
139
Rwanda
$ 511
2007 est.
140
Swaziland
$ 395
2007 est.
141
Togo
$ 363
2007 est.
142
Cape Verde
$ 344
2007 est.
143
Tajikistan
$ 301
2007 est.
144
Guyana
$ 292
2007 est.
145
Haiti
$ 221
2007 est.
146
Vanuatu
$ 149
Dec 2007
147
Malawi
$ 140
2007 est.
148
Gambia
$ 120
2007 est.
149
Guinea
$ 119
2007 est.
150
Burundi
$ 118
2007 est.
151
Seychelles
$ 118
2007 est.
152
Belize
$ 150
Oct 2008
153
Samoa
$ 70
2004 est.
154
Tonga
$ 55
Feb 2008
155
São Tomé and Príncipe
$ 36
Dec 2007
156
Eritrea
$ 22
These are assets of the central banks which are held in different reserve currencies such as the dollar, euro, yen and pound, and which are used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions. Before the end of the gold standard, gold was the preferred reserve. Some nations are converting foreign exchange reserves into sovereign wealth funds, which can rival foreign exchange reserves in size.
This is a list of countries and territories by foreign exchange reserves in US dollar equivalence. Some nations have multiple monetary authorities, counted separately, such as the People's Republic of China, which has three (mainland China, Hong Kong, and Macau). Exchange rate fluctuations can have significant impact on these numbers.
[edit] List of states by foreign exchange reserves
For consistency, forward currency swap contracts are not included in this list until they mature, figures that include them may be higher than those listed here. Currently, a third of all world reserves are held by majority Chinese nations, i.e. Macau, Hong Kong, Mainland China, Taiwan and Singapore.
Rank
Country/Monetary Authority
Foreign exchange reserves(millions of USD)
Figures as of
—
World (sum of all countries)
$ 7,373,084
--
1
People's Republic of China (does not include Hong Kong SAR Macau SAR)
$ 1,905,600
Sept 2008
2
Japan
$ 977,700
Oct 2008
-
Eurozone (EU member states which have adopted the euro, incl. ECB)
$ 530,173
Sep 2008
3
Russia
$ 453,500
Nov 2008
4
Republic of China (Taiwan)
$ 278,150
Oct 2008
5
India
$ 246,349
Nov 2008
6
South Korea
$ 212,250
Oct 2008
7
Brazil
$ 201,223
Oct 2008
8
Singapore
$ 168,802
Sep 2008
9
Hong Kong
$ 160,557
Sep 2008
10
Algeria
$ 149,806
Sep 2008
11
Germany
$ 142,938
Oct 2008
12
France
$ 113,058
Aug 2008
13
Italy
$ 104,215
Sep 2008
14
Thailand
$ 101,700
Oct 2008
15
Malaysia
$ 99,700
Nov 2008
16
Iran
$ 81,000
May 2008
17
Mexico
$ 80,864
Nov 2008
18
Libya
$ 79,000
Sep 2007
19
Switzerland
$ 74,309
Sep 2008
20
Poland
$ 74,266
Sep 2008
21
Turkey
$ 73,800
Oct 2008
22
United States
$ 71,245
Oct 2008
23
United Kingdom
$ 68,980
Sep 2008
—
European Central Bank (ECB, not owned by any single EU member)
$ 60,707
Sep 2008
24
Nigeria
$ 58,430
Oct 2008
25
Indonesia
$ 50,580
Oct 2008
26
Argentina
$ 45,462
Nov 2008
27
Norway
$ 44,266
Sep 2008
28
Canada
$ 42,980
Oct 2008
29
Romania
$ 40,194
Sep 2008
30
Venezuela
$ 39,745
Nov 2008
31
Czech Republic
$ 36,358
Sep 2008
32
Denmark
$ 36,285
Sep 2008
33
Israel
$ 36,259
Sep 2008
34
Philippines
$ 35,700
Oct 2008
35
Ukraine
$ 34,200
Oct 2008
36
Egypt
$ 32,915
Feb 2008
37
South Africa
$ 32,110
Oct 2008
38
Sweden
$ 32,075
Aug 2008
39
Peru
$ 31,950
Nov 2008
40
Saudi Arabia
$ 31,320
Oct 2007
41
United Arab Emirates
$ 29,620
2007 est.
42
Netherlands
$ 29,527
Sep 2008
43
Australia
$ 28,815
Sep 2008
44
Morocco
$ 26,558
Aug 2008
45
Hungary
$ 25,505
Aug 2008
46
Chile
$ 24,204
Oct 2008
47
Colombia
$ 23,724
Sep 2008
48
Iraq
$ 21,260
2007 est.
49
Kazakhstan
$ 21,953
Sep 2008
50
Bulgaria
$ 21,056
Sep 2008
51
Vietnam
$ 20,700
Jun 2008
52
Spain
$ 19,747
Sep 2008
53
Kuwait
$ 19,630
2007 est.
54
Lebanon
$ 19,400
2007 est.
