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Forex Vs Stocks: Top Differences & How to Trade Them

Traders often compare forex vs stocks to determine which market is better to trade. Despite being interconnected, the forex and stock market are vastly different. The forex market has unique characteristics that set it apart from other markets, and in the eyes of many, also make it far more attractive to trade.To get more news about forex vs. stock, you can visit wikifx.com official website.

When choosing to trade forex or stocks, it often comes down to knowing which trading style suits you best.But knowing the differences and similarities between the stock and forex market also enables traders to make informed trading decisions based on factors such as market conditions, liquidity and volume.
1) Volume

One of the biggest differences between forex and stocks is the sheer size of the forex market. Forex is estimated to trade around $5 trillion a day, with most trading concentrated on a few major pairs like the EUR/USD, USD/JPY, GBP/USD and AUD/USD. The forex market volume dwarfs the dollar volume of all the world's stock markets combined, which average roughly $200 billion per day.

Having such a large trading volume can bring many advantages to traders. High volume means traders can typically get their orders executed more easily and closer to the prices they want. While all markets are prone to gaps, having more liquidity at each pricing point better equips traders to enter and exit the market.

2) Liquidity

A market that trades in high volume generally has high liquidity. Liquidity leads to tighter spreads and lower transaction costs. Forex major pairs typically have extremely low spreads and transactions costs when compared to stocks and this is one of the major advantages of trading the forex market versus trading the stock market. Read more on the differences in liquidity between the forex and stock market.

3) 24 Hour Markets

Forex is an over the counter market meaning that it is not transacted over a traditional exchange. Trading is facilitated through the interbank market. This means that trading can go on all around the world during different countries business hours and trading sessions. Therefore, the forex trader has access to trading virtually 24 hours a day, 5 days a week. Major stock indices on the other hand, trade at different times and are affected by different variables. Visit the Major Indices page to find out more about trading these markets-including information on trading hours.
4) Minimal or no commission

Most forex brokers charge no commission, instead they make their margin on the spread - which is the difference between the buy price and the sell price. When trading equities (stocks) or a futures contract, or a major index like the S&P 500, often traders must pay the spread along with a commission to a broker.

Forex spreads are quite transparent compared to costs of trading other contracts. Below you will see the spread of the EUR/USD highlighted inside of the executable dealing rates. The spread can be used to calculate the cost for your position size upfront prior to execution.
5) Narrow focus vs wide focus

There are eight major currencies traders can focus on, while in the stock universe there are thousands. With only eight economies to focus on and since forex is traded in pairs, traders will look for diverging and converging trends between the currencies to match up a forex pair to trade. Eight currencies are easier to keep an eye on than thousands of stocks.
How can I transition from forex trading to stock trading?

To move from forex to stock trading you will need to understand the fundamental differences between forex and stocks. When you boil it down, forex movements are caused by interest rates and their anticipated movements. Stocks are dependent on revenue, balance sheet projections and the economies they operate in amongst other things. Find out more on how to transition from forex to stock trading.

Are there any differences between forex and commodities trading?

Forex and commodities differ in terms of regulation, leverage, and exchange limits. Forex markets are a lot less regulated than commodities markets whilst commodities markets are highly regulated. In terms of leverage, it exists in both the forex and commodities market, but in the forex market it is more popular due to greater liquidity and lower volatility (leverage can amplify losses and gains).

Also, like stocks, commodities trade on exchanges. Commodity exchanges set roofs and floors for the price fluctuations of commodities and when these limits are hit trading may be halted for a certain time depending on the product traded. The forex and stock market do not have limits that can prevent trading from happening.

What are forex signals?
Forex signals can be defined as "buy" and "sell" suggestions and, in conjunction with technical and fundamental analysis, they provide information on the best time and price to enter a trade and profit from the predicted move in price.To get more news about free forex signals, you can visit wikifx.com official website.

