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- eg. What was the FRF rate against the EUR on 4 Jan 1999?
View long Term Charts (back to 1990)
- Over 150 currencies can be compared against each other.
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- eg. Does EUR/JPY tend to rally in December?
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- Eg. Show me all the monthly returns of the GBP against the USD ?
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Tuesday, February 17, 2009
Monday, February 16, 2009
Avantage Financial
We offer Forex (spot and options) and Futures managed accounts for institutional, high net worth and retail clients. Are you getting the returns you deserve? Take a look at our programs.
Avantage Financial GmbH is a Financial Intermediary under Swiss Federal Law and is a regulated by Polyreg in Switzerland.
Through our many years experience in the capital markets we know what is needed to succeed as a trader and what providers that offer the best products and prices. We now want to bring our clients this knowledge and share our experience to make you a better trader.
Services for self traders, 1-2 pips spread on majors
Live chat and voice through Skype, providing the clients live comments and feedback.
- Morning reports at the London open
- Midday update
- Market Summary at the London close
- Live comments and analysis on news and market events
- Live trading calls from our trading desk
- Speak directly with our traders about the markets
Avantage Financial looks to bring the client outstanding service, so the client can put 100% focus on trading. We know that the markets are very demanding and it takes a lot of experience and knowledge to do well. Through our strong record on our managed accounts we have shown that we know what it takes to succeed. Our experienced traders are here to help you.
US residents: Due to regulatory restrictions Futures trading cannot be offered to US residents.
Avantage Financial GmbH is a Financial Intermediary under Swiss Federal Law and is a regulated by Polyreg in Switzerland.
Through our many years experience in the capital markets we know what is needed to succeed as a trader and what providers that offer the best products and prices. We now want to bring our clients this knowledge and share our experience to make you a better trader.
Services for self traders, 1-2 pips spread on majors
Live chat and voice through Skype, providing the clients live comments and feedback.
- Morning reports at the London open
- Midday update
- Market Summary at the London close
- Live comments and analysis on news and market events
- Live trading calls from our trading desk
- Speak directly with our traders about the markets
Avantage Financial looks to bring the client outstanding service, so the client can put 100% focus on trading. We know that the markets are very demanding and it takes a lot of experience and knowledge to do well. Through our strong record on our managed accounts we have shown that we know what it takes to succeed. Our experienced traders are here to help you.
US residents: Due to regulatory restrictions Futures trading cannot be offered to US residents.
Free trade is Nepal’s passport to prosperity
Trade is essential for Nepals survival. But Nepal must do more than survive, it needs to prosper.And to prosper quickly there is really no other way than to let trade flourish freely.
Some 600 years ago, the city of Bhaktapur, straddling the trade route from Tibet, was the most important business centre in the valley of Kathmandu. Here caravans from Tibet found a bountiful welcome awaiting them at Bhote Bahal. The people of Bhaktapur treated the traders to feasts in which aila flowed like water, and put them in the right frame of mind for trade negotiations. Bhote Bahal still stands in Bhaktapur and there are other Bhote Bahals in Kathmandu and Patan which bespeak the trade origins of Nepal. Being landlocked, trade continued to flourish. By the middle of the 20th century there were "shutter" merchants who had one pull-down door to their shops displaying a variety of goods from Tibet, India and even Czechoslovakia, from where came the "pote" beads so loved by Nepali women. Until very recently Nepal was entirely trade-oriented, and it must get back to the days when trade was given the priority it deserved. The problem has been that it is illegal businesses that have been allowed to grow at the expense of manufacturing and legitimate trade.
Exports are the only way to pay for imports. And Nepal has to import just about everything: it is imported petrol which keeps Nepal's transport system running and imported planes provide domestic air transport. Imported computers allow us to take advantage of the Internet, imported cosmetics and electronic consumer goods allow us to enjoy the finer things in life. These imports cannot be financed unless there is money from exports to buy them with. For a small, landlocked country like Nepal, trade is everything. Bigger countries like India or the United States don't really have to be that dependant on trade, but Nepal must learn from city-states like Singapore which have transformed themselves have into hubs for global trade and prospered dramatically. Nepal has to, indeed Nepal must, specialise in manufacturing what it is best at, from handicrafts or pashmina shawls to software and microelectronics.
You then use the proceeds to buy anything else you need. Closed-door hermit policies will only turn Nepal into a North Korea. What we need is a trading system that builds on Nepal's natural advantages. Trade is essential for Nepal's survival. But Nepal must do more than survive, it needs to prosper. And to prosper quickly there is really no other way than to let trade flourish freely. To achieve this the government must remove all restrictions on trade. There could be a worry:
won't we run out of dollars if we keep on importing? What about foreign exchange requirements? But that is a problem only because the government micromanages foreign exchange. What it should do is leave the people to fend for themselves. Let all foreign currency transactions be freed from government control: let the market decide. If I want to import, let me arrange my own foreign exchange. Similarly, if I am an exporter let me dispose off of my exchange in the manner I like. Let the government step aside and let businessmen fill the void. If that happens, Nepal's trade will bloom: and everyone will benefit, not just those who benefit from keeping trade restricted. When people find that they can import anything they will also realise that this alone is not enough. They must possess the dollars, the yens, the hard currency required. This extra demand for foreign exchange will be an automatic incentive for people to earn it and trade both ways: exports as well as imports. This will lay the seeds of prosperity.
Indeed, Nepal has few other options. Come April 2001, the final phase of India's agreement with WTO will come into effect. With this, India will have no quantitative restriction left on imports: no items will be on the banned or restricted list. Also India's customs duties are now far below what they were a few years ago.
Under the circumstances Nepal can no longer import for export to India with its present import regime and duty structure. It must, therefore, remove restrictions and eliminate or substantially reduce all customs duties if it is not to be marginalised. To remain attractive to businessmen and foreign investors, and to generate employment, Nepal must be less restrictive and less taxed than India. After all India has the additional attraction of being a huge market, and this has to be compensated for somehow by Nepal. If Nepal plays its cards right, there is no cause for worry. It is up to Nepal to seize this opportunity knowing that it is in good company. Country after country has prospered from free trade, low duties and a liberal economic environment.
