Due to my knoledge of languge I can not fully understand what tapering means. I hear these times about FED tapering.
Can some clarify me in plain English what tapering means and how it does impact the markets?
Thanks in advance
Tim
Due to my knoledge of languge I can not fully understand what tapering means. I hear these times about FED tapering.
Can some clarify me in plain English what tapering means and how it does impact the markets?
Thanks in advance
Tim
Actually Tapering is a term that exploded to the financial lexicon. It was the one which received possibly the most curiosity given it came up at a time which traders were currently centered with this possible market impact of a reduction in an insurance plan which was so good pertaining to the 2 stocks as well as provides.
It was a term coined for everyone to start buying $US at resistance and get started selling the Pound at support....
Made a lot of people lose a lot of money I suspect...
It's tampering with the M taken out
Tapering - reducing, limiting exposure, limiting..and something that's unfair to traders but industry as standard for central banks and policy makers.Originally Posted by ;
Can it have an impact on the place market? Yes and since the fed announced they will let things remain the way they are..you can see the effect on USD and USD crosses. .
Basically it is reducing measures intended to stimulate the economy.
Here is a post which explains it.
http://bonds.about.com/od/Issues-in-...he-Markets.htm