Since traders only need to buy or sell and then manage their positions when trading forex, it is easier than trading options. The skill is easy to learn and can be performed with little orders. Option traders need to understand the difference between...
Leverage in finance refers to using borrowed funds to increase the size of an investment. There are several different types of leverage, including:
In trading and investment contexts, the net position and the gross position are two important concepts that provide insights into a trader's exposure to a particular asset or market. Understanding the difference between these terms is crucial for...
Round-trip trading, or round-tripping, refers to the simultaneous buying and selling of the same asset, often between two entities, to create the illusion of activity or inflate transaction volumes. While legitimate in certain contexts like arbitrage...
Hedging and speculation are two concepts that are often used in the financial markets. The key difference between the two is that hedging involves taking a position in the market that is intended to reduce or eliminate risk, while speculation...
Many people resort to the currency market because it offers the potential for significant profits through buying and selling different currencies. The currency market, also known as the forex market, is the largest financial market in the world, with...
The Harmonic Crab chart pattern is an advanced technical analysis tool within the Harmonic Trading methodology. This pattern helps traders predict potential price reversals using Fibonacci retracement and extension ratios. The Crab pattern consists...
Weekend trading gives you access to indices and cryptocurrencies markets on Saturday and Sunday. In other words, if you think Brexit news will surface on a Saturday, causing the FTSE 100 to move, you do not have to wait until Monday to trade. During...
1. Those that are financially weak are backed by countries that are financially stronger.