The South African Rand is the official currency of South Africa. The rand has been traded since 1961 and is also the currency used in the Common Monetary Area between South Africa, Swaziland, Lesotho and Namibia. The rand is subdivided into 100 cents.
The rand was introduced in 1961, replacing the South African pound at a rate of 2 rand to 1 pound. The name "rand" is derived from the Witwatersrand ("ridge of white waters"), the geological formation on which Johannesburg is built and where most of South Africa's gold deposits were found. The rand takes its name from the Witwatersrand, the ridge upon which Johannesburg is built and where most of South Africa's gold deposits were found.
The rand was initially pegged to the British pound at a rate of 1 rand = 1 shilling = 2 pence, with the pound being worth 20 shillings. This peg lasted until 1972, when the rand was devalued to R1 = $1.40. The rand then remained pegged until 1985, when the government decided to allow it to float freely.
The rand is currently traded at around R13 to the US dollar, R18 to the euro and R21 to the British pound.
What is a realistic return on forex? A realistic return on forex trading depends on a number of factors, including the trader's experience, risk tolerance, and the amount of capital invested. Generally speaking, Forex traders can expect to see returns of anywhere from 3-5% per month on their investment. However, it should be noted that these returns are not guaranteed, and there is always the potential for loss.
What is the 90 rule in forex?
The 90 rule is a guideline that suggests that traders should risk no more than 90% of their available capital on any single trade. This rule is meant to help traders limit their exposure to risk and protect their capital.
There is no hard and fast rule about how much capital should be risked on a trade, and different traders will have different risk tolerances. However, the 90 rule can be a useful guideline for traders who want to limit their risk.
It is important to note that the 90 rule is only a guideline, and it is not a guarantee of success. Even if a trader only risks 90% of their capital on a trade, they can still lose money if the trade goes against them.
The 90 rule is just one tool that traders can use to help manage their risk. There are other risk management techniques that traders can use, and it is important to find a method that works best for you.
Which forex trading session is best in South Africa?
There is no definitive answer to this question, as different traders have different preferences. However, some general observations can be made.
The forex market is open 24 hours a day, so South African traders have the flexibility to trade at any time of day. However, the market is most active during the European and US sessions (which overlap for a period of time in the middle of the day). This is when the majority of major currency pairs are traded, and therefore when liquidity is highest.
South African traders may therefore want to focus their trading activity during these times. However, it is also worth noting that the forex market is less active during the South African session, so spreads may be wider and there may be less opportunity to trade.
When should you not trade forex?
There is no definitive answer to this question, as there are many factors to consider when deciding whether or not to trade forex. Some of these factors include:
- your trading goals
- your risk tolerance
- your level of experience
- the market conditions
If you are new to forex trading, or if you have a low risk tolerance, it may be best to avoid trading altogether. Alternatively, if you have experience trading other financial instruments and you are comfortable with the risks involved, you may be able to trade forex successfully.
Ultimately, it is up to you to decide whether or not to trade forex, and it is important to remember that even experienced traders can lose money in the market.
What time is forex most volatile in South Africa?
Forex is most volatile during the opening hours of all the major currency markets. South Africa is in the GMT+2 time zone, which means that the market is open from 8am to 5pm local time. The most volatile hours are usually between 8am and 12pm, with the peak volatility occurring around 10am.