55
Slovakia
$ 18,504
Sep 2008
56
Austria
$ 17,950
Sep 2008
57
Serbia
$ 15,864
Feb 2008
58
Belgium
$ 14,988
Oct 2008
59
Macau SAR
$ 14,740
Jul 2008
60
New Zealand
$ 14,654
Sep 2008
61
Croatia
$ 14,502
Aug 2008
62
Portugal
$ 12,441
Sep 2008
63
Angola
$ 12,290
2007 est.
64
Botswana
$ 10,000
May 2008
65
Azerbaijan
$ 9,316
Apr 2008
66
Finland
$ 8,344
Sep 2008
67
Tunisia
$ 8,236
Jun 2008
68
Jordan
$ 8,005
Jan 2008
69
Yemen
$ 7,871
2007 est.
70
Bolivia
$ 7,629
Nov 2008
71
Oman
$ 7,004
2007 est.
72
Trinidad and Tobago
$ 8,100
2008 est.
73
Pakistan
$ 6,750
Oct 2008
74
Lithuania
$ 6,505
Sep 2008
75
Ecuador
$ 6,500
Oct 2008
76
Qatar
$ 6,368
2007 est.
77
Latvia
$ 6,239
Sep 2008
78
Uruguay
$ 6,230
Aug 2008
79
Cyprus
$ 6,176
2007 est.
80
Syria
$ 6,039
2007 est.
81
Uzbekistan
$ 5,600
2007 est.
82
Bangladesh
$ 5,170
Oct 2008
83
Bosnia and Herzegovina
$ 5,151
Jan 2008
84
Guatemala
$ 4,559
2007 est.
85
Cuba
$ 4,247
2007 est.
86
Belarus
$ 4,051
Oct 2008
87
Equatorial Guinea
$ 3,928
2007 est.
88
Costa Rica
$ 3,915
2007 est.
89
Turkmenistan
$ 3,644
2007 est.
90
Estonia
$ 3,642
Sep 2008
91
Malta
$ 3,522
2007 est.
92
Burma
$ 3,500
Aug 2008
93
Bahrain
$ 3,474
2007 est.
94
Greece
$ 3,573
Sep 2008
96
Ghana
$ 2,837
2007 est.
97
Kenya
$ 2,800
Oct 2008
98
Iceland
$ 2,792
Feb 2008
99
Sri Lanka
$ 2,600
Oct 2008
100
Dominican Republic
$ 2,525
2007 est.
101
Côte d'Ivoire
$ 2,500
2007 est.
102
Paraguay
$ 2,463
2007 est.
103
Tanzania
$ 2,441
2007 est.
104
Cameroon
$ 2,341
2007 est.
95
Honduras
$ 2,336
Oct 2008
105
El Salvador
$ 2,263
Sep 2008
106
Republic of Macedonia
$ 2,243
Nov 2007
107
Congo
$ 2,242
2007 est.
108
Papua New Guinea
$ 2,193
Dec 2007
109
Uganda
$ 2,100
2007 est.
110
Mauritius
$ 1,772
2007 est.
111
Albania
$ 1,615
Dec 2007
112
Moldova
$ 1,610
Oct 2008
113
Cambodia
$ 1,600
Dec 2007
114
Armenia
$ 1,585
Sep 2008
115
Jamaica
$ 1,490
Dec 2007
116
Mozambique
$ 1,470
Nov 2007
117
Gabon
$ 1,459
2007 est.
118
Senegal
$ 1,350
2007 est.
119
Georgia
$ 1,300
2008 est.
120
Panama
$ 1,260
2007 est.
121
Sudan
$ 1,245
2007 est.
122
Zimbabwe
$ 1,222
Mar 2008
123
Kyrgyzstan
$ 1,278
Sep 2008
124
Zambia
$ 1,100
2007 est.
125
Slovenia
$ 1,076
Jan 2008
126
Nicaragua
$ 1,075
2007 est.
127
Mongolia
$ 1000
Jul 2007
128
Chad
$ 997
2007 est.
129
Ireland
$ 934
Oct 2008
130
Burkina Faso
$ 897
2007 est.
131
Lesotho
$ 889
2007 est.
132
Ethiopia
$ 840
2007 est.
133
Benin
$ 825
2007 est.
134
Namibia
$ 750
2007 est.
135
Madagascar
$ 745
2007 est.
136
Luxembourg
$ 713
Sep 2008
137
Barbados
$ 620
2007 est
138
Laos
$ 514
2007 est.
139
Rwanda
$ 511
2007 est.
140
Swaziland
$ 395
2007 est.
141
Togo
$ 363
2007 est.
142
Cape Verde
$ 344
2007 est.
143
Tajikistan
$ 301
2007 est.
144
Guyana
$ 292
2007 est.
145
Haiti
$ 221
2007 est.
146
Vanuatu
$ 149
Dec 2007
147
Malawi
$ 140
2007 est.
148
Gambia
$ 120
2007 est.
149
Guinea
$ 119
2007 est.
150
Burundi
$ 118
2007 est.
151
Seychelles
$ 118
2007 est.
