Its original purpose was to report specifically on the Black Monday events of October 19, 1987—during that event, the Dow Jones Industrial Average fell 22.6%—and, what actions, if any, should be taken. However, the group has continued to meet and report to various presidents over the years, usually (but not always) during turbulent times in the financial markets. While some people believe that the team is necessary to ensure financial stability, others argue that it creates more problems than it solves. Ultimately, the best course of action may depend on the specific situation and the context in which the team is operating.

Overall, the future of the PPT will depend on its ability to adapt to changing market conditions and regulatory environments. By staying ahead of the curve and balancing intervention and market forces, the PPT can continue to play a critical role in shielding the stock markets from sudden and severe downturns. One of the biggest challenges facing the PPT is finding the right balance between intervention and market forces. While the PPT’s mandate is to prevent severe market downturns, it also needs to avoid distorting market signals and creating moral hazard.

Concerns about the Plunge Protection Team’s Involvement in Stock Market Manipulation

Others argue that the PPTs interventions distort market signals and create moral hazard. Despite its importance in ensuring financial stability, the PPT is not without its critics. Some argue that the team’s interventions in the market can distort market prices and create a false sense of security. Others argue that the PPT’s interventions can lead to moral hazard, where investors take excessive risks knowing that the government will bail them out. While these criticisms are valid, the PPT’s overall contribution to financial stability cannot be ignored.

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Similarly, the PPT’s actions during the 2008 financial crisis helped to prevent a total meltdown of the financial system. Some argue that the team’s actions only delay the inevitable and create larger problems down the road. Others claim that the PPT’s interventions have prevented a much more significant crisis from occurring. During the COVID-19 pandemic, the PPT was activated to prevent market panic and stabilize financial markets.

Financial Stability: How the Plunge Protection Team Safeguards the Markets

It is a group of high-ranking government officials and representatives from major financial institutions tasked with maintaining financial stability in the markets. The PPT was created in response to the stock market Forex basic crash of 1987, which saw the dow Jones Industrial average drop by 22.6% in a single day. The team’s mandate is to prevent or mitigate market disruptions that could lead to financial instability.

Additionally, with the rise of new financial technologies, the need for the PPT may be decreasing. Currently, the PPT is made up of high-ranking officials from various government agencies. However, some experts argue that the PPT should be an independent agency with its own budget and resources. This would allow the PPT to act more quickly and efficiently during times of market volatility.

The PPT needs to work closely with international counterparts to coordinate responses to global financial risks. This may require more transparency and cooperation between countries, as well as the development of new international frameworks for crisis management. However, in recent years, the team has been more proactive in its approach, and it has been working to prevent crises before they occur. For instance, the team has been monitoring the markets closely and has been intervening to prevent a market crash. The PPT’s response to the 2008 financial crisis raised questions about its role in preventing future crises. Others argued that the PPT’s actions merely delayed the inevitable and that the underlying problems in the financial system were not addressed.

Behind the Scenes: What is the Plunge Protection Team?

• The PPT can also communicate with market participants to provide reassurance during times of crisis.
• Others argue that the PPT’s interventions are necessary to prevent a significant downturn in the market.
• For example, during the 2008 financial crisis, the PPT worked with other government agencies to inject liquidity into the market and prevent a complete meltdown.
• Some argue that the PPT’s intervention in the market creates a false sense of security, while others believe that it is necessary for maintaining financial stability.

The Plunge Protection Team plays a crucial role in safeguarding the markets from sudden downturns and maintaining financial stability. While there are criticisms of the teams interventions and their impact on investor confidence, the PPT has been largely successful in preventing large-scale market crashes since its inception. As financial markets continue to evolve and become more complex, it will be important for the PPT to adapt and refine its strategies to ensure that it remains effective in its mission. The Plunge Protection Team (PPT) plays a crucial role in ensuring financial stability in the United States.

• However, this approach could also lead to greater financial instability and economic volatility.
• The PPT has several tools at its disposal, including buying stocks, futures, and options, to stabilize the market.
• The effectiveness of the PPT is difficult to measure, as it is impossible to know what would have happened in the absence of its interventions.
• The PPT’s interventions can have a significant impact on the broader financial landscape.
• On Tuesday and Wednesday of that week, stocks opened lower, and each time aggressive buying buoyed the markets.

