We will explain the shock of the Turkish lira’s low price, the huge losses caused by the crash, and the real voices of housewives. Carry trade is gaining popularity, but at the same time, it is also risky due to political instability and high inflation rates, so careful trading is required. In this article, we will explain the overview of Turkish lira FX trading and risk management.
Characteristics of the Turkish Lira
The Turkish Lira (TRY) is one of the currencies that has been attracting attention in the FX market in recent years. Due to the influence of the Turkish economy, known for its high interest rates, carry trade using the Turkish Lira is gaining popularity, but at the same time, due to political instability and high inflation rates, the risks are high and careful trading is required. In this article, we will explain the overview of Turkish Lira FX trading and risk management. Currently, volatility is increasing, making it a risky investment. For long-term transactions, swaps must also be taken into account.
High interest rates
The biggest feature of the Turkish Lira is its high policy interest rate. The Turkish Central Bank maintains a high interest rate policy to suppress inflation, and carry trades that utilize this interest rate differential are popular among investors. In particular, compared to low-interest rate currencies such as the Japanese yen and the euro, the large profit (swap points) from the interest rate differential is attractive.
Economic instability
On the other hand, the Turkish economy has many unstable factors, such as high inflation and downward pressure on the currency. The Turkish lira often falls sharply in a short period of time, so the exchange rate fluctuates greatly and is risky. You need to log in to your FX company and check the trading page carefully to see the movements. The market price fluctuates relatively by adding up the latest movements such as the strong yen and weak dollar. Top traders earn money from their jobs, so they keep a close eye on stock prices and American indexes until the very end.
Political risks
Turkey is in a geopolitically important position, so political news and changes in the international situation have a large impact on the lira market. In particular, the situation in the Middle East and relations with the EU are factors that directly affect the value of the Turkish lira. There are many events this year and next year, such as the US presidential election and the Japanese presidential election. The market content can change in an instant depending on the subsequent events. Interest rate cuts and hikes also have an impact on stocks and FX. In general, it is difficult to increase your profits in the market. Withdrawal may also be effective in some cases.
Turkish Lira Trading Strategies
There are several strategies for trading the Turkish Lira, but I will introduce them here. Once you register as a member with an FX company, you need to access it 24 hours a day to read the next movement. If you find yourself in a situation where you need to withdraw from FX, you will have to consider changing jobs and find job information. You should trade carefully. Those who have made money or can continue are careful. There are also people on the blog who have failed in investments and ruined their lives.
Carry Trade
One of the strategies often used in Turkish Lira FX is carry trade. This is a strategy that aims to take advantage of the interest rate differential by buying a high-interest currency and selling a low-interest currency. Due to the high interest rate of the Turkish Lira, medium- to long-term investments aiming for swap points are common. However, it is important to consider the risk of a sudden fall in the Lira and to manage risks appropriately.
Short-term Trade
Because the Turkish Lira is highly volatile, day trading and scalping are also carried out, aiming for short-term price movements. In this case, it becomes sensitive to political and economic news, and quick buying and selling is required.
Current Status of the Turkish Lira
The Turkish Lira has been in an unstable situation for the past few years, especially due to rising inflation and political instability. In this situation, many individual investors have invested in the Lira, but there are increasing cases of them suffering large losses due to market fluctuations.
Housewives’ investment situation
When housewives think about managing their household assets, they often choose to invest in foreign currencies, which are easy to start. Some have actively invested in the Turkish lira, especially because of its high yield. However, unexpected market fluctuations have affected their lives.
Real experiences of huge losses
Here is the story of one housewife. She bought lira to supplement her household finances, but the lira’s value plummeted, causing her to lose more than half of her investment. “I was shocked by the loss of my assets, but I’m worried about the impact on my household finances,” she said. This is not just an experience she had, but a reality faced by many housewives.
Importance of risk management
While Turkish Lira FX offers many opportunities to make profits, it also entails high risks. In particular, the following risks require caution.
Exchange rate fluctuation risk
The Turkish Lira is highly volatile and can fluctuate significantly in a short period of time. This can result in unexpected losses, so it is important to set stop loss lines and manage leverage.
Political risk
Changes in political stability and international relations within Turkey have a significant impact on the value of the Lira. Always pay attention to news and government policy changes.
Inflation risk
Turkey’s inflation rate is very high, and there is a risk that the value of the Lira will fall over time. If inflation accelerates, real returns will decrease, so a strategy that takes this into account is necessary.
Trends in policy interest rates
If the Turkish Central Bank maintains its high interest rate policy, carry trades are likely to remain popular. However, if interest rates are lowered, the Turkish Lira is expected to fall.