152
Belize
$ 150
Oct 2008
153
Samoa
$ 70
2004 est.
154
Tonga
$ 55
Feb 2008
155
São Tomé and Príncipe
$ 36
Dec 2007
156
Eritrea
$ 22
2007 est.
List of countries by foreign exchange reserves
Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term foreign exchange reserves in popular usage (such as this list) commonly includes foreign exchange and gold, SDRs and IMF reserve position as this total figure is more readily available, however it is accurately deemed as official reserves or international reserves. The list excludes currency swaps conducted by central banks.
These are assets of the central banks which are held in different reserve currencies such as the dollar, euro, yen and pound, and which are used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions. Before the end of the gold standard, gold was the preferred reserve. Some nations are converting foreign exchange reserves into sovereign wealth funds, which can rival foreign exchange reserves in size.
This is a list of countries and territories by foreign exchange reserves in US dollar equivalence. Some nations have multiple monetary authorities, counted separately, such as the People's Republic of China, which has three (mainland China, Hong Kong, and Macau). Exchange rate fluctuations can have significant impact on these numbers.
[edit] List of states by foreign exchange reserves
For consistency, forward currency swap contracts are not included in this list until they mature, figures that include them may be higher than those listed here. Currently, a third of all world reserves are held by majority Chinese nations, i.e. Macau, Hong Kong, Mainland China, Taiwan and Singapore.
Rank
Country/Monetary Authority
Foreign exchange reserves(millions of USD)
Figures as of
—
World (sum of all countries)
$ 7,373,084
--
1
People's Republic of China (does not include Hong Kong SAR Macau SAR)
$ 1,905,600
Sept 2008
2
Japan
$ 977,700
Oct 2008
-
Eurozone (EU member states which have adopted the euro, incl. ECB)
$ 530,173
Sep 2008
3
Russia
$ 453,500
Nov 2008
4
Republic of China (Taiwan)
$ 278,150
Oct 2008
5
India
$ 246,349
Nov 2008
6
South Korea
$ 212,250
Oct 2008
7
Brazil
$ 201,223
Oct 2008
8
Singapore
$ 168,802
Sep 2008
9
Hong Kong
$ 160,557
Sep 2008
10
Algeria
$ 149,806
Sep 2008
11
Germany
$ 142,938
Oct 2008
12
France
$ 113,058
Aug 2008
13
Italy
$ 104,215
Sep 2008
14
Thailand
$ 101,700
Oct 2008
15
Malaysia
$ 99,700
Nov 2008
16
Iran
$ 81,000
May 2008
17
Mexico
$ 80,864
Nov 2008
18
Libya
$ 79,000
Sep 2007
19
Switzerland
$ 74,309
Sep 2008
20
Poland
$ 74,266
Sep 2008
21
Turkey
$ 73,800
Oct 2008
22
United States
$ 71,245
Oct 2008
23
United Kingdom
$ 68,980
Sep 2008
—
European Central Bank (ECB, not owned by any single EU member)
$ 60,707
Sep 2008
24
Nigeria
$ 58,430
Oct 2008
25
Indonesia
$ 50,580
Oct 2008
26
Argentina
$ 45,462
Nov 2008
27
Norway
$ 44,266
Sep 2008
28
Canada
$ 42,980
Oct 2008
29
Romania
$ 40,194
Sep 2008
30
Venezuela
$ 39,745
Nov 2008
31
Czech Republic
$ 36,358
Sep 2008
32
Denmark
$ 36,285
Sep 2008
33
Israel
$ 36,259
Sep 2008
34
Philippines
$ 35,700
Oct 2008
35
Ukraine
$ 34,200
Oct 2008
36
Egypt
$ 32,915
Feb 2008
37
South Africa
$ 32,110
Oct 2008
38
Sweden
$ 32,075
Aug 2008
39
Peru
$ 31,950
Nov 2008
40
Saudi Arabia
$ 31,320
Oct 2007
41
United Arab Emirates
$ 29,620
2007 est.
42
Netherlands
$ 29,527
Sep 2008
43
Australia
$ 28,815
Sep 2008
44
Morocco
$ 26,558
Aug 2008
45
Hungary
$ 25,505
Aug 2008
46
Chile
$ 24,204
Oct 2008
47
Colombia
$ 23,724
Sep 2008
48
Iraq
$ 21,260
2007 est.
49
Kazakhstan
$ 21,953
Sep 2008
50
Bulgaria
$ 21,056
Sep 2008
51
Vietnam
$ 20,700
Jun 2008
52
Spain
$ 19,747
Sep 2008
53
Kuwait
$ 19,630
2007 est.
54
Lebanon
$ 19,400
2007 est.
55
Slovakia
$ 18,504
Sep 2008
56
Austria
$ 17,950
Sep 2008
57
Serbia
$ 15,864
Feb 2008
58
Belgium
$ 14,988
Oct 2008
59
Macau SAR
$ 14,740
Jul 2008
60
New Zealand
$ 14,654
Sep 2008
61
Croatia
$ 14,502
Aug 2008
62
Portugal
$ 12,441
Sep 2008
63
Angola
$ 12,290
2007 est.
