A crawling peg exchange rate system is a hybrid approach that blends elements of fixed and flexible exchange rate regimes. In this system, a country’s currency is pegged to another major currency, such as the U.S. dollar, but the pegged rate is...
Understanding the reasons behind trading losses is one of the most valuable lessons a forex trader can learn. Every loss tells a story about timing, strategy, emotions, or discipline. By studying each losing trade, traders can uncover patterns in...
High market volatility often signals strong emotions driving investor behaviour, typically reflecting uncertainty, fear, or excessive optimism. When prices fluctuate sharply within short periods, it means traders are reacting quickly to new...
A trailing stop loss is a dynamic risk management tool that helps traders lock in profits while protecting against losses as the market moves. Unlike a fixed stop loss, which stays at one price level, a trailing stop adjusts automatically when the...
In currency trading, a fractional pip holds significant importance as it enhances the precision of price movements, allowing traders to execute trades with greater accuracy and efficiency. A pip, short for "percentage in point," is traditionally the...
A Tweezer Bottom pattern forms on a price chart when two consecutive candlesticks, usually representing two trading sessions, exhibit specific characteristics that suggest a potential reversal in the current downtrend. The pattern typically appears...
The Three Black Crows pattern is a bearish candlestick formation widely recognized in technical analysis. It typically occurs in financial markets and is used by traders to identify potential reversals in an uptrend. This pattern consists of three...
Using stop-loss orders effectively and responsibly is crucial for managing risk and protecting your capital when trading and investing. Here are some best practices to consider:
A currency swap is the most common type of forwarding trade. With the understanding that they will reverse the trade later, one party exchanges currency for another for a predetermined period. The contracts for these products are not standard, and...
Skills are far more important than luck in trading because markets reward preparation, not chance. While a lucky trade might yield a short-term win, consistent success comes from mastering analysis, discipline, and emotional control. Skilled traders...