Forex Leverage and Margin Defined

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Leverage is vitally important, yet it remains a misunderstood concept for many traders. The leverage ratio essentially governs the margin required in an account to trade. 1:100 leverage means for every 100 USD traded, 1 USD margin is required (or 1%). 1:200 leverage, therefore, means for every 200 USD traded, 1 USD margin is required … Continue reading Forex Leverage and Margin Defined

Forex Trading: What is the Spot Market?

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Financial markets are a mystery to many, thought to be overloaded with convoluted terminology. One market in particular that often causes confusion is the spot market. Commonly referred to as the cash market or physical market, the spot market is a place securities are exchanged for cash and delivered on the spot. The price quoted, … Continue reading Forex Trading: What is the Spot Market?

Forex Trading: An Introduction to Trading Strategies and Trading Styles

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Without rules of engagement, you essentially operate on emotion instead of a well-ordered approach. This is what a trading strategy provides. Countless Forex trading strategies are available, therefore choosing a suitable approach can be a challenge. What’s a Trading Strategy? You may have heard maintaining discipline is key to becoming a successful trader. Equally as … Continue reading Forex Trading: An Introduction to Trading Strategies and Trading Styles

The Importance of the US Dollar Index

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To say the US dollar is important is an understatement. According to the 2019 Triennial Survey of turnover in OTC FX markets[1], the US dollar retained its dominant currency status, on one side of 88% of all trades. Additionally, more than 60% of foreign exchange reserves are denominated in dollars, according to the International Monetary … Continue reading The Importance of the US Dollar Index

What Are Derivatives: An Introduction

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In finance, a derivative represents a contract deriving its value from the performance of an underlying entity. In a nutshell, derivatives are agreements between buyers and sellers. Derivatives specify a future price at which an asset can be sold, known as the underlier. This could be a physical commodity, such as corn, wheat or natural … Continue reading What Are Derivatives: An Introduction