Series 34 Exam » Forex Market » Balance of Payments (BOP)

Balance of Payments (BOP)

Balance of Payments (BOP)

An economic indicator that takes the following factors into account over a certain time period: (i) trade balance (balance of trade), (ii) foreign investments and (iii) investments by foreigners.  If there is a positive BOP then money is flowing into the country; if there is a negative BOP then then money is flowing out of the country.  Some traders use this to determine currency prices.

Study Guide >> Forex Market Concepts >>  Balance of Payments

This entry was written by vbala, posted on June 1, 2009 at 6:20 pm, filed under Forex Market. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

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  1. By Forex Market Concepts on June 29, 2009 at 5:49 pm

    [...] Balance of payments [...]

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