Differences between Investing vs Trading
Differences between Investing vs Trading
The Swedish Krona (SEK) was introduced in 1873. It replaced the Riksdaler at par, which meant 1 Krona was worth 1 Riksdaler. The decision to introduce a new currency was prompted by the Scandinavian Monetary Union with Norway and Denmark. Each country had its own Krona and, as per the union, the value was linked to the gold standard.
However, the union ended following the outbreak of World War I. Sweden subsequently abandoned the gold standard in 1914, leaving it with no fixed exchange rate. By 2003, Sweden was faced with the prospect of using the Euro on the basis it’s part of the European Union. However, Swedish voters rejected the idea, and a loophole allowed Sweden to retain the Krona.
The Great British Pound (GBP) is the UK’s official currency and has been for more than 300 years. All GBP is issued by the Bank of England and, since 1971, decimal denominations have been used, with 1 GBP being divided into 100 pence. Like Sweden, the UK rejected the Euro in 1999 and, today, GBP is among the most traded currencies in the world. As such, Kronas to Pounds (GBP/SEK) forex pair is an active forex market.
GBP/SEK isn’t among the top 20 most-traded currency pairs. However, the Kronas to Pounds (GBP/SEK) history shows that this has been a relatively stable pair. Looking at Kronas to Pounds (GBP/SEK) price data from the Bank of England, the exchange rate in January 1975 was 9.53 SEK to 1 GBP. September 2021 saw the Kronas to Pounds (GBP/SEK) exchange rate peak at 15.5 SEK to GBP. As of September 2022, the Kronas to Pounds price was 12.4:1, which is a 30% increase from the exchange rate in 1975.
Trading and investing are different. Investing is the act of buying an underlying asset and taking ownership of it. For example, you can buy stock in a company. This gives you a direct stake in the company’s financial fortunes. You can’t do this with forex. What you can do, however, is trade currency pairs. This means you can trade GBP/SEK price movements.
You don’t technically own the underlying asset, but you are able to speculate on the GBP/SEK price increasing or decreasing. You can do this by taking long or short positions. Long positions are when you speculate on the price increasing in value. Short positions are when you speculate on the price decreasing in value. As such, when you trade Kronas to Pounds (GBP/SEK) price movements, there is a certain amount of flexibility. In forex, a market known for its volatility, this flexibility can be useful.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
What affects the currency pair GBP SEK?
The currency pair GBP SEK is affected by several economic and political factors. On the macroeconomic side, changes to inflation rates, GDP growth, employment figures and central bank policies can all influence the value of GBP SEK. Additionally, news related to political tensions between the UK and Sweden or other countries in the region may also impact this currency pair. Furthermore, the political climate in both countries can also have an effect on GBP SEK, as changes in government and public sentiment can influence the demand for either currency.
When is the best time to trade the GBP/SEK?
The best time to trade the GBP/SEK is usually during the London trading session, which runs from 8am to 4pm GMT. This is when the most liquidity and volatility are available in the market. During this period, there is a higher chance of making money on trades due to larger price movements.
How to trade GBPSEK?
GBP/SEK is one of the most heavily traded currency pairs in the world, and due to its strong volatility it can be a great choice for traders looking to make profits. To trade GBP/SEK, you will need to open an account with a forex broker. You should consider factors such as spreads, fees, and customer service when selecting a broker. Once you have opened your account, you will need to fund it with the required amount of money. You can then place orders in the market and start trading GBP/SEK.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and with low capital investment.