Review Category : Brokers

How To Select An FX Broker

Selecting an FX broker is an important decision. The right broker can act as a strong backbone for a trader, providing the necessary tools and support required for success. We are all unique traders, and as such we may well prioritize different factors – however, at a bare minimum we want to ensure a broker is well regulated, efficient, supportive and that our money remains safe in their hands.

In this article we’ll analyse the main questions every new trader should ask before signing up with a prospective FX broker.

Questions To Ask Before Signing Up With An FX Broker

What FX Account Security & Regulation Do You Fall Under? First, we need to be sure that our funds are secure. Different countries have different requirements from FX brokers, so you will want to find out just how safe your money is. A UK broker falls under the protective scrutiny of the Financial Services Authority (FSA) – it means that your funds are protected in case the broker goes bust.

Are My Funds Ring-fenced From Broker Operating Funds? Ideally you want a broker who keeps your funds totally separate from the funds used to run their business. This means your money is less likely to disappear in the event of the company going under. Another security question is to ask if your funds are insured against activities such as fraud and theft.

Do You Offer Demo Account Functionality. Increasingly, top FX brokers offer a dummy or demo account where the trader can practice trading real market conditions with imaginary money. Many new traders find this a good way to get their mistakes out of the way, and only begin trading with their real equity once their dummy accounts are making profit consistently.

Do You Offer MT4 Compatibility? The MetaTrader4 platform is the most popular free trading software available. Countless FX traders use it, and so an increasing number of FX brokers have started offering compatibility with their own systems and accounts. If you opt to go with the brokers own bespoke trading platform, ensure there is a good functionality to analyse market data – including a wide range of technical analysis tools. You should also be able to execute trades directly from your MT4 or the analysis platform the broker offers. Finally, ask how easily you can integrate your own bespoke trading system with that of the broker – the availability of an Application Programming Interface (API) will enable you to do this.

How Efficient Is Your Order Execution?  Scalpers in particular will need to ensure that slippage is kept to a minimum, and that orders are executed in a timely fashion. Not all brokers are equal in this regard, and keeping an ear to the ground and asking other traders for their recommendations can help you pick a suitably efficient broker.

What Capital Investment Must I Make? More FX brokers are now offering a variety of accounts to cater to all shapes and sizes of traders. It is now possible to trade on high leverage with a mini or micro account, so long as you choose a broker that offers this function. If you’re starting with only a few hundred dollars, you’ll need to open a high leverage micro lot account in order to be able to trade with any potency.

What Are Your Pip Spreads Like? Spreads represent the biggest variable costs in doing business as a trader. Therefore it is crucial to find an FX broker that offers attractive pip spreads, especially in those currency pairs that you envisage trading in the most. Ask also if spreads are fixed or variable – sometimes, with variable spreads, the spread can get excruciatingly wide during key moments such as news releases.

Do You Offer A Sign Up Bonus? As FX brokers scrap for your custom, more and more have been known to offer sign up bonuses – they will add a certain amount of funding to your account which effectively allows you to have more open positions on higher leverage accounts.

By knowing which factors are the most important to you, and asking all the above questions you’ll be in a strong position to narrow your FX broker choice to a good few candidates.

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5 Things You Must Know About Foreign Exchange Trading

Successful foreign exchange trading is the combination of a calm and well trained mind with experience that can only come through prolonged market battle. If you’re just about to cut your teeth in the dangerous yet alluring world of foreign exchange trading, the below ideas, tips and concepts can help tilt the odds of success in your favour.

5 Foreign Exchange Trading Ideas That Can Tilt The Odds Of Success In Your Favour

1. Success In Trading Involves Mastering The Three “M’s”. Money management, methodology and mind control are the three beasts you will need to slay in order to take your rightful title as a champion foreign exchange trader. First, you must have a firm and robust way of controlling risk and money – addressing everything from position sizes to stop losses in a mandate to safeguard your equity. The second M, is methodology – this involves having a battle tested trading plan, and the right blend of knowledge and experience to implement it with ruthless potency. Finally, the final M, mind, is no less an important part of the trinity – trading psychology can make you, or break you.

2. Success Comes When You Focus On The Long Term. To make it as a foreign exchange trader, you must adopt a very long term mind-set. You shouldn’t celebrate and gloat after one good trade any more than you should fume after one bad one. Instead, focus on improving your own education and your trading system little by little, and trade by trade – so that you end up with a good trading plan that can be applied in any and all market conditions.

