Israel Forex Trading Brokers

July 5, 2013 7:43 am

israel_forexThe official currency of Israel is the Israeli Shekel and it is appreciated by approximately 2.3% against the dollar and by 0.4% against the euro. This all happened in 2012! The shekel is actually strengthening a lot in the last couple of years.

The dollar weakened by 2.7% against the Swiss Franc while the Israeli Shekel kept strengthening. This continues trend of this currency attracted lots of investors and Israeli foreign exchange market is slowly but steadily becoming really popular.

During the last year, in the period April – August, the shekel depreciated against the dollar by around 8%, but this was completely normal because the dollar strengthened worldwide, and the reason for this was the geopolitical tension. However, the dollar hit new bottom in the beginning of September when the tension eased. This led to contribution of the shekel-dollar currency pair and it appreciated by approximately 7%.

The actual volatility of the shekel is represented by the changes of the shekel-dollar exchange rate. During the last couple of years it has been ascending and declining by 2 to 5.5%.

Forex Trading Brokers in Israel

The average monthly level of the implied volatility of the currency pair shekel-dollar declined during 2012 with 2.8% and reached 9.4% which was followed by a sharp increase of around 8% points. This is why you have to be very careful in case you are about to trade on the foreign exchange market of Israel.

Important thing that should be noted here is that from a historical perspective, the implied volatility is usually higher than the actual one, the latter itself is also more volatile and ranges considerably while there are economic events which impact on the actual exchange rate.

Once again the Israeli market is not recommended for people who lack experience in the area of trading simply because will most probably lost their money and as a beginner this is the last thing you need.

It might be better to start trading on some markets that have less volatility. On the other hand, if you are experienced trader and you know how to take advantage of the ups and lows of the market due to the volatility, then this is definitely the type of market you might want to give a try.

Here is a list of reliable brokers that you can use in Israel.
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