Technical analysis and fundamental analysis are the two main schools of thought in the financial markets. Technical analysis looks at the price movement of a security and uses this data to predict its future price movements. Fundamental analysis, on the other hand, looks at economic factors, known as fundamentals. There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Technical analysis is essentially a study of price movements. Trades are made on the basis...
The term ‘cross currency’ is most commonly used to refer to currency pairs that do not involve the US dollar. The reason for this is that, historically, if you wanted to convert one non-USD currency into another non-USD currency, you had to convert it into USD first, and then convert the USD into the currency of your choice. Cross currencies allowed people to bypass this step by making this type of exchange directly, without the need to convert to USD. A cross-currency transaction is one which involves the simultaneous buying and selling of...
The forex market is the most accessible financial market, only requiring a small amount of capital to open an account. How much money you’ll need to trade forex is one of the first issues you have to address if you want to become a forex trader. Which broker you choose, trading platform, or strategy you employ are all important as well, but how much money you start with will be a colossal determinant in your ultimate success. Just because forex brokers only require a small initial deposit doesn't mean that is the recommended...
Commodities are raw materials that are either consumed directly, such as food, or used as building blocks to create other products. These materials include energy sources like oil and gas, natural resources like timber and agricultural products, or precious metals like gold and platinum. Commodities are an important way for investors to diversify beyond traditional stocks and bonds, or to profit from a conviction about price movements. Commodities are standardized across producers with the use of minimum quality standards, called basic grades...
Here are the key factors to keep in mind today for Euro trades: German Trade Balance, Current Account Balance, Exports and Imports: The German Trade Balance for January was reported at €13.6B. Economists predicted a figure of €17.0B. Forex Traders can compare this to the German Trade Balance for December which was reported at €19.0B. German Exports for January decreased by 0.5% monthly. Economists predicted an increase of 0.8% monthly. Forex Traders can compare this to German Exports for December which decreased by 0.7% monthly. German...
