It is known that in order to successfully trade on Forex market, in addition to the technical you also need to learn fundamental analysis. This article will be especially useful for those who just begin to research the specifics of the financial markets as we will show a simple picture of impact of the fundamental factors on currencies.In a nutshell, fundamental analysis is the study of the economic and political development of a state. Fundamental analysis determines the root causes on which one currency will rise and another fall. There is...
Due to permanent panic moods in the financial markets there are new calls to return the gold standard. However in a world where the real value of gold has become a brand, the introduction of the gold standard could lead to dramatic consequences. At a time when the markets are shaking, investors want peace and certainty. Therefore, any monetary fever leads to the resumption of nostalgic talks about the good old times of the gold standard. Info: The gold standard is a monetary system in which the standard economic unit of account is based on...
Forex day trading is one of the most popular forex trading strategies and it is employed by both beginners and experienced traders. As a day trader you will not hold any trading positions overnight. You may make multiple trades within a single day but you will liquidate all of your trading positions before the market closes. If you decide to use a day trading strategy remember that the longer you hold a trading position the higher your risk of losing on the trade. Usually a day trader’s strategy uses significantly more investment...
The spread on Forex market is the amount of pips between the bidding price and the asking price. The spread is what Forex companies use to make money on every trade placed through their network. Since the spread takes a big part of Forex trader’s expenses, it is important to consider it to everyone who wants to be successful in the currency market. The smaller the spread, the more profitable trades you will have.Spreads in the Forex market is generally measured in points rather than in money. For example, if the current price of EUR/...
Despite many attractive characteristics of Forex trading, the foreign exchange market is vast, complicated and ruthlessly competitive. Major banks, trading houses and funds dominate the market and quickly incorporate any new information into the prices. Foreign exchange is not a market for the unprepared or ignorant. To effectively trade foreign currencies on a fundamental basis, traders must be knowledgeable when it comes to the major currencies. This knowledge should include not only the current economic stats for a country, but also the...
