An Introduction To Four Currencies New Traders May Consider
Wednesday, December 18, 2013, 1:00 AM | Leave Comment
Currency trading can become very complex very quickly. Some currencies are tied to many different countries. Others move in almost unpredictable ways based on local factors most traders cannot accurately track or predict. New traders might be confused when entering the market.
New traders will want to look at four currencies when starting.
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Chinese Yuan
China is firmly positioned to outpace the gross domestic product of most of the rest of the world combined in the next 25 years. The country is experiencing fast growth despite reports that it is slowing unevenly in some areas. The yuan has increased in value by over 20 percent just over the last five years. Demand is high for the currency. New traders will want to consider purchasing the yuan as a long-term investment. It will grow in value as China continues to prosper.
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Iraqi Dinar
The Iraqi dinar is in a unique position when it comes to world currencies. It has appreciated in value consistently over the few years despite some dips and spikes. The dinar is also potentially a few years from being revalued in response to strong performance in the oil and energy markets. New investors can buy dinar and hold the currency until it increases significantly in value due to revaluation. Other investors can buy dinars for the steady growth over the years. The Iraqi dinar is currently one of the smartest currency investments available.
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Norwegian Krone
Norway is one of the top oil producers in the world. The country has a strong economy, no debt and a surplus. This is accented by the long-term stability of Norway. The krone is different from many other currencies because it is not tied to or backed by the currencies of other countries. This improves the stability of the krone. New traders should consider investing in the krone because it is a high-value currency backed by a stable country.
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Indian Rupee
India is a country that is slowly becoming a global power. It has a high output and is constantly expanding the basic infrastructure of the country to support advanced businesses. India has had a strong and consistent growth rate over the last decade. The Indian rupee is a good investment for new traders because it has been rising in value and has the potential to eclipse some other Asian currencies.
No currency investment is without risk. Currencies can be affected by unexpected global or political events. Fortunately, many currencies require a long time to change values in a dramatic way. New traders can hedge risk by keeping a diversified portfolio and tracking the news every day.
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