Basis Risk Basis risk is the inherent risk a trader takes when hedging a position by taking a contrary position in a derivative of the asset, such as a futures contract. It is normal in an attempt to hedge away price risk. As an example, if the current spot price of gold is $1190 and…
Resistance Level The resistance level can visualize using different technical indicators rather than simply drawing a line connecting highs. What is Resistance? Initially, the resistance level on a candlestick chart is the price when you can expect more sellers than buyers. It prevents the price from rising further and the resistance levels indicate a price…