Forex trading ma or interest rate ma strong corelation paya jata hai. Forex ko bhot sary variables rule karty hain but currency ka interest rate ik fundamental factor hai jo sb par prevail kar jata hai. Ye bat samajny ma bhot simple hai kay money hamesa esi currency ko follow karti hai jis ka real interest rate highest hota hai. Inflation sy agr nominal interest rate ko minus kar leya jaye to es ko ham real interest rate kay name sy janty hain. Forex trader ko har country kay state bank ki currency kay interest rate par nazar rakhna hoti hai khas tor par es time par jb ham es kay rate ki change expect kar rahy hoty hain. Es post ma interest rate ko ham depth ma discuss karyn gy.
What are interest rate and why do they matter forex trader.
Jb trader interest rate kay bary ma bat karty hain to un ka matlab wo interest rate hota hai jo kisi country kay state bank apni currency ka rate set karta hai. Forex traders kay laye interest rate utmost importance kay hamil hoty hain khas tor par es time par jb expected interest rate change hony wala hota hai. Es kay bad currency generally es ko follow karna start kar deti hai. Central bank kay pass several monetary policy tools hoty hain jis ko interest rate kay influence kay laye use kiya jata hai. Es ma most important open market operation hota hai. Jis ma security ki purchasing or selling hoti hai or es ka main maqsad serf or serf interest rate ko influence karna hota hai. Second factor discount rate ka hota hai jis ma bank or dosry financial institutions loan par discount farham karty hain.
The economic cycle and interest rate.
Hamy pata hota hai kay economies either contract karti hai ya expand karti hain. Recession ma ye contract ho jati hain or es time par central bank ka ye aim hota hai kay inflation ko check rakha jaye or economy ko allow kiya jaye kay wo modest pace sy grow kar saky. Ye sb kuch interest rate sy he manage kiya ja sakta hai. Jb economy expand kar rahi hoti hai to gdp ma positive growth show ho rahi hoti hai. Phr consumer earning start kar dety hain. Jb earning zayada hoti hai to ye spending ko lead karti hai. Es kay bad fewers goods ko zayada money chase kar rahi hoti hai es tarha ye bi inflation ko trigger karna start kar deta hai. Agr inflation ko uncheck chor deya jaye to ye bhot harmful effect produce karta hai. So central bank ka main maqsad ye hota hai kay inflation ko check ma rakha jaye or es ko target level kay bech ma rakha jaye.
How do interest rate affect currencies.
Interest rate kisi currency ki demand or supply ma balance ko show karta hai. Jb market ma kisi currency ki high expectations hoti hain to rate hike produce hona start ho jata hai. Actual results kay laye es interest rate ko hold karna hota hai. Es ki waja sy forex market ma currency depreciate karna start kar deti hai.
Interest rate relevance to forex trading.
Imagine karyn kay ap ik investor hain or ap uk ma trading karty hain. Ap large amount of money ko invest karna chahtyn hain. Es kay ap government bonds ko use karty hain. Ap ko ye bi pata hai kay ap es country ma investment karny kay laye alone ni hain. Bhot sary other investor bi same strategy ko use kartyn hain. Jb usd ki demand increase ho gi to es ki value depreciate karna start kar dey gi. Ye he wo waja hai kay jis ki base par currency ko interest rate effect karty hain. Trader interest rate ki expectation ko observe kar kay trade karyn to acha advantage ho sakta hai.
What are interest rate and why do they matter forex trader.
Jb trader interest rate kay bary ma bat karty hain to un ka matlab wo interest rate hota hai jo kisi country kay state bank apni currency ka rate set karta hai. Forex traders kay laye interest rate utmost importance kay hamil hoty hain khas tor par es time par jb expected interest rate change hony wala hota hai. Es kay bad currency generally es ko follow karna start kar deti hai. Central bank kay pass several monetary policy tools hoty hain jis ko interest rate kay influence kay laye use kiya jata hai. Es ma most important open market operation hota hai. Jis ma security ki purchasing or selling hoti hai or es ka main maqsad serf or serf interest rate ko influence karna hota hai. Second factor discount rate ka hota hai jis ma bank or dosry financial institutions loan par discount farham karty hain.
The economic cycle and interest rate.
Hamy pata hota hai kay economies either contract karti hai ya expand karti hain. Recession ma ye contract ho jati hain or es time par central bank ka ye aim hota hai kay inflation ko check rakha jaye or economy ko allow kiya jaye kay wo modest pace sy grow kar saky. Ye sb kuch interest rate sy he manage kiya ja sakta hai. Jb economy expand kar rahi hoti hai to gdp ma positive growth show ho rahi hoti hai. Phr consumer earning start kar dety hain. Jb earning zayada hoti hai to ye spending ko lead karti hai. Es kay bad fewers goods ko zayada money chase kar rahi hoti hai es tarha ye bi inflation ko trigger karna start kar deta hai. Agr inflation ko uncheck chor deya jaye to ye bhot harmful effect produce karta hai. So central bank ka main maqsad ye hota hai kay inflation ko check ma rakha jaye or es ko target level kay bech ma rakha jaye.
How do interest rate affect currencies.
Interest rate kisi currency ki demand or supply ma balance ko show karta hai. Jb market ma kisi currency ki high expectations hoti hain to rate hike produce hona start ho jata hai. Actual results kay laye es interest rate ko hold karna hota hai. Es ki waja sy forex market ma currency depreciate karna start kar deti hai.
Interest rate relevance to forex trading.
Imagine karyn kay ap ik investor hain or ap uk ma trading karty hain. Ap large amount of money ko invest karna chahtyn hain. Es kay ap government bonds ko use karty hain. Ap ko ye bi pata hai kay ap es country ma investment karny kay laye alone ni hain. Bhot sary other investor bi same strategy ko use kartyn hain. Jb usd ki demand increase ho gi to es ki value depreciate karna start kar dey gi. Ye he wo waja hai kay jis ki base par currency ko interest rate effect karty hain. Trader interest rate ki expectation ko observe kar kay trade karyn to acha advantage ho sakta hai.
