In Azerbaijan, state-owned enterprises SOEs are active in the oil and gas, power generation, communications, water supply, railway, and air passenger and cargo sectors, among others. There is no published list of SOEs. While there are no SOEs that officially have been delegated governmental powers, companies such as the State Oil Company of Azerbaijan SOCAR , Azerenerji the national electricity utility , and Azersu the national water utility — all of which are closed joint-stock companies with majority state ownership and limited private investment — enjoy quasi-governmental or near-monopoly status in their respective sectors.
SOCAR is wholly owned by the government of Azerbaijan and takes part in all oil and gas activities in the country. There have been instances where state-owned enterprises have used their regulatory authority to block new entrants into the market. SOEs are, in principle, subject to the same tax burden and tax rebate policies as their private sector competitors. However, in sectors that are open to both the private and foreign competition, SOEs generally receive a larger percentage of government contracts or business than their private sector competitors.
While SOEs regularly purchase or supply goods or services from private sector firms, domestic and foreign private enterprises have reported problems competing with SOEs under the same terms and conditions with respect to market share, information, products and services, and incentives.
Private enterprises do not have the same access including terms to financing as SOEs. SOEs are also afforded material advantages such as preferential access to land and raw materials, advantages that are not available to private enterprises. A renewed privatization process started with the May presidential decree implementing additional measures to improve the process of state property privatization and the July decree on measures to accelerate privatization and improve the management efficiency of state property.
The State Committee on Property Issues launched a portal to provide privatization information, privatization. The portal contains information about the properties, their addresses, location, and initial costs with the aim of facilitating privatization. Responsible business conduct RBC is a relatively new concept in Azerbaijan. Producers and consumers tend not to prioritize responsible business conduct, including environmental, social, and governance issues. No information is available on legal corporate governance, accounting, and executive compensation standards to protect shareholders in Azerbaijan.
Larger foreign entities tend to follow generally accepted RBC principles consistent with parent company guidelines and aim to educate their local partners, who generally consider basic charitable donations and paying taxes as acts of social responsibility. In , the Economy Ministry established standards for corporate governance, which included an evaluation methodology for these standards and a code of ethical behavior. The Economy Ministry has been tasked with explaining the importance of corporate governance standards to entrepreneurs.
Some companies report that government restrictions on NGO registration have complicated CSR corporate social responsibility efforts. Corruption is a major challenge for firms operating in Azerbaijan and is a barrier to foreign investment, despite government efforts to reduce low-level corruption. Azerbaijan does not require that private companies establish internal codes of conduct to prohibit bribery of public officials, nor does it provide protections to NGOs involved in investigating corruption.
The Azerbaijani government publicly acknowledges problems with corruption but has neither effectively nor consistently enforced anti-corruption laws nor regulations. Azerbaijan has made modest progress in implementing a Anticorruption Law, which created a commission with the authority to require full financial disclosure from government officials.
The government has achieved a degree of success reducing red tape and opportunities for bribery through a focus on e-government and government service delivery through centralized ASAN service centers, which first opened in February Despite progress in reducing corruption in public services delivery, the civil service, public procurement apparatus, and the judiciary still suffer from corruption.
Tax reforms announced in January are partially aimed at reducing corruption in tax administration. On multiple occasions in , authorities selectively blocked mobile and fixed-line internet access, temporarily restricted access to foreign media and social networking sites, and imposed blocks on virtual private network VPN services, apparently in response to political protests. The increase in frequency and lack of transparency regarding internet disruptions raise serious concerns about future Azerbaijani government efforts to control access to information in ways that impede foreign business interests.
There have been no known acts of political violence against U. It is unlikely that civil disturbances, should they occur, would be directed against U. A cease-fire with Armenia has been in effect since for the conflict surrounding the disputed region of Nagorno-Karabakh. There have been no threats to commercial enterprises from skirmishes in the border areas.
The Azerbaijani government has suspended or threatened to suspend the operations of U. Azerbaijan considers travel to the region of Nagorno-Karabakh and the surrounding occupied territories unlawful. Due to the existing state of hostilities, consular services are not available to U.
The Labor Code regulates overall labor relations and recognizes international labor rights. The work week generally is 40 hours. The right to strike exists, though industrial strikes are rare. In practice, labor unions are strongly tied to political interests of the government.
Collective bargaining is not practiced. Azerbaijan has regulations to monitor labor abuses, health, and safety standards in low-wage assembly operations, but enforcement is less effective. Employment relations are established by an employment contract, which, in most cases, does not necessarily indicate a fixed term of employment. Upon termination of formally registered employment, employers must pay departing employees monetary compensation for unused vacation leave.
An employee must have worked under a valid labor contract in order to obtain unemployment benefits. Azerbaijan has an abundant supply of semi-skilled and unskilled laborers. The U. The World Bank, Asian Development Bank, and other third-country institutions are active in providing financing and insurance for investment in Azerbaijan.
Table 4: Sources of Portfolio Investment Data not available. The Government of Belarus GOB officially welcomes foreign investment, which is seen as a source of new production technologies, jobs, and hard currency. Belarus also highlights the preferential tax benefits and special investor incentives it provides for its six export-oriented and regionally located free economic zones, the IT sector-centric High Tech Park HTP , and the joint Belarus-China Great Stone Industrial Park.
Belarus places a priority on investments in pharmaceuticals; biotechnology; nanotechnologies and nanomaterials; metallurgy; mechanical engineering industry; production of machines, electrical equipment, home appliances and electronics; transport and related infrastructure; agriculture and food industry; information and communication technologies; creation and development of logistics systems; and tourism. Also in , the World Bank concluded a pilot project that identified and helped prepare 12 Belarusian SOEs for privatization.
However, the GOB allowed sale of the government share in these companies on the condition that the purchasing investors preserve existing jobs and production lines. The State Property Committee reported that the government sold its minority share under 25 percent in only two enterprises in Investments in sectors dominated by SOEs have been known to come under threat from regulatory bodies.
Investors, whether Belarusian or foreign, purportedly benefit from equal legal treatment and have the same right to conduct business operations or establish new business in Belarus. However, according to numerous sources in the local business community and independent media, selective law enforcement and unwritten practices can discriminate against the private sector, including foreign investors, regardless of their country of origin.
Serious concerns remain about the independence of the judicial system and its ability to objectively adjudicate cases rather than favor the powerful central government. Since October , however, the U. Department of Treasury, in consultation and coordination with the Department of State, has provided temporary sanctions relief for the nine SOEs. The current month period of temporary sanctions relief ends on April 26, Technically the legal regime for foreign investments should be no less advantageous than the domestic one, yet FDI in many key sectors is limited, particularly in the petrochemical, agricultural, and alcohol production industries.
