Igor

Eurostrips are commonly used to hedge in an action that is similar to using swaps. Traders can choose one investment over another based on the time frame that is needed at a specific occasion.

For example, if a forex quote is seen as AUD 1.05/USD, the quotation is said to be in European Terms (from the USA perspective).

An example of a European Currency Quotation can be seen in measurements like A$1.05 per $1 US Dollar. Here, the A$ is given value in terms of its relationship to the US Dollar.

An example of a European Currency Quotation can be seen in measurements like A$1.05 per $1 US Dollar. Here, the A$ is given value in terms of its relationship to the US Dollar.

Unsystematic risk is different from a systematic risk in that the risk is not system-based; it is more unique to the circumstances of the asset. For instance, if a company posts poor earnings and its stock price drops as a result, then this is a situation unique to the asset because another company in the same sector may posts a better result and its share price will rise. We see an example of this in the smartphone market with the contrasting fortunes of Research in Motion (Blackberry) and Apple (iPhone). Portfolio diversification eliminates unsystematic risk.

An example is the extra measures announced by the SNB after their sterilized intervention of September 6, 2011. An unsterilized intervention is a passive approach to exchange rate fluctuations by not decreasing or increasing the amount of domestic currency, thus allowing the monetary base to fluctuate.

During an active trade, if the position of the trade moves with the trader's expectations, the trade will be in profit. However, this profit is unrealized because the position has not been terminated in order to claim the profit. The profit is only realized when the position is terminated in profit. In an account statement, the unrealized profit is shown in a separate column and is not added to the realized profit column.

The Universal Currency Converter is an online automatic calculator where a trader can enter the amount of a currency and get the exchange rate conversion of that currency to another currency. There is a website called http://www.xe.com/ucc, which contains a universal currency converter for all global currencies of note. If an individual intends to check the exchange rate between the Euro and the Brazilian Real, he or she will enter the base figure into the space for the base currency (Euro) and click the conversion button to get the value of that amount in the counter currency (Brazilian Real).

The United States Dollar is the official currency in which most international transactions are denominated. The origins of this can be traced to the 1944 Bretton-Woods conference where the US Dollar was adopted as the global reserve currency, due to the relatively low affectation of the US economy by the Second World War. 1 United States Dollar is subdivided into 100 cents.

The Unemployment Report goes by various names in various countries. By far the most watched unemployment report is that of the US, the US Non-Farm Payrolls report and Unemployment Rate, which is released on the first Friday of the new month that details the number of new hirings in all sectors of the US economy except the agricultural sector, as well as the prevailing unemployment rate. It is a measure of the performance of the economy of a country, as bubbling economies tend to have more jobs creation and lower unemployment rates.

The US Treasury is an executive department of the US government that oversees the fiscal policy and management of the US economy. It has many organs with which it carries out this function. Some of these organs are the US Mint (responsible for production of the bank notes of the US Dollar and the cent coins), the Inland Revenue Service (IRS) which is responsible for enforcement of tax compliance and the Office of Foreign Assets and Control which enforces economic and trade sanctions against individuals, corporations and countries, based on US foreign policy and national security goals.

If you watch a business news report where for instance, the price of crude oil is reported to be $82 per barrel, you will see that this is a one-way quote. The two-way quote is more commonly used in the financial markets, and a trader will see this price quoted as 82.00/82.05 by his broker. This is an example of a two-way quote. All assets in the financial markets are displayed as two-way quotes for trading purposes.

The Turkmenistan Manat was introduced in 1993 to replace the use of the Ruble in this country. 1 Manat is subdivided into 100 Tenge. The currency has been redenominated twice; first in 2005 at the rate of 1000 Old Manat to 1 New Manat and in 2009 at the rate of 5000 Old Manat to 1 New Manat.

Traders can use the trend line tool on their trading platform to connect areas where the candlesticks make highs and lows. In order for a line drawn this way to constitute a true trend line, it must cut across at least two or three areas of price highs and lows. Trend lines are used in detecting channels, as well as chart patterns like wedges and triangles. They are a very important tool in technical analysis.

Technical indicators can be divided into two classes: trend indicators which indicate what the future direction of the price of the asset will be and momentum indicators which indicate the strength of such directional movements. Examples of trend indicators are the Bollinger bands, moving averages and the Parabolic Stop and Reverse (SAR) indicator.

When traders are looking for a stimulus to determine what the trade direction of a traded asset will be, the asset will typically trade in a tight consolidation range. As soon as a trigger for a move comes, usually in the form of a news release, traders will assume a bias towards the asset that will either lead to a strong demand for the asset (leading to more traders buying the asset and leading to an upwards trend breakout) or weaker demand for the asset (leading to net selling of the asset and a downward trend breakout). Either of these situations will lead to a trend breakout.

There are three possible trends in the market: uptrend when the price of the asset is heading up, downtrend when the price of the asset is headed downwards, and a sideways or range-bound trend when the price of the asset is neither heading upwards or downwards. Trends are best determined by using long term time charts such as the daily charts.

A trading strategy is not just designed for profits, but also for capital preservation. So a trading strategy is designed by the trader to identify trade opportunities, identify the risk - reward ratio, and also employs risk management techniques in order to mitigate the effects of a loss should one occur.

Most trading signal generators in the market today exist either as semi-automatic or fully automatic indicators or expert advisors. There are indicators that tell a trader when to buy an asset, sell an asset, exit a position or identify potential market changing situations such as the emergence of patterns. They can be pre-programmed by the trader or purchased from vendors.

A trading signal can be derived manually by the trader himself, or automatically by software that have been programmed to recognize and alert the trader to the existence of either a trading opportunity or a trade outcome. These signals can either be used by the trader himself, or can be sold to other traders for their use.

There is a lot of emotional involvement whenever money is involved in an activity, and financial trading is no different. Traders encounter all kinds of emotions that include fear, anxiety, greed, elation, etc in response to the expectations and actual outcomes of trades. The emotions they feel can affect the decisions that they take. It is the total package of the emotions felt and the responses to those emotions that is known as trading psychology.

A typical trading plan will involve a trader setting a profit target for himself and then devising a trading approach to help him achieve that set objective.

A trading indicator may be supplied on the trading platform by default, opr may be designed by the trader and added to the "custom indicators" folder of the trading platform. A trading indicator is usually attached to the currency chart for the purpose of technical analysis in order to discover and utlize trading opportunities.

There are different time frame charts that tell a trader what the market activity is like for a selected period of time. As such, the trader can study what is happening in the market over 1 minute, 15 minutes, 1 hour, 4 hours, daily, or over a week or even three months.

A tick is sometimes called the minimum fluctuation of an asset. For most traded currencies, a tick is equal to 1 pip. For stock indices and spot metals, a tick is worth more. For instance, some stock indices move by up to 25 points for a single tick movement. It is important for a trader to know what the minimum fluctuation of the asset he wants to trade is as this will affect margin requirements on the trading account.