Understanding when to open or close a trade is key to successful forex trading and is a crucial part of learning how to trade currency pairs​​. Professional traders have years of experience analysing chart patterns and scrutinising current events and news announcements to help them assess when to open or close a forex position. Technical analysts will look for signals to guide them when entering and exiting trades.
The main difference between manual and automated forex signals is that manual signals are generated by a person who often is a professional trader. Automated forex signals, on the other hand, are generated by computer software that analyses the market price action​​ based on algorithms.

Free and paid forex signals
Some providers offer free signals (either as a trial or for an unlimited period of time), while other providers offer paid forex signals.

Entry and exit forex signals
Some signals providers only give entry signals, meaning that they provide a signal on when to open a position. Others provide only exit signals, meaning that they provide a signal on when to close a position.
Algorithmic forex signals
Some traders use trading robots or Expert Advisors (EAs) for their forex signals. An EA is a set of rules or an algorithm that places trades when specific criteria are met. EAs can be created by anyone with enough technical knowledge and are often sold online. Find out about automated trading with the MT4 platform.
Benefits of forex signals
They are time efficient. In forex trading, researching and analysing are very important skills that require a lot of time. With forex signals, traders don't have to necessarily spend time analysing charts and patterns. However, you should still do your own independent research and not rely solely on signals.
They help to minimise risks. If used correctly, forex trading signals can help you reduce the risk of losses by suggesting the right time to either enter or exit a trade and consequently where to place your stop loss.
It is a quick learning curve. Forex signals can help traders to understand how these signals correspond to their trades.
Are forex signals reliable?
With a trusted forex signals provider, forex signals can be very reliable source of information. However, it should be noted that, there are some unscrupulous and less reliable services out there so it is important to exercise diligence when using a forex signal provider.

The biggest disadvantage of using trading signals is that the forecast is not always accurate. However, this risk can be minimised by taking some precautions, such as training and practise. Clients of CMC Markets can trade with £10,000 worth of virtual funds on our demo account, without risking real money. Register for a demo account now.

6 BOLLINGER BANDS® TRADING STRATEGIES + VIDEO

Bollinger Bands are a powerful technical indicator created by John Bollinger. The bands encapsulate the price movement of a stock, providing relative boundaries of highs and lows. The crux of the Bollinger Band indicator is based on a moving average that defines the intermediate-term "trend" based on the time frame you are viewing.To get more news about bollinger band, you can visit wikifx.com official website.

But how do we apply this indicator to trading and what are the strategies that will produce winning results?

In this post we'll provide you with a solid foundation on the bands, plus six trading strategies you can test to see which works best for your trading style.
Most stock charting applications use a 20-period moving average for the default settings. The upper and lower bands are then a measure of volatility to the upside and downside. They are calculated as two standard deviations from the middle band.

In essence, the Bollinger Band indicator was created to contain price the vast majority of the time. In fact, Investopedia claims that the bands actually contain the price 90% of the time [2].

If you are new to trading, you are going to lose money at some point. This process of losing money often leads to over-analysis. While technical analysis can identify things unseen on a ticker, it can also aid in our demise as traders.

In the old days, there was little to analyze. Therefore, you could tweak your system to a degree, but not in the way we can continually tweak and refine our trading approach today.

We make this point in regard to the settings of the bands. While the configuration is far simpler than many other indicators, it still provides you with the ability to run extensive optimization tests to try and squeeze out the last bit of juice from the stock.

The problem with this approach is that after you change the length to 19.9 (yes people will go to decimals), 35 and back down to 20; it still comes down to your ability to manage your money and book a profit.

Our strong advice to you is not to tweak the settings at all. It's better to stick with 20, as this is the value most traders are using to make their decisions, versus trying to look for a secret setting.
#1 STRATEGY - DOUBLE BOTTOMS
The first bottom of this formation tends to have substantial volume and a sharp price pullback that closes outside of the lower Bollinger Band. These types of moves typically lead to what is called an "automatic rally." The high of the automatic rally tends to serve as the first level of resistance in the base building process that occurs before the stock moves higher.

#2 STRATEGY - REVERSALS
Another simple, yet effective trading method is to fade stocks when they begin printing outside of the bands. We'll take this one step further and apply a little candlestick analysis to this strategy.