This could involve greater public reporting of the teams actions and clearer guidelines for when and how the team intervenes in markets. The PPT operates largely in secrecy, which has led to accusations of lack of transparency and accountability. By propping up asset prices, the team may delay necessary market corrections and create bubbles that eventually burst. Though not exactly a secret, the Plunge Protection Team isn’t widely covered and doesn’t release the minutes of its meetings or its recommendations, reporting only to the president. This behavior leads some observers to wonder if the government’s most important financial officials are doing more than analyzing and advising—in fact, that are actively intervening in the markets.

The Plunge Protection Team (PPT), often referred to as the “Plungers,” is a clandestine group composed of high-ranking financial officials in the United States government. Officially established in 1988 by then-President Ronald Reagan, the PPT’s primary role is to advise the U.S. The team’s job is to intervene in the markets during times of crisis to prevent a meltdown.

During times of market stress, the team convenes to assess the situation and determine appropriate interventions. The lack of transparency surrounding these discussions raises concerns about potential conflicts of interest or biases that may influence decision-making. Maintaining open lines of communication with market participants is crucial for crisis management. The PPT recognizes the importance of transparency and regularly communicates its actions and intentions to the public. Together, they collaborate to monitor market conditions and develop strategies to counteract any potential threats to the stability of the financial system. The interconnectedness of global markets means that a crisis in one part of the world can quickly spread to other markets.

Additionally, government intervention can be seen as a violation of free market principles and can lead to political interference in economic affairs. The Plunge Protection Team (PPT), a colloquial term for the Working Group on Financial Markets, has long been a subject of intrigue and speculation in the world of finance. Established in 1988 after the stock market crash of 1987, its primary objective is to maintain stability in the financial markets, particularly during times of extreme volatility or crisis.

They claim that by propping up markets during downturns, the PPT encourages moral hazard and prevents necessary corrections. Some argue that the PPT’s interventions can distort the market and create a false sense of security. Others argue that the PPT’s interventions are necessary to prevent a significant downturn in the market. The PPT’s interventions have been effective in the past, such as during the 2008 financial crisis, when the PPT’s interventions helped to stabilize the market and prevent a significant downturn.

Critics of the PPT argue that the team’s interventions in financial markets can distort prices and undermine the free market. They argue that the PPT’s actions can create moral hazard, where investors take risks knowing that the government will bail them out if things go wrong. Some also argue that the PPT’s interventions can lead to a false sense of security, encouraging investors to take on more risk than they otherwise would. The Plunge Protection Team (PPT) has been an essential part of the financial markets since its creation in the late 1980s. Its role is to maintain financial stability by intervening in the markets during times of crisis to prevent a severe downturn.

The Importance of the Plunge Protection Team in Ensuring Financial Stability

By doing so, the team can prevent another financial crisis like the one that occurred in 2008. One of the most intriguing aspects of the Plunge Protection Team (PPT) is how its actions affect various market participants, particularly institutional investors. The PPT’s interventions can have a significant impact on the broader financial landscape. In turn, this could create a disproportionate distribution of wealth, which is detrimental to a free-market economy based on equality and fairness. The critical difference lies in the fact that the Working Group on Financial Markets is comprised of U.S. government officials, making these actions a significant concern for market integrity and transparency. Nevertheless, it is important to approach these claims with a healthy dose of skepticism and factual evidence.

The Mandate of the Plunge Protection Team

The team is composed of officials from the Federal Reserve, the Treasury Department, and other government agencies. If the team determines that intervention is necessary, it will coordinate with market participants to stabilize prices. Maintaining open lines of communication is crucial for the PPT to effectively manage market expectations.

The Impact on Institutional Investors and the Broader Market

In today’s world, governments have established laws and regulations to ensure a fair and transparent financial system. The Plunge Protection Team must adhere to these rules while advising the president on economic and market matters to maintain investor confidence and prevent any perceived or actual manipulation. Market integrity is crucial for maintaining trust and stability within the financial sector. Transparent markets ensure fair pricing, eliminate insider trading, and promote investor confidence. On the other hand, manipulation can harm investors by artificially inflating or deflating stock prices, which could lead to significant losses when the market corrects itself. The PPT operates in a highly secretive manner, and little is known about its exact operations.

When the dollar strengthens against the British pound, American travelers can get more pounds for their dollars and are essentially able to score cheaper vacations in London. But it becomes more expensive for people from the United Kingdom to visit the U.S. because the pound will buy fewer dollars at a foreign currency exchange. Canada is an economically and politically balanced country and these factors has kept the Canadian dollar on track. The Dollar’s global dominance in trade and finance, coupled with the stability of the US economy, ensures its continued strength. Bahrain’s economy is heavily reliant on oil and gas, but it has also diversified into finance and tourism, helping maintain the strength of its currency.