3. Capital Preservation Is Everything When Trading Foreign Exchange. As a trader, you should treat your equity as you would your own child. Like babies, trading equity can only grow and thrive when first protected against harm. Good money and risk management are key in ensuring that the bulk of your capital survives, even after any one horrific trade or session.

4. Everyone Suffers Drawdown. The term drawdown refers to the decline in your equity from its peak to a lower level. It happens after a succession of losing trades, and equity drawdown is simply part and parcel of the foreign exchange trading game. When you face drawdown as a trader, the key is not to panic. Not to try and revenge trade, or go for that one HUGE ten bagger that will make everything ok again. Those are the roads to ruin. Instead, slow down, appreciate that you still have some equity left, and re-evaluate your trading system in order to work your equity back into the black. Recuperation from drawdown is like recovering from a serious illness – it can be slow going, but the right medicine by way of consistent and prudent trading will ultimately heal your ailing equity.

5. Be Well Capitalized. Serious traders will want to go to market with a good amount of capital under their belts. Thanks to leverage, and brokers desperate for new accounts, you can begin trading with a couple of hundred quid in your pocket. This scant, almost insignificant level of capital is simply not sufficient for those who want to make a living from their foreign exchange trading. Well capitalized traders can open more positions, and can allow the inevitable push and pull of market forces to let price action veer off course, while crucially not hitting their stop loss. By contrast, traders who are under capitalized can often simply ill afford generous stop losses, and risk being stopped out by volatility even when their initial analysis is bang on the money.

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How Fear And Greed Affect FX Trading Decisions

There are two emotions that dominate the and rule over the FX market – fear and greed. They are ever present in the minds of practically all traders. Indeed, they often dictate the positions opened and closed by them. Do not underestimate fear and greed – these two emotions truly do move FX markets, and sometimes with a voracity and aggression that you only truly appreciate once your stop loss has gotten unwittingly in the way.

In this article, we’ll explore fear and greed in detail. We’ll open the bonnet, and peer under the hood of these duo of crucial emotions – so that you can use them to your advantage, rather than being crushed in their wake.

How Fear And Greed Impacts The FX Market

Want An Illustration Of Fear & Greed At Work? Just Watch Market Reaction To News. Perhaps the easiest way to see fear and greed in action is by watching price as it reacts to important news. Especially when the news isn’t quite what the market expected. For example, when GDP numbers are disappointing. Or when unemployment figures aren’t as bad as previously anticipated – these are news events that choke the markets with fear and greed. The fear caused by poorer than expected GDP numbers is often an over-reaction. Logic would dictate that GDP will always have its ups and downs, yet price action on the back of poor GDP might well swoon illogically – setting a whole new downtrend into play. Reams of traders, closing long positions and opening shorts in unison – driving the price ever downwards. This is fear in play – FX traders are acting emotionally, instead of logically. The reverse may be true when sparkling unemployment numbers are released – more people in work than previously expected. When this happens, markets often become too optimistic about the state of the economy, and so by extension, the currency. The price might scale to highs not seen for many a candlestick, as the market sees a flood of long positions. Of course, the good unemployment figures may simply be one bit of good news amidst a highly gloomy backdrop. A rise in price of the type described may well not be warranted.

How Fear And Greed Affects Your FX Trading. Just as fear and greed impact the FX markets at a macro level, they are just as influential within the microcosm of the market that is your individual trading mind. Consider the following trading situations brought about by fear and greed:

  • Fear Of Missing A Great Trend. FX trading is sometimes like going shopping during the sales. When traders see what appears to be a strong new trend or breakout emerge, they worry about missing the boat. This can lead them to open a position that, if calmly analysed, would never have been taken on. Many breakouts are fake – and when greed or fear tricks a trader into opening a position, a loss is the most likely outcome as the breakout falters and crashes into a stop loss. You would be served well to remember that calm trading analysis must always trump the raw trading impulse brought on by the forces of fear and greed.
  • Fear Of Losses. Fear is a funny thing – not only can it be responsible for taking out your stop loss many times in a row, but it can prevent profits too. How? A string of losses will often create hesitancy in a traders mind. Even when using an FX trading system that is on the whole quite efficient. This fear of taking a loss often manifests during a bad trading run, when a trader will pass up a perfectly good trading set-up on account of fearing yet another loss. Of course, more often than not, the high probability trading set-up plays out in the expected way, and the trader misses out on a profit. All thanks to fear.
  • Greed In Not Taking A Profit. Greed often rears its ugly head when a trader is sitting pretty on a big profit. An unrealized one. However, even after the traders initial take profit level is hit, he or she does not take profit, wanting more instead. Even when chart indicators are suggesting it’s time to take the money and run, the FX trader keeps the position open – wanting those extra pips. The result? Sometimes, a sharp and aggressive price reversal that wipes out much of their hard earned profit – perhaps even backtracking all the way to the traders stop loss.

