Forex trading is characterized by its high leverage effect, which can be achieved with a small equity investment. Margin in a trading account varies in percentage. Normally, trading accounts are leveraged 100 times. Due to its high leverage, the...
A market arbitrage takes place when a security is bought in one market and simultaneously sold in another, which allows the investor to benefit from the impact of the temporary difference in value. In the share market, market participants tend to...
The interest earned on foreign government bonds by mutual funds is denominated in foreign currency. When converted back into local currency, the interest earned if the foreign currency increases in value relative to the local currency.
Copy trading, also known as social trading or mirror trading, is a financial practice where individuals replicate the investment strategies and trades of experienced and successful traders. This form of trading relies on technology and online...
Forex trading is typically conducted in pairs. In a currency pair, the base currency is the first currency listed, while the second currency is called the quote currency. Due to this, forex trading always involves selling one currency to buy another,...
The fear of loss and making mistakes is one of the biggest hurdles for every trader. Trading entails taking risks that could result in losses, which is unavoidable. Fear of losing out is also known as loss aversion. In order to overcome this, a...
Traders seek out weak spots in the market to capitalize on price fluctuations. As part of this process, they search for points of resistance or areas where they think the market may turn around. A swing trader needs to know if the market is trending...
For some, using a forex signals provider can be exciting. Others can be skeptical about using such a service after using a forex signals service already and experiencing disappointments.
Forex trading is a highly lucrative activity that can generate substantial profits if approached correctly. However, traders must also be aware of the risks involved in trading and be prepared to handle profits in a responsible manner. Here are some...