FDI is prohibited for national security reasons in defense as well as production and distribution of narcotics, dangerous and toxic substances. FDI can also be restricted in activities and operations prohibited by law or in the interests of environmental protection, historical, and cultural values, public order, morality protection, public health, and rights and freedoms of individuals.
Investments in businesses that have a dominant position in the commodity markets of Belarus are not allowed without approved by the Ministry of Trade and Antimonopoly Regulation. According to the COE, Belarus failed to address 20 out of 24 recommendations made in ; had not authorized the publication of the report or related compliance reports; and was non-responsive since to requests from GRECO to organize a high-level mission to Belarus.
The GOB has no specific requirements for foreigners wishing to establish a business in Belarus. Investors, whether Belarusian or foreign, reportedly benefit from equal legal treatment and have the same right to conduct business operations in Belarus by incorporating separate legal entities. However, selective application of existing laws and practices often discriminate against the private sector, including foreign investors, regardless of the country of their origin. While the GOB asserts foreign and domestic private entities have the right to establish and own business enterprises and engage in all forms of remunerative activity, in reality, the GOB imposes limits on a case-by-case basis.
Belarus, in particular, limits foreign equity ownership in service industries. Sectors such as fixed-line telecommunications services, electricity transmission and distribution, and railway freight transportation are closed to foreign equity ownership. In addition, a comparatively large number of sectors are dominated by government monopolies, including, but not limited to, those mentioned above.
Those monopolies make it difficult for foreign companies to invest in Belarus. Finally, the government may restrict investments in the interests of national security including environmental protection, historical and cultural values , public order, morality protection, and public health, as well as rights and freedoms of people.
While Belarus has no formal investment screening mechanism for national security purposes, it retains elements of a Soviet-style command economy and does screen investments through an informal and hierarchical process that escalates through the bureaucracy depending on the size of the investment or the size of incentives an investor seeks from the Belarusian government.
The President and his administration prescreen and approve all significant multi-million dollar foreign investment. Belarus has a regime allowing for a simplified taxation system for small and medium-sized and foreign-owned businesses. Belarus defines enterprises as follows: Micro enterprises — fewer than 15 employees; Small enterprises — from 16 to employees; Medium-sized enterprises — from to employees.
The Agency states it is a one-stop shop with services available to all investors, including: organizing fact-finding missions to Belarus, assisting with visa formalities; providing information on investment opportunities, special regimes and benefits, state programs, and procedures necessary for making investment decisions; selecting investment projects; and providing solutions and post-project support, i.
FAIC activities include, but are not limited to: developing proposals to improve investment legislation; participating in examining corresponding regulatory and legal acts; and approaching government agencies for the purpose of adopting, repealing or modifying the regulatory and legal acts that restrict the rights of investors. The FIAC includes the heads of government agencies and other state organizations subordinate to the GOB, as well as heads of international organizations and foreign companies and corporations.
The government does not promote or incentivize outward investment, nor does it restrict domestic investors from investing abroad. According to Belarusian legislation, drafts of laws and regulations pertaining to investment and doing business are subject to public discussion. The government states that its policies are transparent and the implementation of laws is consistent with international norms to foster competition and establish clear rules of the road.
However, independent economic experts note that private sector businesses are often discriminated against in relation to public sector businesses. In particular, SOEs often receive government subsidies, benefits and exemptions, including cheaper loans and debt forgiveness, that is generally unavailable to private sector companies.
Public-interest entities, which include banks, insurance companies, and public corporations with subsidiary companies, are required to publish their financial statements, which comply with IFRS. Such statements are subject to statutory audit. Belarus is not a WTO member but since has stepped up efforts to join. The Belarusian legal system is a civil law system with a legal separation of branches and institutions and with the main source of law being legal act, not precedent.
Article 11 of the Civil Code safeguards property rights. Presidential edicts and decrees, however, typically carry more force than legal acts adopted by the legislature, which risks weakening investor protections and incentives previously passed into law. Belarus has a written and consistently applied commercial law, which is broadly codified but contains inconsistencies and is not always considered to be business friendly.
In addition, the Supreme Court has a judicial panel on economic issues. In , Belarus established a judicial panel to enforce intellectual property rights. Under the Labor Code, any claims of unfair labor practices are heard by regular civil courts or commissions on labor issues.
According to Article 12 of the Investment Code, neither party may expropriate or nationalize investments both directly and indirectly by means of measures similar to expropriation or nationalization, for other purposes than for the public benefit and on a nondiscriminatory basis; according to the appropriate legal procedure; and on conditions of compensation payment. Belarus has signed 67 bilateral agreements on the mutual protection and encouragement of investments which include obligations regarding expropriation.
In , there was one nationally-reported case of nationalization, however the Belarusian government compensated the Ukrainian owner market value for shares of the Motor Sich aircraft repair factory in Orsha. In the past five years, there have been no instances of confiscation of business property as a penalty for violations of law. There were no known investment disputes between Belarusian government authorities and American investors in Belarus is a party to both the International Convention on the Settlement of Investment Disputes between States and Nationals of Other States ICSID and the New York Convention of on the Recognition and Enforcement of Foreign Arbitral Awards, meaning that local courts recognize and enforce foreign arbitral awards in compliance with the above conventions, national laws, and regulations.
The enforcement of arbitral awards in Belarus is governed by Chapter 28 of the Code of Commercial Procedure. Most of the BITs concluded by Belarus include a provision on international investment arbitration as a mechanism for settling investor-State disputes and recognize the binding force of the awards issued by tribunals. Under Belarusian law, if an international treaty signed by Belarus establishes rules other than those established by local law, the rules of the international treaty prevail.
Local economic court proceedings normally do not exceed two months. The term of such proceedings with the participation of foreign persons is normally no longer than seven months, unless established otherwise by an international agreement signed by Belarus. Judgments of foreign courts are accepted and enforced if there is a relevant international agreement signed by Belarus.
Courts recognize and enforce foreign arbitral awards. Additional legal acts, such as the Civil Code and Code of Economic Procedures, also include certain regulations on bankruptcy-related issues. Under the bankruptcy law, foreign creditors have the same rights as Belarusian creditors.
Belarusian law criminalizes false and intentional insolvency as well as concealing insolvency. GOB enters into specific investment agreements with other governments and may accord preferential incentives and benefits including but not limited to:. Investment agreements concluded under the decision of the Belarusian Council of Ministers and with the permission of the President of Belarus may offer additional incentives and benefits not expressly provided for in legislation.
Such incentives are provided on a case-by-case basis. The tax and regulatory pattern applicable to businesses in these zones is simpler and lower than elsewhere in Belarus. To become a FEZ resident, an investor needs to make a minimal investment of EUR 1 million, or at least EUR , provided the entire sum is invested during a three-year period, as well as engage in the production of import-substituting products or goods for export.
