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Trends & Analysis
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GBP/USD recovers following wage report

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Buy the JPMorgan dip?

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Goldman Sachs shares surge after earnings beat

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US big banks report better-than-expected earnings

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Crude oil declines on profit taking

Trends & Analysis
News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

News

US big banks report better-than-expected earnings

News

Crude oil declines on profit taking

Hard currency definition

A hard currency is a currency that is widely accepted as a medium of exchange because of its high level of liquidity and stability. Hard currencies are often associated with developed, politically stable countries that have strong central banks. Some examples of hard currencies include the US dollar, the Japanese yen, the Swiss franc, and the euro.

 

Hard currencies as reserves

Due to the stability of their issuing countries, many central banks around the world use choose to hold their reserves in hard currencies. In times of economic crises, central banks can use these currencies to intervene in their domestic currency markets to maintain stability.

 

How to trade hard currencies

Hard currencies can be traded in the forex market in a few ways – through currency pairs such as USD/JPY, or through Exchange-Traded Funds (ETFs), currency options, futures, and other derivative products. Traders and investors can speculate on the price movements of these currencies.

 

Why trade hard currencies?

The main benefit of trading hard currencies – especially for other hard currencies – is their liquidity and stability. These currencies are attractive to traders and investors and therefore have a steady stream of supply and demand, allowing their prices to remain relatively stable. Therefore, they can be a good option for risk-averse forex traders and investors.

 

Another reason hard currencies are popular in trading is because they are also used as a benchmark for other currencies. This means that exchange rates are often quoted relative to a major hard currency, allowing traders and investors to easily compare the value of different currencies and make informed decisions when participating in the forex market.

 

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.