Forex, or also known as foreign exchange, is one of the most popular markets when it comes to investors and speculators. The markers are liquid and huge, and trading can be conducted on a hour basis.
Sometimes the leverage in the system might be enormous. This type of trading gives you unique opportunity to trade with fortunes of countries and economies. In this topic we would like to pay attention to Switzerland and its foreign exchange market. The country has always had great significance to the global community, and one of the main reasons for this is its currency.
The Swiss franc is takes the 6th place in the most traded currency ranking. Despite the reputation for prudence and conservatism, the franc is not a common reserve currency.
The central bank that regulates the market is the Swiss National Bank. Overall, the economy of Switzerland is small but has a huge significance in the global banking and financial community. The country has really strict policy when it comes to bank secrecy and neutrality. This is why the Swiss banking sector is well-known worldwide and it is a preferred destination for global funds.
There are a couple of theories trying to explain the foreign exchange rates and the success of Swiss franc. First — purchasing power parity, the Fisher effect, interest rate parity and payments balance. All of those theories are trying to explain the fluctuations of exchange rates based upon different factors such as price levels, interest rates and so on.
Actually in practice these models do not work in real markets, but it is really important for you to have some knowledge regarding Swiss Franc and how to trade with it successfully. Here is a list of brokers that are trading with Swiss franc and which you might want to try. Sandra has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. Founded in , Binary Tribune aims at providing its readers accurate and actual financial news coverage.
Our website is focused on major segments in financial markets — stocks, currencies and commodities, and interactive in-depth explanation of key economic events and indicators. Trading forex, stocks and commodities on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite.
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