When trading currencies, one quickly realizes that the US Dollar is the currency that dictates the price fluctuations in the market environment. The US Dollar Index is basically showing the strength or weakness of the US Dollar vs. a basket of currencies. This basket represents most of the largest free-floating currencies in the world on a weighted average basis. Kind of like the S&P 500 is used to measure the direction (strength or weakness) of the average stock, we can use the dollar index in the same way for US dollar currency pair...
After UK voters decided to leave the European Union, the unthinkable happened for many pro-EU leaders: Article 50 was triggered. Article 50 is the former notification of a member country to leave the world’s largest trading bloc within 24 months. Once British Prime Minister Theresa May send a letter to the President of the European Council Donald Tusk and divorce talks started, mane abandoned the British Pound and called for a much weaker currency exchange rate against major peers. The most extreme forecasts called for the Euro to be more...
In financial markets, high-frequency trading (HFT) is a type of algorithmic trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons. This refers to one of the many kinds of algorithmic trading strategies that involve lightning-fast execution of multiple signals designed to take...
In the world of forex trading, the term discipline means, you as a trader will be following the rules of the trading system strictly and accurately. For some, discipline means they are being serious about doing something but it is a whole lot of ball game when you associate discipline to forex trading. Having forex discipline is essential for the reason that, over 80% of forex traders loses their trades not because they do not follow a good trading system or they do not apply the right strategy, they lose for the sole reason that they are...
The trade war between the US and China is not the only headwind facing Chinese economic worries. While the trade war, which is increasing in scope and size, will have a negative economic impact, it is not the biggest issue clouding economic and fiscal stability. As the economy is metamorphosing from an emerging one into a developed one, the same threat other developed countries struggle with is rearing its ugly head: debt. The biggest question remains if China will follow into the footsteps of its peers or if it will manage its debt in a smart...
