A time spread, also known as a calendar spread or horizontal spread, is an options trading strategy that involves simultaneously buying and selling two options with the same strike price but different expiration dates. This strategy capitalizes on...
A variable spread in forex trading refers to the difference between a currency pair's bid and ask price that fluctuates depending on market conditions. Unlike fixed spreads, which remain constant, variable spreads adjust dynamically due to market...
Perfect capital mobility refers to a theoretical concept in economics where capital can move freely and without restriction between different countries and regions in response to market signals and economic conditions. In a world with perfect capital...
Starting with a practice account in Forex offers numerous benefits, particularly for beginners. A practice account allows traders to gain hands-on experience without risking real money. It provides a platform to familiarize oneself with trading...
Overconfidence is a common pitfall for traders and can be detrimental to their success in the markets. When traders become too confident in their abilities, they may take on excessive risk or make poorly informed trading decisions based on incomplete...
Negotiation in forex refers to the process of buying or selling currencies in a way that seeks to achieve favourable terms for the trader. While the forex market operates through a decentralized system where currency prices are determined by supply...
The father of candlesticks, also known as the father of Japanese candlestick charting, is Munehisa Homma. He was a Japanese rice merchant who lived in the 18th century and is credited with creating the candlestick charting technique, which is now...
We will demonstrate how and when to buy and sell forex using the EUR/USD currency pair. Assume you want to buy the EUR/USD. If the EUR rises in value relative to the USD after the trade is closed, you could have profited (depending on commission and...
As one of the branches of statistics, financial statistics (finance statistics) studies the quantitative aspects of monetary and financial relations and the circulation of financial resources in various sectors and fields of economic...
Momentum trading is a strategy rooted in the idea that assets showing strong recent performance will continue to move in the same direction for a period due to market inertia. The primary principles behind momentum trading are as follows: