USD / ZAR (US Dollar / South African Rand)

HOW CAN YOU TRADE THE USD/ZAR?

Traders have the option of trading with their banks or other financial institutions, as it is considered as one of the safest methods on the market. The downside is that this method is often slow and the return on investment is equally small.

1

Derivative products such as futures and options are leveraged, so traders can enjoy trading on an asset without the commitment of owning it or paying its full market price when trading it. However, the use of leverage also increases exposure to risk and if a trade goes against the trader’s position, his or her invested capital could be wiped out entirely.

2

The best option is to open a live trading account with an FSCA, award-winning broker such as CMTrading. Join us today and learn how to seize lucrative trading opportunities on the financial markets every day.

3

WHAT FACTORS INFLUENCE THE USD/ZAR?

The United States dollar and African rand are affected by economic events and reports that measure different aspect of their countries’ economic health such as interest rate decisions, unemployment rates, GDP growth, and inflation among others.

A negative result may cause the value of either currency to drop, whereas a positive one will cause it to rise.

WHAT TO CONSIDER WHEN TRADING THE USD/ZAR?

  • The USD/ZAR is considered an exotic currency pair due to the rand being an emerging market currency, which carries less liquidity in comparison to the currencies of developed countries like the United States, Switzerland, the United Kingdom, and others. As a result, this pair carries a wider spread ad higher cost to trade. On the other hand, it also offers higher volatility, which could translate into a higher reward if traded right.
  • Despite being an emerging market, Africa is more developed than a number of its peers, and so the rand and its higher volatility are more sufficient for trading online.

Did you know?

Ever heard the expression “dirty money”? While your first association might go to illegal activities, this phrase gets a whole new meaning in this context. About 94% of all bank notes are contaminated with bacteria and 7% have dangerous pathogens on them.