The list of main tax benefits for FEZ residents was revised in December to include certain exemptions from the corporate profit tax CPT , real estate tax, land tax, and rent on government-owned land plots located within the boundaries of the FEZ, among others. As of , FEZ residents benefit from a simplified procedure of export-import operations. Resident enterprises are exempt from customs duties and taxes on facilities, construction materials, other equipment used in implementation of their investment projects.
They are also exempt from customs duties and taxes on raw materials and materials used in the process of manufacture of the products sold outside the territory of the Eurasian Economic Union. Otherwise, FEZ residents pay VAT, excise duties, ecological tax, natural resource extraction tax, state duty, patent duties, offshore duty, stamp duty, customs duties and fees, local taxes and duties, and contributions to the Social Security Fund according to the general guidelines.
The Great Stone Industrial Park is a special economic zone of approximately According to a master plan approved in , Great Stone will eventually include production facilities, dormitories and residential areas for workers, offices and shopping malls, and financial and research centers. Great Stone is primarily a Belarus-China joint venture but any company — regardless of its country of origin — can apply to join the industrial park. Great Stone residents are also exempt from any new taxes or fees through should the government make adverse changes to the tax code.
A physical campus of the HTP is found in the eastern part of Minsk and a satellite campus is located in Hrodna. HTP provides residents beneficial tax preferences, including but not limited to: exemptions from VAT and CPT on sale of goods or services; exemptions from customs duty and VAT on certain kinds of equipment imported into Belarus for use in investment projects; immovable property tax and land tax benefits with regard to buildings and land within the boundaries of the HTP campuses; and caps on personal income tax at nine percent for employees and five percent for foreign entities.
Foreign nationals who are hired on contract by an HTP resident company, or who are founders of a HTP resident company, or who are employed by such founders, are eligible for visa-free entry into Belarus for a stay of up to days a year. Foreigners employed by HTP residents are not required to have working permit in Belarus and are entitled to apply for a temporary residence permit for the duration of their contract.
Individual entrepreneurs and legal entities who work in rural areas, defined as settlements of less than 2,, receive additional tax benefits and exemptions. The special legal regime does not apply to banks, insurance companies, investment funds, professional participants in the securities market, businesses operating under other preferential legal regimes e. The host government does not mandate local employment. Foreign investors have the right to invite foreign citizens and stateless persons, including those without permanent residence permits, to work in Belarus provided their labor contracts comply with Belarusian law.
The GOB often imposes various conditions on permission to invest, and pursues localization policies when it deems it appropriate. Other performance requirements are often applied uniformly to both domestic and foreign investors. According to official Belarusian sources, licenses are not required for data storage. Law enforcement regulations governing electronic communications do not include any requirements specifically for foreign internet service providers.
Beginning in , internet service providers are required, by law, to maintain all electronic communications for a one-year period. Property rights are enforced by the Civil Code. Mortgages and liens are available, and the property registry system is reliable. According to the Belarusian Land Code, foreign legal persons and individuals are denied land ownership. Belarus has made progress on improving legislation to protect intellectual property rights IPR and prosecuting violators.
However, challenges for effective enforcement include a lack of sufficiently qualified officers. The United States expects Belarus to continue improving its IPR regime as part of its WTO accession negotiations and will continue to assist Belarus with technical consultations to that end. Notably, in Belarusian law enforcement prosecuted five legal persons for distribution of counterfeit products under Article 9.
Embassy Minsk Economic Section tel. The Belarusian government welcomes portfolio investment and has taken steps to safeguard such investment and ensure a free flow of financial instruments. The Belarusian Currency and Stock Exchange is open to foreign investors, but it is still largely undeveloped because the government only allows companies to trade stocks if they meet certain but often burdensome criteria. Private companies must be profitable and have net assets of at least EUR 1 million.
In addition, any income from resulting operations is taxed at 24 percent. Finally, the state owns more than 70 percent of all stocks in the country, and the government appears hesitant and unwilling to trade in them freely. Loans are allocated on market terms and foreign investors are able to get them. However, the discount rate of 8. Since , businesses buy and sell foreign exchange at the Belarusian Currency and Stock Exchange through their banks.
Belarus used to require businesses to sell percent of foreign currency revenues through the Belarusian Currency and Stock Exchange, however in late the National Bank abolished the mandatory sale rule. Belarus has a central banking system. The President of Belarus appoints the Chair and Members of the Board of the National Bank, designates auditing organizations to examine its activities, and approves its annual report. As of January , the banking system of Belarus included 24 commercial banks and three non-banking credit and finance organizations.
According to the National Bank, the share of non-performing loans in the banking sector was 4. Foreign exchange transactions related to FDI, portfolio investments, real estate purchasing, and opening bank accounts are carried out without any restrictions.
Foreign exchange is freely traded in the domestic foreign exchange market. Foreign investors can purchase foreign exchange from their Belarusian accounts in Belarusian banks for repaying investments and transferring it outside Belarus without any restrictions. Local banks submit their bids for buying and selling foreign currency into the trading system during the entire period of the trading session. During the trades the bids are honored if and when the specified exchange rates are met.
The average weighted exchange rate of the U. The stated quotation becomes effective on the next calendar day and is valid till the new official exchange rate of the Belarusian ruble versus these foreign currencies comes into force. Belarus has the State Budget Fund of National Development, which is used for implementing major economic and social projects in the country.
Belarus does not consider joint stock companies, even those with percent government ownership of the stocks, to be state-owned and generally refers to them as part of the non-state sector, rendering official government statistics regarding the role of SOEs in the economy as misleading. According to independent economic media reports, SOEs receive preferential access to government contracts, subsidized credits, and debt forgiveness.
While SOEs are generally subject to the same tax burden and tax rebate policies as their private sector competitors, private enterprises do not have the same preferential access to land and raw materials. Otherwise, there was no privatization of state-controlled companies in either or , one SOE was bought by private investors in , and no companies or shares were privatized in The State Property Committee reported that the government sold its minority share under 25 percent in two enterprises in Investors interested in assets on the published privatization list are encouraged to forward a brief letter of interest to the State Property Committee.
A special commission reviews offers and makes a recommendation to the President on the process of privatization — via tender, auction, or direct sale. Investors may also send a letter of interest regarding assets that are not on the State Property Committee list and the government will examine such offers. Additionally, the State Property Committee occasionally organizes and holds privatization auctions.
Many of the auctions organized by the State Property Committee have low demand as the government conditions privatizations with strict requirements, including preserving or creating jobs, continuing in the same line of work or production, or launching a successful business project within a limited period of time, etc. In , Belarusian joint stocks were allowed trans-border placement via issuing depositary receipts.
