Investing in me is one of the ways to enhance your pension. The outlook for 2009 is such that the Turkish lira will be the most successful for me, but the Hungarian forint will be among the weakest. We asked stock market expert Radim Dohnal from Saxo Bank for questions about investing in me.
How to trade in the new market?
The first important step is to open a network with a partner who is financially stable, has a reliable and modern technical unit (trading platform) and is also able to trade trades according to the client’s requirements. As the client will experience, I can move from the basic currency of the euro against the dollar to the Czech crown, the Norwegian krone, the Turkish lira, the South African zar. The client draws up the contract, the funds, the so-called collateral value, and I can trade.
Are the trades on the new market suitable even in times of instability?
The high volatility of many pins, which do not sting during activities. Exchange rates can move by as much as 1% per day, which with a financial gain of 1:20 means a profit potential of 20%. Due to the high volatility and frequency of its reduction over a period of several months, it is advisable to list new options at high premium rates in order to show a period of volatility and buy options back or simply to expire and collect the premium.
When writing options, it is progressing with you as your friend, because the probability that the market will reach the realized price, will decrease, and so under otherwise the same conditions, the decline will again change. You can either prove the expiration date, or buy it back cheaper later.
How will you develop my development in the fifth year?
The market must find an answer to the question of whether the recession will deepen, or whether the growing signs are revived, and especially whether hedge funds have stabilized it. Badly, how the recession will affect the developed economies, ie which currencies will be under pressure.
Hedge funds are considered to be one of the pins of strong commodity strengths until July 2008 and subsequent weakening, as well as one of the pins of dollar depreciation and subsequent rapid strengthening. They used financial resources for cheap and affordable financing for these speculative trades. Now that free cash is rising, hedge funds are forced to close their positions even with losses. Their forced sales, which invested in the known amount of dill, according to the pressure to move the exchange rate in the same direction and spiraled melted.
We expect that the Turkish lira will be among the most likely currencies of 2009. In the current financial crisis, it may be under severe pressure, but the Turkish financial sector is still very underdeveloped, which compares the Turkish currency compared to my entry in Europe, which will continue to be under pressure from reason for the increased financial consumption of households and business investments.
The Hungarian forint is likely to be one of the weakest currencies in 2009. The mortgage market is still highly funded by the French francs, and the known shortage here and the external debt make it extremely difficult to meet existing loans and finance new ones. The rest of Central Europe, including Russia, was under strong pressure and expected the economic crisis to spread throughout the region.
The dependence on the foreign capital will cause enormous problems for the Hungarian economy and, in addition, the fact that the Hungarian government insists on protecting the currency at the same rates, commemorating the decision of the British government in 1992, which ended in a tear mine. The same development is evident in other incoming European countries, which hoped to adopt the euro in the coming years.
What risks can we encounter when trading with foreign currencies?
Surprisingly, especially short-term movements in both directions can be a risk in times of financial crisis. These should be watched especially by inexperienced investors, who could make these fluctuations close the position with the loss. In this case, it pays to stay in position for as long as the investor pinst the profit.
Dal rocks can be spread spreads, that is, the spread between the purchase and selling price due to volatility. As a result of other interesting transactions, these can turn into a profitable transaction due to transactional costs.
It is so important to you that the expected weakening of one may drink some time later, while another strong macroeconomic or political one will at first strengthen me and the currency will shift to another side for a while. An inexperienced investor, especially the one with weak nerves, does not have to endure this situation and will step out of position and be lost.
What is the point of handcuffing for trade on the new market?
New operations are among the operations with the exchange of input, but also risks. It doesn’t make much sense to go into a store with less than 10,000 USD, ie 200,000 crowns. Such a drain as a minimum can be recommended to facilitate the diversification of trade over time.
How do I pay the most for trading?
For shops open with a short view (within one day), it is possible to recommend a currency with high volatility (now it is a currency against the Japanese yen). For long-term trades, then again, when for gossip positions overnight you get years (most often in the form of so-called swap points), e.g. buy the Norwegian krone against the euro; to buy a Norwegian krone against the Canadian dollar.
Now the environment is known as a rock, when the negative at first about the economy or the neighboring economy, so far profitable business can quickly get lost. For traders who know that the crisis is not far from the end, it is advisable to speculate on sending a high-ranking currency, which has weakened the current deviation from risk.
Is it possible to profit from trading with me during the financial crisis?
Trading in foreign currencies during the financial crisis and high volatility in the financial markets is of great variability. At such times, sell me at risk, weak and high year, and buy me stable, large economies and currency low. Investing in me promises a profit even in times of financial crisis.
Let’s start with the pitfalls for investors and look at which ones have the potential to weaken and which to send. Weakening currencies of economies at risk of the credit crunch (they have a high trade deficit, which is otherwise financed mainly by speculated capital). Such examples are the Hungarian forint (HUF) or the Mexican dollar (MXN). Another category of weakening currencies are my economies threatened by slowing advanced economies, to which their exports are allowed. Such currencies are the Polish zloty (PLN) or the Czech koruna (CZK).
With the continuing shift away from risk, we can expect a gym with a few years, to which, in times of uncertainty, major financial flows are allowed. Due to this, it strengthens the Japanese yen (JPY) and the Tsarist franc (CHF). In this financial crisis, the Japanese yen is strengthening significantly. The Swiss banking sector is affected by forced write-offs of toxic assets, which is why the Swiss franc is not strengthening as much as two.
With the decline in commodity prices, the number of economies is weakening to a large extent, depending on commodity prices. If I am also very strong, then there is one more reason to weaken. It is now sharply weakening the South African Rand (ZAR) or the Australian Dollar (AUD). The situation is slightly different in Norway, where the Norwegian krone (NOK) and Norway’s large dependence on oil prices weaken me because the economy is otherwise healthy.
Do you recommend trading on the new market or investing in a diamond?
Investing in a diamond carries a huge risk of fraud, fraudulent judgment and the cost of storage and insurance. Liquidity is such a major problem. In contrast, the new market operates non-stop (from Sunday evening, when trading in New Zealand starts, until Friday evening, when trading in the western US ends) and the highest liquidity of all traded assets (daily trading volume in USD 3 trillion).
How are the benefits of trading in the new market?
However, the speculation about sending my economies, which were hit by the crisis, looks not strong. Their currencies weakened spe as a result of worldwide sentiment. A typical example is the Turkish lira, when the Turkish economy seems to be relatively comfortable. At present, the financial crisis may be under severe pressure, but the Turkish financial sector, for example, paradoxically, due to its underdevelopment, continues to function (unlike the Russian one), which is compared to the Turkish economy and less than in Europe. These will continue to be under pressure due to difficult financing of household consumption and business investment.
For the time being, we recommend avoiding them strongly, depending on oil prices. According to the fall in oil prices, it could put pressure on the exchange rate of the Russian ruble and the Australian dollar. The outlook for the price of oil has so far been further reduced, however, with strong signs of economic recovery, oil will continue to strengthen.