For example, instead of shorting a stock as it moves up through its upper band limit, wait to see how that stock performs. If the stock goes parabolic or gaps up and then closes near its low while near the outside of the bands, this is often a good indicator that the stock will correct on the near-term.
#3 STRATEGY - RIDING THE BANDS
The single biggest mistake that many Bollinger Band novices make is that they sell the stock when the price touches the upper band or buy when it reaches the lower band.

Bollinger himself stated a touch of the upper band or lower band does not constitute a buy or sell signal. In his book, John states, "During an advance, walking the band is characterized by a series of tags of the upper band, usually accompanied by a number of days on which price closes outside of the band."
#4 STRATEGY - BOLLINGER BAND SQUEEZE

John created an indicator known as the band width. This Bollinger Band width formula is simply (Upper Bollinger Band Value - Lower Bollinger Band Value) / Middle Bollinger Band Value (Simple moving average).

The idea, using daily charts, is that when the indicator reaches its lowest level in 6 months, you can expect the volatility to increase. This goes back to the tightening of the bands that I mentioned above. This squeezing action of the Bollinger Band indicator often foreshadows a big move.

The Foreign currency Exchange (FOREX) market is the largest and most liquid financial market in the world. The average daily trade in the global FOREX markets exceeds US$1.9 trillion (Source: the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2004, and published in March 2005). These huge funds are traded by governments, banks, and large institutions. For comparison, the biggest stock market on the Earth - NYSE Group (The New York Stock Exchange), has a daily trading volume of approximately $86.8 billion (Source: NYSE Group, Inc. 2006). FOREX has a 18.4% average growth rate per year since 1989. It offers trading 24 hours a day, five days a week, non-stop over Internet. This kind of massively liquid and long uninterrupted trading hours mean that under normal conditions there is no problem entering or exiting a trade.To get more news about forex robots trading, you can visit wikifx.com official website.
But, in this huge market, as the story goes, at least 90% of new FOREX traders lose all their money within their first 3 months of trading. Why? Most losing traders who inquire about FOREX trading are quite intelligent, they just lack the right tools, the "Secret Weapons" to win. They are not beaten by other traders, they simply are beaten by themselves, by humans' weaknesses.
1. What is the first big weakness of human beings? if I say it should be "greed", is there anybody will disagree? Many times we have got 1% profit, but we feel it is not fat enough. We want more, 2% or 3% will be better. While the profit really goes to 3%, we will think how about 10%? Not enough forever. But the market is so volatile, especially in Forex market, we often encounter this depressive situation: profit turns into negative from positive. and this kind of depression happens again and again.
2. Fear. All people have fear. In Forex trading, currency rate is easily jumping or dropping hundreds of pips. Few of people can make sure how the market will go. In Forex market, people all use leverage to trade, from 50:1 to 500:1, leverage will enlarge the profit or loss from 50 times to 500 times. Leverage is the wonderful feature of Forex, and it lead fear into people's heart too. If the market goes against people, big drawdown comes, their fear comes too. Is there anybody not scary to lose money? Under the pressure of fear, people easily and often make wrong decisions, stop loss too early, then regret soon.
3. Lack of confidence. Seems better than fear, huh? But it is still not a good thing. Many times human traders are so happy once they see a little bit profit in their accounts. They are worrying what if the profit turns into loss? People always take a tiny profit and run, then regret while they see the market goes further and further along the right track. If they were confident, they would have made ten times or even a hundred times of profit.

