Hong Kong dollar – HKD.

Hong Kong has long become a major financial center; one of the largest stock exchanges, many banks and offices of large corporations are located here.

It would be surprising if Hong Kong's currency was not in demand as a means of payment and was not freely convertible.

The Hong Kong dollar occupies a leading place in settlements in the Asian region, is actively bought and sold on the currency exchange, and has fairly high liquidity.

The Hong Kong currency has existed for more than 100 years; at the moment, it is issued by two private banks and the Bank of China, which are also involved in controlling the money supply.

In circulation are banknotes in denominations of 10, 20, 50, 100, 500 and 1000 and cent coins of 10, 20, 50 cents.

The Hong Kong dollar is closely pegged to the US dollar; its exchange rate moves in a narrow corridor of 7.75 - 7.85 Hong Kong dollars per US dollar.

This ratio is indicated by the corresponding exchange quote USDHKD, which is used when trading on Forex.

Trading the Hong Kong dollar.

Due to the fact that the rate of this currency is driven into a narrow corridor, trading it is quite simple, just wait until the rate of the USDHKD currency pair approaches the lower or upper mark and start working in the opposite direction. Since in such a situation, market makers regulating the exchange rate will begin to play for an increase or decrease, in order to prevent the currency from leaving the boundaries of the price corridor .

For example, at the moment the Hong Kong dollar quote is 7.75211, which is practically the lower limit, which means that the price is likely to rise in the near future - we open a buy deal.

Unfortunately, due to the high spread, this currency cannot be used for all strategies; the average broker commission usually ranges from 4 to 10 points. Therefore, it is not entirely profitable to open short-term scalping .