Whether it is Singapore,Hongkong, or the United States, the formula is the same. Remove restrictions, eliminate or reduce taxes and watch the country's businessmen do the rest. There is every reason to believe that Nepal will be no different. The moment is now. Free Nepal's trade, eliminate taxes and watch this \'kingdom of the gods' be blessed with unimaginable prosperity.
Some 600 years ago, the city of Bhaktapur, straddling the trade route from Tibet, was the most important business centre in the valley of Kathmandu. Here caravans from Tibet found a bountiful welcome awaiting them at Bhote Bahal. The people of Bhaktapur treated the traders to feasts in which aila flowed like water, and put them in the right frame of mind for trade negotiations. Bhote Bahal still stands in Bhaktapur and there are other Bhote Bahals in Kathmandu and Patan which bespeak the trade origins of Nepal. Being landlocked, trade continued to flourish. By the middle of the 20th century there were "shutter" merchants who had one pull-down door to their shops displaying a variety of goods from Tibet, India and even Czechoslovakia, from where came the "pote" beads so loved by Nepali women. Until very recently Nepal was entirely trade-oriented, and it must get back to the days when trade was given the priority it deserved. The problem has been that it is illegal businesses that have been allowed to grow at the expense of manufacturing and legitimate trade.
Exports are the only way to pay for imports. And Nepal has to import just about everything: it is imported petrol which keeps Nepal's transport system running and imported planes provide domestic air transport. Imported computers allow us to take advantage of the Internet, imported cosmetics and electronic consumer goods allow us to enjoy the finer things in life. These imports cannot be financed unless there is money from exports to buy them with. For a small, landlocked country like Nepal, trade is everything. Bigger countries like India or the United States don't really have to be that dependant on trade, but Nepal must learn from city-states like Singapore which have transformed themselves have into hubs for global trade and prospered dramatically. Nepal has to, indeed Nepal must, specialise in manufacturing what it is best at, from handicrafts or pashmina shawls to software and microelectronics.
You then use the proceeds to buy anything else you need. Closed-door hermit policies will only turn Nepal into a North Korea. What we need is a trading system that builds on Nepal's natural advantages. Trade is essential for Nepal's survival. But Nepal must do more than survive, it needs to prosper. And to prosper quickly there is really no other way than to let trade flourish freely. To achieve this the government must remove all restrictions on trade. There could be a worry:
won't we run out of dollars if we keep on importing? What about foreign exchange requirements? But that is a problem only because the government micromanages foreign exchange. What it should do is leave the people to fend for themselves. Let all foreign currency transactions be freed from government control: let the market decide. If I want to import, let me arrange my own foreign exchange. Similarly, if I am an exporter let me dispose off of my exchange in the manner I like. Let the government step aside and let businessmen fill the void. If that happens, Nepal's trade will bloom: and everyone will benefit, not just those who benefit from keeping trade restricted. When people find that they can import anything they will also realise that this alone is not enough. They must possess the dollars, the yens, the hard currency required. This extra demand for foreign exchange will be an automatic incentive for people to earn it and trade both ways: exports as well as imports. This will lay the seeds of prosperity.
Indeed, Nepal has few other options. Come April 2001, the final phase of India's agreement with WTO will come into effect. With this, India will have no quantitative restriction left on imports: no items will be on the banned or restricted list. Also India's customs duties are now far below what they were a few years ago.
Under the circumstances Nepal can no longer import for export to India with its present import regime and duty structure. It must, therefore, remove restrictions and eliminate or substantially reduce all customs duties if it is not to be marginalised. To remain attractive to businessmen and foreign investors, and to generate employment, Nepal must be less restrictive and less taxed than India. After all India has the additional attraction of being a huge market, and this has to be compensated for somehow by Nepal. If Nepal plays its cards right, there is no cause for worry. It is up to Nepal to seize this opportunity knowing that it is in good company. Country after country has prospered from free trade, low duties and a liberal economic environment.
Whether it is Singapore,Hongkong, or the United States, the formula is the same. Remove restrictions, eliminate or reduce taxes and watch the country's businessmen do the rest. There is every reason to believe that Nepal will be no different. The moment is now. Free Nepal's trade, eliminate taxes and watch this \'kingdom of the gods' be blessed with unimaginable prosperity.
Forex Trading Glossary
Arbitrage: Simultaneous purchase of cash commodities or futures in one market against the sale of cash commodities or futures in the same or a different market to profit from a discrepancy in prices. Also includes some aspects of hedging.
Bar Chart: A charting method which consists of four significant points: the high and the low prices, which form the vertical bar, the opening price, which is marked with a horizontal line to the left of the bar, and the closing price, which is marked with a little horizontal line to the right of the bar.
Bank Notes: Paper issued by the central bank, redeemable as money and considered to be full legal tender.
Base Currency: The currency in which the operating results of the bank or institution are reported.
Base Price: One hundredth of a percentage point. 50 basis points [50bp] is half a percentage point.
Bear Call Spread: A spread designed to exploit falling exchange rates by purchasing a call option with a high exercise price and selling one with a low exercise price.
Bear Put Spread: A spread designed to exploit falling exchange rates by purchasing a put option with a high exercise price and selling one with a low exercise price.
Bid-Offer Spread: The difference between the buy (bid) and sell (offer) price of a currency or financial instrument.
Breakaway gap: A price gap which occurs in the beginning of a new trend, many times at the end of a long consolidation period. It may also appear after the completion of major chart formations.
Break-Even Point: The price of a financial instrument at which the option buyer recovers the premium.
Buying Rate: Rate at which a bank is prepared to buy foreign exchange. Also known as the Bid Rate.