4. Hesitation. Not only newbies, but also old-hands easily hesitate to act in Forex market. You've probably heard the saying "past performance does not predict future performance". Even a very experienced trader who has made many successful trades in his/her history, while he or she is facing a new situation, needs thinking twice before making a so simple decision: Buy or Sell? For new traders or amateurs, they need longer time to think, and this kind of hesitation always leads them to confusion and missing the best and fleeting chance.
5. Weariness. How many people can keep working for 24 hours? No sleep, no rest? How about 48 hours, 72 hours, etc? Even an iron man can not use his eyes watching computer monitor, his brain thinking fast changing questions and his hands calculating complex formulas, day and night, 24 hours a day, 6 days a week, non stop. Especially, no mistakes allowed!
6. Negligence. Have you ever got trouble just because of a small negligence? such as took a wrong bus, missed an exit on highway, dialed a wrong number, misunderstood boss' order, ignored a no-parking sign, omitted a whole page of questions in an examination, left resume at home while a vital interview, misspelled a keyword in a quote form for a VIP customer, etc. Hi, man, when was the last time you forgot your mama's birthday, or worse, the wife's, or the worst, girl friend's? Mama always forgive your negligence. Wife... well, it depends. Girl friend? Huh, wish you good luck.
7. Lack of discipline. Humans always think that we are smarter than machines. Sure we are. Not only we are smarter, we have freedom too. But everything has its nature, character, and rules. Rule means discipline. If we just feel smart and free in Forex trading, making decisions based on our feelings or knowledge only, and ignore discipline, there will be endless disasters waiting us ahead. Forex trading is like fighting in war, soldiers can not survive in war without discipline, neither can traders in Forex market. While we have to stop loss we must cut off and run, in spite of how bloody and painful it is, when we must take profit we can not hate the profit is too small. Discipline is discipline, perhaps some smarties can win a while, but only those people can keep obeying discipline forever can win forever.
8. Inconsistency. Long term or short term? buy or sell? prosperity or depression? over bought or over sold? high or low? support level or resistance level? fundamental analysis or technical analysis? including automated trading or manual trading? etc. There are too many inconsistent news, facts, information and methods, strategies in Forex market, easily cause human traders make inconsistent judgments and decisions. And these inconsistencies will cause only one same result: failure!

Learn to Trade Forex
With benefits like 24-hours trading, high liquidity and low transaction costs, the foreign exchange market, or forex market, attracts experienced and novice traders alike. The massive growth of the currency market has seen many traders jump in before they've taken the time to learn to trade forex and this can be a mistake. If you want a quick but comprehensive understanding of what is forex, how the market works and why it's important to open a demo account, then read our comprehensive guide on how to trade forex.To get more news about forex education, you can visit wikifx.com official website.

Forex Trading for Beginners
Like most specialised industries, forex trading comes with its own jargon and set of terms. There are certain forex trading concepts you should be familiar with to understand the dynamics of this unique market, identify opportunities and trade successfully.

Currency Exchange Rates: Bid, Ask and Spread
To understand what is forex, you may first need to open a demo account and understand the concept of currency exchange rates. The price of a currency is always quoted in terms of another currency. For instance, EUR/USD would be the price of a Euro expressed in terms of the US dollar. In other words, it represents the number of US dollars you can exchange for €1. If for example, the EUR/USD is 1.1749, it means €1 can be exchanged for US$1.1749.
You may notice, however, that in forex trading, price quotes on trading platforms are showed with two rates not just one. For instance, the EUR/USD exchange rate may be displayed like this: 1.1749 / 51 or 1.1749 / 1.1751. The first figure (to the left) is known as the bid price and represents the maximum price at which the market is willing to buy the US dollar. So, if you sell €1, you will receive US$1.1749. The second figure (to the right) is known as the ask price and represents the minimum price at which the market is willing to sell the US dollar. So, if you buy €1, you will need to pay US$1.1751.

The lower, or tighter, the forex spread, the more liquid a market is said to be and the lower the implied cost of trading. Spreads in stock trading are typically much higher than spreads in forex trading.
What is a Forex Trading Platform?
As a beginner in forex trading, one of your first decisions is which forex trading platform to choose. The trading platform is the software that gives you access to the forex market and seamless trade execution. A robust forex trading platform facilitates fast and safe trading, while also providing various options for trade analysis, customisation and automated trading.
The award-winning Orbex MT4 platform has an extremely user-friendly interface with highly powerful software running in the background. The platform offers advanced real-time charting options, free forex signals, high flexibility and enhanced security and stability.
Trade from the comfort of your home, with the Windows or Mac version of the Orbex MT4 platform, or trade on the go by downloading the Android or iOS version. The cloud-based Orbex WebTrader app provides free, instant and secure access to your account from anywhere and on any device.