Influence of international situations
International factors, such as political instability in the Middle East and Turkey’s EU accession issue, also affect the value of the Lira. In particular, we need to pay close attention to changes in diplomatic relations with the United States and the EU.
Introducing overseas FX with high contract power
Now, let’s introduce some overseas FX companies with high contract power. We have selected some very popular and reliable brokers and compiled them into a list, so we hope you will find it useful.
XMTrading
XM actually has three companies. When you search online, you will find three hits: XM.com, XMtrading.com, and XMGlobal. Among them, XMTrading offers a comfortable environment for Japanese users, and is highly recommended as it has KIWAMI and Zero accounts.
| Brand name | XM | XMTrading | XMGlobal |
| Operating company | Trading Point Holdings LTD | Tradexfin Limited | XM Global Limited |
| URL | www.xm.com | xmtrading.com | xmglobal.com |
| location | Cyprus | Seychelles | Belize |
| license | FCA、ASIC、CySEC | FSA | IFSC、DFSA、ASIC、CySEC |
| Service Countries | Europe | Asia | others |
FXGT
FXGT is a relatively new FX company established in 2019. The operating company is 360 Degrees Markets Ltd., with a registered address in the Republic of Seychelles. Originally, they also offered services called Global GT and Crypto GT, but they were merged into FXGT in 2023. Of course, they also have a financial license, so you can rest assured that they have a high reputation among people. In the past, they have added many bonuses, and they are a good deal as they are a top-ranked broker.
| Operating company | 360 Degrees Markets Ltd. |
| Registered address | セーシェル共和国 Room 12, First Floor, Kingsgate House, Victoria, Mahe, Seychelles |
| Financial License | FSA: Seychelles Financial Services Authority |
| Established | 2019 |
Axiory
Axiory is an overseas FX broker established in 2015 by Axiory Global Ltd. Axiory is headquartered in Belize and incorporated as a “tax haven”. It has obtained the IFSC license from the Financial Services Agency of the Belize International Financial Services Commission, making it a very reliable and safe FX broker.
| Operating company | Axiory Global Ltd. |
| Established | 2015 |
| location | No. 1 Corner of Hutson Street andMarine Parade Belize City, Belize |
| Financial License | IFSC: Belize International Financial Services Commission |
Bigboss
BigBoss is an FX company established in 2013. It is based in Saint Vincent and the Grenadines and is operated by Prime Point LLC. It has a good reputation among traders and has not experienced any major problems or withdrawal refusals, so it can be said to be a very reliable company.
| Company | Prime Point LLC |
| Found | 2013 |
| Address | 1/F, First St Vincent Bank Ltd Building James Street Kingstown St. Vincent and the Grenadines |
| License | SVG FSA |
easyMarkets
easyMarkets was founded in 2001, making it by far the oldest company among overseas FX brokers. It is operated by EF Worldwide Limited, and is an FX broker based in the Marshall Islands. The Marshall Islands are a tax haven, so they tend to be the base of FX brokers.
| Operation Company | EF Worldwide Limited |
| Address | Ajeltake Road, Trust Company Complex, MH 96960, Ajeltake Island, Majuro, Marshall Islands. |
| License | CySEC,ASIC,FSA,FSC |
| Found | 2001 |
| URL | Click here |
Exness
Exness is a world-famous FX brand founded in 2008 with global expansion. It is a multinational corporate group that has obtained official financial licenses in multiple countries, including European and overseas subsidiaries and affiliates. As of April 2022, it boasts a trading volume of over 2105 trillion dollars.
| Operating company | Exness Limited |
| Registration number | 8423606-1 |
| Country of registration | Japan-Seychelles Relations |
| Company Address | 9A CT House, 2nd floor, Providence, Mahe, Seychelles |
| Established | 2008 |
| Number of Employees | 1054 |
| URL | Home Page |
| telephone number | (+248) 4346767 |
| email address | support@exness.com |
| Financial License | Seychelles Financial Services Authority |
FBS
FBS is an FX broker based in Vanuatu. Founded in 2009, it is a FX broker with a long history of operation. It has successfully expanded globally and has branches all over the world. It also has a financial license. It is well-known among overseas FX brokers, and deposits and withdrawals are safe.
| Operation Company | Mitsui Markets Ltd. |
| Established | 2009 |
| Address | 133 Santina Parade, Elluk, Port Vila, Efale, Vanuatu |
| License | VFSC、IFSC、CySEC |
HFM
The company profile of HF Markets is as follows. The company name has always been Hot Forex, but it changed to HFM in 2022. HFM is a very popular company, especially in Europe, and has won more than 60 awards, so it is very popular and well-known.