64
Botswana
$ 10,000
May 2008
65
Azerbaijan
$ 9,316
Apr 2008
66
Finland
$ 8,344
Sep 2008
67
Tunisia
$ 8,236
Jun 2008
68
Jordan
$ 8,005
Jan 2008
69
Yemen
$ 7,871
2007 est.
70
Bolivia
$ 7,629
Nov 2008
71
Oman
$ 7,004
2007 est.
72
Trinidad and Tobago
$ 8,100
2008 est.
73
Pakistan
$ 6,750
Oct 2008
74
Lithuania
$ 6,505
Sep 2008
75
Ecuador
$ 6,500
Oct 2008
76
Qatar
$ 6,368
2007 est.
77
Latvia
$ 6,239
Sep 2008
78
Uruguay
$ 6,230
Aug 2008
79
Cyprus
$ 6,176
2007 est.
80
Syria
$ 6,039
2007 est.
81
Uzbekistan
$ 5,600
2007 est.
82
Bangladesh
$ 5,170
Oct 2008
83
Bosnia and Herzegovina
$ 5,151
Jan 2008
84
Guatemala
$ 4,559
2007 est.
85
Cuba
$ 4,247
2007 est.
86
Belarus
$ 4,051
Oct 2008
87
Equatorial Guinea
$ 3,928
2007 est.
88
Costa Rica
$ 3,915
2007 est.
89
Turkmenistan
$ 3,644
2007 est.
90
Estonia
$ 3,642
Sep 2008
91
Malta
$ 3,522
2007 est.
92
Burma
$ 3,500
Aug 2008
93
Bahrain
$ 3,474
2007 est.
94
Greece
$ 3,573
Sep 2008
96
Ghana
$ 2,837
2007 est.
97
Kenya
$ 2,800
Oct 2008
98
Iceland
$ 2,792
Feb 2008
99
Sri Lanka
$ 2,600
Oct 2008
100
Dominican Republic
$ 2,525
2007 est.
101
Côte d'Ivoire
$ 2,500
2007 est.
102
Paraguay
$ 2,463
2007 est.
103
Tanzania
$ 2,441
2007 est.
104
Cameroon
$ 2,341
2007 est.
95
Honduras
$ 2,336
Oct 2008
105
El Salvador
$ 2,263
Sep 2008
106
Republic of Macedonia
$ 2,243
Nov 2007
107
Congo
$ 2,242
2007 est.
108
Papua New Guinea
$ 2,193
Dec 2007
109
Uganda
$ 2,100
2007 est.
110
Mauritius
$ 1,772
2007 est.
111
Albania
$ 1,615
Dec 2007
112
Moldova
$ 1,610
Oct 2008
113
Cambodia
$ 1,600
Dec 2007
114
Armenia
$ 1,585
Sep 2008
115
Jamaica
$ 1,490
Dec 2007
116
Mozambique
$ 1,470
Nov 2007
117
Gabon
$ 1,459
2007 est.
118
Senegal
$ 1,350
2007 est.
119
Georgia
$ 1,300
2008 est.
120
Panama
$ 1,260
2007 est.
121
Sudan
$ 1,245
2007 est.
122
Zimbabwe
$ 1,222
Mar 2008
123
Kyrgyzstan
$ 1,278
Sep 2008
124
Zambia
$ 1,100
2007 est.
125
Slovenia
$ 1,076
Jan 2008
126
Nicaragua
$ 1,075
2007 est.
127
Mongolia
$ 1000
Jul 2007
128
Chad
$ 997
2007 est.
129
Ireland
$ 934
Oct 2008
130
Burkina Faso
$ 897
2007 est.
131
Lesotho
$ 889
2007 est.
132
Ethiopia
$ 840
2007 est.
133
Benin
$ 825
2007 est.
134
Namibia
$ 750
2007 est.
135
Madagascar
$ 745
2007 est.
136
Luxembourg
$ 713
Sep 2008
137
Barbados
$ 620
2007 est
138
Laos
$ 514
2007 est.
139
Rwanda
$ 511
2007 est.
140
Swaziland
$ 395
2007 est.
141
Togo
$ 363
2007 est.
142
Cape Verde
$ 344
2007 est.
143
Tajikistan
$ 301
2007 est.
144
Guyana
$ 292
2007 est.
145
Haiti
$ 221
2007 est.
146
Vanuatu
$ 149
Dec 2007
147
Malawi
$ 140
2007 est.
148
Gambia
$ 120
2007 est.
149
Guinea
$ 119
2007 est.
150
Burundi
$ 118
2007 est.
151
Seychelles
$ 118
2007 est.
152
Belize
$ 150
Oct 2008
153
Samoa
$ 70
2004 est.
154
Tonga
$ 55
Feb 2008
155
São Tomé and Príncipe
$ 36
Dec 2007
156
Eritrea
$ 22
2007 est.