Leverage in Forex Trading
Leverage is essentially a loan that brokers offer traders, so they can place trades that are of a higher value than the funds they currently have in their trading account. As a beginner in forex trading, it's critical to understand the benefits, as well as the pitfalls, of leverage.

Leveraging, also known as trading on margin, gives you the opportunity to multiply potential profits, providing the market moves in your favour. Remember there is no guarantee that the market will, in fact, move in your favour. If the market moves in the opposite direction, leveraging will multiply the losses you incur. Forex leverage is therefore a powerful tool, but one which needs to be used with caution.

Risk Management in Forex Trading
The forex market offers significant opportunities to make profits. However, every opportunity is accompanied by a degree of risk. While risk cannot be completely removed, there are some risk management techniques that traders can use to hedge risks. These techniques are particularly important when using forex leverage.
Stop-Loss Orders
A stop-loss order is placed to minimise losses in the event the currency exchange market moves against you. The exchange rate of a currency pair moves up and down continuously throughout the day, even within a fraction of a second. It is unwise to exit a trade at the slightest drop in the exchange rate of your currency pair. However, if the rate drops below a certain point, you may choose to exit. With online forex trading, you can set the currency rate at which to exit the market well in advance. This is exactly what a stop-loss order allows you to do. Essentially, a stop-loss order acts as a safety net to minimise your losses.

When you open a position, or set a pending order, you can also specify the stop-loss price. If the forex market moves against you and the exchange rate reaches the low price you've specified, the trade is automatically closed, limiting your losses.

Take-Profit Orders
It's easy to feel optimistic when the market is moving in your favour. However, in any form of currency trading, it's important to make objective decisions, based on logic and discipline. A take-profit order can be considered as a predetermined exit strategy that comes into effect when the market moves in your favour.

Similar to a stop-loss order, a take-profit order is executed automatically at a price specified by you. The difference being, a take-profit order is executed at a currency rate better than the current market rate, while a stop-loss order automatically closes a trade at a currency rate worse than the current market rate. This means that your trade closes on a high if you are not at your desk and able to stop it before it falls.

How we chose the best baby first aid kits
It can come as a real surprise that you need a particular baby gadget, and unfortunately that surprise often happens in the worst situation: In the middle of a night, on a holiday weekend, while you're on vacation, etc. So we asked the experienced parents we know: What does a baby first aid kit need to contain? What's essential, what's unnecessary, what would have saved you from an awkward or upsetting situation you went through? To get more news about best ifak, you can visit rusuntacmed.com official website.

Next, we examined recommendations on first aid and first aid kits for infants and children from relevant agencies such as the American Red Cross, the American Academy of Pediatrics (AAP), and the Mayo Clinic, cross-checking to see what items each recommended.

Once we knew what to look for, finding the best baby first aid kit was simply a matter of looking through the options on the market for kits that had as many of our key items as possible, were well-priced, and widely available, and a handy size to keep in a glove compartment or stroller basket. That last element was key, because a kit that contained everything recommended by every source we consulted would be more like a toolbox than a travel kit, so we looked for kits that contained the real essentials, and note below where you may need to supplement.
The Me4kidz all-purpose first aid kit is colorful and compact, with pod compartments that keep everything organized and easy to find in case of an emergency. It comes with 100 first aid essentials, and thanks to the stackable pods, you can break it down into even smaller mini first aid kits.

The first year of your baby's life is full of unexpected things, and the First Year Safety Accessories Kit can be your saving grace. Tools for health, grooming, and oral care include a thermometer, nasal aspirator, finger toothbrush, nail clipper, and more, so you can keep your little one healthy and whole. It comes in a perfect see-through travel case that you can take along on trips to make the unexpected slightly easier to handle.

While not exactly a first aid kit, the FridaBaby Sick Day Prep Kit meets the demands of taking care of a sick baby. It can be especially hard to care for a baby with a cold or flu because they can't blow their noses, and you usually can't give very young babies over-the-counter medicine to help them feel better. That's why we like that this kit is specifically designed to help clear congestion and make your sick baby more comfortable, with tools like vapor rub and a nasal aspirator and wipes to manage mucus.

