Speculators play an important role in financial markets by providing liquidity, taking on risk, and looking to profit from price differences or changes in market circumstances. Prices may fluctuate quickly as a result of their actions, increasing...

Developing and executing a successful trading strategy requires a great deal of skill and discipline, and there are several common mistakes that traders can make along the way. One common mistake is failing to properly backtest their strategy and...

My favorite trading techniques revolve around a blend of technical analysis, fundamental analysis, and psychological strategies. Firstly, I often use **trend following**. By identifying and riding established trends, whether upward or downward, I can...

A 'tick,' like a pip, may not measure every increment equally. For example, a tick on one instrument may be measured in 0.0001 increments, whereas a tick on another instrument may be measured in 0.25 increments.

Liquidity risk in forex, or foreign exchange, refers to the potential difficulty or cost associated with buying or selling a currency pair without causing significant price fluctuations. It arises from the forex market's decentralized nature, where...

A gamma hedging strategy can be used to reduce your exposure to risk in an options contract. You would use it if the underlying market makes strong up or down moves contrary to your currenct options position, as the expiry date of the contract...

Effective trading journal formats can vary depending on the trader’s needs and preferences, but generally, they include certain key elements to maximize their usefulness. One common format is a spreadsheet-based journal. Using programs like...

The concept of market cycles refers to the natural fluctuation of financial markets through various phases over time. These cycles are influenced by economic conditions, investor sentiment, and external factors such as political events and...

Global news reports are essential sources of information for forex traders. As the forex market operates 24 hours a day, traders need to stay up-to-date with the latest global news and events that could impact currency values. Global news reports...

The trading strategy is a constantly evolving approach to buying and selling assets in the financial markets. As market conditions change and new information becomes available, traders must adapt their strategies in order to remain competitive and...