What is ‘HKD‘?
HKD refers to the Hong Kong Dollar, the official currency of Hong Kong. It is widely traded in the forex market and is one of the most actively traded currencies in the world.
The HKD is regulated by the Hong Kong Monetary Authority and is pegged to the US Dollar within a tight trading band. This peg ensures stability and helps facilitate international trade and investment.
As a result, the HKD is often seen as a stable and reliable currency for forex traders.
Example of HKD
Let’s consider the USD/HKD currency pair. If the current exchange rate is 7.75, it means that 1 US Dollar is equivalent to 7.75 Hong Kong dollars. Forex traders can speculate on the future direction of the exchange rate and take positions accordingly.
For instance, if a trader believes that the HKD will appreciate against the USD, they may buy the USD/HKD pair, hoping to profit from the rise in value.