Capital Loss A capital loss is when the value decreases for a capital asset, such as an investment or real estate. This loss will not realise until the sold asset is for a price lower than the purchase price originally. It is a difference between the purchase price and the selling price of the asset,…
Capital Gains Tax Capital gain is the profit one earns on the sale of an asset like stocks, bonds or real estate. It results in capital gain when the selling price of an asset exceeds its purchase price and receives a capital gains tax. It is the difference between the selling price (higher) and cost…
Angel Investor An Angel investor is an individual who offers promising startup companies funding in exchange for a piece of the business, usually in the form of equity or royalties. While figures vary on an annual basis, as recently as 2017 angel investors put approximately $25 billion into 70,000 companies. Angel investors may or may…
Bid vs Ask Price The Bid price is the price a forex trader is willing to sell a currency pair for. Ask price is the price a trader will buy a currency pair at. Both of these prices are given in real-time and are constantly updated. So for example, the British pound against the US…
Spread Definition Most forex currency pairs are traded without commission, but the spread is one cost that applies to any trade that you place. Rather than charging a commission, all leveraged trading providers will incorporate a spread into the cost of placing a trade, as they factor in a higher asking price relative to the…
Lot size The Lot Size represents the standardized number of a financial instrument as set out by the exchange. When trading stocks, the lot size refers to the number of shares you buy in one transaction. When trading Options/Futures, the Lot Size (contract size) refers to the total number of contracts contained in one derivative…
Pip What is it? Pip is an acronym for “percentage in point” or “price interest point.” A pip is the smallest price move that an exchange rate can make based on forex market convention. Most currency pairs are priced out to four decimal places and the unit change is the last (fourth) decimal point. It…
Exchange Rate Typically, an exchange rate uses an acronym for the national currency it represents. For example, the acronym USD represents the U.S. dollar, while EUR represents the euro. To quote the currency pair for the dollar and the euro, it would be EUR/USD. In the case of the Japanese yen, it’s USD/JPY, or dollar…
Stock Market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only trading privately, such as shares of private companies, for investors through equity crowdfunding platforms. Investment in the stock market…
Forex Indicator Forex Technical Analysis Indicator usually forecasts price changes in the currency market. They are calculations that take the volume and price of a certain financial instrument into account. By using Forex indicators, traders can make decisions about market entry and exit. In the MetaTrader 4 trading platform, there is a function that allows…