Buying Selling FX: Buying and selling in the foreign exchange market always happens in the currency which is quoted first. "Buy dollar/mark" means buy the dollar/sell the mark. Traders buy when they expect a currency's value to rise and sell when they expect a currency to fall.
Closed position: A transaction which leaves the trade with a zero net commitment to the market with respect to a particular currency.
Cross-Rate: The exchange rate between two currencies, e.g., Yen / USD.
Currency: The type of money that a country uses. It can be traded for other currencies on the foreign exchange market, so each currency has a value relative to another. If one US dollar can buy 1.55 Deutschmarks, then one Deutschmark can buy 0.65 US dollars.
Gap: The price Gap between consecutive trading ranges ( i.e. the low of the current range is higher than the high of the previous range)
GTC: Good-Till-Cancelled. An order left with a Dealer to buy or sell at a fixed price. The GTC will remain in place until executed or cancelled.
LIBOR: London Interbank Offer Rate. The interest rate that the largest international banks will lend to each other.
Lagging Indicator: A measure of economic activity which tends to change after change has occurred in the overall economy e.g. CPI.
At-the-Money: When an option's exercise price is the same as the current trading price of the underlying commodity, the option is at-the-money.
In-The-Money: A term used to describe an option contract that has a positive value if exercised. A call at $400 on gold trading at $10 is in-the-money 10 dollars.
Limit Order: An order to buy at or below a specified price or to sell at or above a specified price.
Long position: When one buys a currency, their position is long.
Margin Call: A requirement from a broker or dealer for additional funds or other collateral to bring the margin up to a required level to guarantee performance on a position that has moved against the customer.
Margin Trading: Foreign exchange trading is normally undertaken on the basis of margin trading. A relatively small deposit is required in order to control much larger positions in the market. This is possible because when you buy one currency you sell another. Margin requirements are set by your Customer broker and vary from as little as 1% to 10% margin. This means that in order to trade 1,000,000 USD on 1 % margin, you need to place just 10, 000 USD by way of security. That same security of 10,000 USD, traded on a 10% margin could control up to 100,000 USD bought or sold against another currency
Market Maker: A dealer who supplies prices and is prepared to buy or sell at those stated bid and ask prices. A market maker runs a trading book.
Market Order: An order to buy/sell at the best price available when the order reaches the market.
One Cancels Other Order (O.C.O. Order): A contingent order where the execution of one part of the order automatically cancels the other part.
Out-Of-The-Money: A term used to describe an option that has no intrinsic value. For example, a call at $400 on gold trading at $390 is out-of-the-money 10 dollars.
Pips (Basis points) Refers to the last decimal place of a quotation.
Risk Capital: The amount of money that an individual can afford to invest, which, if lost would not affect their lifestyle.
Short: To go `short` is to have sold an instrument without actually owning it, and to hold a short position with expectations that the price will decline so it can be bought back in the future at a profit.
Short position: When one sells a currency, their position is short.
Spread: The difference between the bid and offer (ask) prices; used to measure market liquidity. Narrower spreads usually signify high liquidity.
Stop Order: An order to buy/sell at an agreed price. One could also have a pre-arranged stop order, whereby an open position is automatically liquidated when a specified price is reached or passed.
Overbought: A technical opinion that the market price has risen too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bullish and long have turned bearish.
Oversold: A technical opinion that the market price has declined too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bearish and short have turned bullish.
FOK (Fill or Kill Order): An order which demands immediate execution or cancellation.
Spread (or Straddle): The purchase of one futures delivery month against the sale of another futures delivery month of the same commodity; the purchase of one delivery month of one commodity against the sale of that same delivery month of a different commodity; or the purchase of one commodity in one market against the sale of the commodity in another market, to take advantage of a profit from a change in price relationships. See also Arbitrage, Switch. The term spread is also used to refer to the difference between the price of a futures month and the price of another month of the same commodity. A spread can also apply to options.
Warrant: An issuer-based product that gives the buyer the right, but not the obligation, to buy (in the case of a call) or to sell (in the case of a put) a stock or a commodity at a set price during a specified period.
Bar Chart: A charting method which consists of four significant points: the high and the low prices, which form the vertical bar, the opening price, which is marked with a horizontal line to the left of the bar, and the closing price, which is marked with a little horizontal line to the right of the bar.
Bank Notes: Paper issued by the central bank, redeemable as money and considered to be full legal tender.
Base Currency: The currency in which the operating results of the bank or institution are reported.
Base Price: One hundredth of a percentage point. 50 basis points [50bp] is half a percentage point.
Bear Call Spread: A spread designed to exploit falling exchange rates by purchasing a call option with a high exercise price and selling one with a low exercise price.
Bear Put Spread: A spread designed to exploit falling exchange rates by purchasing a put option with a high exercise price and selling one with a low exercise price.
Bid-Offer Spread: The difference between the buy (bid) and sell (offer) price of a currency or financial instrument.
Breakaway gap: A price gap which occurs in the beginning of a new trend, many times at the end of a long consolidation period. It may also appear after the completion of major chart formations.
Break-Even Point: The price of a financial instrument at which the option buyer recovers the premium.
Buying Rate: Rate at which a bank is prepared to buy foreign exchange. Also known as the Bid Rate.
Buying Selling FX: Buying and selling in the foreign exchange market always happens in the currency which is quoted first. "Buy dollar/mark" means buy the dollar/sell the mark. Traders buy when they expect a currency's value to rise and sell when they expect a currency to fall.
Closed position: A transaction which leaves the trade with a zero net commitment to the market with respect to a particular currency.
Cross-Rate: The exchange rate between two currencies, e.g., Yen / USD.
Currency: The type of money that a country uses. It can be traded for other currencies on the foreign exchange market, so each currency has a value relative to another. If one US dollar can buy 1.55 Deutschmarks, then one Deutschmark can buy 0.65 US dollars.
Gap: The price Gap between consecutive trading ranges ( i.e. the low of the current range is higher than the high of the previous range)
GTC: Good-Till-Cancelled. An order left with a Dealer to buy or sell at a fixed price. The GTC will remain in place until executed or cancelled.
