To say the US dollar is important is an understatement. According to the 2019 Triennial Survey of turnover in OTC FX markets, 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
Category: Forex Trading 101
What Are Derivatives: An Introduction
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
The Foreign Exchange Market and Inflation
Income and the price of products are vastly different to what they are today. Mars Bars in the UK cost 29p in 2000, though cost 60p today. The median annual earnings for full-time employees in the UK was approximately £30,000 in 2019, while in 2000 employees took around £19,000. This is largely due to inflation. … Continue reading The Foreign Exchange Market and Inflation
What Are Lots in the Forex Market?
Newer traders often enter trading with exaggerated dreams, void of accurate education. To trade the forex market successfully, understanding the dynamics behind how trades are measured is a necessity. Currency Pairs A base currency is the primary currency in a currency pair quotation – the euro in EUR/USD, for example. The quote currency, or counter … Continue reading What Are Lots in the Forex Market?
Accept Losses and Become a Consistent Trader
Learn to take losses. The most important thing in making money is not letting your losses get out of hand – Marty Schwartz Accepting loss to gain trading consistency is an interesting paradox. Every good trader endures loss. The difference between a successful trader and failure is understanding how to handle loss. Whether we choose … Continue reading Accept Losses and Become a Consistent Trader