Small and portable with a roll-up design, this kit is perfect for keeping in your car or diaper bag or taking on the go. It was designed by both moms and a nurse, and it shows, because the PreparaKit includes everything parents really need for taking care of big and little boo-boos, from anti-itch cream to bandages to even lip balm. Another reason this kit is a winner? It includes stickers!

If you want one first aid kit that will work for the entire family, this is it. It's compact but includes almost everything you'd need in an emergency, all organized in labeled compartments. In a crisis, you don't want to be digging through packages of gauze and bandages to find what you need, so this kit makes it easy. Plus, it includes compartments for your own medicine and a CPR guide with instructions.

Your baby's wellness needs don't stop at emergencies, which is why this Safety 1st health and grooming kit is especially handy. (And if you've ever felt a baby's sharp fingernails dig into your face, you know that too-long nails can count as a medical emergency.) This kit comes in an attractive, compact case with deep, zippered pockets. We especially like the included gentle-bristled brushes and combs, which are perfect for loosening cradle cap.

Baby first aid kits often include a variety of bandages (kid-size and larger), antibiotic ointment, burn cream, gauze, adhesive tape, antiseptic wipes, cotton-tipped swabs, instant ice pack, tweezers, gloves, and scissors. Some include a nasal aspirator or bulb syringe, digital thermometer, and medicine dispensers. They may also have baby grooming items like a hair brush, comb, nail clippers, emery board, toothbrush, and mirror.

A baby first aid kit can save the day when your baby is sick or injured. Bring a well-stocked first aid kit with you wherever you and your baby go – many prepackaged kits have the essentials and are compact enough to fit in your diaper bag.

For safety's sake, store your kit out of reach of curious babies and children. Many items in a first aid kit can be hazardous in the hands of a child.

How to identify best quality plywood

Looking for best quality plywood for your interior furniture, but confused in what things to look for in plywood selection? Please don’t get confused this blog will help you step-by-step to know more about plywood and select right one for your house or offices.To get more news about commercial plywood, you can visit boosterplywood.com official website.

Firstly there is myth in India that branded plywood from top brands is always best quality plywood. This is not always correct. Turnover of these big brands are very high and from them manufacturing all products in-house is impossible. In order to fulfill demand, these companies outsourced their product from small manufacturers or from china. Thus their quality compromised. These companies spend lots of advertisement and other events, which in turn makes plywood more expensive than its original price. These companies concentrate on more their premium range plywood which is very expensive. If your budget is high then you can go for this premium range plywood and be tension free.

We all know plywood prices at wholesaler are lesser than retailers. But there is also some more benefits like you will get chance to choose from different types of plywood at one place. These wholesalers always maintain different type’s plywood like MR Grade Plywood, Waterproof plywood and Gurjan Plywood. Suppose you select MR grade plywood, then at these places you will get chance to see hundreds of MR Plywood sheet & easily judge quality of plywood by comparing with other. You can check lots of other factor of plywood by looking at it. And at retailer they make you select from trade sample or from one sheet, but at stockist you will see full plywood sheet.

Best Quality plywood is always ISI certified. Commercial Or MR Grade Plywood is IS: 303 and Marine or Waterproof Plywood is IS: 710. Always looks for CML number underneath of ISI mark. Plywood manufacturer has unique CML no, which also help in identifying plywood manufacturers easily.

From small cut piece of plywood you can check whether plywood is full-core full-panel or not. Which wood core is used in making this plywood can easily identified from this small cut piece. You can also check nail holding ability of plywood.

Best Car Tires of 2022

Tires look simple and can easily be taken for granted, but their design can be quite sophisticated. Differences among tires can have an impact on braking, handling, ride, noise, and even fuel economy. Given how complicated tires are, choosing the right replacements can be challenging, especially if you depend on word of mouth or in-store marketing messages. That’s where Consumer Reports can help.To get more news about car tire, you can visit gofortunetire.com official website.