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Britain’s economy is the world’s sixth largest by gross domestic product (GDP), according to the World Bank. The pound was first introduced in the 1400s before being decimalized in 1971. Exchange rates affect the cost of goods and services in a foreign currency.

However, the number of currencies actually in circulation across the globe is slightly fewer, at around 164. This is because various countries use foreign currencies, or use more than one currency in circulation. Among all the currencies, only a few dominate in the business of trading, acting as a measure of economic strength and stability.

As the use of the dollar became more widespread over time, it helped to create a self-reinforcing cycle, one that makes it seem like there is no alternative. The difficulty of switching to a different dominant currency helps the US dollar maintain an inertia. New Zealand’s official currency is the NewZealand dollar, and it stands as the tenth most traded currency in the world. Issuedby the Reserve Bank of New Zealand, it contributes to an average volume ofUS$68 billion per day. The value of the New Zealand dollar is heavilyinfluenced by the country’s trading relationships, the strength of its tradingpartners’ currencies, and the value of its imports and exports. Canada’s official currency is the Canadiandollar which is also the sixth-most traded currency in the world.

Thus, the country’s terms of trade with important trading partnerslike Europe and the United States has considerable effects on the Chineserenminbi’s value. The United States is Canada’s primarytrading partner, making up more than 75% of total exports and 50% of totalimports. Thus, the value of CAD is directly impacted by the US economy’sperformance as well as the US dollar’s value.

In the realm of global finance, the US dollar leads in usage for cross-border transactions and serves as a key reserve currency. The currency’s value is influenced by various factors, including interest rates, inflation, economic data, geopolitical events, and overall investor sentiment. As the primary reserve currency that governments and institutions hold globally, the best forex indicators USD is pivotal in international trade and finance, ensuring its strength and stability. Pound sterling is the oldest currency in use, having been introduced in c.800; over 1200 years ago. Pound sterling is ranked the 4th most traded in the foreign exchange market. Pound sterling forms part of the currencies used by the International Monetary Fund (IMF) for units of account.

Brunei Dollar (BND)

• All of these factors have contributed to the stability and resilience of the Kuwaiti dinar.
• The Pound Sterling (GBP), commonly known as the British pound, is the official currency of the United Kingdom and its overseas territories and royal dependencies.
• The Swiss National Bank (SNB) ensures the stability of the currency with a range of crucial measures.
• Switzerland’s strong economy, characterised by low unemployment, high GDP per capita, and a well-developed banking sector, underpins the strength of the Franc.
• Jordan has built its currency’s strength through a combination of strategic geographic location and political stability.

The Euro is the official currency of the Eurozone, which consists of 19 of the 27 European Union member states. The Euro is the second most widely used currency in the world, and it is commonly used in international trade and finance. The stability and economic strength of the Eurozone, as well as the large size of its economy, contribute to the popularity of the Euro. The Swiss National Bank (SNB) is authorisedto issue the Swiss franc which is Switzerland’s official currency. It is theeighth most widely used reserve currency, accounting for 0.18% of globalreserves. The Swiss franchas become a safe-haven currency due to its stellar track record for bankingsecrecy and financial services.

• Oman has also been making efforts to diversify its economy, further solidifying the Rial’s strength.
• Pound sterling is ranked the 4th most traded in the foreign exchange market.
• The Swedish Krona is the official currency of Sweden and is the ninth most widely used currency in the world.
• The Canadian Dollar is the official currency of Canada and is the sixth most widely used currency in the world.
• Introduced in 1950, just four years after the establishment of Jordan, the Jordanian dinar is recognized as one of the strongest and most expensive currencies in the world.

What Contributes to the High Value of the Kuwaiti Dinar?

The Bahraini Dinar is one of the strongest currencies in the world, thanks to its robust financial sector and oil exports. The Cayman Islands dollar (KYD) derives its strength and stability due to the territory’s status as a leading global financial hub. The Jordanian dinar (JOD) is high up the list of the world’s strongest currencies for a combination of reasons. It is an oil and gas exporting nation, but is less dependent on this than some of its neighbours. The Chinese Yuan is the official currency of China and is the eighth most widely used currency in the world. The CNY has been gaining popularity in recent years due to China’s growing influence in global trade and finance.

(tie) Swiss Franc (CHF)

It serves as the primary reserve currency, as commercial and central banks around the globe hold it for international transactions. The Swiss franc (CHF) serves as the official currency for both Liechtenstein and Switzerland. Renowned for its stability and status as a safe haven, the Swiss franc is considered one of the strongest currencies in the world and a prominent reserve currency. Saudi Arabia’s economic strength is built on its oil reserves, as it is the largest exporter of crude oil globally. The wealth generated by this industry has allowed the kingdom to maintain a robust currency. The Bulgarian Lev (BGN) is a stable currency, pegged to the Euro at a fixed exchange rate, ensuring economic stability.

However, the government in Oman is working on lessening the country’s dependence on oil markets. It has taken steps to support other industries in order to diversify the economy, which should help to sustain the resilience of the rial. Australian dollar is also used by three other countries; Kiribati, Nauru and Tuvalu. Australia dollar came and replaced the Australian pound which was in use from 1910 till 1966. The currency is ranked the 5th most traded in the world foreign exchange Markets.

Currency Exchange Main Page

The Caymans are a British territory in the Caribbean and are an offshore financial center. The Cayman Islands dollar was first introduced in the 1970s and is pegged to the dollar. To better understand the potential growth of your investments in these currencies, try using a compound interest calculator to see how your savings or investments could grow over time. However, it might make the country less attractive to tourists from countries with weaker currencies. Tourists benefit from stronger currencies, as they can get more value for their money when travelling abroad.

Nathalie Okde is an SEO content writer with nearly two years of experience, specializing in educational finance and trading content. Nathalie combines analytical thinking with a passion for writing to make complex financial topics accessible and engaging for readers. The Georgian Lari (GEL) is the official currency of Georgia, a country in the Caucasus region. The lari is a floating currency, with its value fluctuating based on market demand.

Why Trade the Strongest Currencies with NAGA.com

Knowing which currencies are the strongest in the world helps you understand the bigger picture of global economics and can guide your financial choices. Strong currencies often attract foreign investments, bolstering economic growth and stability. While a strong currency makes imports cheaper, it can make exports more expensive for other countries, potentially impacting a nation’s trade balance. Introduced in 1950, just four years after the establishment of Jordan, the Jordanian dinar is recognized as one of the strongest and most expensive currencies in the world.

Having worked in investment banking for over 20 years, she has turned her skills and experience to writing about all areas of personal finance. Her aim is to help people develop the confidence and knowledge to take control of their own finances. The euro is the official currency of 20 out of the 27 countries that form the European Union. Euro coins and bank notes entered circulation in 2002, and the currency is free-floating. Gibraltar occupies just 2.6 square miles at the southern tip of Spain and is officially a British territory. The Gibraltar pound was first introduced in the 1920s and is pegged to the British pound (at par, meaning one GIP equals one GBP).

The current lira was introduced on January 1, 2005, replacing the previous lira. This revaluation aimed to combat hyperinflation and simplify financial transactions. The Turkish Lira (TRY) is the official currency of Turkey and the Turkish Republic of Northern Cyprus. It is a free-floating currency regulated by the Central Bank of the Republic of Turkey. Introduced in 1961, it replaced the South African pound at a rate of 2 rand to 1 pound.

This currency is managed by the Government of Gibraltar, and since 1825, GIP has played a significant role in the market. The Gibraltar Pound is offered in the same denominations as the British Pound. Introduced in 1961, it has maintained a commanding presence due to Kuwait’s substantial oil reserves, which account for a significant portion of its economic output. Currencies hold a central place in the global economy, representing the strength and stability of their respective countries. Many investors regard the Swiss franc (CHF) as a safe-haven asset and believe it to be the safest currency globally.

We’ve found the 10 strongest currencies in the world, based on their relative value against the U.S. dollar. This currency is issued by the Central Bank of Libya, and traders frequently exchange it for USD or EUR. The Monetary authority of Hong Kong is known as the Hong Kong Monetary Authority. The Hong Kong dollar is ranked 9th as the most traded currency across the globe. The Japanese yen is the primarily used in Japan and it is issued and regulated by the Bank of Japan which is the central bank.

The USD is recognized as the world’s primary reserve currency, and it is used in international trade and finance. The stability and strength of the US economy, as well as the dominance of American companies in global markets, contribute to the widespread use of the USD. The Federal Reserve (Fed) issues the USdollar which is the country’s official currency. It contributes to an averagevolume of US$2.9 trillion per day, making it the most traded currency in theworld. The UnitedStates has the largest economy in the world and serves as a global tradepowerhouse. Central and commercial banks hold the US dollar as the primary‘reserve currency’ for global transactions and investments.

