Understanding Balance of Trade

Trade, in general connotation, means the purchase and sales of commodities. In International Trade, purchase and sale are replaced by imports and exports. Balance of Trade is simply the difference between the value of exports and value of imports. Thus, the Balance of Trade denotes the differences of imports and exports of a merchandise of a country during the course of year. It indicates the value of exports and imports of the country in question. If the value of its exports over a period exceeds its value of imports, it is called favourable balance of trade and, conversely, if the value of total imports exceeds the total value of exports over a period, it is unfavourable balance of trade. The favorable balance of trade indicates good economic condition of the country.

Policies of early modern Europe are grouped under the heading mercantilism. Early understanding of the imbalances of trade emerged from the practices and abuses of mercantilism in which colonial America's natural resources and cash crops were exported in exchange for finished goods from England, a factor leading to the American Revolution. An early statement appeared in Discourse of the Common Wealth of this Realm of England, 1549: "We must always take heed that we buy no more from strangers than we sell them, for so should we impoverish ourselves and enrich them." Similarly a systematic and coherent explanation of balance of trade was made public through Thomas Mun's 1630 "England's treasure by foreign trade, or, The balance of our foreign trade is the rule of our treasure

Woooo. Great definition of Balance of Trade. Balance of Trade is also a good component of Fundamental analysis and it has good impact on currency.

gee bhai hmein apne trading mein market ke balance ko understand krna he aur hmein apne trading market mein sahih pairs ko trade krna he aur hmein apne trading mein indicators ko smjhna he aur apne trading mein shaih experinece se apne trading se profit hasil krna he

Dosto jab tak hum apni trades main balace rakh k trading nahe karein gay tab tak humean profit earn nahe ho ga mean aik he volume ki trades app mukhtalif pairs main lagani chahy

gee haan bhai trader ke lie acha hota he keh woh apne trading market ke balance of trade ko ache trah se smjhe aur apne trading mein sahih kam kre aur apne trading market ke pore detail aur information trader ko ho to woh apne trading mein boht faida le skta he

mera opinion to us bary main ye ho ga k app apni trades main balance rakhain mean over trading mat karein pher he app forex market say acha profit long term trading main earn ker sagty hain

gee han bhia balance of trade bhe lazme trader ko pta ho aur jb trader ko trading market ke balance ka pta ho ga aur trading mein jo volume istemal ho rha he us se trader market ke good ya bad conditions ko smjh skta he aur trader apne trading mein acha kam kre us ko succes zaror milte he

Ap ki baat theak hai k market ko sajm kr kam kray gy tou hum es market mai trade ko bohat acha bhe kr sakty hai aur market mai earning bhe zada ho gy. es lye ap trade ko sajm kr kam krayt.

gee haan bhai hmein apne trading mein market ke balance of trade ke smjh ho aur hmein apne trading mein amrket ke difference methods ke smjh ho aur hm apne trading mein sahih market ke volume ko smjh kr apne trading kia krein

Gee mery bhai ap ki baat theak hai. likan agr ap trade ko under stand krna hai tou ap ko forex market ki complete learning krna hai aur ap ko cool ho kr kam krna hai.

Re: Understanding Balance of Trade

jab ap ki trade koi open nahi hoti hai tu ap kay pas capital jis ko main balance be boltay hain show ho raha hota hai. jab ap main balance main koi be trade open karty hain tu ap ki main balance se jab amount minus hoti tu woh ap ki equity main a jati hai es tarha equtiy ap ko main balance kay sath attach hoti hai. koshish karain jab woh main balance se jab ap lot size chose karian tu sath main ap ko cheye kay money management karian. or us se ap ko pata chalta ha kay per trade ap kitna loss or profit gain kar rahy hain or jo khas bat jo trader ignore kar daity hain woh yeh kay ap ko pata chal jaye ga kay ap ki trade jo open ki hai main balance se woh kitny risk level pay open howi hai.