Recent Posts

Importance of Interest Rates to Currency Traders

Interest rate movements shift the direction of financial markets worldwide. Hence, rates matter to forex traders a lot. Changes in rates represent central banks’ indirect response to certain economic barometers throughout several months. Rate decisions, especially the sudden ones, tend to shape the markets right away. Surprise rates frequently make the largest impact on currency traders.

Forex day traders are keen on interest rates. The higher the rate of return, the greater Read More...

Differentiating Two Rates of Exchange

Exchange rates pertain to the overall currency rate versus the other. It pays to comprehend how this rate works and how it can be applied in everyday life. For instance, if you are visiting Poland, you have to purchase the zloty, their local currency. Assets holding the same features must be sold at the similar fee in varying nations as the existing rate must manage to retain the intrinsic currency rate versus the other. The forex market has two kinds of rates.

The fixed Read More...

Currency Movements and Global Wealth

Events in the global financial industry will definitely impact an investor’s portfolio. And any movement in the currency of reference can increase or decrease the wealth of a household. According to Credit Suisse Research Institute’s Global Wealth Report 2016, exchange rate movements have greatly affected the methodology of computing wealth for nations although such changes are remarkably restrained unlike in the previous years.

The study, which computed the wealth of certain Read More...

Common Trading Mishaps to Forget

Here is how a trader spends his day: trade, earn profits, create plan, and evaluate strategy. Committing a trading mistake or two can end up eating the entire capital, if not managed. Although inevitable, a trader can find ways to avoid the most common trading mishaps.

Not Hedging against Losses

All investments have corresponding perils. Some are high, others are low. Hence, a trader should protect his portfolio against losses. It is imperative to diversify Read More...

Five Pitfalls of Currency Trading

Counterparty. In any financial dealing, the counterparty offers the asset to shareholders. The counterparty can also bring the default risk from the financial institution in a specific transaction. The danger in spot currency trading lies beneath the solvency of the dealer. In forex trades, a clearinghouse or exchange cannot guarantee forward and spot contracts. The counterparty may fail or refuse to follow contracts in times of market volatility.

Country A Read More...