A currency basket is a group of currencies used to help stabilise a country's currency's value. Typically, the basket includes the currencies of a country's major trading partners. The currency basket can be used by a country's central bank to...

A forward spread is the difference in price between two forward contracts. A forward contract is a type of derivative contract in which two parties agree to buy or sell an asset at a set price on a future date. A forward spread can be used to...

A liquid market refers to a financial market where there are many buyers and sellers, and transactions can be executed quickly and at low cost. This type of market has high trading volume, which means there is a large number of shares or other assets...

Understanding psychology in markets is important because it helps individuals make better investment decisions. Markets are driven by the behavior of investors, which is influenced by their emotions and biases. If investors are overly optimistic or...

Pivot trading is a popular strategy among traders as it helps to identify key levels of support and resistance in the market. These levels are determined by calculating the pivot point, which is the average of the high, low, and closing prices from...

Strategy development in trading involves creating a systematic plan or approach to making investment decisions in financial markets. The process typically begins with defining an investor's goals, risk tolerance, and investment time horizon. A trader...

The purpose of taking a short position in the forex market is to profit from a decline in the value of a currency pair. When a trader takes a short position, they sell a currency pair that they do not currently own, with the expectation that its...

The Money Flow Index (MFI) and the Relative Strength Index (RSI) are both momentum oscillators that help traders identify overbought and oversold conditions, but they differ in their calculations and applications.

Capital management and risk management are closely interconnected and have a symbiotic relationship within organizations. Capital management refers to the efficient allocation and utilization of financial resources to achieve the company's...

Trading relies heavily on research and fundamentals. Traders will notice certain particular objectives that must be met in this example of a trading plan: