Managing personal finances is definitely not an easy task, but it is one that we need to tackle. The key aspects are to have a clear idea of our income and to be aware of what we are spending it on. Before we pass these stages, finances can be a true chaos. This can prevent…
With the Ukrainian-Russian war, the ecological mood of a lot of westerners people, and a lot of others energy production aspect like the instability of the production of the renewable energy (it’s difficult to know what will be produced with solar and wind…), there is a big surge on the energy prices and the cost…
Currency Depreciation Understanding Currency Depreciation Countries with weak economic fundamentals, such as chronic current account deficits and high rates of inflation, generally have depreciating currencies. Currency depreciation, if orderly and gradual, improves a nation’s export competitiveness and may improve its trade deficit over time. But an abrupt and sizable currency depreciation may scare foreign investors…
Currency Appreciation Currency appreciation in the same context is an increase in the value of the currency. Short-term changes in the value of a currency are reflected in changes in the exchange rate. Basics of Currency Appreciation In a floating rate exchange system, the value of a currency constantly changes based on supply and demand. Therefore, the…
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…
Currency Pair A currency pair is a quotation of two different currencies, where one is quoted against the other. The first listed currency within a currency pair is called the base, while the second currency that is the benchmark is called the quote. Understanding Currency Pairs Trading currency pairs are often conducted in the foreign…
Forex Leverage Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, money is usually borrowed from a broker. Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up—and control—a huge amount of money. What is Leverage Ratio?…
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…
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…