For traders, these currencies stand out with their deep liquidity and stability, offering lower risk. There are several key reasons why the US dollar is the most traded currency worldwide. First, the US possesses the largest economy in the world, accounting for around 26% of the total world GDP. It enjoys a robust and stable economic system, coupled with good institutions and laws. The dollar is rated to be reliable as an investment vehicle and refuge in times of economic crisis. It is also the global reserve currency, which banks and financial institutions hold across the globe.

The Ringgit was introduced in 1967 to replace the Malaya and British Borneo dollar and has since become a key symbol of Malaysia’s financial identity. Iconic cities like Dubai and Abu Dhabi attract millions of visitors and significant foreign investments, keeping the Dirham steady. The Aruban Florin (AWG) is the official currency of Aruba, a small Caribbean island and constituent country of the Kingdom of the Netherlands. The Swiss Franc is known for its stability and safety and is often seen as a «haven» currency.

Known for its stability and high value, the Bahraini dinar is among the strongest currencies in the world, with «BHD» as its symbol. The currency is highly regarded as one of the most expensive and best currencies globally. The Kuwaiti dinar’s stability is supported by its backing by a diverse basket of foreign currencies, rather than being solely pegged to the US dollar.

The KRW is known for its stability and the strength of the South Korean economy. South Korea is a major exporter of electronics and automobiles, which further increases the use of the South Korean Won in international trade. The Swiss franc is the official legal tender of Switzerland and its tiny neighbor Liechtenstein, and the currency is seen as a safe haven due to Switzerland’s political stability.

What is the most traded currency in the world?

Estimated toaccount for a daily average volume of US$166 billion, it is the fifth mostpopular reserve currency. Similar to Australia, Canada is abundant in natural resources andmainly exports commodities. Therefore, the prices of these products can play asignificant role to evaluate the value of the Canadian dollar.

It’s a popular destination for expats, especially those looking to work in Kuwait’s strong oil and financial sectors. The US dollar makes up a significant part of the global transactions in the SWIFT payment system. Currencies like the Japanese yen take 5.09%, while the Chinese yuan, which is looking to uproot the US dollar’s global dominance stands at 2.8%. The data indicates that the Chinese yuan has a herculean task to take on the USD as its usage is minimal. Despite spearheading the de-dollarization agenda, the Chinese yuan is yet to become the most accepted currency.

Top 10 most traded currencies in the world

• Many islands also rely on financial aid and investment from larger nations.
• The Jordanian dinar entered circulation in 1950 and is pegged to the dollar.
• Higher interest rates attract foreign investors looking for the best returns on their investments, which increases demand for the currency and thereby its value.
• This is determined by the government through its central bank, and is set against another major global currency (such as USD or EUR, for example).
• The US Dollar dominates global trade and finance, while the Euro is widely used across Europe and in international transactions.

If you have trading experience, you can easily handle and trade this currency. The current Chinese renminbi in use was introduced in 1948; an invention which replaced the nationalist-issued yuan as the tender of China. The currency is partially pegged with the four currencies used by the International Monetary Fund as value units.

What is the most stable global currency?

Before you decide to trade in one of the strongest currencies in the world, you should consider using the educational resources we offer like NAGA Academy or a demo trading account. The strength of a currency is determined by the amount of goods and services that one unit of it can purchase, as well as the amount of foreign currency it can be exchanged for. Identifying the strongest and most expensive currency in the world requires a thorough analysis of various national and international factors. Several currencies are stronger than the USD in terms of exchange rate value, including the Kuwaiti Dinar (KWD), Bahraini Dinar (BHD), and Omani Rial (OMR).

The Japanese Yen is also highly traded due to Japan’s significant role in global trade. Like the British Pound, the FKP is a strong currency, benefiting from the UK’s stable economy and long-standing financial strength. The Falkland Islands issue their own coins and banknotes, but British Pounds are also widely accepted on the islands.

• It’s important to remember that this «strength» is different from global influence.
• Delve into the top 10 strongest currencies in the world as of September 2025, and discover the factors that impact currency strength.
• Local currencies are facing the heat after Trump reclaimed the White House as the US dollar is strengthening.
• Several currencies are stronger than the USD in terms of exchange rate value, including the Kuwaiti Dinar (KWD), Bahraini Dinar (BHD), and Omani Rial (OMR).

