logo |

News

    Home   >     Industry    >     Main body

    Moon and Star, For ex Crash in the Lira

    Abstract:The Turkish lira crash was described by the Dutch ING Bank as a "Textbook-tic crash". On the 9th of October in 2017, the Turkish lira experienced a plunge that caught everyone off guard. Turkey's exchange rate against the dollar fell to an 8-month low in the morning. It was also the seventh consecutive day that the lira had fallen, the longest on record since May 2016.
    Lark20201214-151042.jpeg

      The Turkish lira crash was described by the Dutch ING Bank as a “Textbook-tic crash”. On the 9th of October in 2017, the Turkish lira experienced a plunge that caught everyone off guard. Turkey's exchange rate against the dollar fell to an 8-month low in the morning. It was also the seventh consecutive day that the lira had fallen, the longest on record since May 2016.

    1_14932_02.jpg

      Political factors and insufficient market confidence.

      The Turkish liras plummet was driven by the fact that the United States suspended all non-immigrant visas to Turkey and the relations between the United States and Turkey deteriorated. The outbreak of this news was not significant enough to affect the lira on such a large scale during normal trading hours, and the news broke during Asian morning trading hours when the trading volume was small and liquidity was insufficient, which exacerbated the impact of the event. The reason for this flash crash was the lack of dollar sources in Turkey. Meanwhile, Turkey had a serious fiscal deficit under the current account, and the market lacked confidence in lira. The deterioration of the relations between Turkey and the United States triggered the crush. After the Federal Reserve announced its monetary tightening policy, the market was in a very tense state. These factors contributed to the “unexpected” flash crash of the Turkish lira.

    13b4cecd3622fbe3e3b3d2e34118c25a.jpg

      What we conclude is that when something unexpected happens to the market, it often causes panic in the market, whether it is the Swiss franc, British pound, or lira. When some people perceive the effects of the accident, everyone else does not want to be the “last fool” and fled one after another. The market is prone to a vicious circle, causing “stomping” incidents. A flash crash is a phenomenon caused by the amplification of market sentiment. The more unexpected the event, the greater the fear it brings. If the Stomping occurs when the liquidity is low. the entire market will be crazy.

      

    97f8081c182001b23c958fdfee0b58b6.jpg

      However, for individual investors, the influence of a flash crash is devastating. If the frequency of flash crashes increases, or the duration of the crashes lengthens, it may undermine the confidence of the entire market. For investors, the violence of flash crashes does conceal profit opportunities. Investors need to be careful and adjust their positions to avoid excessive leverage and make profits. And losses are controlled within the acceptable range.

      WikiFX is a global Forex inquiry platform and provides real-time rankings of Forex brokers. So if you are seeking a broker to start your Forex trading journey, please search the detailed information about the broker on the WikiFX.

    Latest News

    New Zealand Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    New Zealand Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.