Overall View:
Sigma helps a various groups of partners around the world to enlarge their business and expand the full
potential of the Forex market.
Sigma’s services include:
- Introducing Brokers: Join our IB network and receive compensation for directing new clients to Sigma.
- Money Managers: Full service trading capabilities, plus dedicated account management, client fund
administration and reporting. - White Labels: White Label Program helps fitted firms set up an online presence in the Forex industry
quickly and cost effectively.
A dedicated Partner Services team supports Sigma partners with a full range of account management services.
- Daily P&L, credits, commission allocation, etc.
- Account funding, transfers, allocations, etc.
- Customer on-boarding.
IRP states that an appreciation (depreciation) of one currency against another currency must be neutralized by a change in the interest rate differential. If US interest rates exceed Japanese interest rates, then the US dollar should depreciate against the Japanese yen by an amount that prevents riskless arbitrage. The future exchange rate is reflected into the forward exchange rate stated today. In our example, the forward exchange rate of the dollar is said to be at discount because it buys fewer Japanese yen in the forward rate than it does in the spot rate. The yen is said to be at a premium.
IRP showed no proof of working after the 1990s. Contrary to the theory, currencies with higher interest rates characteristically appreciated rather than depreciated on the reward of future containment of inflation and a higher yielding currency.
- Balance of Payments Model
This model holds that a foreign exchange rate must be at its equilibrium level—the rate that produces a stable current account balance. A nation with a trade deficit will experience a reduction in its foreign exchange reserves, which ultimately lowers (depreciates) the value of its currency. The cheaper currency renders the nation' goods (exports) more affordable in the global market place while making imports more expensive. After an intermediate period, imports are forced down and exports rise, thus stabilizing the trade balance and the currency towards equilibrium.
Like PPP, the balance of payments model focuses largely on tradable goods and services, while ignoring the increasing role of global capital flows. In other words, money is not only chasing goods and services, but to a larger extent, financial assets such as stocks and bonds. Such flows go into the capital account item of the balance of payments, thus, balancing the deficit in the current account. The increase in capital flows has given rise to the Asset Market Model.
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