Quantitative Easing has no effect on a forex trader

What is quantitative easing or quantitative easing monetary or tapering off is the newly created money is used to buy government bonds or other financial assets , while the term usually means printing money that printing money to finance government deficits directly or pay government debt.

Also it should be noted that the increase in base money which is produced by the QE does not always increase the aggregate money supply because banks can keep the cash provided by the Central Bank in the liquidity reserve. In other words tapering off monetary (quantitative easing) can only change the structure of the money supply reduces the portion of the money that has been "printed" by a fractional reserve bank, this is a way to bind account / bank deposit that is returned to the real money without increasing the amount of money.

The rupiah against the U.S. dollar (U.S.) is predicted to continue to weaken as long as there is no certainty about the stimulus reduction / tapering off monetary (quantitative easing) by the U.S. central bank the Federal Reserve.

But does quantitative easing affect the forex trader? Remember, in trading on the alternative trading systems such as online forex trading transactions can be done in two ways.

If a trader has predicted that the dollar would have weakened the position taken by a trader is to open a BUY to open its trade transactions. Vice versa if predicted that the dollar would have strengthened the position is opened with open SELL.

That was his special trade on forex trading online, while other currencies weakened or strengthened the trader can take advantage of the moment. Can be summed up as special online forex trading transactions is then Quantitative Easing does not affect the forex trader.

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Disclaimer: Please be more concern if you invest in online forex trading, because in the blink of an investment you can not give any results, understand the risk of any transaction that you run. We here analyzed according to our ability and we are not to blame if the prediction or analysis that we submit inappropriate and contrary to the market that makes you suffer losses.

Ditulis oleh William Perkasa pada tanggal Nov 23, 2013