The number of active contracts is called open interest, or OI. Most option quotation screens display this field along with the bid price, ask price, volume, and implied volatility. Most options traders ignore active contracts, which can have...
The foreign exchange, or forex, market is the largest financial market in the world, with trillions of dollars traded daily. There are several benefits to participating in the forex market, both for individual investors and large institutions.
Major pairs are the most widely traded in the world and always include the U.S. dollar (USD) along with another strong currency such as the euro (EUR), British pound (GBP), Japanese yen (JPY), Swiss franc (CHF), Australian dollar (AUD), Canadian...
Despite a large amount of capital in the FOREX market, it is important to remember that it is not impossible to lose money during speculative operations. Where there is a potential for earning, there is always a risk of losing part or all of the...
A stop-loss order is a trading tool that is used by traders to limit their potential losses in a trade. It is an automatic order that is placed with a broker to sell or buy security once it reaches a certain price point. When a stop loss order is...
Transaction costs in trading refer to the expenses incurred by traders when buying or selling securities. These costs can include brokerage fees, bid-ask spreads, taxes, and other fees associated with trading.
A trader and an investor both participate in financial markets, but their goals, strategies, and time horizons are very different. An investor focuses on building wealth over the long term by buying and holding assets such as stocks, bonds, or real...
Supply and demand areas play a crucial role in the concept of trading. These areas represent key levels in the market where buyers and sellers interact, creating imbalances in supply and demand. Understanding and identifying these areas can...
The TRIX indicator, short for "Triple Exponential Average," is a momentum oscillator used in technical analysis to identify trends and potential reversals in price movements of financial assets. Developed by Jack Hutson in the 1980s, TRIX is designed...
A flag and a pennant are both continuation patterns in technical analysis, but they differ in shape and formation.