The last three months over every year, the fourth-quarter, is often the period which see an increase in trading volumes as well as the time of the year where most traders make the majority of their income. There are several reasons for this which can range from end-of-year performance pressures by managers which leads to a general increase in trading volumes across all asset classes to an overall lift in the mood of traders due to seasonal factors such as Christmas. The increase in asset prices is therefore also called the Santa Clause Rally...
In the world of macroeconomics, there are two major components that investors must understand: monetary policy and fiscal policy. Understanding monetary and fiscal policy is particularly important to understand for the United States because of the weight of the decisions being made can be felt around the globe. The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve Board that determines the direction of monetary policy. The FOMC meets several times a year to discuss whether to maintain or change the...
Modern trading requires modern solutions. The days when telephone conversations were required to complete trading operations, are far behind. Information technology has already flooded the entire market and it has reached the financial segment. Automated trading, also known as algorithmic trading (algo trading) has gathered many fans across the years despite of its controversial state. It consists of a string of algorithms that enable trade executions based on pre-programmed instructions. Since the market of automatic trading has already...
A forex bonus is offered by the majority of brokers to their clients. There are different bonuses available, from a no deposit bonus where a new traders will receive a certain amount of money to start trading without making a deposit to the very common deposit bonuses which will give each trader a boost to their capital. There are plenty of brokers who offer a bonus on each deposit which can make a big difference for traders who are seeking to grow their capital base over time. Therefore it is very important to understand the bonus offered in...
Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up and control a huge amount of money. Leveraging, which is also known as trading on margin, means you can make a profit if markets move in your favor, though you can also lose more than your initial deposit should markets move against you. This is because any profits and losses are based on the full value of the trade, and not just the deposit amount. Understanding how to trade foreign currencies requires detailed knowledge...
