W.G. Hill Books, Underground Knowledge, Offshore Banking and Investing
Page: Beginner Trader's Guide to Safe Haven Currencies

What Beginner Traders Need to Know about
Safe Haven Currencies

Hard currencies are a stable value investment

For beginners in the foreign exchange market, investing in safe haven currencies is a wise move. As the combination of the words “safe” and “haven” suggests, they are investments that are unlikely to endanger traders in spite of a possibly unstable economy. If you are one of the newbies in the forex market, wouldn’t you want to participate in a successful trade, rather than end up getting a dose of discouragement at such an early stage?

The Euro (EUR), US Dollar (USD) and Japanese Yen (JPY) are considered to be safe haven or hard currencies
(Image by Freeimages.com)

Safe Haven Currencies Facts

Also known as hard currencies or conservative currencies, safe haven currencies are from the countries with stable economies, which ensures that their currencies do not fluctuate too much in value. Large and more conservative economies usually have such safe currencies.

Here’s a list of facts:

» Known as hard currencies - They are also termed hard currency; just like the adjective, they are not easily subject to various changes. Particularly, they indicate a status that includes a country’s fiscal outlook, a country’s political condition, a country’s central bank policy posture, as well as long-term stability when it comes to its purchasing power. 

» Popular in uncertain markets - They are popular in a market that shows a high level of uncertainty; they are associated with countries that operate major trade surpluses. Conversely, they are almost unknown in a strong market. 

» Low-yield currencies - Examples of such currencies include Japanese Yen (JPY), Swiss Franc (CHF), United States Dollar (USD), and other low-yielding currencies. 

» Conservative currencies - They are considered conservative currencies; they enable traders to move their capital once they get a hint that their investments are in a risky position. 

» Safe haven investments - Even expert traders invest in such currencies not to use them actively and instead, to preserve money. This creates safe haven for their investments.

» Reduce investment risk - Investing in such currencies is a tactic of rich traders. Since the values of the monetary units may barely change over time, they reduce their risk of losing wealth via other currencies’ possible depreciation. 

» Reduce chance of currency re-valuation - With them, a trader can lower the probability of a single country to sharply re-value a currency. 

» Preferred investment during times of crisis - Many beginner traders, as well as ordinary people, prefer such currencies during specific periods; included in the list are times of increased military and political risk, times of heightened inflation, and times of unreasonable government-imposed rates. 

» Spot profitable moves - They also serve as a means for a trader to spot the most profitable moves, as well as the right time to set entry and exit points, in a trade. 

» Not subject to capital controls - Since they are not subject to capital controls, and are therefore, posing any challenge when it comes to spending in an outside nation regardless of its location worldwide, they are preferred for regulatory reasons. 

» Black market downside - Since they can come with legal restrictions, the downside, for some traders, when using such currencies is that they can be lead to the black market. 

» Dollarization process - In other cases, countries’ government may choose to abandon its local currency in favor of fiat money in such currencies; the process is called dollarization. Take for example the countries of El Salvador, Ecuador, and Zimbabwe whose governments choose to adopt the USD as their legal tender.

If you are an investor or a day trader looking for a reliable and stable value investment, safe haven currencies should be on your list of conservative investments.

  Forex Trading Strategies Explained
Forex Trading Courses
Automated Trading System
Basic Tools for Trading
Best Forex Books for Beginners
Binary Options Straddle
Binary Options Strategies
The Blade Runner Trading Strategy
The Camarilla Equation
Day Trading vs Swing Trading
Elders Force Index Strategy
Forex Trading Platforms
The Gartley Pattern
Finding Forex Broker
Forex Fundamental News
Forex Market in Currencies
Forex Markets Trading
Forex Trading Account
Forex Trading Beginner Tips
Forex Trading Explained
Forex Trading Worldwide
International Currency Trading
Most Profitable Forex Indicator
Picking Forex Software
Retracement Levels
The 38.2% Retracement Level
Stochastic Oscillator in Forex
STP / ECN Trading Model
Support and Resistance Forex
Safe Haven Currencies
Successful Trader Traits

   Bye Bye Big Brother Black Book
   Bye Bye Big Brother CD ROM
   Bye Bye Big Brother Package
   Citizenship Residency Requirements
   Confidential Communication for PTs
   Paper PT An Important Concept
   What Is PT All About
   The American Expatriation Guide
   Become an Honorary Diplomat
   Brazil and Paraguay Confidential
   Campione Confidential
   ESCAPE by Grandpa
   Instant Legal Residence Abroad
   The Invisible Investor
   Latvia Confidential
   The Monaco Report
   Panama Confidential
   Perpetual Traveler
   PT4 Grandpas Special Collection
   Portable Trades and Occupations
   The Second Passport Report
   Think Like a Tycoon
   WG Hill PT Collection
Bye Bye Big Brother
BBBB Free Chapter
   Basics of Investing Your Money
   Collectibles Worth Investing In
   Cryptocurrency Business Ideas
   Guide to Investing in Debt Funds
   Investing in Penny Stocks
   Investment in UK After Brexit
   Investment Options for Beginners
   Investment Trends to Watch
   Investor Protection for Expats
   Low Risk High Return Investments
   Non-Dom Reforms for British Expats
   Overseas Family Led Investments
   Price of Crude Oil and Stock Market
   Protecting Investments in Bankruptcy
   All About Commercial Lending
   Bankruptcy As A Solution
   Banks Don't Need Your Money
   Basics of Business Branding
   Blockchain Impact on Business
   Business Cloud Software
   Business Financing Sources
   Divorce and Finances Abroad
   Fund Your Small Business
   Hire Business Plan Consultant
   Learn About Finance Online
   Manage Business While Travelling
   Solve Cash Flow Problems
   Forex Trading Courses
   Automated Trading System
   Use Basic Tools for Trading
   Best Forex Books for Beginners
   Binary Options Straddle Trades
   Binary Options Strategies
   Blade Runner Trading Strategy
   The Camarilla Equation Formula
   Day Trading vs Swing Trading
   Elders Force Index Strategy
   Top Forex Trading Platforms
   The Gartley Pattern Chart
   Finding Good Forex Broker
   Forex Fundamental News
   Forex Market in Currencies
   Forex Markets Trading
   Forex Trading Account
   Forex Trading Beginner Tips
   Forex Trading Explained
   Forex Trading Worldwide
   International Currency Trading
   Most Profitable Forex Indicator
   Picking Right Forex Software
   Retracement Levels in Flats
   The 38.2 Retracement Level
   Stochastic Oscillator in Forex
   STP ECN Trading Model
   Support and Resistance Forex
   Safe Haven Currencies
   Successful Trader Traits
   5 Benefits of Antigua Passport
   Costa Rica Offshore Corporation
   Dubai Offshore Banking
   Offshore Outsourcing Tips
   Stress Factors of Expatriates
   The 10 New Bali Project
   Hottest Real Estate Markets
   Real Estate Investment Online
   Return on Property Investment
   Smart Real Estate Investments
   Technology and Real Estate
   Ways to Invest in Real Estate
   Business of Investing in Wines
   Fine Wine as Loan Collateral
   Investing in Wine in Australia
   Start Wine Trading Business
   BBBB Abridged Book
   The Gold Report
   Offshore Banking Guide
   Offshore Road to Riches
   PT2 The Practice
   VIP Divorce Kit
   The Invisible World
   Invisible Banking
   High Yield Investments
   High Yield Investments 2
   Future Wealth
   Financial Crisis
   The Offshore Investment Guide
   Underground Knowledge 1
   Underground Knowledge 2
   Underground Knowledge 3
   Underground Knowledge 4
   Scams and Fraud
   Alan Greenspan's Housing Bubble
   America's Oversized Deficits
   April Job Losses the Lowest
   Bank of America Bonus Payments
   Bank Stress Test Results
   Banks Stress Tests Flawed
   Bank Stress Tests Questions
   Banks Financial Trickery
   Canadian Oil Companies
   Card Issuers Meet Obama
   China Detroit's Lifeline
   China Taiwan Investment Accords
   China's Yuan Carry Trade
   Ciena Corp Recommendation
   Credit Default Swaps
   Elliott Wave Disciple
   General Motors Savior
   How to Buy Banks
   India's Slow Growth
   Japan's Lost Decade
   Long-Short Investing Strategies
   Money Morning Bank Stress Test
   Oil Prices Could Jump
   Russia and China Energy Deals
   Russian Economic Model
   Small Caps Proven Profitability
   Solar Energy Comeback
   Sustained Economic Recovery
   World's Reserve Currency
   Online Transactions Survey Findings
   Millionaire Mindset Charateristics
   Real Estate Investing in Panama
   Strategies for Achieving Success
   New Orleans 2015
   Casey Summit 2015
   Antigua Conference
   Recipes for Success
   Cancun Seminar
   Panama Seminar