213914 Resource 119235 120646 120646 1223340841010 1223340841010 Controlled Forex Trading Term: Linked Exchange

Looking at a linked exchange rate system

<p style="font-family: verdana,arial,helvetica,sans-serif;"> <font size="2">When reading about countries and their currencies, you may come across the forex trading term &quot;linked exchange.&quot; A linked exchange rate system is an interesting system in which one currency is linked to another, set at a specific rate -- or range of rates.</font></p><p style="font-family: verdana,arial,helvetica,sans-serif;"><font size="2"> For example, the many currencies in the Middle East have a set link (or peg) the the U.S. dollar. The Hong Kong dollar is also linked to the performance of the U.S. dollar. </font></p> <p style="font-family: verdana,arial,helvetica,sans-serif;"><font size="2"> It is important to realize that a linked exchange rate system is not the same as a fixed system. In a fixed system, the central banks interferes regularly to cause the value of a currency to change or remain constant. <br /></font></p><p style="font-family: verdana,arial,helvetica,sans-serif;"><font size="2">In a linked exchange rate system, the central bank does not do much to interfere, beyond setting the linked exchange rate. </font></p> 9 application/xml false exchange rate forex trading forex trading term Hong Kong dollar linked exchange rate rate system U.S. dollar Currency trading on the FX market http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.3) Gecko/2008092414 Firefox/3.0.3 127.0.0.1 127.0.0.1 mmarquit 66.182.71.19 false true false false true 119235 blog blogsite/GFTForex/web