Fundamental analysis provides a broad view of a currency pair’s movements and technical analysis defines trends and helps to isolate turning points. Sentiment indicators are another tool that can alert traders to extreme conditions and likely price reversals, and they can be used in conjunction with technical and fundamental analysis.
A managed forex account is a type of currency trading account in which a professional money manager makes trades and transactions on a client’s behalf for a fee. Individual investors who are not experts in foreign currencies but still want exposure to this asset class may consider a managed forex
A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies.Forex is short for foreign exchange. Transactions in the forex market are always between a pair of two different currencies. A forex broker may also be known as a retail
What Is an Index ETF? Index ETFs are exchange-traded funds that seek to replicate and track a benchmark index like the S&P 500 as closely as possible. They are like index mutual funds, but whereas mutual fund shares can be redeemed at just one price each day (the closing net asset value (NAV)), index
What Is Forwardation? Forwardation is a term used in pricing futures contracts whereby the futures price of a commodity or currency is trading higher than the spot (cash) price of the commodity for immediate delivery. The term forwardation is more commonly known as contango. A futures contract is a legal
The forex markets can be exciting and lucrative for trading if you thoroughly understand how to buy and sell currencies. If you’re drawn to this area, you might even want to make it your career. Forex markets are open 24 hours a day, five total days a week, which means
The term float refers to the regular shares a company has issued to the public that are available for investors to trade. This figure is derived by taking a company’s outstanding shares and subtracting any restricted stock, which is stock that is under some sort of sales restriction. Restricted stock
Central Banks In its simplest context, Central Banks are responsible for overseeing the monetary system for a nation (or group of nations); however, central banks have a range of responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment. Central banks also
What Is Liquidity? Liquidity refers to how active a market is. It is determined by how many traders are actively trading and the total volume they’re trading. One reason the foreign exchange market is so liquid is because it is tradable 24 hours a day during weekdays. It is also
Any analyst or trading guide will tell you how important it is to manage your risk. However, how does one go about managing that risk? And what exactly do they mean by managing risk? Here is a step-by-step guide to one of the most important concepts in financial trading. 1.