These are assets of the central banks which are held in different reserve currencies such as the dollar, euro, yen and pound, and which are used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions. Before the end of the gold standard, gold was the preferred reserve. Some nations are converting foreign exchange reserves into sovereign wealth funds, which can rival foreign exchange reserves in size.
This is a list of countries and territories by foreign exchange reserves in US dollar equivalence. Some nations have multiple monetary authorities, counted separately, such as the People's Republic of China, which has three (mainland China, Hong Kong, and Macau). Exchange rate fluctuations can have significant impact on these numbers.
[edit] List of states by foreign exchange reserves
For consistency, forward currency swap contracts are not included in this list until they mature, figures that include them may be higher than those listed here. Currently, a third of all world reserves are held by majority Chinese nations, i.e. Macau, Hong Kong, Mainland China, Taiwan and Singapore.
Rank
Country/Monetary Authority
Foreign exchange reserves(millions of USD)
Figures as of
—
World (sum of all countries)
$ 7,373,084
--
1
People's Republic of China (does not include Hong Kong SAR Macau SAR)
$ 1,905,600
Sept 2008
2
Japan
$ 977,700
Oct 2008
-
Eurozone (EU member states which have adopted the euro, incl. ECB)
$ 530,173
Sep 2008
3
Russia
$ 453,500
Nov 2008
4
Republic of China (Taiwan)
$ 278,150
Oct 2008
5
India
$ 246,349
Nov 2008
6
South Korea
$ 212,250
Oct 2008
7
Brazil
$ 201,223
Oct 2008
8
Singapore
$ 168,802
Sep 2008
9
Hong Kong
$ 160,557
Sep 2008
10
Algeria
$ 149,806
Sep 2008
11
Germany
$ 142,938
Oct 2008
12
France
$ 113,058
Aug 2008
13
Italy
$ 104,215
Sep 2008
14
Thailand
$ 101,700
Oct 2008
15
Malaysia
$ 99,700
Nov 2008
16
Iran
$ 81,000
May 2008
17
Mexico
$ 80,864
Nov 2008
18
Libya
$ 79,000
Sep 2007
19
Switzerland
$ 74,309
Sep 2008
20
Poland
$ 74,266
Sep 2008
21
Turkey
$ 73,800
Oct 2008
22
United States
$ 71,245
Oct 2008
23
United Kingdom
$ 68,980
Sep 2008
—
European Central Bank (ECB, not owned by any single EU member)
$ 60,707
Sep 2008
24
Nigeria
$ 58,430
Oct 2008
25
Indonesia
$ 50,580
Oct 2008
26
Argentina
$ 45,462
Nov 2008
27
Norway
$ 44,266
Sep 2008
28
Canada
$ 42,980
Oct 2008
29
Romania
$ 40,194
Sep 2008
30
Venezuela
$ 39,745
Nov 2008
31
Czech Republic
$ 36,358
Sep 2008
32
Denmark
$ 36,285
Sep 2008
33
Israel
$ 36,259
Sep 2008
34
Philippines
$ 35,700
Oct 2008
35
Ukraine
$ 34,200
Oct 2008
36
Egypt
$ 32,915
Feb 2008
37
South Africa
$ 32,110
Oct 2008
38
Sweden
$ 32,075
Aug 2008
39
Peru
$ 31,950
Nov 2008
40
Saudi Arabia
$ 31,320
Oct 2007
41
United Arab Emirates
$ 29,620
2007 est.
42
Netherlands
$ 29,527
Sep 2008
43
Australia
$ 28,815
Sep 2008
44
Morocco
$ 26,558
Aug 2008
45
Hungary
$ 25,505
Aug 2008
46
Chile
$ 24,204
Oct 2008
47
Colombia
$ 23,724
Sep 2008
48
Iraq
$ 21,260
2007 est.
49
Kazakhstan
$ 21,953
Sep 2008
50
Bulgaria
$ 21,056
Sep 2008
51
Vietnam
$ 20,700
Jun 2008
52
Spain
$ 19,747
Sep 2008
53
Kuwait
$ 19,630
2007 est.
54
Lebanon
$ 19,400
2007 est.
55
Slovakia
$ 18,504
Sep 2008
56
Austria
$ 17,950
Sep 2008
57
Serbia
$ 15,864
Feb 2008
58
Belgium
$ 14,988
Oct 2008
59
Macau SAR
$ 14,740
Jul 2008
60
New Zealand
$ 14,654
Sep 2008
61
Croatia
$ 14,502
Aug 2008
62
Portugal
$ 12,441
Sep 2008
63
Angola
$ 12,290
2007 est.
64
Botswana
$ 10,000
May 2008
65
Azerbaijan
$ 9,316
Apr 2008
66
Finland
$ 8,344
Sep 2008
67
Tunisia
$ 8,236
Jun 2008
68
Jordan
$ 8,005
Jan 2008
69
Yemen
$ 7,871
2007 est.
70
Bolivia
$ 7,629
Nov 2008
71
Oman
$ 7,004
2007 est.
72
Trinidad and Tobago
$ 8,100
2008 est.
