Forex Trading News
Martingale System in Financial MarketsWhat Is A Martingale System in Financial Markets? A Martingale system is a type of investment or trading strategy that involves increasing the amount of money invested in an asset as the price of that asset goes down. The idea behind this strategy is that the increased investment will eventually pay off when the price […]
When Will the US Run Out of Money? (And Impacts on Markets)Can the US or any country run out of money? Technically, the government doesn’t have money. A government is just a collection of individuals. Everything in an economy comes down to productivity. Governments collect tax revenue from what boils down to underlying productivity at the most fundamental level. It can use a combination of those […]
How to Navigate Paradigm Shifts in Financial MarketsParadigm shifts occur when markets over-extrapolate one set of conditions into the future despite those conditions being unsustainable. The last decade and even the last 40 years are what traders and other market participants think will probably hold. However, that could easily be wrong because we’re now in a totally different world. If you take […]
What Causes A Currency to Fall? [Top Factors]Currencies rise and fall for various reasons, but FX is a fundamentally macro asset class. While equities may move a lot based on idiosyncratic factors happening at the company or the individual trading patterns of a singular entity, currencies are much more heavily influenced by country- or jurisdiction-level factors. Factors that influence the fall in […]
What Will Happen to the Ruble?Russia’s invasion of Ukraine and sanctions imposed by NATO countries and western allies put the Russian ruble (RUB) into a tailspin against virtually all other emerging market currencies. The sanctions guarantee that Russia will have bad inflation problems. Tightening monetary policy can help take some of the air out of inflationary pressure, with the trade-off […]
The Complete Guide to the Inverted Yield CurveAn inverted yield curve is an interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This is considered a negative yield curve, because it is “inverted” from the typical yield curve relationship, in which longer-term rates are higher than shorter-term rates. What Happens […]
Asset allocation vs. Diversification – Exploring the DifferenceAsset allocation and diversification might be related concepts in finance, trading, and investing, but there are slightly different. Asset allocation refers to the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The asset allocation process takes into account the investor’s goals, risk tolerance, and investment horizon. Diversification […]
How Would a US Dollar Devaluation Affect Assets?A US dollar devaluation would have an impact on movements in other asset classes. Currency volatility picked up with more inflation risk in 2022. Post-2008, we’ve mostly been in a low interest rate world. However, when interest rates become so low to the point where they can’t be lowered any more, and […]
Real Exchange Rates & Impact on Economies and MarketsReal exchange rates (RER) refer to the rate of exchange between two currencies that is the product of the nominal exchange rate (the dollar cost of a euro, for example) and the ratio of prices between the two countries. When we talk about “real” in finance terms, it typically translates as something that is inflation-adjusted. For […]
The 17+ Most Popular Hedge Fund StrategiesHedge fund strategies are generally placed into a few different buckets. The main overaching categories of hedge fund strategies include: global macro statistical arbitrage event-driven directional relative value distressed investing Each of these strategies employs a different approach to investing and comes with its own unique risks and reward profile. There are also numerous sub-strategies […]
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