Post continues to develop resources and information on the current state and development of responsible business conduct in Belarus. According to official sources, most corruption cases involve soliciting and accepting bribes, fraud, and abuse of power, although anecdotal evidence indicates such corruption usually does not occur as part of day-to-day interaction between citizens and minor state officials.
In Belarus, bribery is considered a form of corruption and is punishable with a maximum punishment of 10 years in jail and confiscation of property. The most corrupt sectors are considered to be state administration and procurement, the industrial sector, the construction industry, health care, and education.
Belarus has anti-corruption legislation consisting of certain provisions of the Criminal Code and Administrative Code as well as the Law on Public Service and the Law on Combating Corruption. Belarusian anti-corruption law covers family members of government officials and political figures. Belarus is a party to a number of international anti-corruption conventions and agreements. The Republic of Belarus has consistently ratified and complied with requirements of main international anti-corruption acts, such as the Convention of the Council of Europe On criminal liability for corruption S concluded in Strasbourg on 27 January, ; the United Nations Convention Against Transnational Organized Crime, signed by Belarus in Palermo on 24 December, , and the United Nations Convention Against Corruption concluded in New York on 31 October, ; and the Civil Law Convention on Corruption concluded in Strasbourg on 4 November, ratified in Belarus also signed a number of the intergovernmental agreements to address this problem.
Belarus has a highly skilled and well-educated work force, due to its advanced system of higher and specialized education. The Constitution, the Labor Code, and presidential decrees are the main documents regulating the Labor Market in Belarus. Prior to the Presidential Decree No. Decree No. In , more than 90 percent of employees in Belarus were working on term contracts.
The term contract system generally favors the employer. The employer can choose not to renew a contract upon its expiration without giving the employee a cause for dismissal. The employer, on the other hand, can terminate the contract at will. There are several protected employee groups that are exempt from early termination: pregnant women, women with children of up to 3 years old, and single parents with children under 14 years old.
Additionally, the employer is obligated to renew contracts with women on maternity leave and with those employees who have reached pre-pension age at the end of their prior contract 53 years for women and 58 for men. However, severance pay only applies to workers on open-ended work agreements, less than 10 percent of all labor contracts in The law establishes a standard workweek of 40 hours and provides for at least one hour rest period per week.
Under the law, Belarusians receive mandatory overtime and nine days of holiday pay and overtime is limited to 10 hours a week, with a maximum of hours of overtime each year. A non-standard work hour regime is allowed with the condition that the employee is provided with up to seven days of additional annual leave.
In general, employees must be granted at least 24 calendar days of paid leave a year. There are special provisions on employing foreign citizens who have no permanent residence permit. Such citizens have to secure a work permit, which can be usually granted only if an unemployed Belarusian citizen cannot perform the required work.
To date, the Embassy has not heard of discriminatory or excessively onerous visa, residence or work permit requirements inhibiting foreign investors, nor of restrictions placed on the numbers or duration of employment of foreign managers brought in to supervise foreign investment projects. The petition alleged that Belarus was not acting in accordance with the Trade Act of , as amended, regarding internationally recognized worker rights.
These include the freedom to form independent trade unions and the right to organize and bargain collectively. The official unemployment rate in Belarus has been steady in recent years at or just below one percent. According to ILO methodology, unemployment in Belarus in was approximately five percent. In July , Belarus ratified amendments to the Convention on Establishing MIGA and concluded agreements on the legal protection of guaranteed foreign investment and the use of local currency.
International Development Finance Corporation formerly known as the Overseas Private Investment Corporation is not active in Belarus and does not provide political risk insurance for investments in this country. Under Section 5 Sense of Congress Relating to Sanctions Against Belarus , paragraph C Prohibition on Loans and Investment of the Belarus Democracy Act signed by the president on October 20, , no loan, credit guarantee, insurance, financing, or other similar financial assistance should be extended by any agency of the United States government including the Export-Import Bank and the Overseas Private Investment Corporation to the Government of Belarus, except with respect to the provision of humanitarian goods and agricultural or medical products.
According to official statistics, Belarus received USD 1. Russia As a result, U. Hong Kong generally pursues a free market philosophy with minimal government intervention. The Hong Kong Government HKG generally welcomes foreign investment, neither offering special incentives nor imposing disincentives for foreign investors. Hong Kong provides for no distinction in law or practice between investments by foreign-controlled companies and those controlled by local interests.
Foreign firms and individuals are able to incorporate their operations in Hong Kong, register branches of foreign operations, and set up representative offices without encountering discrimination or undue regulation. There is no restriction on the ownership of such operations. Company directors are not required to be citizens of, or resident in, Hong Kong.
Reporting requirements are straightforward and are not onerous. Hong Kong remains a popular destination for U. The service sector accounts for more than 90 percent of its nearly USD billion gross domestic product GDP in Hong Kong hosts a large number of regional headquarters and regional offices. More than 1, U. Finance and related services companies, such as banks, law firms, and accountancies, dominate the pack. Hong Kong does not discriminate against foreign investors by prohibiting, limiting, or conditioning foreign investment in a sector of the economy.
Capital gains are not taxed, nor are there withholding taxes on dividends and royalties. Profits can be freely converted and remitted. Foreign-owned and Hong Kong-owned company profits are taxed at the same rate — The tax rate on the first USD , profit for all companies is currently 8.
No preferential or discriminatory export and import policies affect foreign investors. Domestic industries receive no direct subsidies. Foreign investments face no disincentives, such as quotas, bonds, deposits, nor other similar regulations. According to HKG statistics, 4, overseas companies had regional operations registered in Hong Kong in The United States has the largest number with Hong Kong is working to attract more start-ups as it works to develop its technology sector and about 34 percent of start-ups in Hong Kong come from overseas.
Foreign investors can invest in any business and own up to percent of equity. Like domestic private entities, foreign investors have the right to engage in all forms of remunerative activity. Broadcasting — Voting control of free-to-air television stations by non-residents is limited to 49 percent.
There are also residency requirements for the directors of broadcasting companies. Legal Services — Foreign lawyers at foreign law firms may only practice the law of their jurisdiction. Localized firms may thereafter hire local attorneys, but must do so on a basis with foreign lawyers.
Foreign law firms can also form associations with local law firms. The Efficiency Office under the Innovation and Technology Bureau is responsible for business facilitation initiatives aimed at improving the business regulatory environment of Hong Kong. Applicants, for incorporation of local companies or for registration of non-Hong Kong companies, must first register for a free user account, presenting an original identification document or a certified true copy of the identification document.
The Companies Registry normally issues the Business Registration Certificate and the Certificate of Incorporation on the same day for applications for company incorporation. For applications for registration of a non-Hong Kong company, it issues the Business Registration Certificate and the Certificate of Registration two weeks after submission. As a free market economy, Hong Kong does not promote or incentivize outward investment, nor restrict domestic investors from investing abroad.
