Features and benefits of trading in Singapore dollar
Dwain Ross
12 / January / 20
Visitors: 252
Features and benefits of trading in Singapore dollar
Singapore is a highly developed economy that informally treats "East Asian tigers" as striking growth rates (along with South Korea, Taiwan, Hong Kong). The national currency of this country is the Signapur dollar, which is a popular trading tool.
Economy of Singapore
Singapore is a market-type economy. The country 's most popular goods sold abroad are electronics, medicines, finance and IT products. The most objective parameter characterizing the economy of the country is GDP per capita, and the country ranks first in the world ratings. Here is the dynamics of growth of this indicator from 1969 to 2013.
Much of this growth has been affected by a small level of corruption and an economy open to the world. The welfare of the country was also facilitated by the low tax burden (only 5 state fees, and import duty is taken for 4 groups of goods).
Singapore 's particularly fast-growing industry is banking. Such Switzerland of Asia. All thanks to the profitable geographical location of the country. The Central Bank of Singapore has made an important contribution to this status. And most banks in the country are foreign, and local - only 7.
Singapore actively exports goods produced in the country. Most market economies have a trade balance below zero and Singapore has a higher balance, which benefits the country against the background of the rest.
One of the important items of GDP is the oil industry, which affects Asian prices. This industry brings about 5% of GDP to the economy. The good thing here is that the economy is diversified. Despite the fact that the country has oil, it is not the only source of income. Consequently, the economy of the state is more stable. And this is despite the fact that oil-producing enterprises are monopolists.
Features of Trading by Singapore Dollar
Given that Singapore is a full-fledged open state with a market-type economy, and it has a very developed banking industry, it can be called a "safe haven." And this is despite similar features to commodity currencies. Moreover, it is one of the few currencies of active oil exporting countries that does not sit on this needle. Therefore, the Singapore dollar and the Japanese yen are the same in stability. That 's what traders love her for.
The stability of the Singapore dollar allows good position trade, investing fully in its development.
But this currency is not well suited for intrigue trading due to high spreads in a day (up to 10 points). In some aspects, it overtakes the Swiss franc.
Conclusions
Trading in any new currency requires training. It is important to think in advance about the strategy, then test on stories and optimize by experimenting with settings. Our task is to achieve maximum profitability with as little as possible maximum reduction. Although the currency is stable, trading in it still carries risks. Therefore, it is necessary to carefully study technical and fundamental analysis.