| Company Name | HF Markets(SV)Ltd |
| CEO | – |
| Found | 2010 |
| Address | Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont Kingstown, St. Vincent and the Grenadines. |
| Capital Stock | ? |
| Number of employees | 250 |
| support@hfm.com | |
| Licence | IBC No: 22747 IBC 2015 St. Vincent and the Grenadines |
| URL | Home Page |
iForex
iForex is a very long-established FX company, and this alone makes it trustworthy. The operating company is Formula Investment House Ltd, which was established in 1996, so it has a history of 30 years. It is based in the British Virgin Islands and has a financial license registered with the Financial Services Commission of the British Virgin Islands (BVI FSC).
| 運営会社 | Formula Investment House Ltd |
| 設立 | 1996 |
| 所在地 | 1, Wickham’s Cay, Road Town,Tortola BVI VG1110 |
| 金融ライセンス | BVI FSC：英領バージン諸島金融サービス委員会 |
IronFX
IronFX is a globally expanding FX broker established in 2010. As service information is provided worldwide, there are many registered users in Europe, Asia, the Middle East, Africa, and Latin America, and awareness is increasing. IronFX is recognized as a fast-growing FX broker, and in 2012 it won the Best Trading Platform 2012 award.
| Broker | IronFX |
| Established | 2010 |
| Headquarter | Cypros |
| Service Area | Europe Asia Africa Oceania North America South America |
| License | CySEC FCA ASIC |
| Address | 2, Iapetou Str., Agios Athanasios, 4101 Limassol, Cyprus |
| Tel | +44(0) 203 282 7777 |
| Owner | Markos A. Kashiouris Peter G. Economides |
| Company Name | Notesco Limited |
| URL | Home |
LandPrime
Land-FX is an FX broker established in 2013 by the operating company Land Prime Ltd. It has been in operation for over 10 years, so it can be said to be a fairly established broker. Its greatest appeal is its narrow spreads and high contract power, and it has traders all over the world.
| Operation Company | Land Prime Ltd. |
| Established | 2013 |
| Address | ? |
| License | SVG FSA |
| URL | Home |
MILTON MARKETS
MILTON MARKETS is an FX company established in the Republic of Vanuatu in 2015. It is regulated by the Vanuatu Financial Services Commission and has a financial license from the VFSC, so it is a very reliable company.
| 運営会社 | Milton Markets Ltd. |
| 設立 | 2015 |
| 所在地 | バヌアツ共和国 2nd Floor, Transpacific Haus Lini Highway Port Vila, Vanuatu |
| 金融ライセンス | VFSC：バヌアツ金融サービス委員会 |
GeneTrade
GeneTrade is an FX service company established in 2018 by the operating company Genius Trading LTD. The company is headquartered in Belize and holds a financial license from the Belize International Financial Services Commission (IFSC), so it is operated under regulations.
| Operation Comapany | Genius Trading LTD |
| Found | 2018 |
| Address | 5 Cork Street, Belize City, Belize |
| License | IFSC |
TITANFX
TITANFX is an FX company established in the Republic of Vanuatu in 2014. It offers a wide range of services, including free VPS, free EA, and copy trading, and is highly recommended. The maximum leverage is 500x, so you can deposit and withdraw funds with peace of mind.
| Operation Company | Titan FX Limited |
| Establishment | 2014 |
| Address | Pot 564/100, Rue De Paris, Pot 5641, Centre Ville, Port Vila, Vanuatu |
| Financial license | VFSC |
TradersTrust
It is now TTCM TRADERS CAPITAL LIMITED, a group of companies that operate TradersTrust, and was founded in 2009. It is headquartered in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is difficult to obtain.
| Operation Compamy | TTCM Traders Trust Capital Markets Limited (ltd) |
| Found | 2009 |
| Address | 3 Thalia Street, Office Number 310-318, 3rd Floor, 3011, Limassol, Cyprus |
| License | CySEC |
Axi
We will explain the basic information of Axi. Axi is an FX broker established in Australia in 2007. Of course, it holds a license from the Financial Services Agency and is one of the famous brokers with many users. All account types offer up to 1,000 times leverage.
| Broker | Axi |
| Established | 2007 |
| Max Leverage | 1000x |
| License | SVG ASIC FSA |
| Trading Tool | MT4 |
FXPRIMUS
The basic information of FXPRIMUS is as follows. Naturally, it holds a financial license and is operated under strict regulations. It has bases in Vanuatu and Cyprus and has obtained licenses from the financial authorities of each country.
| Broker | Primus Markets INTL LTD(Cyprus) Primus Global LTD(Vanuatu) |
| Location | Cyprus Vanuatu |
| License | CySEC VFSC |
| Established | 2009 |
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