LIBOR: London Interbank Offer Rate. The interest rate that the largest international banks will lend to each other.
Lagging Indicator: A measure of economic activity which tends to change after change has occurred in the overall economy e.g. CPI.
At-the-Money: When an option's exercise price is the same as the current trading price of the underlying commodity, the option is at-the-money.
In-The-Money: A term used to describe an option contract that has a positive value if exercised. A call at $400 on gold trading at $10 is in-the-money 10 dollars.
Limit Order: An order to buy at or below a specified price or to sell at or above a specified price.
Long position: When one buys a currency, their position is long.
Margin Call: A requirement from a broker or dealer for additional funds or other collateral to bring the margin up to a required level to guarantee performance on a position that has moved against the customer.
Margin Trading: Foreign exchange trading is normally undertaken on the basis of margin trading. A relatively small deposit is required in order to control much larger positions in the market. This is possible because when you buy one currency you sell another. Margin requirements are set by your Customer broker and vary from as little as 1% to 10% margin. This means that in order to trade 1,000,000 USD on 1 % margin, you need to place just 10, 000 USD by way of security. That same security of 10,000 USD, traded on a 10% margin could control up to 100,000 USD bought or sold against another currency
Market Maker: A dealer who supplies prices and is prepared to buy or sell at those stated bid and ask prices. A market maker runs a trading book.
Market Order: An order to buy/sell at the best price available when the order reaches the market.
One Cancels Other Order (O.C.O. Order): A contingent order where the execution of one part of the order automatically cancels the other part.
Out-Of-The-Money: A term used to describe an option that has no intrinsic value. For example, a call at $400 on gold trading at $390 is out-of-the-money 10 dollars.
Pips (Basis points) Refers to the last decimal place of a quotation.
Risk Capital: The amount of money that an individual can afford to invest, which, if lost would not affect their lifestyle.
Short: To go `short` is to have sold an instrument without actually owning it, and to hold a short position with expectations that the price will decline so it can be bought back in the future at a profit.
Short position: When one sells a currency, their position is short.
Spread: The difference between the bid and offer (ask) prices; used to measure market liquidity. Narrower spreads usually signify high liquidity.
Stop Order: An order to buy/sell at an agreed price. One could also have a pre-arranged stop order, whereby an open position is automatically liquidated when a specified price is reached or passed.
Overbought: A technical opinion that the market price has risen too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bullish and long have turned bearish.
Oversold: A technical opinion that the market price has declined too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bearish and short have turned bullish.
FOK (Fill or Kill Order): An order which demands immediate execution or cancellation.
Spread (or Straddle): The purchase of one futures delivery month against the sale of another futures delivery month of the same commodity; the purchase of one delivery month of one commodity against the sale of that same delivery month of a different commodity; or the purchase of one commodity in one market against the sale of the commodity in another market, to take advantage of a profit from a change in price relationships. See also Arbitrage, Switch. The term spread is also used to refer to the difference between the price of a futures month and the price of another month of the same commodity. A spread can also apply to options.
Warrant: An issuer-based product that gives the buyer the right, but not the obligation, to buy (in the case of a call) or to sell (in the case of a put) a stock or a commodity at a set price during a specified period.
Forex Trading Tips
The following crucial free Forex Trading Tips are good to remember in every Forex trade you make.
- Take responsibility for your capital.
- Cut your losses and let your Profits Run.
- Have a Disciplined Plan.
- Keep your trading simple.
- Do not stay with a losing trade.
- Do not overtrade.
- Take responsibility for your capital.
Fact: It is always easier for people to place their savings and funds in other peoples hands, accept the losses as its easier to blame someone else than to take responsibility of those funds themselves.
The first step as a trader is believing in yourself and your own capabilities. One of the most startling discoveries when you start trading is how many “experts” get it so wrong so often – just listen to them after funds are lost! Self confidence comes by itself when you begin to understand that with a solid background and good knowledge, discipline and a well defined trading plan that you will often outperform many expert traders.
Fact: The Forex market moves several times faster than any other market and with leverage, the rewards and losses compound many times. The best way to overcome the thought of using your own money and the volumes (Lots) you will be trading is to forget about “money” and talk in terms of points. Important: Rather than calculate your profit and losses in terms of “dollars” think in terms of gains and losses in “points”. Adopt this view very early in your trading!
When starting out trading a demo account most start-up traders normally do quits well. They trade without fear because there is no “real” money to lose. As soon as its “real” money, they suddenly find themselves trading in a manner where they miss many opportunities and accumulate many losses. Simply put they loose their nerve and give into fear or greed. Try to trade without the thought of how much money you may gain or loose. Important: Trade thinking of points, even if you are trading a demo account.
Cut your losses and let your Profits Run.
This concept is one of the most difficult to implement and is the cause of most traders going into losing trades. Stay with your original trading plan, most traders do not keep to their predetermined plan and take their profits before reaching their profit target because they feel uncomfortable sitting on a profitable position.
These same traders will easily sit on losing positions, allowing the Forex market to move against them in the hope that the market will come back. In addition, traders who have had their stops hit a few times only to see the market go back in their favour once they are out, are quick to remove stops from their trading on the belief that this will always be the case. Stops are there to be hit, and to stop you from losing more money then your predetermined plan!
If you can get 3 out of 6 trades to be profitable then you are doing well. How then do you make money with only half of your trades being winners you ask yourself? - You simply allow your profitable trades to run and make sure that you cut your losses very, very early.
Note: A good Forex trading tip and Forex trading strategy is to move your stop losses (the point the trade will be sold if it goes the wrong way) behind the trade to a level where a pull back can be accommodated but a reversal will lock in at least some profit.
