Forex Trading News
Petrodollar SystemThe petrodollar system has been a significant factor in shaping the global economy for nearly half a century. This system, which revolves around the trade of oil for US dollars, has sustained the value and reserve currency status of the US dollar and influenced global politics and economics since its inception in the 1970s. This […]
Bretton Woods System – Formation, Breakdown & Future ImplicationsThe Bretton Woods system, established in 1944, marked a significant milestone in the history of the global monetary system. It laid the foundation for the current system of international finance and trade, shaping economic policies for decades. This article will look at the formation and breakdown of the Bretton Woods system, its implications, and the […]
Statistical ArbitrageStatistical arbitrage, commonly known as “Stat Arb,” has been an essential tool for quantitative traders and investors since its inception. This data-driven approach allows market participants to exploit anomalies, discrepancies, and inefficiencies within financial markets. In this article, we’ll explore the various strategies and applications of statistical arbitrage, from equities and bonds to commodities and […]
Grid Trading StrategyGrid trading has become a popular technique for traders in various financial markets, particularly the foreign exchange (FX) market. This trading method capitalizes on the inherent volatility of asset prices by strategically placing buy and sell orders at predetermined intervals. Through the use of this structured approach, traders can minimize risk and potentially maximize profits […]
Pip (FX Trading)What Is a Pip in Forex Trading? In FX (foreign exchange or forex) trading, a pip stands for “percentage in point” or sometimes “price interest point.” It is a unit of measurement used to express the smallest incremental movement in the exchange rate of a currency pair. A pip is typically equal to 0.0001 for […]
Mean Reversion StrategiesMean reversion strategies are based on the principle that prices of financial assets will eventually move back toward their long-term average or mean. Here are a few examples of mean reversion strategies for trading financial markets: Mean Reversion Strategies Relative Value Trading Relative value involves comparing the price of an asset to another related asset […]
Commodity CurrenciesIn international finance and trade, commodity currencies play an important role in shaping the dynamics of global economies. These currencies, often also referred to as “resource-based currencies,” derive their value and stability from the exportation of key commodities such as crude oil, gold, copper, and agricultural products. Typically, nations with abundant natural resources and significant […]
Forex CorrelationsForex (foreign exchange) correlations refer to the interconnectedness between different currency pairs in the global foreign exchange market. By understanding these correlations, traders can make more informed decisions, manage risks more effectively, and diversify their portfolios. In this article, we’ll explore key aspects of forex correlations, including types, common pairs, factors affecting them, and their […]
Current Account vs. Capital AccountThe foreign exchange market, also known as the forex market, is the largest financial market in the world. It is a decentralized market where currencies are bought and sold, and the exchange rate between two currencies fluctuates based on a variety of factors. One of the critical factors that affect exchange rates is the balance […]
Capital Account – Impact on Macroeconomics & Currency TradingIn macroeconomics, the capital account is a record of a country’s international transactions that involves tangible physical assets, such as financial instruments and real estate. The capital account is one of two primary components of a country’s balance of payments, the other being the current account. The balance of payments is a record of a […]
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