Education - Basic

The Foreign Exchange market is the largest and most liquid financial markets in the world, with nearly 5 trillion in daily turnover. The market allows individuals, corporations, banks and speculators to exchange one currency for another. In a typical currency transaction, one party exchanges a quantity of one currency for

The liquidity of a financial instrument is often overlooked, as investors strive to produce the best risk adjusted returns.  Market liquidity usually fluctuates, but can be extremely illiquid as investors rush toward the exits during adverse market conditions.  Despite the liquidity associated with US stocks and ETFs, traders need to

The Stop Loss is a commonly used function in forex which is used to control losses to an acceptable level if a trade goes against the trader. A stop loss order is an instruction to the broker to automatically close a forex position if the price action moves contrary to

The spread is the difference between the bid price and ask price of a currency pair. Usually long orders are executed at ask price and short orders are executed at bid price. Once a trade is executed, the trader’s position is thrown into debit, according to the financial value of

The Percentage Interest Point or PIP is the smallest unit that measures the change in the price of a currency. Pricing in forex is usually done to 4 decimal places, or in the case of the Yen crosses, 2 decimal places. One PIP is the equivalent of 1/1000th of a

Support and resistance levels along with trend lines form the basis of trading patterns which have been used throughout history to predict future market movements in forex trading. The concept is based on the theory that history, along with human psychology, repeats itself, and that a specific grouping of market movements

A vanilla option is an uncomplicated type of financial derivative contract which gives the holder of that option the right but not the obligation to buy or sell this contract at a given price within a set time frame. This means that a vanilla options contract has standard features of

Charts In trading, a chart is a picture which reflects the movements of a financial security plotted over time and each type of chart has its benefits as well as drawback. Line Chart The most basic chart is a line chart.  A line chart reflects one point during a specific

Fundamental analysis in forex is a type of market analysis in which the trader or market analyst attempts to carry out an evaluation of currency pairs in order to determine the true or inherent value of one currency against another, using economic and socio-political factors that affect either the currency

Have you always been fascinated by precious metals but never knew why? Answer a few simple questions and find out what kind of precious metal are you. You are more than welcome to share your quiz results and your thoughts with us and with your friends on the comments section below

A lot has been said about these types of brokerage business, but we are here to show you a wise, yet unpopular opinion. Last years Market Makers have been blamed for all the evil in the forex market, as these brokers are actually expecting a trader to lose the money.

There are a lot of similarities between a car driver and a trader. In fact, you, a growing trader, would learn a lot by imagining yourself to be a car driver. When you start driving a car for the first time, you are pretty much overwhelmed. There are so many

There are different varieties of trading that are based on the trading behavior, length of the trade and the type of the analysis one goes with, etc. but there are three most important types of trading – scalping, day trading and swing trading. Not that the other types are irrelevant,

Chapter 1: What is Forex? “Forex” or foreign exchange is by definition a currency trading market. It is regarded as the world’s largest market with a daily turnover of roughly 3 trillion U.S dollars. Instead of goods being traded in the forex market, currencies of the world are being traded

Face it, who can deny that unmistakable feeling of euphoria when they make a killing from the market? Compare that to the stomach-churning pain of when you get it wrong then lose money, and you have a wide range of emotions. The gulf between pleasure and pain can often feel

The emotions of fear and greed have driven the markets since the very concept of a marketplace was conceived. But these emotions do not have to have an adverse effect on our trading performance, if we know how to deal with them.

Pursuit of Happiness is one story almost all of us are familiar with, a man’s story of rags to riches in the Wall Street. Sheer luck was not what made him successful. Determination to thrive and keep trying was what had him reach the benchmark. The biggest problem with us

So you think you’re a successful and profitable trader, huh?  What do your results say? They will reveal that hard and empirical truth for you, no matter how much you think you know about financial markets today.

Whether you are a seasoned trader or a newbie, you cannot really be absolutely convinced of the fact that you are totally free of the innumerable myths or fallacies which the world of forex is brimming with. A Trader’s Fallacy is in fact, one of the potent ways in which

With the IMF’s downward revision of global growth forecast and the intimation by the FOMC minutes to still consume considerable time before thinking of an interest rate hike caused the rebound in gold prices from the year’s low during last week. The yellow metal secured nearly 2.5% so far during