Have a Disciplined Plan
Trade with a disciplined Plan. The problem with many traders is that they take shopping more seriously then trading. The average shopper would not spend $1000.00 without serious research and examination of the product he is about to purchase, yet the average trader would make a trade that could easily cost him $1000.00 based on little more than “gut” feeling. Ensure that you have a plan in place before you start trading. The plan must include stop and limit levels for the trade, as your analysis should include the expected downside as well as the expected upside.
Keep your Trading simple
It is important to keep your trading simple. Many traders start out with a simple strategy that is successful but find themselves chopping and changing trying to find a better system. They allow themselves to be influenced by others opinions and too much fundamentals. Many traders who have done this have been surprised that their kids can actually trade well, consistently and often with spectacular results.
The lesson is that they don’t stray from the rules and are not influenced by other sources like the media or fundamentals. Many Forex traders pay no attention to fundamentals at all and trade quite successfully. The rule here is to keep it simple, don’t allow yourself to become confused with too much information and if you’re not sure or not in the right emotional frame of mind, don’t trade the Forex!
Do not stay with a losing trade
The reason trading with a plan is so important, is because most objective analysis is done before the trade is actually executed. Once a trader is in a position they tend to analyze the market differently in the “hope” that the market will move in a profitable direction rather than objectively looking at the changing factors that may have turned against your original analysis. This is especially true of losses. Traders with a losing position tend to marry their position, which causes them to disregard the fact that all tading signals point towards continued losses. Don’t take more trades in the hope that the market will turn in your favour; it will only accelerate your losses.
Do not over trade!
One of the most common trading mistakes that traders make is leveraging their account too high by trading much larger sizes than their account should prudently trade. Leverage is a double-edged sword. Just because one lot (100,000 units) of currency only requires $1000 as a minimum margin deposit, it does not mean that a trader with $5000 in his account should be able to trade 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1000 put up as margin.
Most forex traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As a consequence of this, they are often forced to exit a position at the wrong time. A good rule of thumb is to trade with 1-10 leverage or never use more than 5% of your account at any given time. Trading currencies is not for everyone go here to see if you will be a good trader.
- Take responsibility for your capital.
- Cut your losses and let your Profits Run.
- Have a Disciplined Plan.
- Keep your trading simple.
- Do not stay with a losing trade.
- Do not overtrade.
- Take responsibility for your capital.
Fact: It is always easier for people to place their savings and funds in other peoples hands, accept the losses as its easier to blame someone else than to take responsibility of those funds themselves.
The first step as a trader is believing in yourself and your own capabilities. One of the most startling discoveries when you start trading is how many “experts” get it so wrong so often – just listen to them after funds are lost! Self confidence comes by itself when you begin to understand that with a solid background and good knowledge, discipline and a well defined trading plan that you will often outperform many expert traders.
Fact: The Forex market moves several times faster than any other market and with leverage, the rewards and losses compound many times. The best way to overcome the thought of using your own money and the volumes (Lots) you will be trading is to forget about “money” and talk in terms of points. Important: Rather than calculate your profit and losses in terms of “dollars” think in terms of gains and losses in “points”. Adopt this view very early in your trading!
When starting out trading a demo account most start-up traders normally do quits well. They trade without fear because there is no “real” money to lose. As soon as its “real” money, they suddenly find themselves trading in a manner where they miss many opportunities and accumulate many losses. Simply put they loose their nerve and give into fear or greed. Try to trade without the thought of how much money you may gain or loose. Important: Trade thinking of points, even if you are trading a demo account.
Cut your losses and let your Profits Run.
This concept is one of the most difficult to implement and is the cause of most traders going into losing trades. Stay with your original trading plan, most traders do not keep to their predetermined plan and take their profits before reaching their profit target because they feel uncomfortable sitting on a profitable position.
These same traders will easily sit on losing positions, allowing the Forex market to move against them in the hope that the market will come back. In addition, traders who have had their stops hit a few times only to see the market go back in their favour once they are out, are quick to remove stops from their trading on the belief that this will always be the case. Stops are there to be hit, and to stop you from losing more money then your predetermined plan!
If you can get 3 out of 6 trades to be profitable then you are doing well. How then do you make money with only half of your trades being winners you ask yourself? - You simply allow your profitable trades to run and make sure that you cut your losses very, very early.
Note: A good Forex trading tip and Forex trading strategy is to move your stop losses (the point the trade will be sold if it goes the wrong way) behind the trade to a level where a pull back can be accommodated but a reversal will lock in at least some profit.
Have a Disciplined Plan
Trade with a disciplined Plan. The problem with many traders is that they take shopping more seriously then trading. The average shopper would not spend $1000.00 without serious research and examination of the product he is about to purchase, yet the average trader would make a trade that could easily cost him $1000.00 based on little more than “gut” feeling. Ensure that you have a plan in place before you start trading. The plan must include stop and limit levels for the trade, as your analysis should include the expected downside as well as the expected upside.
Keep your Trading simple
It is important to keep your trading simple. Many traders start out with a simple strategy that is successful but find themselves chopping and changing trying to find a better system. They allow themselves to be influenced by others opinions and too much fundamentals. Many traders who have done this have been surprised that their kids can actually trade well, consistently and often with spectacular results.
The lesson is that they don’t stray from the rules and are not influenced by other sources like the media or fundamentals. Many Forex traders pay no attention to fundamentals at all and trade quite successfully. The rule here is to keep it simple, don’t allow yourself to become confused with too much information and if you’re not sure or not in the right emotional frame of mind, don’t trade the Forex!
Do not stay with a losing trade
The reason trading with a plan is so important, is because most objective analysis is done before the trade is actually executed. Once a trader is in a position they tend to analyze the market differently in the “hope” that the market will move in a profitable direction rather than objectively looking at the changing factors that may have turned against your original analysis. This is especially true of losses. Traders with a losing position tend to marry their position, which causes them to disregard the fact that all tading signals point towards continued losses. Don’t take more trades in the hope that the market will turn in your favour; it will only accelerate your losses.
Do not over trade!
One of the most common trading mistakes that traders make is leveraging their account too high by trading much larger sizes than their account should prudently trade. Leverage is a double-edged sword. Just because one lot (100,000 units) of currency only requires $1000 as a minimum margin deposit, it does not mean that a trader with $5000 in his account should be able to trade 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1000 put up as margin.
Most forex traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As a consequence of this, they are often forced to exit a position at the wrong time. A good rule of thumb is to trade with 1-10 leverage or never use more than 5% of your account at any given time. Trading currencies is not for everyone go here to see if you will be a good trader.
Forex Trading FAQ
What is Foreign Exchange ?
1. Where is the central location of the FX Market ... ?
2. Who participates in the FX Market ... ?
3. When is the FX Market open for trading ... ?
4. What are the most commonly traded currencies in the FX Market ...
5. How are currency prices determined ... ?
6. How do I manage my risk ... ?
The Foreign Exchange market, also referred to as the "Forex" or "FX" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.
FX Trading is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over the Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes Huge multi-national corporations, global money managers, registered dealers, international money brokers, futures and options traders, and other private speculators.
A real-time 24-hour market, Forex trading begins each day in Sydney, Australia, and moves around the world as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
The most often traded or most 'liquid' currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, British Pound, Euro, and the Japanese Yen.
Currency prices are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.
The most common risk management tools in FX trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the Forex market ensures that limit order and stop loss orders can be easily executed.
1. Where is the central location of the FX Market ... ?
2. Who participates in the FX Market ... ?
3. When is the FX Market open for trading ... ?
4. What are the most commonly traded currencies in the FX Market ...
5. How are currency prices determined ... ?
6. How do I manage my risk ... ?
The Foreign Exchange market, also referred to as the "Forex" or "FX" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.
FX Trading is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over the Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes Huge multi-national corporations, global money managers, registered dealers, international money brokers, futures and options traders, and other private speculators.
A real-time 24-hour market, Forex trading begins each day in Sydney, Australia, and moves around the world as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
The most often traded or most 'liquid' currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, British Pound, Euro, and the Japanese Yen.
Currency prices are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.
The most common risk management tools in FX trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the Forex market ensures that limit order and stop loss orders can be easily executed.
Country Assistance Plans
Economic Performance Assessment
1. Despite a series of development plans, and assistance from international aid agencies, Nepal's economic growth has barely kept pace with its expanding population. In FY2000, gross domestic product (GDP) per capita was less than $245, making Nepal one of the poorest countries in South Asia (economic, population, social and environmental indicators are provided in Appendix 1). Several structural factors hinder the country's attempts at development such as (i) the difficult terrain of a mountainous, landlocked country; (ii) heavy dependence on subsistence agriculture; (iii) low levels of physical infrastructure and human capital; (iv) low domestic resource mobilization and the consequent dependence on foreign assistance; (v) inadequate institutional capacity for development management; and (vi) poor governance.
2. Growth in total output, as measured by GDP at factor cost, reached 5.9 percent in FY2000, the highest annual growth rate in six years and about equal to the 6 percent growth rate projected under the Ninth Five-Year Plan (FY1998-FY2002). The higher overall growth was led by a recovery in agriculture, which grew by 5.0 percent compared with 2.7 percent growth in FY1999. The recovery in the agriculture sector is attributed to a favorable monsoon and wider usage of fertilizer, which led to a strong recovery during the first half of the current fiscal year. The industrial sector also performed well growing at 8.3 percent for the year, driven by an 11.8 percent expansion in manufacturing
3. Consistent with an economy that is dominated by agriculture, the labor force participation rate is high and the unemployment rate is low. About 86 percent of the population aged 15 and over is economically active, with 73 percent of them employed in agriculture1. The unemployment rate for the country as a whole is less than 2 percent, but the rate in urban areas is more than 7 percent. The rate of underemployment is, however, quite high. Another challenge is providing gainful employment to the additional 300,000 economically active population that enter the labor market every year.
4. Domestic revenue collection in FY2000 was substantially lower than budgeted, remaining at the previous year's level of less than 11 percent of GDP, although revenue collection increased by 21 percent compared to FY1999. The introduction of the value added tax (VAT) in November 1997 was meant to be the centerpiece of an overall tax reform. However, weak administration as a result of key vacancies in the VAT Department has delayed its full implementation, despite the Government's announced commitment to the full implementation of the VAT during the FY2000 budget speech.
5. The FY2000 budget deficit remained stable compared to FY1999, at 3.9 percent of GDP. This is because development expenditures were reduced in part to compensate for the revenue shortfall, which had the effect of making up for the poor revenue performance. Development expenditures rose by 17 percent, a significant improvement over the marginal decline the previous year, but far short of the 20 percent envisaged in the budget. Foreign grants and loans financed about 50 percent of development expenditures in FY2000. The dependency on foreign resources is expected to continue with foreign loans and grants again expected to cover 55 percent of budgeted development expenditures in FY2001.
6. Government military expenditures have declined over time in total, as a share of GDP, and in comparison to social expenditures. In 1985, $51 million was spent on defense, compared to $37 million in 1998. Defense expenditure as a percentage of GDP in 1998 decreased to 0.7 percent, from 1.5 percent in 1985, compared with the global average of 4.2 percent of GDP. Defense expenditure per capita also decreased in this period from $3 to $2, compared with $229 per person on average worldwide and $38 per person in South Asia2. Military expenditures as a percentage of combined health and education expenditures in Nepal contracted from 42 percent to 24 percent between 1985 and 1998. As a percent of total expenditures, military spending fell from 6.2 percent to 5.1 percent in this period.
