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Igor

Market Wizard
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Everything posted by Igor

  1. There is some added risk in a Dual Currency Deposit agreement, as any adverse moves in the exchange rate could limit the gains made when withdrawals are processed.
  2. The Dollar Rate is one of the most quoted prices for most rates because the USD is the world reserve currency. These pairs tend to be the most commonly traded in forex.
  3. The D-Mark was first used in 1948 and circulated until the creation of the Euro in 1999.
  4. A Diversified Carry Basket differs from a standard carry trade in that multiple currencies are purchased as a means for limiting risk. The essential approach howeer is no different from the profits seen from carry trades.
  5. In forex analysis, divergence is usually described as positive or negative. Positive divergences are seen when indicator readings are moving higher when prices are moving lower. Negative divergences are seen when prices are moving higher and indicators begin to move lower.
  6. Discount Spreads can be either premium spreads, or discount spreads. Premium spreads are seen when the bid price is lower than the odder while discount spreads are seen when the bid price is higher than the offer.
  7. A Dirty Float is generally implemented by a central bank. In most instances, the intervention is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the economy.
  8. The main thing to remember when dealing with direct quotes is the nationality of the person making the quote. *For example, a direct quote from Europe in the Euro against the Dollar will not be the same number that is quoted in the USA.
  9. Usually referred to as the DAX, the index is often used as a gauge of economic strength in Europe as a whole and is one of the most commonly watched indices in then world. *
  10. Depth of Market is also referred to as market liquidity. *Higher liquidity levels generally mean less volatile trading conditions, as there are more willing buyers and sellers at all levels.
  11. Forex brokers offer free demo accounts so that forex traders are able to practice trading strategies before real money is deposited into an account.
  12. Generally, the information on a Deal Slip will include Dollar amounts, transaction type and the settlement date.
  13. A Deal Blotter can help a investor to monitor the progress based on many different variables. *This information can be looked at from a time basis or a strategy basis, and the Deal Blottercan help an investor to know which type of trading activity is producing profits and which activitys are creating losses.
  14. The Daily Cut-Off in the forex markets differs from many other asset classes because of the 24 hour nature of currencies trading. Because of this, market hours are divided into sessions, market by the Daily Cut-Off.
  15. Daily Charts are one of the most common charts used by technical traders, as these charts give traders an idea of the sentiment activity that is seen during each trading session, rather than in one section of a trading session.
  16. Currency Trading Software can include a wide variety of features, such as advanced charting tools or fundamental news feeds. These can be downloaded or web based.
  17. Currency Trading Platforms come in many varieties, with web based and downloadable applications that can be accessed from a home computer or mobile device. These often include charting software and news feeds for active traders.
  18. Currency Strategists analyze a number of factors, both fundamental and technical as a means for constructing trade ideas either for a reading audience or for a financial institution.
  19. Currency Risk is a major consideration of multi national organizations where trade is conducted in foreign currencies. Negative risk comes when an exporter country sees drastic currency appreciation, for example.
  20. Currency Pegs are generally put in place so that international trade transactions can unfold in a more predictable fashion, without excessive risk from exchange rate fluctuations.
  21. The “Overlay” in a Currency Overlay gets its name from the overlaid hedging factors that are added to a company's forex portfolio. The key element of the practice is risk reduction and separation from the management of other assets.
  22. Currency Interventions can occur for a variety of reasons but generally the aim of the central bank is to limit potentially extreme levels of volatility.
  23. Currency Histories form the main basis for technical chart analysis, which aims to predict future price activity based on what has been seen historically. These histories can be seen on multiple time frames, but the price action remains the same no matter which period is being viewed.
  24. Currency Futures differ from Currency Forwards in that they are transferable contracts. These contracts can also be closed prior to their data of expiration and many traders view this flexibility as a substantial advantage.
  25. A Currency Forward is a non transferable contract that allows investors to lock in a certain price in anticipaton of a significant rise or fall in value at a later date.
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