Fear and greed are difficult to identify and master within the course of your FX trading. By understanding the potential negative impact they can have on your trading decisions, you can be better armed to watch out for them as they try and creep into your FX trading psychology.

 

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5 Questions To Ask Yourself Before Trading Forex

Forex trading can be an eminently lucrative profession for those traders who have the resilience and determination to unlock the secrets to success. However, the markets do not give up its many secrets easily – indeed forex trading has made mincemeat out of many hopeful newbies.

Do you have the right stuff to become a successful forex trader? Take a moment to answer the below questions, and find out for yourself.

5 Questions To Ask Yourself Before Taking Up Forex Trading

1. Are You Mentally Strong? Forex trading is as much about mastering your own mind, as it is about mastering the markets. Human beings have a tendency to make decisions on the back of emotions, rather than cold hard fact and logic. Poor trading psychology can destroy even the plumpest stash of equity. If you are not mentally strong – if you are the type who will bow to the evils of fear, greed and frustration, the currency markets are likely to bring nothing but doom to you. Fortunately, everyone can train their mind so that it takes on the right aura to trade with calm and logic.

2. How Much Do You Want It? If you truly desire forex trading success – if you hunger for profits – you’re just eminently more likely to expend the energy it takes to go from zero to hero. Forex trading involves a steep learning curve. Additionally, new traders must clock up a lot of market experience – trial and error – before they can truly manipulate the market consistently. When you have the raw desire for forex trading success, you’re far more likely to make it through the tests that the markets set.

3. Are You Willing To Educate Yourself? There is much to pick up as a forex trader. You’ll need to understand what makes price move, and study chart patterns, indicators, risk management and more. Good traders don’t learn these things overnight – and there is often a time lag in learning from a book and actually applying that knowledge within hostile market conditions. Good traders will accept the need to adopt a long term commitment to acquiring new trading knowledge.

4. Can You Take A Punch Or Two? Look, taking a loss – taking a series of losses – are just part and parcel of the forex game. Some people just find it impossible to stomach a loss. They take it personally. It eats up their insides and they ruminate about the lost pips endlessly. Those types never thrive in the world of forex trading. You must be able to take a loss in a calm and robotic fashion. The ability to move on without hesitation to the next trading play – having learned from your past loss, instead of rueing it.

5. Do You Learn From Your Mistakes? The very best forex traders all learn important lessons from their past trading experiences. Whether those trades won or lost. Every single trade you finish should be able to teach you important lessons. Why did it win or lose? How well was the entry made? How about the exit? Was the stop loss too snug, or too slack? With hindsight were there any glaring errors in opening that position?

If you can honestly answer these five questions positively, you may well have the ideal forex trader makeup – even if you have not so much as traded a single currency in your life.

 

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Foreign Exchange Rates Ruble Crisis

Foreign Exchange Rates

Just a year after the Asian currency debacle Russia is in trouble according to past events. The year was 1998 and Moscow was using poor management economically speaking. It created a chain reaction in economics affecting foreign exchanges rates and at the time the Soviet Union was breaking up and almost completely dissolved. Traders started short selling the ruble. It was seen as a currency that was not going to perform, so getting rid of it to gain profit was one way speculators started to create further issues. The central bank was trying to get it back on track with market intervention. Interest rates were raised too.

The 90s and Foreign Exchange Rates

The 90s are in some ways seen as great economical growth. Yet, if you take a look at the majority of the 90s you see plenty to dissuade you of the overall outlook. The Mexican peso collapsed, which created a small issue in the USD, but that was nothing compared to the Asian spread of troubled exchange rates. The peso was bailed out and then the International Monetary Fund was used to get Asia back on track.