Our experts have crunched the data from our extensive tire test program to select the best car tires in several key categories, including all-season, performance all-season, ultra-high-performance all-season, ultra-high-performance summer, winter/snow, and performance winter/snow.

Detailed ratings on these and dozens more are available if you're a CR member. The dynamic ratings chart allows you to fine-tune your selection based on criteria that matter most to you, but the best car tire picks below can steer you in the right direction. (If you own an SUV or pickup truck, we have separate picks just for you.)
How We Test
Consumer Reports tests more than 40 tire models every year, including those for cars, SUVs, and trucks. (In 2021, we bought more than 420 tires for our tests.)We test tires at the Consumer Reports Auto Test Center in Connecticut for wet and dry braking and handling, ride comfort and quietness, and resistance to hydroplaning (when water gets between your tire and the pavement). Ride comfort, noise, and steering feel are evaluated subjectively.

Treadwear testing was performed over public roads in western Texas to 16,000 miles. CR rates tread life on the projected mileage to wear-out obtained in this test. Our treadwear predictions are based on actual miles driven, not government ratings or manufacturers' promises.

Below you'll find our recommendations for each tire type, factoring in grip, comfort, noise, treadwear, and snow traction so that you can find the best car tires for your ride.

China’s economy is plainly staring at a flickery future

The global economic system is going through an unprecedented period. Developed market central banks have begun to raise interest rates sharply and have initiated quantitative tightening at the same time. The US Federal Reserve’s balance sheet that had expanded rapidly from about $4 trillion to about $9 trillion in response to the covid pandemic has gradually begun to shrink.To get more China economy news, you can visit shine news official website.

In contrast, the People’s Bank of China (PBoC), after having held the line for much of the early covid period, has begun to ease monetary policy from around April this year. M2, the broad measure of money supply, is expanding at a rate of about 12% year-on-year in China and is now greater than credit growth, which is at about 10% year-on-year. Economic growth, meanwhile, has not responded in the wake of continuing lockdowns. In economics speak, these are early signs that China’s money supply has begun to “push on a string" and further stimulus may have to come from fiscal policy.

The PBoC balance sheet size is about 38 trillion Chinese Yuan (CNY) or about $5.6 trillion (62% of the size of the US Fed’s). The PBoC balance sheet, which has been on steady expansion through the years, appears to have qualitatively shifted its approach in 2016. Until then, the expansion was in lock-step growth with China’s current account and its growth in foreign exchange reserves. Since 2016, the PBoC balance sheet has grown by increasing lending to the country’s banking system. China’s foreign exchange reserves peaked at about $4 trillion then and have declined by nearly a trillion dollars. At the same time, Chinese current account surplus has declined from an average of about 3-4% of gross domestic product (GDP) before 2016 to less than 2% now, so structurally it seems likely that its pace of currency reserve accumulation will continue to drop.

In other words, China’s economy is slowly becoming less international and more domestic. As that happens, China’s policymakers are beginning to find that their tools for domestic macro-economic management, both monetary and fiscal, are not sufficiently diverse and well tested. China’s go-to policy for domestic expansion has been to stimulate its real-estate sector. True to form, 33 new measures were introduced in the summer to invigorate the sector. However, these measures contradict one pillar of ‘Xi Xinping thought’, which is to deleverage and clean up the real-estate sector, an activity that has been ongoing for some time. Therefore, despite these stimulus measures, China’s residential sector declined 28% year-on-year in July. Meanwhile, Chinese retail sales have slowed to about 3% for the first half of the year, which apart from the directly covid-affected quarters of 2021 and 2022, is the slowest it has been for 30 years. At the same time, even as economic growth slows, inflation in China is gradually increasing and clocked 2.7% in July. The CNY has declined by about 10% from the beginning of this year and this is one channel through which inflation is being imported into the country.