73
Pakistan
$ 6,750
Oct 2008
74
Lithuania
$ 6,505
Sep 2008
75
Ecuador
$ 6,500
Oct 2008
76
Qatar
$ 6,368
2007 est.
77
Latvia
$ 6,239
Sep 2008
78
Uruguay
$ 6,230
Aug 2008
79
Cyprus
$ 6,176
2007 est.
80
Syria
$ 6,039
2007 est.
81
Uzbekistan
$ 5,600
2007 est.
82
Bangladesh
$ 5,170
Oct 2008
83
Bosnia and Herzegovina
$ 5,151
Jan 2008
84
Guatemala
$ 4,559
2007 est.
85
Cuba
$ 4,247
2007 est.
86
Belarus
$ 4,051
Oct 2008
87
Equatorial Guinea
$ 3,928
2007 est.
88
Costa Rica
$ 3,915
2007 est.
89
Turkmenistan
$ 3,644
2007 est.
90
Estonia
$ 3,642
Sep 2008
91
Malta
$ 3,522
2007 est.
92
Burma
$ 3,500
Aug 2008
93
Bahrain
$ 3,474
2007 est.
94
Greece
$ 3,573
Sep 2008
96
Ghana
$ 2,837
2007 est.
97
Kenya
$ 2,800
Oct 2008
98
Iceland
$ 2,792
Feb 2008
99
Sri Lanka
$ 2,600
Oct 2008
100
Dominican Republic
$ 2,525
2007 est.
101
Côte d'Ivoire
$ 2,500
2007 est.
102
Paraguay
$ 2,463
2007 est.
103
Tanzania
$ 2,441
2007 est.
104
Cameroon
$ 2,341
2007 est.
95
Honduras
$ 2,336
Oct 2008
105
El Salvador
$ 2,263
Sep 2008
106
Republic of Macedonia
$ 2,243
Nov 2007
107
Congo
$ 2,242
2007 est.
108
Papua New Guinea
$ 2,193
Dec 2007
109
Uganda
$ 2,100
2007 est.
110
Mauritius
$ 1,772
2007 est.
111
Albania
$ 1,615
Dec 2007
112
Moldova
$ 1,610
Oct 2008
113
Cambodia
$ 1,600
Dec 2007
114
Armenia
$ 1,585
Sep 2008
115
Jamaica
$ 1,490
Dec 2007
116
Mozambique
$ 1,470
Nov 2007
117
Gabon
$ 1,459
2007 est.
118
Senegal
$ 1,350
2007 est.
119
Georgia
$ 1,300
2008 est.
120
Panama
$ 1,260
2007 est.
121
Sudan
$ 1,245
2007 est.
122
Zimbabwe
$ 1,222
Mar 2008
123
Kyrgyzstan
$ 1,278
Sep 2008
124
Zambia
$ 1,100
2007 est.
125
Slovenia
$ 1,076
Jan 2008
126
Nicaragua
$ 1,075
2007 est.
127
Mongolia
$ 1000
Jul 2007
128
Chad
$ 997
2007 est.
129
Ireland
$ 934
Oct 2008
130
Burkina Faso
$ 897
2007 est.
131
Lesotho
$ 889
2007 est.
132
Ethiopia
$ 840
2007 est.
133
Benin
$ 825
2007 est.
134
Namibia
$ 750
2007 est.
135
Madagascar
$ 745
2007 est.
136
Luxembourg
$ 713
Sep 2008
137
Barbados
$ 620
2007 est
138
Laos
$ 514
2007 est.
139
Rwanda
$ 511
2007 est.
140
Swaziland
$ 395
2007 est.
141
Togo
$ 363
2007 est.
142
Cape Verde
$ 344
2007 est.
143
Tajikistan
$ 301
2007 est.
144
Guyana
$ 292
2007 est.
145
Haiti
$ 221
2007 est.
146
Vanuatu
$ 149
Dec 2007
147
Malawi
$ 140
2007 est.
148
Gambia
$ 120
2007 est.
149
Guinea
$ 119
2007 est.
150
Burundi
$ 118
2007 est.
151
Seychelles
$ 118
2007 est.
152
Belize
$ 150
Oct 2008
153
Samoa
$ 70
2004 est.
154
Tonga
$ 55
Feb 2008
155
São Tomé and Príncipe
$ 36
Dec 2007
156
Eritrea
$ 22
2007 est.
How to Trade Forex
Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.
The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.
The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.
Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements.
The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.
The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.
Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements.
Working with statistics
Trade Balance
The trade balance is a measure of the difference between imports and exports of tangible goods and services. The level of the trade balance and changes in exports and imports are widely followed by foreign exchange markets.
The trade balance is a major indicator of foreign exchange trends. Seen in isolation, measures of imports and exports are important indicators of overall economic activity in the economy.
It is often of interest to examine the trend growth rates for exports and imports separately. Trends in export activities reflect the competitive position of the country in question, but also the strength of economic activity abroad. Trends in import activity reflect the strength of domestic economic activity. Typically, a nation that runs a substantial trade balance deficit has a weak currency due to the continued commercial selling of the currency. This can, however, be offset by financial investment flows for extended periods of time.
