Before I explain to you about Forex Signals in China, No, that is a categorical no. Whoever you follow, Forex signals and trades will not always be accurate.
When you follow professional Forex traders, you will see some winning trades but also some losing trades. But here is the key: The winning trades are larger than the losing trades. That is called “good risk-reward” in Forex trading, and it means consistency even when some trades will not work as expected.
Remember, not all Forex signals can be winners; you have to manage your risk correctly and follow good risk rewards.
And since you follow professional Forex traders, you will be able to always come out on top.
Oh, and by the way, Beware of signal providers that hide their losing trades or just don’t update them while they keep flexing about the wins.
Transparency is extremely important when you follow a signal provider; it shows professionalism and competence, which are a must.
Unknown Facts About China
China is that it has the world’s largest population and the Great Wall, then it’s time to read up!
China was first recognized as a unified country back in 221 BC, ruled by the Qin dynasty. No, big, fat pandas weren’t kung fu masters back then; at least we don’t’ think so.
Since that time, we’ve seen many dynasties rise and fall until the People’s Republic of China was establish in 1945.
It wasn’t until recently, though, that China emerged as a legitimate world power. It boasts world-class cities, Olympic gold medalists, and delicious dim sum.
Not only is it the birthplace of Yao Ming, it even became the third nation to send a man to space.
From sports to space travel, to economic might, China is slowly crawling its way up the leader boards!
ULTREOS FOREX is a best provider for forex signals in China. If trader cannot get profit in trading, Their signals is the best solution for traders in China.
China: Facts, Figures, and Features
- Neighbors: Korea, Mongolia, India, Japan, Russia
- Size: 3,705,407 square miles
- Population: 1,350,695,000
- Density: 373 per square mile
- Capital City: Beijing (population: 11,716,000)
- Head of Government: Xi Jinping
- Currency: Chinese Renminbi / Yuan (CNY)
- Main Imports: petroleum, copper, iron, steel, machinery, plastics, medical equipment, organic chemicals
- Main Exports: rice, apparel, clothing, office machines, electronic goods, machinery, steel, Yao Ming, Jackie Chan, Apple iPads, Cherry cars
- Imports Partners: South Korea 9.4%, Japan 8.3%, Taiwan 8%, United States 7.8%, Australia 5%, Germany 4.8%
- Exports Partners: Hong Kong 17.4%, United States 16.7%, Japan 6.8%, South Korea 4.1%
- Time Zone: GMT+8, GMT+7, GMT +6, GMT +5, GMT+4
- Website: https://www.gov.cn/english/
What are Forex Signals in China?
Live forex signals in China are the equivalent of trading suggestions. The signal provider will essentially send China Forex Traders tips throughout the day as to what forex trades China Forex Traders should place – based on its own research.
How to use forex signals?
Forex Signals in China is one of the easiest way to make money on the Forex market if you don’t have the skills to make any profitable trading decisions
As I am a signal provider at ultreos forex, I specialize only in Forex Currencies. A potential subscriber would go to my site and sign up and begin with a 30 day trial. Once I receive payment confirmation, we will work on connecting on telegram as that is where I will be sending my signals to.
My job involves studying the gbp/jpy chart and looking for the most profitable entry. Once I confirm the entry, I would then send the BUY or SELL signal on TELEGRAM. Everyone that is subscribed to my signals will receive this message instantly.
A message sent would look something like this:
SELL gbp/jpy 144.34 SL 144.45
It would be your job as a subscriber to execute this trade on your platform.
As the trade gets underway, my job is to monitor the trade. When it is time to close the trade , I will send another signal on telegram. It would go something like this:
CLOSE position 143.00
You job as a subscriber is to execute this on your platform and close your open position.
That is it!! Read More: Best Forex Signals In United Kingdom
Your only job now is to wait for the next signal.
Economic Overview
In late 2009, China overtook Japan as the world’s second-largest economy, and today, China’s GDP stands at a massive $14 trillion USD and growing
It wasn’t always this way though. For the longest time, China’s economy was secluded from the rest of the world.
It was only during the formalization of the modern government, the People’s Republic of China, that China started opening its door to the rest of the world.
China hit a humungous growth spurt in the 1990s and 2000s, as the nation posted ridiculous double-digit growth. This put its booming economy at the forefront of emerging market growth.
Interestingly, the growth has been spurred on by the agriculture and industrial industries, which account for more than 60% of the total GDP.
Export trade has also played a major factor, with the undervalued yuan helping make Chinese goods more attractive in international markets.
Over the past year though, there have been fears that the Chinese economy may overheat.
To counter this, the Chinese government has implemented various monetary and fiscal policies to ease the transition to more sustainable growth levels.
Monetary & Fiscal Policy
The People’s Bank of China (PBoC), which is located in Beijing, is in charge of China’s monetary policies.
Aside from controlling interest rates and reserve ratio requirements, the PBoC is also tasked with regulating financial institutions in mainland China.
Now here’s a little piece of trivia for you: Did you know that the PBoC currently holds the most financial assets among all the public financial institutions in existence?
It is currently holding over $1.3 TRILLION USD worth of Treasury bills, and not to mention all the other bonds from other countries that are on its balance sheet!
This shouldn’t be too surprising considering how China managed to trump most nations in terms of economic performance!
Another interesting factoid about the PBoC is that its interest rates used to be divisible by 9 instead of 25 a few years back.
This was because the Chinese based their rate system on the abacus, which was set in multiples of 9. Can you imagine reading about a 0.18% hike in benchmark rates?
Recently, however, the PBoC decided to let go of this traditional practice and adopt the convention of hiking or cutting interest rates by 0.25% increments.
