A policy where a country fixes its currency's value to another currency, often the US dollar. This concept sits among the basic vocabulary every forex trader encounters early on, since pricing conventions and quote mechanics build directly on top of it.
A policy where a country fixes its currency's value to another currency, often the US dollar. This concept sits among the basic vocabulary every forex trader encounters early on, since pricing conventions and quote mechanics build directly on top of it.
It limits how much a pegged currency can move, changing how traders approach it. At the intermediate level, this becomes increasingly relevant as traders begin refining strategies, tightening risk controls, and reading the market more critically.
The Hong Kong dollar's peg to USD keeps USD/HKD in a tight range. In practice, traders typically encounter this directly within their trading platform, charting software, or an economic calendar, depending on the specific context in which it arises.
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South Africa (9)
India (9)
Bangladesh (12)
Germany (9)
Thailand (10)
Philippines (9)
Nigeria (10)
Vietnam (10)
Malaysia (9)