Gross Domestic Product
The Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity available. Reported quarterly, GDP growth is widely followed as the primary indicator of the strength of economic activity.
GDP represents the total value of a country's production during the period and consists of the purchases of domestically produced goods and services by individuals, businesses, foreigners and the government.
As GDP reports are often subject to substantial quarter-to-quarter volatility and revisions, it is preferable to follow the indicator on a year-to-year basis. It can be valuable to follow the trend rate of growth in each of the major categories of GDP to determine the strengths and weaknesses in the economy.
A high GDP figure is often associated with the expectations of higher interest rates, which is frequently positive, at least in the short term, for the currency involved, unless expectations of increased inflation pressure is concurrently undermining confidence in the currency.
Consumer Price Index
The Consumer Price Index (CPI) is a measure of the average level of prices of a fixed basket of goods and services purchased by consumers. The monthly reported changes in CPI are widely followed as an inflation indicator.
The CPI is a primary inflation indicator because consumer spending accounts for nearly two-thirds of economic activity. Often, the CPI is followed but excludes the price of food and energy as these items are generally much more volatile than the rest of the CPI and can obscure the more important underlying trend.
Rising consumer price inflation is normally associated with the expectation of higher short term interest rates and may therefore be supportive for a currency in the short term. Nevertheless, a longer term inflation problem will eventually undermine confidence in the currency and weakness will follow.
Producer Price Index
The Producer Price Index (PPI) is a measure of the average level of prices of a fixed basket of goods received in primary markets by producers. The monthly PPI reports are widely followed as an indication of commodity inflation.
The PPI is considered important because it accounts for price changes throughout the manufacturing sector.
The PPI is often followed but excludes the food and energy components as these items are normally much more volatile than the rest of the PPI and can therefore obscure the more important underlying trend.
Studying the PPI allows consideration of inflationary pressures that may be accumulating or receding, but have not yet filtered through to the finished goods prices.
A rising PPI is normally expected to lead to higher consumer price inflation and thereby to potentially higher short-term interest rates. Higher rates will often have a short term positive impact on a currency, although significant inflationary pressure will often lead to an undermining of the confidence in the currency involved.
Payroll Employment
Payroll employment is a measure of the number of people being paid as employees by non-farm business establishments and units of government. Monthly changes in payroll employment reflect the net number of new jobs created or lost during the month and changes are widely followed as an important indicator of economic activity. Payroll employment is one of the primary monthly indicators of aggregate economic activity because it encompasses every major sector of the economy. It is also useful to examine trends in job creation in several industry categories because the aggregate data can mask significant deviations in underlying industry trends.
Large increases in payroll employment are seen as signs of strong economic activity that could eventually lead to higher interest rates that are supportive of the currency at least in the short term. If, however, inflationary pressures are seen as building, this may undermine the longer term confidence in the currency.
Durable Goods Orders
Durable Goods Orders are a measure of the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. Monthly percent changes reflect the rate of change of such orders.
Levels of, and changes in, durable goods order are widely followed as an indicator of factory sector momentum. Durable Goods Orders are a major indicator of manufacturing sector trends because most industrial production is done to order. Often, the indicator is followed but excludes Defence and Transportation orders because these are generally much more volatile than the rest of the orders and can obscure the more important underlying trend.
Durable Goods Orders are measured in nominal terms and therefore include the effects of inflation. Therefore the Durable Goods Orders should be compared to the trend growth rate in PPI to arrive at the real, inflation-adjusted Durable Goods Orders.
Rising Durable Goods Orders are normally associated with stronger economic activity and can therefore lead to higher short-term interest rates that are often supportive to a currency at least in the short term.
Retail Sales
Retail Sales are a measure of the total receipts of retail stores. Monthly percentage changes reflect the rate of change of such sales and are widely followed as an indicator of consumer spending.
Retails Sales are a major indicator of consumer spending because they account for nearly one-half of total consumer spending and approximately one-third of aggregate economic activity.
Often, Retail Sales are followed less auto sales because these are generally much more volatile than the rest of the Retail Sales and can therefore obscure the more important underlying trend.
Retail Sales are measured in nominal terms and therefore include the effects of inflation. Rising Retail Sales are often associated with a strong economy and therefore an expectation of higher short-term interest rates that are often supportive to a currency at least in the short term.
Housing Starts
Housing Starts are a measure of the number of residential units on which construction is begun each month and the level of housing starts is widely followed as an indicator of residential construction activity.
The indicator is followed to assess the commitment of builders to new construction activity. High construction activity is usually associated with increased economic activity and confidence, and is therefore considered a harbinger of higher short-term interest rates that can be supportive of the involved currency at least in the short term.
The trade balance is a measure of the difference between imports and exports of tangible goods and services. The level of the trade balance and changes in exports and imports are widely followed by foreign exchange markets.
The trade balance is a major indicator of foreign exchange trends. Seen in isolation, measures of imports and exports are important indicators of overall economic activity in the economy.
