Forex markets are very important today, and in this topic we will take into account the 7 basic reasons to position yourself in Forex:
1. Demographic position:
Demographic changes lead to restricting upward pressure on surplus coins that will still have to buy dollar assets. Here you see the division of capital exporters and the famous importers.
2. The dollar is overvalued:
It should increase more in 2021 due to the crisis we are going through. These prices exceed the illusions of the Federal Reserve; also the risk of a liquidity deluge linked to the US debt ceiling. The US anticipates a rise in dollars that is higher than futures contracts.
3. Signs of cycle exhaustion:
Risky assets are intimidated in the short term due to the increase and a more repressive monetary policy and suggest a selective positioning for treatment and restrict short-term exposure to volatility. But as the cycle stabilizes in mid-2020, consider the long term.
4. Titration will trigger fingerprints:
The dollar remains overvalued against the GBP, EUR, JPY and most emerging market currencies. Instead, as more central banks normalize and political risks become visible, valuation adjustments need to be made, supporting GBP, EUR and other European currencies.
5. The Scandinavian difference can go on:
The policy and growth stages of Norway and Sweden may seem the same. But Norway remains well insulated against a resilient global slowdown through the oil sector, while Sweden is weak due to housing construction and low wage growth.
We can also say that the size of the position will indicate the fastest and most epic gains that can be made with a single investment. An investor without knowledge could trust and invest huge amounts of money using their experience. One could easily continue to improve strategies and generate a lot of profit even if the size of the position is not considered.
What is Swap?
The swap is an interest charge that is paid or collected at the end of each session to maintain an open position for more than one day. This charge (or collection) is usually called overnight interest or rollover. To take into account how the swap calculation works, you have to remember that it is a basic question of trading in the currency market.