Category Archives: Uncategorized
What are leverage and margin
Written on December 6, 2019 at 6:48 am, by jonywang
WHat IS LEVERAGE ? Financial Leverage enables retail Forex traders to control market positions that are much larger than their initial investment. Effectively, financial leverage takes the form of a loan that a trader takes from their broker, helping them invest in the foreign exchange market without needing to put up a large amount ofContinue Reading
What are liquidity and volatility
Written on December 6, 2019 at 6:47 am, by jonywang
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 a very deep market, withContinue Reading
What is rollover rates
Written on December 6, 2019 at 6:46 am, by jonywang
Rollovers are only applied to positions that are open at market close in New York. You can either earn or pay when a rollover is applied to your position. When trading a currency you are borrowing one currency to purchase another. The rollover rate is typically the interest charged or earned for holding positions overnight.Continue Reading
What are options
Written on December 6, 2019 at 6:46 am, by jonywang
An option is a financial derivative representing a contract wherein a buyer is given the right, but not the obligation, to buy or sell a financial instrument at an agreed upon price and on a specified date in the future. Popular markets for such contracts include Forex options trading, indices options trading and shares optionsContinue Reading
What are CFDs
Written on December 6, 2019 at 6:45 am, by jonywang
Contracts for Difference (CFDs) are financial derivatives that allow investors to speculate on whether the price of a specific instrument will rise or fall, without taking ownership of the underlying asset. Contracts for Difference have grown in popularity in recent years, enabling retail traders to invest in various financial instruments including forex, shares, indices andContinue Reading
Leading Economic Indicators
Written on December 6, 2019 at 6:44 am, by jonywang
Economic indicators, or economic releases, are vital components to consider when making trading decisions. While some releases like Employment data or Retail Sales gives us a snapshot of an economy’s strength or weakness, some are a bit more subtle in their ways and can actually serve as a leading supposition of what’s to come forContinue Reading
What is day trading
Written on December 6, 2019 at 6:24 am, by jonywang
Day trading is the practice of buying and selling a financial asset within a single trading day. Known as day traders, investors that follow this practice usually make use of high levels of financial leverage to maximise the profit they can earn from small market movements. Day trading is most commonly seen in the foreignContinue Reading
Key Economic Announcements
Written on December 6, 2019 at 6:23 am, by jonywang
Economic announcements, or new events, are a widely followed aspect of trading due to their influence on monetary as well as political policy. Therefore, it is important to know which announcements are going to create the most impact and volatility so as to take advantage of their movements. Here are some of the most widelyContinue Reading
Consumer and Producer Price Indices
Written on December 6, 2019 at 6:22 am, by jonywang
The Consumer Price Index (CPI) and Producer Price Index (PPI) are inflationary measures used to determine whether prices for goods and services are rising (inflation), falling (deflation when below zero or disinflation when falling but still above zero), or staying the same (since there is no particular term for this, let’s just call it “zinflation,”Continue Reading
Non-Farm Payrolls
Written on December 6, 2019 at 6:21 am, by jonywang
Non-Farm Payrolls (NFP) measures the amount of jobs gained in the U.S. during the previous month that aren’t farm related. It is typically released on the first Friday of the new month, and also includes the Unemployment Rate, Average Hourly Earnings, and the Participation Rate. While all of those releases can have an impact, NFPContinue Reading