NOK is an attractive currency for speculators as it offers diversification from many other possible currency trades. Being a European country outside the EU it offers a European alternative to the EUR. Also, its close connection to oil prices makes it a suitable as a proxy hedge or proxy position on oil. According to BIS data the krone is the 14th most liquid currency and the daily turnover is estimated at USD 120 bn / day. The most active trading counterparties are the Norwegian companies, domestic hedge funds and pension funds and foreign financial institutions. EUR/NOK and NOK/SEK sometimes offers a good relative value bet on Norwegian vs euro central bank and Riksbank policy. The NOK may also be used as investment currency in carry trades where the relatively high domestic interest rate makes it a preferred long currency vs currencies with low rates (e.g. EUR, CHF, JPY and SEK).