ITRADER - <span>INVEST IN YOUR FUTURE</span>

Risk Warning: Trading FX/CFDs involves substantial risks. Losses may exceed invested capital.

ITRADER - INVEST IN YOUR FUTURE
EURUSD1.05623:59 09.12.16
GBPUSD1.25823:59 09.12.16
EURCHF1.07423:59 09.12.16
USDJPY115.35823:59 09.12.16
AUDUSD0.74523:59 09.12.16
USDCAD1.31823:59 09.12.16
APPLE113.84522:59 09.12.16
GOLD1159.84023:58 09.12.16
EURUSD1.05623:59 09.12.16
GBPUSD1.25823:59 09.12.16
EURCHF1.07423:59 09.12.16
USDJPY115.35823:59 09.12.16
AUDUSD0.74523:59 09.12.16
USDCAD1.31823:59 09.12.16
APPLE113.84522:59 09.12.16
GOLD1159.84023:58 09.12.16

Prices are indicative

Understanding the factors that affect forex exchange rates

iTrader - Forex Exchange Rates

Understanding the factors that affect forex exchange rates helps create profits through all investment classes.  Whether a person is a Forex trader, investing in the stock market, buying and selling real estate, or trading bonds, the same principles apply.  One must understand all the economic and financial vectors that drive the values in the market.

Forex Trading Leads to Better Investing

Forex markets are particularly interesting regarding the factors that move one currency up or down relative to another.  A few of the factors impacting the currency’s value include:

  1. Whether the country has a positive or negative trade balance
  2. The annual budget deficit of the government
  3. The level of debt incurred by the government each year along with the existing debt levels
  4. The rate of growth of the country’s economy
  5. The interest rate charged by the country’s central bank for a variety of benchmark loans
  6. The perceived political and social stability of the country
  7. In rare cases, the success or failure of the country in large wars

There are other potential factors including the level of technology and value of commodities the country produces that can also have an impact.  Generally speaking, though, these seven factors define one currency relative to another market.

Once an investor grasps the details that go into providing Forex exchange rates and begins to think as though they are engaged in Forex trading, then all of their investments will be better informed

Forex Trading Requires International and National Perspective

By broadening trading perspectives to include international as well as national factors, an investor can gain insights into long-term trends.  Long-term trends will often start in one country before they land on another nation’s shores.  Examples of this include the collapse of the US economy in 2000, leading to worldwide financial issues.

The same principle applies with Forex trading.  If a trader wisely spots trends in Asia that could negatively impact other countries, they are able to make better investments across all of their asset classes.

Becoming a profitable Forex trader is a great step to becoming a profitable investor in any market.
Risk warning: Trading Forex and CFDs entails substantial risk of loss and it is possible to lose all your invested capital.
These products may not be suitable for everyone and you should ensure that you understand the risks involved.