In fact, the PBoC is pretty notorious for making aggressive interest rate changes depending on how the Chinese economy is faring.
Aside from the interest rate, the PBoC also has the ability to adjust the reserve ratio requirement (RRR) for banks in its monetary policy arsenal.
You see, the RRR refers to the amount of cash Chinese banks are required to hold in their vaults. By varying the ratio, the PBoC is able to control how much money is in circulation and keep inflation within its target levels.
Getting to Know the CNY
The yuan is the primary unit of Chinese modern currency or renminbi. If you’re constantly getting confused between yuan and renminbi just as Dr. Pipslow often mistakes sugar for salt when making his morning coffee, all you have to remember is that the term renminbi is the official name of China’s currency while yuan refers to the actual units.
Although China is in the midst of reforming its exchange rate policies, the yuan still remains pegged to the U.S. dollar.
This means that if the U.S. dollar rises or falls in value, the yuan follows accordingly. As such, CNY isn’t one of the commonly traded currencies in the forex market.
One problem with this peg is that it has caused tension between China and the United States, which has come close to naming China a currency manipulator.
Because the yuan is undervalued, haters claim that it gives China an unfair trade advantage and has been the main driver of Chinese growth.
To China’s credit, though, it has been gradually loosening the yuan’s peg in recent years. They’ve done so by slowly introducing CNY-denominated bonds in Hong Kong.
Word on the street is that big financial players can’t wait to start changing their cash to yuans and investing in CNY-denominated assets.
Important Economic Indicators for the CNY
Important Economic Indicators for the CNYGDP – This figure acts as China’s economic report card because it reflects how much their economy expanded or contracted for the period. This is typically reported on a quarterly basis compared to the same quarter in the previous year.
CPI – The PBoC keeps a close eye on the Chinese CPI report because it reflects how much price levels have changed over a particular period of time. If the annual CPI reading exceeds or falls below the Chinese government’s target levels, the PBoC could wield its monetary policy tools in its next rate decision.
Trade Balance – A huge chunk of China’s economy is comprised of international trade, which means that the trade balance is typically considered a leading indicator of growth.
PBoC Interest Rate Decision – As we mentioned earlier, PBoC is notorious for making aggressive monetary policy changes whenever they feel that the Chinese economy is overheating or if it needs more stimulus.
Trading the Chinese Economic Reports
Even though the yuan isn’t a commonly traded currency, that doesn’t mean you can’t make any pips off those Chinese economic releases!
Because China’s economy is so ginormous, its economic events will most likely impact those nations that they are closely associated with. One of these is Australia.
China is Australia’s largest trading partner, with the two nations exchanging nearly a hundred billion dollars worth of products each year.
With that, Chinese economic data releases tend to impact the Australian dollar the most among the major currency pairs.
Strong economic data from China typically indicates that the Chinese demand for Australian commodities could increase while weak Chinese data could hint at a downturn in trade with Australia.
Of course, since China is currently the world’s second-largest economy next to Uncle Sam, its economic standing also has a huge effect on risk sentiment.
This means that a slowdown in China could reduce traders’ appetite for risk and higher-yielding currencies as they worry about the potential impact of this slump on the global economy.
On the other hand, an economic boom in China could be positive for risk as market participants see this as a sign of further growth for the global economy.
Trade Tactics
If you watch the Australian dollar, then you should definitely mark your calendars for Chinese economic releases and PBoC statements.
More often than not, better than expected economic figures from China lead to an AUD/USD or AUD/JPY rally while weaker than expected results usually trigger an Aussie selloff.
PBoC rate decisions are a little more tricky as these depend on prevailing market sentiment.
Best Forex Stocks Brokers In China for 2022
We’ve listed the top best online forex,stock trading sites that would let you as a Chinese stock trader, trade Tech stocks, Growth stocks, Large-cap stocks, Mid-cap and Small-cap stocks.
Here’s a breakdown of the top 4 best forex and stock brokers in China:
- IC Markets
IC Markets is an Australian and Seychelles-based ECN broker which is well-regulated and authorized through the reputable ASIC and offers competitive trading conditions to a variety of traders residing in numerous countries around the globe.
When opening an account, China traders can expect a minimum deposit of 2,340.96 BWP, which provides access to numerous tradable financial instruments, leverage of 1:500, variable spreads, and low commissions charged on trades.
- Octa Fx
50% Deposit Bonus– Easy account setup and low minimum opening balance
Scalping, hedging, and EAs are all permitted strategies
Shariah-compliant options available for all account types
Access leverage up to 500:1 with negative balance protection
No registration fees or commissions
Fast Deposit And Withdraw
- EXNESS
Exness is a globally-recognized broker with two main offices located in the Seychelles, it is also recognized as a Cyprus-based broker, with regulation and authorization through CySEC, FCA, and SFSA. The minimum required deposit to open an account with Exness is 11.70 BWP and in opening a live trading account, China traders have access to a variety of tradable financial instruments such as Forex and various CFDs, amongst others. Exness also supports the use of MetaTrader 4 and MetaTrader 5, leverage of up to 1:1000, tight spreads and no hidden commission charges on trades.
- XM
XM is a reputable ECN and STP broker which is strictly regulated by ASIC, CySEC, and IFSC, with its services widespread across the globe in over 196 countries to over 2.5 million clients in offering the trade of Forex, commodities, metals, indices, and more.
When registering a live account, China traders can expect minimum deposits of 58.52 BWP, spreads which are tight and variable, ultra-low commission charges on trades, leverage of up to 1:880 and access to the best trading platforms.