List of World’s Top 10 Most Traded Currencies-

The Euro comes at a distant second at 12.83% indicating that the dollar’s dominance is here to stay. The other leading currencies are in single digits and stand no chance in challenging the US dollar. Increasingly significant in global trade, accounting for about 4-7% of transactions. The second most traded currency, representing approximately 30% of daily trading volume. Therefore, the euro’s strength and economic health have asubstantial effect on the value of trailing stop ea mt4 Swiss franc. Here, weshare the top ten most traded currencies, which account for nearly 90% of alltrades.

United States Dollar (USD)

The Swedish Krona is the official currency of Sweden and is the ninth most widely used currency in the world. The SEK is known for its stability and the strength of the Swedish economy. Sweden is a major player in global trade and finance, which contributes to the widespread use of the Swedish Krona in international transactions.

Lower liquidity can lead to wider bid-ask spreads, and a higher transaction cost. Slippage can lead to difficulty entering and exiting trades at desired prices. A lack of information can make it harder for traders to make informed decisions also, leaving them open to risk of sudden price swings and larger losses.

Its high value is primarily due to Kuwait’s vast oil reserves, which generate significant revenue. The peso has a history dating back to the Spanish dollar and has undergone various transformations over the centuries. It is one of the most traded currencies in the world, reflecting Mexico’s significant role in international trade. The Fijian Dollar (FJD) is the official currency of Fiji, an island nation in the South Pacific. The currency is free-floating, with exchange rates fluctuating based on market conditions. Canada is one of the largest exporters of oil, and the strength of its dollar often correlates with global oil prices.

Why is the US dollar the most traded currency?

The platform is powered by its native token, SOL, which is integral to its operations. The Cayman Islands dollar (KYD) is the official currency of the Cayman Islands, a British Overseas Territory in the Caribbean. Simply put, a currency is deemed «strong» if its value surpasses that of another nation’s currency. The term «Currency Strength» refers to the robustness or weakness of a currency at any given moment. Traditional currencies are likely to coexist with digital currencies, such as cryptocurrencies and Central Bank Digital Currencies (CBDCs), as technology and financial systems advance.

As a result, it usually increases when there isfinancial instability around the world. The U.S. is the world’s largest economy by GDP, and the dollar is easily the most-traded currency globally. And it’s widely circulated, with people in the U.S. sending tens of billions of dollars abroad to relatives and friends each year. The Venezuelan Bolívar and the Iranian Rial are considered among the weakest currencies globally.

(tie) Swiss Franc (CHF)

China is the world’s largest exporter and the second-largest economy, which has led to an increase in the use of the Chinese Yuan in international transactions. The Canadian Dollar is the official currency of Canada and is the sixth most widely used currency in the world. The CAD is known for its stability and the strength of the Canadian economy. Canada is a major exporter of commodities, such as oil and natural gas, which further increases the use of the Canadian Dollar in international trade.

You would report your foreign currency loss as a Section 988 transaction  and treat it as an ordinary loss in accordance with IRS guidelines. This defaulttreatment of foreign currency gains is to treat it as ordinary income. An advantage of Section 988 treatment is that any amount of ordinaryincome can be oanda review deducted as a loss, where only $3,000 in capital gains losses canbe deducted. Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners. Section 988 gains or losses are reported on Form 6781.

• Yes, OANDA is a Forex and CFD broker and is regulated by Section 988 of the internal Revenue code.
• I still treat it as “other income” and provide the -$12,000 in the box correct?
• I actually use a non regulated broker out of pure ignorance and have access to the total loss amount.
• I just do this as another source of income.
• By default, retailFOREX traders fall under Section 988, which covers short-term foreign exchangecontracts like spot FOREX trades.

By default, retailFOREX traders fall under Section 988, which covers short-term foreign exchangecontracts like spot FOREX trades.

• You would report your foreign currency loss as a Section 988 transaction  and treat it as an ordinary loss in accordance with IRS guidelines.
• Section 988 taxes FOREX gains and losses likeordinary income, which is at a higher rate than the capital gains tax for mostearners.
• This defaulttreatment of foreign currency gains is to treat it as ordinary income.
• You would report this as other reportable income in Turbo Tax.

You would report this as other reportable income in Turbo Tax. I actually use a non regulated broker out of pure ignorance and have access to the total loss amount. Yes, OANDA is a Forex and CFD broker and is regulated by Section 988 of the internal Revenue code. I still treat it as “other income” and provide the -$12,000 in the box correct? I just do this as another source of income.