In amending or making any legislation, including investment laws, the HKG conducts a three-month public consultation on the issue concerned which then informs the drafting of the bill. Lawmakers then discuss draft bills and vote. Gazette is the official publication of the HKG. All public comments received by the HKG are published at the websites of relevant policy bureaus.
Public finances are regulated by clear laws and regulations. The Basic Law prescribes that authorities strive to achieve a fiscal balance and avoid deficits. There is a clear commitment by the HKG to publish fiscal information under the Audit Ordinance and the Public Finance Ordinance, which prescribe deadlines for the publication of annual accounts and require the submission of annual spending estimates to the Legislative Council LegCo.
There are few contingent liabilities of the HKG, with details of these items published about seven months after the release of the fiscal budget. Hong Kong has achieved a percent rate of implementation commitments. Regulations or enforcement actions are appealable and they are adjudicated in the court system. Most statutory law is made locally. The local court system, which is independent of the government, provides for effective enforcement of contracts, dispute settlement, and protection of rights.
Foreign and domestic companies register under the same rules and are subject to the same set of business regulations. The Hong Kong Code on Takeovers and Mergers sets out general principles for acceptable standards of commercial behavior. The Companies Ordinance Chapter applies to Hong Kong-incorporated companies and contains the statutory provisions governing compulsory acquisitions. For companies incorporated in jurisdictions other than Hong Kong, relevant local company laws apply.
The Companies Ordinance requires companies to retain information about significant controllers accurate and up-to-date. The Securities and Futures Ordinance Chapter contains provisions requiring shareholders to disclose interests in securities in listed companies and provides listed companies with the power to investigate ownership of interests in its shares. It regulates the disclosure of inside information by listed companies and restricts insider dealing and other market misconduct.
The independent Competition Commission CC investigates anti-competitive conduct that prevents, restricts, or distorts competition in Hong Kong. The CC subsequently launched, as a matter of priority, a probe, still underway as of March , into whether the HKSA acted in contravention of competition rules. Consulate General is not aware of any expropriations in the recent past.
Expropriation of private property in Hong Kong may occur if it is clearly in the public interest and only for well-defined purposes such as implementation of public works projects. Expropriations are to be conducted through negotiations, in a non-discriminatory manner in accordance with established principles of international law. Investors in and lenders to expropriated entities are to receive prompt, adequate, and effective compensation.
If agreement cannot be reached on the amount payable, either party can refer the claim to the Land Tribunal. Consulate General is not aware of any investor-state disputes in recent years involving U. Private investment disputes are normally handled in the courts or via private mediation. The HKG accepts international arbitration of investment disputes between itself and investors and has adopted the United Nations Commission on International Trade Law model law for domestic and international commercial arbitration.
The Arbitration Ordinance stipulates that all disputes over intellectual property rights may be resolved by arbitration. The Mediation Ordinance details the rights and obligations of participants in mediation, especially related to confidentiality and admissibility of mediation communications in evidence.
Foreign judgments in civil and commercial matters may be enforced in Hong Kong by common law or under the Foreign Judgments Reciprocal Enforcement Ordinance, which facilitates reciprocal recognition and enforcement of judgments on the basis of reciprocity. A judgment originating from a jurisdiction that does not recognize a Hong Kong judgment may still be recognized and enforced by the Hong Kong courts, provided that all the relevant requirements of common law are met.
In January , Hong Kong and mainland China signed a new Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the mainland and of Hong Kong to facilitate enforcement of judgments in the two jurisdictions.
The arrangement, which is pending implementing legislation, will cover the following key features: contractual and tortious disputes in general; commercial contracts, joint venture disputes, and outsourcing contracts; intellectual property rights, matrimonial or family matters; and judgments related to civil damages awarded in criminal cases.
Bankruptcy offences are subject to criminal liability. The Companies Winding Up and Miscellaneous Provisions Ordinance aims to improve and modernize the corporate winding-up regime by increasing creditor protection and further enhancing the integrity of the winding-up process. Hong Kong imposes no export performance or local content requirements as a condition for establishing, maintaining, or expanding a foreign investment. There are no requirements that Hong Kong residents own shares, that foreign equity is reduced over time, or that technology is transferred on certain terms.
The HKG does not have a practice of issuing guarantees or jointly financing foreign direct investment projects. The HKG allows a deduction on interest paid to overseas-associated corporations and provides an 8. The HKG offers an effective tax rate of around three to four percent to attract aircraft leasing companies to develop business in Hong Kong.
The HKG has set up multiple programs to assist enterprises in securing trade finance and business capital, expanding markets, and enhancing overall competitiveness. These support measures are available to any enterprise in Hong Kong, irrespective of origin.
Applicants must possess a doctoral degree in a science, technology, engineering and mathematics-related discipline from either a local university or a well-recognized non-local institution. In February , the Financial Secretary announced that the HKG will inject USD 44 million for a pilot subsidy scheme to encourage the logistics industry to enhance productivity through the application of technology.
Hong Kong, a free port without foreign trade zones, has modern and efficient infrastructure making it a regional trade, finance, and services center. Construction on a third runway at Hong Kong International Airport is scheduled for completion by Hong Kong and mainland China have a Free Trade Agreement Transshipment Facilitation Scheme that enables mainland-bound consignments passing through Hong Kong to enjoy tariff reductions in the mainland. The HKG launched in December phase one of the Trade Single Window TSW to provide a one-stop electronic platform for submitting ten types of trade documents, promoting cross-border customs cooperation, and expediting trade declaration and customs clearance.
Phase two is expected to be implemented in The latest version of CEPA has established principles of trade facilitation, including simplifying customs procedures, enhancing transparency, and strengthening cooperation. The HKG does not mandate local employment or performance requirements. It does not follow a forced localization policy making foreign investors use domestic content in goods or technology. Foreign nationals normally need a visa to live or work in Hong Kong. Companies employing people from overseas must demonstrate that a prospective employee has special skills, knowledge, or experience not readily available in Hong Kong.
Hong Kong allows free and uncensored flow of information. The freedom and privacy of communication is enshrined in Basic Law Article The HKG is required to follow due process and warrant requirements to engage in electronic surveillance or demand most communications records from telecoms providers.
The HKG has no requirements for foreign IT providers to turn over source code and does not interfere with data center operations. Hong Kong does not currently restrict transfer of personal data outside the SAR, but the dormant Section 33 the Personal Data Privacy Ordinance would prohibit such transfers unless the personal data owner consents or other specified conditions are met.
