Fundamental Analysis In finance, fundamental analysis is the analysis of the foundation of an asset or similar. For a company share, fundamental analysis will typically involve the analysis of financial statements that includes information about the company’s assets, liabilities and earnings. Looking at the company’s overall health, risks posed by competitors, and the general market […]
The foreign exchange market is the largest financial market in the world and also the most liquid. At the time of writing, it has an average daily turnover of (the equivalent of) roughly 5 trillion USD. That’s 5,000,000,000,000 – five million millions – per day. However, just because the market as a whole is characterized […]
There are quite a few people out there that hail the martingale system as a fool proof way to get rich on the forex market. Many times, they are also selling some type of e-book or similar that they promise will help you iron out the kinks and understand exactly how to employ the martingale […]
Copy trading is a type of trading where the trader copies another trader’s actions. During recent years, social networking platforms have been developed that makes it very easy for traders to copy each other. The goal is of course to increase your profits by copying the trade of a successful trader. One reason why copy […]
A Contract for Differences (CFD) is an arrangement made in a futures contract whereby differences in settlement are made in the form of a cash payment. There is never any obligation for any part to deliver actual physical goods, securities, etc when the contract expires. Both losses and gains are paid in cash. If you […]
The FX market is often impacted by the equity market, and vice versa. The share price of a stock company can for instance drop if the company is predicted to become adversely impacted by a strengthening of the national currency against the currency of a major import market. Conversely, the FX market can react in […]
A profitable FX scalper exploits small price gaps created by the bid-ask spread. To put it simply, the FX scalper will buy (pay the bid price) and then sell (receive the ask price). The difference between bid and ask is the profit, before transaction costs. It is a type of arbitrage, and it can be […]
What is a currency pair? Currency pairs is the foundation of the FX market. Currencies are traded in pairs, where one currency is the base currency and another one is the counter currency. The quote for a currency pair denotes how many units of the counter currency you must pay to receive one unit of […]
In the world of trading, the difference between the bid price and the ask price for something, such as a company share, is called the spread. How to calculate the spread In the forex markets, currencies are traded in pairs and the price of a currency is always quoted in terms of its price in […]
The foreign exchange market, also known as the FX market, is not one centralized market. Instead, it is made up by numerous market places, from the big interbank currency market to small retail FX trading platforms. Governments, banks, corporations, organizations and individuals all need to exchange one currency for another for various reasons, and their […]
