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Trading currencies with fundamental data
A currency, like a stock, is a financial instrument that is traded in financial markets. Like stocks, currencies have prices that are determined by supply and demand, and they can fluctuate in value over time.
Both stocks and currencies can be bought and sold on exchanges, and they can both be held as investments. Both stocks and currencies can also be traded using leverage, which means that traders can borrow money to increase their potential returns (but also increase their potential losses).
One key difference between stocks and currencies is that stocks represent ownership in a company, while currencies are a medium of exchange for goods and services. This means that the value of a stock is closely tied to the performance of the company, while the value of a currency is influenced by a variety of factors, including economic conditions, interest rates, and political stability.
Another difference between stocks and currencies is that stocks are typically traded in specific markets, while currencies are traded in the global foreign exchange market. This means that the foreign exchange market is open 24 hours a day, five days a week, making it more accessible to traders than many stock markets.
That´s why, when trading currencies, you must evaluate the fundamentals of a country’s economic output…