It seems rather likely that China will push both monetary and fiscal easing in an attempt to get out of the economic quagmire that it finds itself in. The country will be doing so at a moment when inflationary pressures are not benign. Before the pandemic, China has generally been careful to keep its fiscal balance in a narrow range as a proportion of GDP. The pandemic, its ageing population and its trade war with the US have begun to strain China’s ability to use fiscal policy too aggressively. Local governments have faced revenue shortfalls, requiring an increased federal transfer. The sale of land-use rights is a plug, but this has been disappointing because of simultaneous tightening of regulations in the real estate sector. In a flailing attempt, increased property tax increases have been proposed in a few jurisdictions, but this medicine may be worse than the disease and has therefore been postponed.
China has already put in place tax cuts for corporates and individuals. Even though China categorically denies that there will be “overborrowing from the future", it seems possible that China may be forced to follow the US of 2020 by doing income transfers in a desperate attempt to stimulate retail spending. At the very least, this will have to be done in some form to ensure that property buyers regain confidence in a system that now appears to be completely broken.

For the rest of the world, this adds another element to the unprecedented global situation. Developed markets and some emerging markets (including India) are tightening policy at the same time as China is easing. If much of that easing is transmitted through a lower currency value, then it will have the de facto effect of a competitive devaluation by China, and other exporting economies will suffer as a consequence. If China holds its currency relatively stable from here, then with untested domestic transmission mechanisms, it risks stagflation.

WHAT IS THE BEST SMART LOCK FOR FRONT DOOR

Do you often forget your key when you go out? Are you worried about losing your keys? When you come back from shopping, and your hands are full of things, you find it hard to get the key, right? Do you want to avoid all these inconveniences? The smart keyless door lock is a good solution. Let's learn more about a smart lock for front door.To get more news about wifi Fingerprint Smart Door lock, you can visit securamsys.com official website.

What is a Google smart lock?

Google smart lock is an extension of home automation into home security. As a connected device, Google smart lock is considered a part of the internet of things. Google smart lock provides you with a more convenient and safer way to unlock. Compared with ordinary locks, Google smart lock is more intelligent. You can even realize remote control with a keyless smart lock.

How does smart lock work?

Compared with traditional locks, smart lock for front door has more diversified unlocking modes. As the keyless smart lock can work with Alexa and Apple Watch, you don't need to worry about not bringing the door keys with you. Besides, you can connect the Smonet door lock to the TTLock App and give access remotely to your guests, friends, housekeepers, and employees.

Which smart locks work with Alexa?

Connectivity to Alexa gives you the extra convenience of checking the door directly from your bed. You don't need to pause your favorite TV play to check if the door is locked or to open the door for your friends while you are busy. In addition, Smonet smart lock can work with Alexa. If you connect the Smonet door lock to the Alexa app, you can control it through Alexa's smart speaker.

Are smart locks safe?

Like other "Internet of Things" devices, the smart lock for front door has been questioned. Are smart locks safe? Many people may worry about the security of the keyless smart lock. The keyless smart locks are the newest innovation in home security products. These smart keyless door locks are designed with convenience and safety. Compared with ordinary locks, a smart door lock is safer.

What is the Best Smart Lock for Front Door?

Among many keyless smart locks, the Smonet door lock stands out. We are committed to manufacturing the best smart lock for front door to provide you with the most significant safety and convenience. Our smart lock for front door has many advantages.

Firstly, a smart lock for front door provides you with the most excellent convenience. The keyless smart lock has up to 7 unlocking methods, including passcode, smartphone app, fingerprint, IC card, Wifi Gateway, Bluetooth, and mechanical keys. Furthermore, you can change the unlock password at any time and share the unlock password with your family and friends.

Besides, a smart lock for front door is safe. You can view the door opening records on the APP. You can check who opened your door lock at anytime and anywhere.

Moreover, the performance of smart lock for front doors is not affected by bad weather. In terms of resistance to severe cold, the Smonet smart lock is better than other wifi door locks on the market. The operating temperature range of our smart keyless door lock is - 20 ~ 70 ℃, so you can use it even if the place you live in has low temperatures all year round.

Last but not least, we provide you with a 1-Year Product Warranty, 30-Days Free Exchange/Return, and Lifetime Technical Support. And we promise we will deliver the smart door lock after three days when you place an order.