Anastasia Ardo

With variable spreads, the difference between the bid and ask prices of currency pairs is constantly changing. Here’s an overview of the several different currency pairs across forex trading, as well as their nicknames used in the market. On the forex market, trades in currencies are often worth millions, so small bid-ask price differences (i.e. several pips) can soon add up to a significant profit. Of course, such large trading volumes mean a small spread can also equate to significant l […]

In the context of the foreign exchange market, traders liquidate their positions in various currencies to take up positions in safe-haven currencies, such as the US dollar. Sometimes, the choice of a safe haven currency is more of a choice based on prevailing sentiments rather than one of economic statistics. The value of equities across the world fell while the US dollar strengthened (see Fig.1). This happened despite the strong focus of the crisis in the US. Foreign exchange is traded in an o […]

The blender costs $100 to manufacture, and the U.S. firm plans to sell it for €150—which is competitive with other blenders that were made in Europe. If this plan is successful, the company will make $50 in profit because the EUR/USD exchange rate is even. Unfortunately, the USD begins to rise in value versus the euro until the EUR/USD exchange rate is 0.80, which means it now costs $0.80 to buy €1.00. Due to the big financial risks involved involved in options trading, a real Options Dummy nee […]

Before retail trading was a norm, large players like big banks would trade currencies in large volumes. The standard lot of a given currency that could be traded was 100,000 units. Nowadays, you’ll also find the micro-lot size of 10,000 units of currency, and the macro lot equal to 1,000 units of currency. They are currencies from the top economies but in this case they are not paired with the US dollar but with each other. For instance, you will encounter euro crosses, where the Euro is […]

The major forex market centers are Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London, and New York. Day trades are short term trades in which positions are held and liquidated in the same day.
Online trading, web-based research and analysis combined with competitive pricing have made the market more accessible. Hundreds of thousands of informed individuals, businesses and investment funds actively trade Forex. This comprehensive guide will teach you more about the differences betwee […]