It is often of interest to examine the trend growth rates for exports and imports separately. Trends in export activities reflect the competitive position of the country in question, but also the strength of economic activity abroad. Trends in import activity reflect the strength of domestic economic activity. Typically, a nation that runs a substantial trade balance deficit has a weak currency due to the continued commercial selling of the currency. This can, however, be offset by financial investment flows for extended periods of time.
Gross Domestic Product
The Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity available. Reported quarterly, GDP growth is widely followed as the primary indicator of the strength of economic activity.
GDP represents the total value of a country's production during the period and consists of the purchases of domestically produced goods and services by individuals, businesses, foreigners and the government.
As GDP reports are often subject to substantial quarter-to-quarter volatility and revisions, it is preferable to follow the indicator on a year-to-year basis. It can be valuable to follow the trend rate of growth in each of the major categories of GDP to determine the strengths and weaknesses in the economy.
A high GDP figure is often associated with the expectations of higher interest rates, which is frequently positive, at least in the short term, for the currency involved, unless expectations of increased inflation pressure is concurrently undermining confidence in the currency.
Consumer Price Index
The Consumer Price Index (CPI) is a measure of the average level of prices of a fixed basket of goods and services purchased by consumers. The monthly reported changes in CPI are widely followed as an inflation indicator.
The CPI is a primary inflation indicator because consumer spending accounts for nearly two-thirds of economic activity. Often, the CPI is followed but excludes the price of food and energy as these items are generally much more volatile than the rest of the CPI and can obscure the more important underlying trend.
Rising consumer price inflation is normally associated with the expectation of higher short term interest rates and may therefore be supportive for a currency in the short term. Nevertheless, a longer term inflation problem will eventually undermine confidence in the currency and weakness will follow.
Producer Price Index
The Producer Price Index (PPI) is a measure of the average level of prices of a fixed basket of goods received in primary markets by producers. The monthly PPI reports are widely followed as an indication of commodity inflation.
The PPI is considered important because it accounts for price changes throughout the manufacturing sector.
The PPI is often followed but excludes the food and energy components as these items are normally much more volatile than the rest of the PPI and can therefore obscure the more important underlying trend.
Studying the PPI allows consideration of inflationary pressures that may be accumulating or receding, but have not yet filtered through to the finished goods prices.
A rising PPI is normally expected to lead to higher consumer price inflation and thereby to potentially higher short-term interest rates. Higher rates will often have a short term positive impact on a currency, although significant inflationary pressure will often lead to an undermining of the confidence in the currency involved.
Payroll Employment
Payroll employment is a measure of the number of people being paid as employees by non-farm business establishments and units of government. Monthly changes in payroll employment reflect the net number of new jobs created or lost during the month and changes are widely followed as an important indicator of economic activity. Payroll employment is one of the primary monthly indicators of aggregate economic activity because it encompasses every major sector of the economy. It is also useful to examine trends in job creation in several industry categories because the aggregate data can mask significant deviations in underlying industry trends.
Large increases in payroll employment are seen as signs of strong economic activity that could eventually lead to higher interest rates that are supportive of the currency at least in the short term. If, however, inflationary pressures are seen as building, this may undermine the longer term confidence in the currency.
Durable Goods Orders
Durable Goods Orders are a measure of the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. Monthly percent changes reflect the rate of change of such orders.
Levels of, and changes in, durable goods order are widely followed as an indicator of factory sector momentum. Durable Goods Orders are a major indicator of manufacturing sector trends because most industrial production is done to order. Often, the indicator is followed but excludes Defence and Transportation orders because these are generally much more volatile than the rest of the orders and can obscure the more important underlying trend.
Durable Goods Orders are measured in nominal terms and therefore include the effects of inflation. Therefore the Durable Goods Orders should be compared to the trend growth rate in PPI to arrive at the real, inflation-adjusted Durable Goods Orders.
Rising Durable Goods Orders are normally associated with stronger economic activity and can therefore lead to higher short-term interest rates that are often supportive to a currency at least in the short term.
Retail Sales
Retail Sales are a measure of the total receipts of retail stores. Monthly percentage changes reflect the rate of change of such sales and are widely followed as an indicator of consumer spending.
Retails Sales are a major indicator of consumer spending because they account for nearly one-half of total consumer spending and approximately one-third of aggregate economic activity.
Often, Retail Sales are followed less auto sales because these are generally much more volatile than the rest of the Retail Sales and can therefore obscure the more important underlying trend.
Retail Sales are measured in nominal terms and therefore include the effects of inflation. Rising Retail Sales are often associated with a strong economy and therefore an expectation of higher short-term interest rates that are often supportive to a currency at least in the short term.
Housing Starts
Housing Starts are a measure of the number of residential units on which construction is begun each month and the level of housing starts is widely followed as an indicator of residential construction activity.
The indicator is followed to assess the commitment of builders to new construction activity. High construction activity is usually associated with increased economic activity and confidence, and is therefore considered a harbinger of higher short-term interest rates that can be supportive of the involved currency at least in the short term.
Subscribe to:
Posts (Atom)
.svg){kind=link}