The Privacy Commissioner is authorized to bring Section 33 into effect at any time, but it has been dormant since The Basic Law also protects the lawful traditional rights and interests of the indigenous inhabitants of the New Territories. Land transactions in Hong Kong operate on a deeds registration system governed by the Land Registration Ordinance.
The Land Titles Ordinance provides greater certainty on land title and simplifies the conveyancing process. Hong Kong generally provides robust intellectual property rights IPR protection and enforcement and for the most part has instituted an IP regime consistent with international standards. Hong Kong has effective IPR enforcement capacity, a judicial system that supports enforcement efforts with an effective public outreach program that discourages IPR-infringing activities.
CED works closely with foreign customs agencies and the World Customs Organization to share best practices and to identify, disrupt, and dismantle criminal organizations engaging in IP theft that operate in multiple countries. The government has conducted public education efforts to encourage respect for IPR. Pirated and counterfeit products remain available on a small scale at the retail level throughout Hong Kong. CED detected a total of infringement cases in , a 6.
Of these cases, involved internet crime. Other IPR challenges include end-use piracy of software and textbooks, internet peer-to-peer downloading, and the illicit importation and transshipment of pirated and counterfeit goods from mainland China and other places in Asia.
Hong Kong authorities have taken steps to address these challenges by strengthening collaboration with mainland Chinese authorities, prosecuting end-use software piracy, and monitoring suspect shipments at points of entry. It has also established a task force to monitor and crack down on internet-based peer-to-peer piracy. The Drug Office of Hong Kong imposes a drug registration requirement that requires applicants for new drug registrations make a non-infringement patent declaration.
The Copyright Ordinance protects any original copyrighted work created or published anywhere in the world and criminalizes copying and distribution of protected works for business and circumventing technological protection measures. The Ordinance also provides rental rights for sound recordings, computer programs, films, and comic books; in addition to including enhanced penalty provisions and other legal tools to facilitate enforcement.
The law defines possession of an infringing copy of computer programs, movies, TV dramas, and musical recordings including visual and sound recordings for use in business as an offense, but provides no criminal liability for other categories of works.
The HKG has consulted unsuccessfully with internet service providers and content user representatives on a voluntary framework for IPR protection in the digital environment. It has also failed to pass amendments to the Copyright Ordinance that would enhance copyright protection against online piracy.
In addition, 25 HKG agencies have been assigned with an individual password for checking with the IWLS prior placing digital advertisements and tenders. Patents granted in Hong Kong are independent and capable of being tested for validity, rectified, amended, revoked, and enforced in Hong Kong courts. In December , the Original Grant Patent system came into operation. The new system takes into account the patent systems generally established in regional and international patent treaties, while retaining the existing re-registration system for the granting of standard patents.
To be registered, a design must be new and the system requires no substantive examination. The initial period of five years protection is extendable for four periods of five years each, up to 25 years. All trademark registrations originally filed in Hong Kong are valid for seven years and renewable for year periods.
Proprietors of trademarks registered elsewhere must apply anew and satisfy all requirements of Hong Kong law. When evidence of use is required, such use must have occurred in Hong Kong. The bill is waiting for its second and third readings on the LegCo floor. Upon enactment of the bill and completion of other preparatory work, the HKG will liaise with the Mainland to seek application of the Madrid Protocol to Hong Kong beginning in Hong Kong has no specific ordinance to cover trade secrets; however, the government has a duty under the Trade Descriptions Ordinance to protect information from being disclosed to other parties.
The Trade Descriptions Ordinance prohibits false trade descriptions, forged trademarks, and misstatements regarding goods and services supplied in the course of trade. There are eight types of IP rights for which the capital expenditure, such as registration expenditure and purchase cost, are deductible. There are no impediments to the free flow of financial resources. Non-interventionist economic policies, complete freedom of capital movement, and a well-understood regulatory and legal environment make Hong Kong a regional and international financial center.
It has one of the most active foreign exchange markets in Asia. Under the Insurance Companies Ordinance, insurance companies are authorized by the Insurance Authority to transact business in Hong Kong. As of March , there were authorized insurance companies in Hong Kong, 70 of them foreign or mainland Chinese companies.
Hong Kong Exchanges and Clearing Limited, a listed company, operates the stock and futures exchanges. The Securities and Futures Commission, an independent statutory body outside the civil service, has licensing and supervisory powers to ensure the integrity of markets and protection of investors. No discriminatory legal constraints exist for foreign securities firms establishing operations in Hong Kong via branching, acquisition, or subsidiaries. Rules governing operations are the same for all firms.
Currency reserves of Central Bank grew by Share of overdue loans dropped by 1. Volume of transactions of foreigners with bank cards rose by 2. Banks reduced issue of securities by Demand at currency auctions reduced by 4. Interbank deposits rose by Credit unions reduced total capital by 5.
The Central Bank raised its discount rate. Dollarization of deposits of individuals fell down by Credit unions suffer losses. AzerTurkBank has increased its assets and capital over the year. The Ministry of Finance will place medium-term bonds worth 10 million manats. Demand increased by Azerbaijani government got loan for reconstruction of Yenikend-Bilasuvar road.
It is planned to raise the subsistence minimum. The draft state budget of Azerbaijan for submitted to the parliament. The number of bank employees grew by people over the year. Net profit of non-bank credit organizations reduced by Voluntary life insurance premiums grew by Commercial banks cut debts to Central Bank by 3. Stock market continues to remain in the shadow.
Insurance market of Azerbaijan grew by Non-bank credit organizations increased total capital by 2. The date of placement of bonds of the company owning the Bravo supermarket chain has been announced. Unibank offered investors a high yield on dollar bonds. Net income of banks reduced by 1. VTB Bank raised loan portfolio by Banks increased assets by Servicing of the state debt amounted to 8. Debts of commercial banks to the Central Bank of Azerbaijan in the period from January to September amounted to million thousand manats.
According to the results of the third quarter of , the assets of Muganbank amounted to million thousand manats. Voluntary health insurance fees for January-September amounted to 83 million thousand manats. The assets of TuranBank at the end of the third quarter of amounted to million thousand manats. Lending to the economy by credit institutions in the third quarter of amounted to 15 billion million thousand manats.
Tomorrow, the Baku Stock Exchange will host the placement of the largest batch of shares in Azerbaijan of a production company privatized in the country's region. This is the 14th company claiming to enter the securities and forex market.
At the currency auction of the Central Bank on Tuesday, Thus, none of the auction participants was left without securities of the State Oil Company of Azerbaijan. A safer, more secure and private way to pay with iPhone and Apple WatchBaku, 02 November, — Bank Respublika, today brings its customers Apple Pay, a safer, more secure and private way to pay that helps customers avoid handing their payment card to someone else, touching physical buttons or exchanging cash — and uses the power of iPhone to protect every transaction.
