Tag Archives: trading

Economic Growth Rate

Economic Growth Rate Economic growth Rate describes an increase in the quantity and quality of the economic goods and services that a society produces and consumes. From the long-term perspective of social history, we know that economic prosperity and lasting economic growth is very recent achievement for humanity. In this entry, we will also look…

Read More

Effective Gross Income

Effective Gross Income What is Effective Gross Income (EGI)? There’s big money-making potential with an investment rental property. However, determining how much you’ll actually make isn’t as simple as multiplying the monthly rent by 12. To understand your true cash flow, you’ll need to keep an eye on your effective gross income (EGI) about your net…

Read More

Diluted EPS

Diluted EPS The Diluted EPS formula is equal to Net Income less preferred dividends, divided by the total number of diluted shares outstanding (basic shares outstanding plus the exercise of in-the-money options, warrants, and other dilutive securities). Also, the concept of diluted shares outstanding can be equated to a pie, of sorts. If more slices are…

Read More

Margin Call

Margin Call To understand a forex margin call, it is essential to know about the interrelated concepts of margin and leverage. Margin and leverage are two sides of the same coin. Margin is the minimum amount of money required to place a leveraged trade.  Leverage provides traders with greater exposure to markets without having to fund the…

Read More

Currency Revaluation

Currency Revaluation What is Currency Revaluation? In a fixed exchange rate regime, only a decision by a country’s government, such as its central bank, can alter the official value of the currency. Developing economies are more likely to use a fixed-rate system to limit speculation and provide a stable system. A floating rate is the opposite of a…

Read More

Currency Appreciation

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…

Read More

How forex profit is calculated

How is forex profit calculated Calculating Profit and Loss How forex profit is calculated? The actual calculation of profit and loss in a position is quite straightforward. To calculate the P&L of a position, what you need is the position size and the number of pips the price has moved. Therefore, the actual profit or…

Read More

Technical analysis

Technical analysis Technical analysis is the framework in which traders study price movement. Foreign exchange markets are particularly well suited to using technical analysis. The high levels of liquidity in terms of trading volumes and some players, and sensitivity to big long-term national-level trends means that forex markets tend to trend over time and patterns often…

Read More

Resistance Level

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…

Read More

Bid vs Ask Price

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…

Read More