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Igor
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Everything posted by Igor
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The Swissie is one of the most commonly traded forex pairs and has someunique characteristics relative to its counterparts. Specifically, the Swissie is a “safe haven” currency and tends to perform well during times of market uncertainty.
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Swing trading relies on a firm understanding of technical chart analysis and allows traders to buy low and sell high when done successfully. Swing Trading is a common method in the forex markets and focuses heavily on identifying support and resistance levels.
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Many traders will use Straddle techniques during news based trading. Orders are placed on both sides of the price and this allows a trade to be opened if volatility increased in a positive or negative direction.
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Timeframes for the Spot Next values can vary, depending on the contract requirements. Spot Next contract are flexible and can settle in days or weeks after the initial agreement.
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Spread prices can vary drastically, depending on the broker agreement. As a general rule, lower spreads tend to involve less secure trading execution, so this is a factor all traders must consider when choosing a broker.
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A Spread Indicator can give traders a quick indication of the cost of a given forex trade at the current time. In many cases, spread prices are variable, so it is always wide to watch a Spread Indicator before trades are placed.
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While uncommon,Stagflationary conditions can be seen in volatile economies. Governments in these countries tend to focus on higher interest rates in order to keep inflation levels managable.
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Standard Lots are equal to 10 mini lots, and these trades tend to be executed by traders with larger account sizes. Pip values in these cases are also larger than in mini accounts, so a greater potential for gains and losses can be seen.
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When a central bank is attempting to limit volatility in the domestic currency, intervention measures are implemented. When foreign purchases are the cause of the excess volatility, Sterilized Intervention is used to treat markets.
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STARC bands allow traders to view price activity in relation to outer bands that are calculated using simple moving averages. This information can be used in a variety of ways, including the identification of support and resistance levels and trend direction.
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Experienced traders tend to use Stop Loss Orders in all of their trades so that positions can be closed if initial forecasts are inaccurate. Without the use of Stop Loss Orders, traders are at risk of losing substantial amounts of money if prices move unfavorably.
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The Spot Exchange Rate differs from some other methods of currency valuation in that it is meant to measure the current value of the currency. This differs from a futures contract, which assigns value for a later date.
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Market speculators can use a wide variety of trading strategies tomake their investment. The two most common approaches involve “technical” and “fundamental” analysis.
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Special Drawing Rights refers to what is essentially a virtual currency. This virtual currency is used by the IMF to complete transnational transactions in member countries.
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Sovereign Risk can be created by a variety of reasons, all involving general weakness in a country's economy. Low growth levels or weak trade balance figures are key factors in determining Sovereign Risk levels.
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Sovereign debt is associated with bond yields that change depending on the issuing country. Countries with higher risk levels typically offer higher interest rate yields on their bonds.
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While the South Korean Won is offered by many retail trading brokers, it remains an uncommon currency for investors. This leads to high trading volatility and gapping moves despite its relatively large availability.
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Soft Currencies are also referred to as “weak currencies” because they are highly suseptible to external factors. Traders investing in these currencies are taking on a higher level of risk, as price activity is not solely governed by market forces.
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The Interbank Market excludes retail investors and accounts for roughly 50% of the forex transactions that are conducted on a daily basis. The activity seen on this level can greately impact price activity seen at the Retail level, as trades made can can drastically influence liquidity levels and short term trend fluctuations.
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Inflation can be measured at the consumer or producer level, but always calculated the tendency for products to increase in price over time. Inflation levels are one of the best indications of future monetary policy bias with respect to interest rates, as central banks tend to increase interest rates when inflation levels rise drastically.
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Simple Moving averages are used in technical chart analysis for a wide variety of reasons. Most commonly, these averages give traders a better sense of the longer term trend, which can be useful when trades are placed. The simple moving average is a trend indicator and serves to provide a short term view of the trend of an asset. This is a trend indicator that is prepared by taking the average of the closing price of an asset from the most recent days of trading. In other words, the closing prices of the most recent trading days (e.g. 14 days) is added together, and then the result is divided by the number of trading days used in the calculation (i.e. 14 days in this example).
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When a trader chooses to short a currency, it is reflective of a view that the currency will underperform relative to its counterpart. Selling currencies can involve extra interest charges, however, which can decrease gains.
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Short term traders differ from longer term traders as those positions tend to be held longer than one day. Short termtrading is also referred to as “intraday trading” but these trades are held longer than positions used by scalpers, which are often closed in less than 15 minutes.
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Serial Correlations are also referred to as ”lagging correlations” or “auto correlations.” These correlations are a key determinant in technical analysis practices, which are used to forecast later price movements.
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Secondary Trends can offer trades new opportunities to profit within the larger trading trend. If, for example, a downtrend is seen within a larger uptrend. Traders can use the chance to enter into new buy positions.
