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Igor

Market Wizard
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Everything posted by Igor

  1. Japanese housewives are traders in Japan that tend to implement carry trade strategies based entirely in interest rates. Since the Interest rate for the Japanese Yen has stayed low for decades, these traders tend to buy foreign currency to make gains on their savings.
  2. The Jackson Hole Economic Symposium is a widely watched event by forex traders with fundamental strategies. The general tone of the meeting can give traders an indication of future monetary policy strategies in the US, and this can be used to construct positon ideas.
  3. The Iranian Rial is the official currency of Iran, given value by the region’s central bank. The Rial can be broken down into 100 Dinar and does not have an official symbol. Traders investing in the IRR currency hold an optimistic view of the country’s macro economic fundamentals and the value and allocation of the countries natural resources. Price levels are heavily influenced by inflation rates, and the low liquidity levels of this currency make it unavailable in many regions.
  4. The Iraqi Dinar is the official currency of Iraq, given value by the region’s central bank. The Dinar can be broken down into 1,000 fils. Traders investing in the IQD currency hold an optimistic view of the country’s macro economic fundamentals and the value and allocation of the countries natural resources. Price levels are heavily influenced by inflation rates, and the low liquidity levels of this currency make it unavailable in many regions.
  5. Inward Arbitrage is possible when banks are able to borrow money at rates cheaper than what is available in local forex markets. When spreads become larger, there exists a greater potential for profits.
  6. Intraday traders are focused on short term events and generally look to capitalize on smaller price movements. Because of this, Intradaytraders tend to use higher levels of leverage to make gains.
  7. The International Organization For Standardization is the world's largest standards developer aimed at producing international agreements for trading conventions. These agreements are in place to ensure that all countries have an equal understanding of marketplace transactions.
  8. The International Foreign Exchange Master Agreement is aimed at standardizing forex transactions in all aspects of trading. The agreement also outlines practices for defaults or other circumstances seen when contracts are not sucessfully completed.
  9. The International Fisher Effect can be seen when the difference in nominal interest rates is subtracted from another. If country A's nominal interest rate is 3% above that of country B, the currency of country A would be expected to appreciated by the same amount.
  10. The International Currency Markets have changed a great deal in recent years, with online retail trading surging in popularity. Because of this, a growing number of transactions in the International Currency Markets are coming as a result of speculative investments.
  11. International Currency Exchange Rates cannot be seen alone. Instead they must be viewed in terms of another currency. So, for example, the value of the Euro can only be understood in relation to the US Dollar or some other publicly traded currency.
  12. For example, if a trader wants to knows how many Euros are needed to purchase 100 US Dollars, a currency converter can be used to make the calculation. At the same time, the trader could also use the converter to find the amount of US Dollars that would be required to buy 100 Euros.
  13. Traders watching Interest Rate Parity can invest in a foreign currency and then buy a forward rate contract to convert back into the domestic currency. Alternatively, a trader could convert a foreign currency into the domestic currency using the spot rate.
  14. Interest Rate Differentials form the basis of many popular trading strategies in forex and other asset markets. One of these strategies is known as the carry trade, where traders use low yielding currencies to fund the purchase of a higher yielding currency.
  15. The Interdealer Market in the f world is one of the most well known exchanges of this type. The high trading volumes that are seen allow for very tight bid and offer spreads as transactions are made.
  16. Interbank Rates only apply to banks that are unable to meet their liquidity requirements. If, however, a bank is in possession of excess liquidity, the bank will be able to lend to other banks and profit from the transactions.
  17. The Indian Rupee is the official currency of India, given value by the region’s central bank. The Rupee can be broken down into 100 paisa and can be symbolized as Rs. Traders investing in the Rs currency hold an optimistic view of the country’s macro economy.
  18. Initial Claims reports are used by traders to determine the strangth or weakness of the employment markets, which can have immense influence on the value of the country's currency values. Employment data is widely watched by forex traders and these reports.
  19. An example of an Indirect Quote can be seen if a US trader is quoted for the Euro at E$ 1.25 = $1.
  20. Indicative Quotes are generally given when a trader does not indicate the trading volume that will be bought or sold. Indicative Quotes give market makers flexibility to change rates according to market conditions, and this helps to protect against unformity.
  21. Inconvertible Currency strategies are implemented by governments in order to protect against market volatility and excessive changes in inflation.
  22. The Israeli New Shequel is the official currency of Israel, given value by the region’s central bank. The Shequel can be broken down into 100 agorot and can be symbolized with a combination of Hebrew symbols.
  23. The Indonesian Rupiah is the official currency of Indonesia, given value by the region’s central bank. The Rupiah can be broken down into 100 sen and can be symbolized as Rp. Traders investing in the IDR currency hold an optimistic view of the country’s
  24. Ichimoku Clouds are primarily used to find trend direction, with prices above the cloud signalling that an uptrend is in place. Price activity below the cloud signifies a downtrend. These clould are usually considered as being less useful for traders.
  25. Ichimoku Charts give trading signals that are based on historical averages and are typically used in determining trend activity. These strategies are typically used by longer term technical traders, as these signals tend to be viewed as being more valid.
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