Customers simply hold their iPhone or Apple Watch near a payment terminal to make a contactless payment. Every Apple Pay purchase is secure because it is authenticated with Face ID, Touch ID, or device passcode, as well as a one-time unique dynamic security code. Apple Pay is accepted in grocery stores, pharmacies, taxis, restaurants, coffee shops, retail stores, and many more places.
Customers can also use Apple Pay on iPhone, iPad, and Mac to make faster and more convenient purchases in apps or on the web in Safari without having to create accounts or repeatedly type in shipping and billing information. Apple Pay makes it easier to pay for food and grocery deliveries, online shopping, transportation, and parking, among other things. Apple Pay can also be used to make payments in apps on Apple Watch. Security and privacy are at the core of Apple Pay.
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But, before that, all you will now need is to understand a key fact. In every transaction in the market, there are two primary participants, i. When you are trying to buy something from the market, someone must try to sell it to you. Similarly, when you are looking forward to selling something, you have to be someone willing to buy it from you.
Thus, buying and selling are the two counterparts in every transaction in the market. The same thing applies true for smart money as well. Forex smart money concept represents bank trading strategy based on determining accumulation, manipulation, and distribution trading phase. Usually, medium and long-term positions after the manipulation phase are the main characteristics of a smart money bank trading strategy.
In the forex bank trading strategy, accumulation plays a vital role. However, if you want to be a successful trader, you need to understand this strategy accurately. Your goal should be to track and find out the areas where, when, and how the smart money, i. To be more precise, you need to cautiously find out their accumulating secret. You know when smart money is most likely to enter the market, and their respective positions will be your key to success.
In that case, you can also specify the directions where the market will most probably move in the future. When you have an accurate idea of where the market will be moving next, it will benefit a profitable trading strategy. This is the second step that comes after a successful accumulation. Market manipulation is quite a complex concept. Despite the complexity, you will still be urged to understand this strategy minutely to trade successfully.
Consider an example, when you are just waiting to enter a respective market area, you will soon notice the market moves in the opposite direction. After a considerable accumulation period, s short-term wrong push or market manipulation period must be present in every market.
To be more precise, they will drive and manipulate the market to sell off their stuff after a considerable accumulation. This is a short-term manipulation period where the market trend may move differently. It may appear that the market is behaving against you during this time! But, at this point, you will need to be smart and cautious. This short-term manipulation gives you an extraordinary hint about a possible accumulation when the market trend will possibly go up.
If you can recall any significant market move that has happened before, you will surely notice a tight range-bound period known as accumulation. After the megabanks have accumulated a position in the market, there will be a period of false push or market manipulation. Many forex traders may consider this market manipulation period at the wrong time. But, if you can carefully visualize and analyze the market, you can avoid being a pawn of market manipulation.
You can instead make a profit out of it. After the phases of accumulation and manipulation, there is a distribution phase of the market. This is when the banks will attempt to push the price of the market area. Megabanks play a vital role in the overall market. To study their movements, you must carefully follow three steps, i. Before any significant market moves, these three steps above are bound to happen. Therefore, as an ambitious trader, you must have a close eye on these three steps.
In this way, you should determine the possible time, volume, and position of the market and then make your trading decision accordingly for lucrative profits. Like we said, accumulation is the first step of the market in the bank trading system.
Smart money trading without accumulation may not allow banks to take any position in any currency market. During this first phase, smart money accumulation must be identified when looking for a market setup. There is no alternative option that smart money can enter the market other than through this accumulation period. Before moving to the next phase, we need to see an hour of sideways accumulation. This stage is critical for the trade setup since it is not advisable for the smart money to spike the market because this may give away what they had already accumulated.
During the accumulation stage, the smart money can archive better in total entry price by keeping the price relatively stable and entering overtime. In May, we see a bullish market push. No economic impact on the price to go bullish. Forex traders feel insecure with this trading stage since they feel it is wrong to enter the market.
Many traders experience market changes that seem to move in the worst direction, but that may not be the case since this stage is inevitable; it is also crucial in the product market. This point is what we term the manipulation stage. This forex manipulation stage always comes immediately after the initial accumulation stage.
This is a stop-run stage before moving to the final stage, i. These are two existing accumulations of wrong push are;. This is a false push beyond the low of the actual accumulation period, and this means that the short-term period is beginning since the smart money seems to have been buying into the real market. The forex market trend is the final phase in the smart money cycle.
In this stage, the market experience a very aggressive experience in the short run. These being the last strategy in smart money forex trading, it is the final step that each retailer hopes to be enjoyable and a mark of the business peak point. Bank traders SELL after a short-time bullish trend!!!!
Smart money strategy is created for more extensive time frames such as weekly and monthly. This strategy is part of position trading strategies where traders hold positions for several weeks or months. Banks trade forex usually after the daily opening range half an hour after market opening and during the high liquidity when market trading sessions overlap.
However, banks trade long-term positions, and daily trading hours do not have a big impact. Forex trading needs severe analysis and more research on new and productive ways for a unique and profitable trade. Forex learners should invest more time learning different trading strategies to bring a difference in the outcome. Unfortunately, most traders have dropped the trading business following discouraging expectations.
Also, traders should analyze trading strategies, whether it is predictive or reactive. They need to trade for a given period, say almost a year, to see if it is productive or not, then choose the right strategy that can work. Predictive Vs. Reactive strategies. The basic understanding is about relating the trading activities with the nature of being reactive. This means that the trading software will start producing buy signals, and the falling trade market indicates the sell signals when the market rises.
Following the rise in the market, this will lead to more buying pressure, while falling in the market induces selling pressure. Almost every primary strategy used in trading is reactive, so smart money automatically identifies how to convince you to buy. Also, they know how to direct you towards selling. This is why traders often talk about the trading market that seems to be experiencing a tremendous change in buying or selling once they enter.
The quite uncertain thing about this scenario is that smart money is the only source of information and the actual information is the most powerful fact we require. Still, we will be successful if we are lenient to them and trade as they need. The frequent price manipulation perfectly reflects how far they have been accumulating and the desired direction to control the price.
In that case, you will realize a tight and the actual accumulation followed by manipulation in the other direction of the market trend. As more and more people show an increased interest in trading forex, intuitional entities like banks are equally active in forex trade. Indeed, they are likely to be engaged more because of money, power, and quality think-tank. Further, they can research the market themselves and make sound decisions based on this. Banks execute their trading based on a set of valuable practical data.
Thanks to their electronic networks, banks are among the most significant participants for forex trading. As a result, banks play a critical role in influencing the volume of forex to affect trends of markets. When banks are active in the market, they make up the market.
