Resistance Level

Arbitrage is a trading strategy that takes advantage of price differences for the same asset in different markets. In simple terms, it means buying an asset at a lower price in one place and selling it at a higher price in another, making a profit from the difference. This opportunity usually exists for a very…

A Candlestick Chart is a popular type of financial chart used by traders to analyze price movements of assets like stocks, currencies, or commodities. Each “candlestick” on the chart represents the price action for a specific period of time, such as one minute, one hour, or one day. The candlestick shows four key pieces of…

Devaluation is the intentional reduction of a country’s currency value relative to other currencies. This is typically carried out by its government or central bank. This is different from depreciation, which occurs due to market forces. Devaluation is usually done in a fixed or managed exchange rate system. In these systems, the currency’s value is…

Equity refers to the ownership value a trader or investor has in an asset, account, or company. In trading, especially in a margin account, equity represents the current value of an account, including open positions. It is calculated as the account balance plus or minus any unrealized profits or losses from active trades. For example,…

A pip, short for “percentage in point” or “price interest point,” is the standard unit of measurement used to express the change in value between two currencies in a forex pair. For most currency pairs, one pip equals 0.0001, or one-hundredth of a percent. For example, if the EUR/USD moves from 1.1050 to 1.1051, that’s…

Futures are standardized financial contracts that obligate the buyer to purchase, or the seller to sell, an asset at a predetermined price on a specific future date. These contracts are traded on organized exchanges, such as the Chicago Mercantile Exchange (CME). Futures cover a wide range of assets including currencies, commodities, stock indices, and interest…