7. The budget for FY2001 was presented to the Parliament in May 2000, two months earlier than in previous years. In his budget speech, the Finance Minister stated, "The foremost goal of our entire development endeavor and of this budget is to achieve the prime objective of poverty reduction as envisaged by the Ninth Plan." However, a focused poverty reduction strategy is not yet in place, but will be formulated in this fiscal year with ADB assistance. The budget has a total outlay of NRs82.4 billion ($1.2 billion) in FY2001, representing an increase of 35.8 percent over the revised estimate of NRs 60.7billion ($876 million) for FY2000. The fiscal deficit is expected to be about 5 percent of GDP. Development expenditures are projected to grow by 45 percent, to be financed mainly by foreign grants, which are projected to more than double. Domestic revenue estimates are also optimistic with a projected growth rate of 25 percent. The budget speech also emphasized the need for raising the efficiency of the civil service and calls for a freeze on hiring until after the completion of restructuring of ministries. However, increases in civil service salaries will be implemented before the restructuring, putting more pressure on scarce domestic resources in the short run. Financial sector reform and private sector development also feature prominently within the budget statement.
8. Broad money (M2) increased by about 22 percent in FY2000 compared with 21 percent in the previous year. The influx of foreign assets and growth in domestic credit to the private sector generated the increase in the money supply. Money growth is somewhat high given projections for GDP growth and inflation, but the comfortable foreign exchange reserve position means the current peg with the Indian rupee is sustainable. Because of the relatively open border and the exchange rate peg to the Indian rupee, inflation in Nepal generally follows India's inflation rate. Inflation was a low 3.3 percent in FY2000, compared to the 11.3 percent increase in prices during the previous year. The increased agricultural production due to favorable weather throughout South Asia kept the prices of food items in check. The slower growth in food prices-which increased by only 1 percent on average in Nepal-helped to counteract rising fuel, electricity, and water prices. Given a favorable monsoon, Nepal should continue to experience relatively moderate inflation.
9. As in the previous year, Nepal experienced a slight current account deficit in FY2000. The dollar value of imports expanded by 20 percent with aid-related imports recovering from the contraction of the previous year. However, strong export growth, particularly to India, led to a current account deficit of only 4.5 percent of GDP. By the end of FY2000 Nepal had $981 million in foreign exchange reserves, an increase of 24 percent over the previous year, and enough to cover about 6 months of imports. External debt as a percent of GDP had been rising, but the trend has reversed itself in the last two years. At the end of FY2000, external debt was less than 48 percent of GDP, compared with the nearly 51 percent of GDP in FY1999. The debt service ratio has also fallen and, due to the concessional nature of Nepal's external debt, was at a manageable level of 5.3 percent of exports during the year.
10. Macroeconomic indicators published by the Nepal Rastra Bank for FY2000 show an increase of 16 percent in domestic revenue collection compared to FY1999, but rising expenditures (15 percent). Foreign grants increased by 21 percent and substantially financed the budget deficit, which remained stable at 3.9 percent of GDP. Foreign trade surged in FY2000, with exports growing by 42 percent and imports by 20 percent in rupee terms compared to FY1999. Foreign exchange reserves of the overall banking system remained sound at almost $1.0 billion, enough to cover about six months of imports. The rate of inflation declined to 3.3 percent during FY2000 compared to 11.3 percent in FY1999.
11. While the country has been moving toward a more market-oriented economy since the early 1990s, frequent changes in government have hampered the implementation of policy reforms and delayed the implementation of development projects. The majority government elected in 1999 raised expectations of reform, but progress to date has been limited. The increase in VAT registrations is a promising sign, but key vacancies in the VAT department need to be filled soon to improve administration, clear the filing backlog, initiate collection visits, and intensify audit activity. These changes are necessary if the Government is to achieve its ambitious revenue target. The Government also recently raised prices of kerosene, diesel, and electricity and removed all subsidies on fertilizer. Despite vocal public protests against these measures and a special parliamentary session called by the opposition to review the price increases, the Government has so far stood firm in its decisions. However, if the country is to achieve the levels of sustained growth necessary to lift it out of its poverty, the Government needs to take advantage of its majority position to pursue a broad-based reform agenda, with financial sector reform and governance reform forming the core of this agenda. Reform in these areas will require sweeping changes to the financial and governance architecture and the way in which business and government is conducted in Nepal. To remedy the serious defects in the financial and governance environment, and to implement the reforms in a sustainable manner will require a high level of commitment and ownership by the Government and concerned stakeholders.
1. Despite a series of development plans, and assistance from international aid agencies, Nepal's economic growth has barely kept pace with its expanding population. In FY2000, gross domestic product (GDP) per capita was less than $245, making Nepal one of the poorest countries in South Asia (economic, population, social and environmental indicators are provided in Appendix 1). Several structural factors hinder the country's attempts at development such as (i) the difficult terrain of a mountainous, landlocked country; (ii) heavy dependence on subsistence agriculture; (iii) low levels of physical infrastructure and human capital; (iv) low domestic resource mobilization and the consequent dependence on foreign assistance; (v) inadequate institutional capacity for development management; and (vi) poor governance.
2. Growth in total output, as measured by GDP at factor cost, reached 5.9 percent in FY2000, the highest annual growth rate in six years and about equal to the 6 percent growth rate projected under the Ninth Five-Year Plan (FY1998-FY2002). The higher overall growth was led by a recovery in agriculture, which grew by 5.0 percent compared with 2.7 percent growth in FY1999. The recovery in the agriculture sector is attributed to a favorable monsoon and wider usage of fertilizer, which led to a strong recovery during the first half of the current fiscal year. The industrial sector also performed well growing at 8.3 percent for the year, driven by an 11.8 percent expansion in manufacturing
3. Consistent with an economy that is dominated by agriculture, the labor force participation rate is high and the unemployment rate is low. About 86 percent of the population aged 15 and over is economically active, with 73 percent of them employed in agriculture1. The unemployment rate for the country as a whole is less than 2 percent, but the rate in urban areas is more than 7 percent. The rate of underemployment is, however, quite high. Another challenge is providing gainful employment to the additional 300,000 economically active population that enter the labor market every year.
4. Domestic revenue collection in FY2000 was substantially lower than budgeted, remaining at the previous year's level of less than 11 percent of GDP, although revenue collection increased by 21 percent compared to FY1999. The introduction of the value added tax (VAT) in November 1997 was meant to be the centerpiece of an overall tax reform. However, weak administration as a result of key vacancies in the VAT Department has delayed its full implementation, despite the Government's announced commitment to the full implementation of the VAT during the FY2000 budget speech.
5. The FY2000 budget deficit remained stable compared to FY1999, at 3.9 percent of GDP. This is because development expenditures were reduced in part to compensate for the revenue shortfall, which had the effect of making up for the poor revenue performance. Development expenditures rose by 17 percent, a significant improvement over the marginal decline the previous year, but far short of the 20 percent envisaged in the budget. Foreign grants and loans financed about 50 percent of development expenditures in FY2000. The dependency on foreign resources is expected to continue with foreign loans and grants again expected to cover 55 percent of budgeted development expenditures in FY2001.
6. Government military expenditures have declined over time in total, as a share of GDP, and in comparison to social expenditures. In 1985, $51 million was spent on defense, compared to $37 million in 1998. Defense expenditure as a percentage of GDP in 1998 decreased to 0.7 percent, from 1.5 percent in 1985, compared with the global average of 4.2 percent of GDP. Defense expenditure per capita also decreased in this period from $3 to $2, compared with $229 per person on average worldwide and $38 per person in South Asia2. Military expenditures as a percentage of combined health and education expenditures in Nepal contracted from 42 percent to 24 percent between 1985 and 1998. As a percent of total expenditures, military spending fell from 6.2 percent to 5.1 percent in this period.
7. The budget for FY2001 was presented to the Parliament in May 2000, two months earlier than in previous years. In his budget speech, the Finance Minister stated, "The foremost goal of our entire development endeavor and of this budget is to achieve the prime objective of poverty reduction as envisaged by the Ninth Plan." However, a focused poverty reduction strategy is not yet in place, but will be formulated in this fiscal year with ADB assistance. The budget has a total outlay of NRs82.4 billion ($1.2 billion) in FY2001, representing an increase of 35.8 percent over the revised estimate of NRs 60.7billion ($876 million) for FY2000. The fiscal deficit is expected to be about 5 percent of GDP. Development expenditures are projected to grow by 45 percent, to be financed mainly by foreign grants, which are projected to more than double. Domestic revenue estimates are also optimistic with a projected growth rate of 25 percent. The budget speech also emphasized the need for raising the efficiency of the civil service and calls for a freeze on hiring until after the completion of restructuring of ministries. However, increases in civil service salaries will be implemented before the restructuring, putting more pressure on scarce domestic resources in the short run. Financial sector reform and private sector development also feature prominently within the budget statement.
8. Broad money (M2) increased by about 22 percent in FY2000 compared with 21 percent in the previous year. The influx of foreign assets and growth in domestic credit to the private sector generated the increase in the money supply. Money growth is somewhat high given projections for GDP growth and inflation, but the comfortable foreign exchange reserve position means the current peg with the Indian rupee is sustainable. Because of the relatively open border and the exchange rate peg to the Indian rupee, inflation in Nepal generally follows India's inflation rate. Inflation was a low 3.3 percent in FY2000, compared to the 11.3 percent increase in prices during the previous year. The increased agricultural production due to favorable weather throughout South Asia kept the prices of food items in check. The slower growth in food prices-which increased by only 1 percent on average in Nepal-helped to counteract rising fuel, electricity, and water prices. Given a favorable monsoon, Nepal should continue to experience relatively moderate inflation.
9. As in the previous year, Nepal experienced a slight current account deficit in FY2000. The dollar value of imports expanded by 20 percent with aid-related imports recovering from the contraction of the previous year. However, strong export growth, particularly to India, led to a current account deficit of only 4.5 percent of GDP. By the end of FY2000 Nepal had $981 million in foreign exchange reserves, an increase of 24 percent over the previous year, and enough to cover about 6 months of imports. External debt as a percent of GDP had been rising, but the trend has reversed itself in the last two years. At the end of FY2000, external debt was less than 48 percent of GDP, compared with the nearly 51 percent of GDP in FY1999. The debt service ratio has also fallen and, due to the concessional nature of Nepal's external debt, was at a manageable level of 5.3 percent of exports during the year.
10. Macroeconomic indicators published by the Nepal Rastra Bank for FY2000 show an increase of 16 percent in domestic revenue collection compared to FY1999, but rising expenditures (15 percent). Foreign grants increased by 21 percent and substantially financed the budget deficit, which remained stable at 3.9 percent of GDP. Foreign trade surged in FY2000, with exports growing by 42 percent and imports by 20 percent in rupee terms compared to FY1999. Foreign exchange reserves of the overall banking system remained sound at almost $1.0 billion, enough to cover about six months of imports. The rate of inflation declined to 3.3 percent during FY2000 compared to 11.3 percent in FY1999.
11. While the country has been moving toward a more market-oriented economy since the early 1990s, frequent changes in government have hampered the implementation of policy reforms and delayed the implementation of development projects. The majority government elected in 1999 raised expectations of reform, but progress to date has been limited. The increase in VAT registrations is a promising sign, but key vacancies in the VAT department need to be filled soon to improve administration, clear the filing backlog, initiate collection visits, and intensify audit activity. These changes are necessary if the Government is to achieve its ambitious revenue target. The Government also recently raised prices of kerosene, diesel, and electricity and removed all subsidies on fertilizer. Despite vocal public protests against these measures and a special parliamentary session called by the opposition to review the price increases, the Government has so far stood firm in its decisions. However, if the country is to achieve the levels of sustained growth necessary to lift it out of its poverty, the Government needs to take advantage of its majority position to pursue a broad-based reform agenda, with financial sector reform and governance reform forming the core of this agenda. Reform in these areas will require sweeping changes to the financial and governance architecture and the way in which business and government is conducted in Nepal. To remedy the serious defects in the financial and governance environment, and to implement the reforms in a sustainable manner will require a high level of commitment and ownership by the Government and concerned stakeholders.
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