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…
What is margin in trading? A Forex trading margin is a ratio that defines the leverage a trader has in the market. Trading margins in the world of Forex range from 10:1 to 50:1 on average. So, when it comes to Forex trading, a $1 principal investment gives the trader the ability to trade…
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?…
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…
Moreover, How to start trading on forex How to start trading on forex? Many want to make money in the forex market, but few who begin to trade forex want to do the prep work needed to become successful traders. While trading forex has become easier now than ever before because you can trade online via the internet, most novice traders…
Can cryptocurrency be taxed? Can cryptocurrency be taxed? The whole world is watching as Bitcoin and the rest of the cryptocurrency market keep notching new record highs. But can cryptocurrency be taxed? The Internal Revenue Service (IRS) is watching, too. If you own cryptocurrencies, you need to understand the tax liability impact every time you…
How exchange rate is determined Current international exchange rates are determined by a managed floating exchange rate. The economic actions of its government or central bank affect each currency’s value that means a managed floating exchange rate. The managed floating exchange rate hasn’t always been in use. The gold standard controlled international exchange rates until…
Who invented currency Why do people need currency? There are many theories about who invented currency, in part because money has many functions. It facilitates exchange as a measure of value and it brings diverse societies together by enabling gift-giving and reciprocity. Moreover, it perpetuates social hierarchies. Finally, it is a medium of state…
How traders make money Traders make money by employing trading strategies that indicate when a market is likely to advance or decline and then place orders accordingly to catch that move. To be able to not only profit from positive swings, but many traders also make use of a combination of short orders and buy…