Using Technical Themes in Currency Trades

When analyzing the currency market, traders use fundamental themes and technical themes to help them evaluate a currency’s solvency. Interestingly, fundamental economic and political themes may remain fairly unchanged even when price levels do not. When currency prices shift, they …

Using Structural Themes in Currency Trades

Themes in the forex market are the driving force behind currency trades. When commentators and analysts discuss the action in the forex market, they are referring to the themes at play. Themes differ in their strength, longevity and impact. Structural …

Evaluating a Nation’s Creditworthiness

In the world of currency trading, a nation’s creditworthiness is fundamental to a successful investment. In addition, a currency trader must consider monetary policy and interest rate developments. Monetary policy is the set of policy actions that central banks use …

Types of Orders in the Forex Market

Orders are just one of two ways to execute trades in the forex market. Every currency trader should use both live trades and orders as part of their astute trading strategy. Live trades are ideal when a trader can be …

Executing Currency Trades

There are two primary methods for executing trades in the FX market: live trades and orders. But before jumping in, it is advisable to establish a practice account at an online forex broker. This is a risk-free way to try …

Rollovers

Although there are some similarities between the currency market and other financial markets, one convention unique to the currency market is rollovers. A rollover can be defined as a transaction where an open position from one value date (settlement date) …

Forex Market Positions

An investor’s position in financial market trading is expressed in specific terminology. Versing oneself in these terms, especially when a complete novice, will facilitate the trading experience. Forex Market Position Terminology Long Position A long position, also known as long, …

Currency Pairs

As with every financial market, the forex market consists of its own trading methods, terminology and conventions. When entering the trading market as a new investor, a basic understanding of the forex lingo will assist you. One key term foundational …

Currency Reserve Management

National governments are major players in the forex market. However, their purpose for continual active trading is not to shift the values of major currencies. Instead, they use trading investments as a means to finance government operations, transfer payments and …

Trading in the Interbank Market

The interbank market is a fast-paced, adrenaline rush where trillions of dollars change hands daily. The interbank market is made up of a network of international banks functioning in financial centers across the world. These banks host trading operations to …