By the time 1998 hit and Russia was suffering from ruble troubles, the IMF was delayed. Investors removed from the market after gaining a bit on ruble issues. Fear was starting to create an issue in the market and government intervention started. The only move open to the Russian government was to default on sovereign debt. It led to further devaluation as seen in past foreign exchange rates. Eventually the Russian ruble ended up as another floating currency. Payments had to be suspended by the banks to their foreign creditors in order to help stop an all out problem. Those living in Russia suffered greatly from the devaluation and end to the Soviet Union. Suffrage was nothing new, but the condition did not get better just because it was the end of the Soviet reign.

Examining Russian Foreign Exchange Rates

The Russian ruble is still not back to a complete recovery. It is often devalued against major currencies in the world. Some traders do consider it worth investing in, but like many “emerging” economies it is largely volatile. Beginning investors tend to be afraid of trying their hand at any profit on the ruble. It might be available on the public market as a free floating currency; however, the littlest thing can affect it.

Today Russia is still an issue for investors. The discord brewing between Russia and the USA over Syria is just another issue in a string of them. Russia is gaining in funds due to what media says are improper weapons sales to a variety of USA and UN enemies. The Syrian leader is just one getting help from Russia in terms of weapons. Foreign exchange rates most recently for the ruble are not steady because of the admittance to the world that Russia did provide Syria with weapons. They have also stated that they would do the same. It is certainly one of their major exports according to the media reports.

 

 

 

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Foreign Exchange Rates Examples with Pegging

Foreign Exchange Rates

Pegged currencies react differently. For minutes, hours, or days the rate might stay sideways. Examining foreign exchange rates for the USD/HKD might lead you away from trading it. Certainly a daily chart is volatile and hard to read where rates might go. Of course if you understand it is pegged within a certain range and it will not go beyond those points you can feel more confident in your choice. One way to trade this currency pair is to look at a month chart. It is less volatile than a day or a week. The following will provide you calculations for profit and loss to help you understand how to protect yourself before you enter into a position.

Foreign Exchange Rates for USD/HKD Ranges

There are usually two ranges given for a currency chart. These ranges are the day and the 52 week highs and lows. The day range for September 3, 2013 was 7.7540 to 7.7553. The 52 week range according to published foreign exchange rates was 7.7490 to 7.7664.

The open was at 7.7546 for that day, but for the purposes of easier calculations we will assume the trader entered at 7.7540 and closed the position at 7.7550, thus a .0010 pip change occurred. Other assumptions about this trader are that they did not use any leverage and chose to put 100,000 lot size on the hope that the HKD would lose value against the USD. It did according to the open versus the close.

It is easier if you just use a profit calculator to determine how much you could make on the trader’s same trade based on the assumed foreign exchange rates. You can also use formulas:
Pip change= close minus open

Profit= lot size multiplied by pip change

Profit in account currency= profit divided by current rate

You would need to take .0010 times 100,000 to get the profit on this example. It is $100 HKD. Now we will assume the account is in USD thus you would have $12.89 USD for profit. The HKD is extremely undervalued against the USD. It takes a great deal of HKD to make 1 USD. This is why when you convert to USD the profit is significantly lower.

Foreign Exchange Rates for USD/HKD Losses

If you assume the trader did not buy USD and instead sold USD the above calculations would be slightly different. This is because the pip change is actually negative. A negative pip change would mean a loss of profit. So instead of $100 in profit it would have been $100 loss. In USD this would be $12.89 loss.

Now if you want to consider what might happen in a longer time frame than just a day, consider a month. Rates for the USD/HKD went down in favour of the HKD for half a month before returning to favour the USD. The rate went from 7.7559 to 7.7538 from August 1 to the 19th. The change was 21 pips or .0021. This is better than 10, but it is also in a longer time frame. Sometimes it looks like foreign exchange rates move in a bigger spread on the long term charts, but when you examine them closely it is not that great.

 

 

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Foreign Exchange Rates Calculation Examples

Foreign Exchange Rates

Examining things like day’s trading range does not provide enough information to you regarding profit and loss. The day’s trading range of foreign exchange rates might indicate how much the pair moved, but you still need to consider where the pair opened, closed, and how the trading chart appeared for the day. It is possible to make 150 plus pips on a trade in a day; however, it takes a lot of work and the right pair. What might you think if the day’s range for AUD/CAD was .9546 to .9592? There are certainly a few points you can infer with this range. The first is that the pair did see a profit for those who bought the AUD. You can also tell the CAD is below 1.000 so it is actually more valuable than AUD in terms of the 1 AUD equals the current quote rate of .9592 seen for the day’s high.

Foreign Exchange Rates without Charts Offer a Missing Story

For the day these foreign exchange rates were accessed the chart had a fairly sideways look to it. For the first several hours the rate traded between .957 and .959. It was not until other world markets like London opened that the AUD/CAD had significant movement. It went from .959 to under .956. It then hit the daily high before trading down to the day low.

It changes the perspective of a previous statement, right? In actuality the currency pair was in favour of the CAD most of the trading afternoon and it closed lower than it opened. It closed at .9591 and opened at .9585 with a final price near .9560 according to the foreign exchange rates posted online in real time.

It is important before you consider a profit and loss calculation to examine the charts. If you go on the assumption that the day’s range meant the chart showed an increase for the pair you could be wrong. You also want to be aware that 150 pips could be a very small profit amount.

Foreign Exchange Rates for AUD/CAD in Profit Terms

The assumption for our example trader is that they bought in at .959 and sold on the .955 rate. This would be a pip change of .0040. Another assumption is no leverage and an open position with 10,000 invested. In CAD this is $40 profit. In AUD it is $41.88. If you only had a position of 1,000 which is definitely possible with many accounts being opened with less than $1,000 AUD you would have seen $4.19 AUD in profit. This is not a huge profit amount for foreign exchange rates based on position sizes. Of course if you make multiple trades in a day you might see a good profit. On the other hand if you assumed due to the trade range the pair went up then it would have been a significant loss rather than an actual gain. Be careful when you calculate that you are looking at the trends in the charts.

 

 

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Foreign Exchange Rate USD SGD Example

Foreign Exchange Rate

Understanding how a foreign exchange rate will move in the market is important. There is no one right answer. Plenty of factors apply to how rates move including whether it is a currency pegged to another. The Singapore dollar is pegged to a basket of currencies. Unless you know this you might feel the rate changes you see on five, one or even a month’s time is normal and will break out of a range trade. Actually looking for the range can help you figure out what it might be pegged to. Many believe although it is unknown that the SGD is pegged with the USD. This might serve as an advantage to trading this currency. Consider some of the profit and loss example calculations below as well to help you invest in this pair.

Foreign Exchange Rate USD/SGD Profit Calculation

A few formulas are necessary in order to determine the profit you can make on a foreign exchange rate changing throughout the day. These are:

Pip change= close rate minus open rate

Profit= pip change multiplied by lot size

Profit in account currency= profit divided by current exchange rate

You may also want to use a calculator to determine the pip value of one pip change. The calculation requires the lot size divided by the tick size multiplied by the current rate. The value tells you how much a pip change will equal in profit or loss to help you set up your stop loss or trailing stop loss at a certain foreign exchange rate.

The USD/SGD rate for September 3, 2013 was 1.2738 at the open. It went to 1.2786 for the close. If you make some assumptions about a trader such as getting in at the open and then closing the position at 1.2783 the movement for the day is .0050 pips or 50 pips.

Plugging the pip change into the calculator with an assumed lot size of 10,000 you get 50 in profit. This is $50 SGD. The other assumption to our calculation is no leverage on the position. So for 10,000 USD with a rate change of .0050 pips you earn $50 SGD. This would be $63.9 USD. On the exchange from SGD to USD you have more USD in the end. This is also on the assumption that the rate went up as it did on the day we obtained these rates.

Foreign Exchange Rate Loss Calculation Example

The nice thing about these various formulas is that they work to offer you the loss amount too. If you decided to sell USD and buy into SGD on this particular day and hung on till the rate increased by .0050 pips you would have lost $63.9 USD. This is because when you sell USD and the rate goes up the SGD has lost value against the USD.

The assumption on the profit calculation is that the trader bought USD knowing the rate would increase, thus the USD would gain in profit. You have to study the foreign exchange rate movement to determine how to open a position and where to close it.

 

 

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Foreign Exchange Rate Safe Haven Example

Foreign Exchange Rate

Taking a piece of the news and finding out how the charts look for a specific foreign exchange rate can provide you plenty of information. The USD has had a rocky couple of weeks on the announcement that the USA is ready at any time to launch a military strike on Syrians responsible for the chemical weapons attack. News has been full of the CHF and Yen as safe haven currencies leading you to believe that many investors are heading into these two currencies or out of the market completely. For a week’s time the AUD/CHF and USD/CHF were examined for examples. Both charts were vastly different, yet there was definitely some correlation in the USD/CHF pairing in terms of news.

Foreign Exchange Rate USD/CHF Bounces on News

Thursday was a relatively good day for the USA with expectations of jobs data and the President backing off Syria until more data can be gleaned about the attack. For much of the first week in September the USD/CHF traded sideways with the occasional jump in favour of the USD. The USD is considered a safe haven at times, but with Syrian trouble the CHF is favoured more according to news and even to a degree in the foreign exchange rate.

Friday was much different than the rest of the week with slight favours towards USD. There was a significant drop in rates once the jobs data was released and again uncertainty about Syria was named. Many investors jumped ship from the USD to the CHF. The rate went from .9452 to .9352. For those watching the foreign exchange rate and getting into a position in favour of the CHF profit was possible in the late afternoon for a short time.

For example if someone sold USD at .9450 and bought it at .9360 that would have been .0090 pips that changed. Assuming the trader had a position of 10,000 units on the trade the resulting earnings in CHF would have been 90 because you take the pip change and times it by the number of units you bought. To see the earnings in USD divide the profit by the current rate and you get $96 USD in profit for this transaction.

The key is of course to be following news and understand what the expected results are and the assumptions about safe havens.

Foreign Exchange Rate AUD/CHF Much Different

The AUD/CHF did not react as much as the USD, which is not a surprise since it was mostly USA data in the news. Instead what it caused for this pair was a general trend for gains on AUD, but there was a lot of bouncing up and down in short term price movement. With sideways trading on the foreign exchange rate it is possible to see that investors hesitant about profits kept going from the AUD to the CHF, eventually gaining some profit while hopping into the CHF the moment the actual jobs data was released for the USA. The charts and news make it clear the CHF was temporarily sought for its safe haven attraction on bad news in the USA.

 

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Foreign Exchange Rate Argentina Crisis

Foreign Exchange Rate

From 1998 to 2002 Argentina suffered from an economic crisis. Now just 11 years later, there is not a great deal of focus on the Argentine peso by investors. In fact most of the emphasis is on the BRL, Brazil’s currency, for investing. For investors looking at the foreign exchange rate for the Argentine peso there is certainly some attraction. A Bloomberg article in 2010 said the peso was on the rise for emerging countries. It was considered the highest of 35 currencies being tracked three years ago. Due to soybean exports Argentina gained a better economic standing. This is after the trouble eight years prior. Find out how these two events have helped the peso.

Economic Crisis Affects Foreign Exchange Rate

The four year spread the economic crisis lasted in Argentina is actually much more than that. It took a long time for Argentina to see the four year downturn. It actually started with pegging the peso to the USD. There was a favourable rate of 1 to 1, which created a desire for imports, but that also weakened the economy. The foreign exchange rate while favourable in some ways did nothing for the peso to actually gain. The government started gaining more and more debt because of the imports. The country already had debt. The IMF decided to keep loaning money and put off payments for the old debts.

With the economy in a shrinking phase the IMF wanted action from Argentina’s government which created more trouble for the economy. It meant borrowing more money to make up lost revenue particularly in taxes. The population did not want retrenchment and reform, which created issues with bank runs with many civilians pulling out funds. It led to the IMF finally stopping funds to Argentina. With the 1 to 1 fixed foreign exchange rate changed to a lower rate and eventually a floating peso things have repaired. This did not happen before riots in 2001 led to Buenos Aires being set on fire. The peso also depreciated quickly due to the now floating rates.

Almost a Decade Later with Foreign Exchange Rate Improvement

It is a decade later now, but in 2010 Argentina showed the first signs of great recovery. At a time when North America and much of Western Europe was in turmoil, Argentina was finally making an economic comeback. It led investors into the Argentine peso. Much of the improvement was in soybeans being exported to China and Brazil. Even yields for asset products versus currency investments only looked better than many other countries sporting the peso as their currency. Mexico, Chile, and Colombia use a form of the peso and the foreign exchange rate in 2010 definitely favoured Argentina overall. These other countries still showed great promise too.

Right now the rate still favours the USD and many global currencies. The chart is looking very sideways for 2013 because of lack of overall volume. Yet, the move towards a better economy is favourable for eventually seeing more interest in the Argentine peso by day traders.

 

 

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