There is no other entity in the market that can perform as competently as banks. First, they make all the decisions based on fundamental and technical analysis of the pattern that happens on the market. Then, they make the decision superfast. Banks focus on the actual parameters. There is no place for human emotions to influence investment decisions n forex trade. Instead, they focus on price and fundamentals. This enables them to a sound judgments. Several factors influence the market trend and hence the direction in forex trade.
Fundamental tendencies in the market are highly complex, and it takes a long time to come — years to get perfections in analyzing the market. Besides commercial banks, central banks also take part in forex markets. The most important factors that influence trade are two. First, you must have a ground understanding of how the fundamental analysis works.
Second, you also need to grasp how the data releases influence the market thoroughly. The second aspect is how you should act execute without being influenced by any external factor and solely with market data with razor-sharp precision. The economic data that come out are the most influential in affecting forex markets.
Central banks formulate their monetary and credit policies to accommodate their economy based on economic data. The number of countries that have made the market are the leading global forex pairs is eight. And, these eight countries add the total turnover of seven main currencies. Every month there are quite a few trading opportunities in the forex market. This is clear from these facts:. Every month you get not less than 56 opportunities in forex trading. However, when it comes to the number of trading days, it is You should gain patience and closely observe the trends in the market.
You should look for the best trade opportunity. When you make the trade in this manner, the most important thing you should do is look for entry levels. Such a sound system of capital management will mitigate the stress, let s you reflect on the trade for the whole day for which you will not have to spend hours monitoring the market.
Many traders at various banks keep moving around the room to witness the deals and keep moving to the other traders. Alternatively, they take a short break and go out with the brokers. As a result, they are never at the computer for over a few hours. We advise you to take a similar approach. To trade like the big banks, you need to be ready to hold a position for several weeks or months as a position trader, analyze macroeconomic data, and monitor critical price levels in the trend distribution phase.
Once you are clear with capital management, market fundamentals, and the like, you need to understand simple strategies to apply your knowledge. According to current market definitions, the term smart money is the actual source or the cash invested by experienced investors, with the collective force of a certain amount of money that can change the market patterns.
In addition, the conventional scaling model requires a lot of time and annotation, as you have to constantly analyze the charts looking for opportunities for new trades. Now let's demonstrate how scalping works in practice. The ratio trading strategy is based on the idea that we are looking to sell any attempt of the price movement to move above the period moving average MA.
In about 3 hours we created 4 trading opportunities. Each time, the action rallied above the period moving average slightly before pivoting lower. The stop loss is 5 pips above the moving average, when the price does not exceed the MA more than 3. The take profit level is also 5 pips because we focus on getting a large number of successful trades with smaller profits.
Thus, 20 pips total was collected with the scalping trading strategy. Day trading involves the process of buying and selling currencies in just 1 trading day. While applicable on all markets, day trading strategies are mainly used in Forex. This trading method recommends opening and closing all trades within one day.
Not keeping any positions overnight reduces the risk. Unlike those who use scalping strategies, day traders often monitor and control the open trades during the day. Day traders mainly use the 30 minute and 1 hour time frames to generate trading ideas. Many day traders tend to base their trading strategies on news. Scheduled events like economic statistics, interest rates, GDP, elections, etc.
In addition to the limit placed on each position, day traders tend to set a daily risk limit. This helps protect your account and capital. This trading strategy is based on finding horizontal support and resistance lines on the chart. In this particular case, we focus on the resistance area as the price is moving up. The price movement attaches to horizontal resistance and immediately swings lower. Our stop loss is above the previous high to allow for a minor breach of the resistance line.
Therefore, the stop loss is placed 25 pips above the entry point. On the other hand, we use the support level to place a Take Profit order. Ultimately, the price action pivoted lower to give us around 65 pips of profit. Position trading is a long term strategy.
Unlike scalping and day trading, this trading strategy mainly focuses on fundamentals. It is one of the successful forex trading strategies PDF. Weak market moves are not tracked in this type of strategy as they have little effect on the broader market picture. Position traders have the ability to monitor central bank monetary policies, political developments and other fundamental factors to identify cyclical trends.
Effective position traders may need to open only a handful of trades during the course of the year. However, the profit target in these trades can be as little as a few hundred pips per trade. This trading strategy is reserved for more patient traders as their positions can take weeks, months or even years to take effect. Price action trading is trading based on the study of price history to build technical trading strategies.
Price action can be used as a standalone technique or in conjunction with an indicator. The fundamentals are rarely used; however, they are still used in conjunction with economic events and are an important factor. There are several other strategies that fall within the price action framework as outlined above. Price action trading can be used for different time periods long term, medium term and short term.
The ability to use multiple timeframes for analysis makes price action trading popular with many traders. Trading between price zones is about identifying support and resistance points. Accordingly, traders will make trades around these support and resistance areas. This strategy works well in markets with no significant volatility and no obvious trends.
Technical analysis is the main tool used in this strategy. The trading time is not predetermined because the price zone trading strategy can be implemented in any time frame. Risk management is an integral part of this strategy because in the event of a spike, the trader may have to close out any boundary-limited positions.
Trend trading is a simple Forex trading strategy used by many traders of all levels. Trend trading offers positive returns by exploiting the directional momentum of the market. Trend trading usually takes place over the medium to long term as the trends themselves fluctuate in length.
Like price action, multi-timeframe analysis is also applicable in trend trading. Long term trading strategy mainly focuses on fundamentals, however, technical methods such as Elliott Wave Theory can be used. Small market movements are not considered in this strategy as they do not affect the overall picture of the market.
This strategy can be applied on all markets from stocks to Forex. As mentioned above, long-term trades have a long-term outlook weeks, months, or even years! This is a strategy for persistent traders. Understanding how economic factors affect the market or technical trends is essential in forecasting trading ideas.
Mid-term trading is a speculative strategy. With this strategy, the trader will have to find a way to take advantage of the trading margin limits as well as the market trend. By selecting the 'top' and 'trough', traders can enter into suitable long and short positions. Mid-term trades are so named because positions are usually held between a few hours and a few days.
Long-term trends are favored because traders can capitalize on the trend at multiple points along the trend. Forex trading requires a combination of factors to form a trading strategy that works for you.
There are countless strategies you can adopt. However, it is essential to understand and feel comfortable with the strategy. Every trader has unique goals and resources, which is something you need to consider when choosing the right strategy.
To easily compare forex strategies on three criteria, the article has shown these criteria in a bubble chart. The horizontal axis is the time invested representing the amount of time it takes to actively monitor trades. The strategy that requires the most amount of time is scalping due to its high and frequent trading frequency.
On FX auction. Central Bank releases the Financial Stability Report · Full List. AZN exchange rate. From Muganbank ensures a high- quality access to trading in currencies,indexes and commodity futures at international financial markets. Provided local currency lending for MSMEs that are most vulnerable to FX fluctuations (both via financial intermediaries and directly).