Reversal

An exotic currency is a currency from a smaller or emerging economy. It is less commonly traded in the global foreign exchange (Forex) market. These currencies typically have lower liquidity, higher volatility, and wider spreads compared to major currencies like the US dollar (USD), euro (EUR), or Japanese yen (JPY). Examples of exotic currencies include…

The Ask Price is the price at which a seller is willing to sell an asset, such as a currency pair, stock, or commodity. In trading, when you want to buy something, you will pay the ask price. It is also sometimes called the offer price. The ask price is almost always slightly higher than…

Institutional trading refers to the buying and selling of financial instruments by large organizations such as banks, hedge funds, pension funds, mutual funds, and insurance companies. These institutions trade in much larger volumes than individual (retail) traders. Often, they have access to different pricing and advanced trading tools due to their size and influence in…

A carry trade is a trading strategy where a trader borrows money in a currency with a low interest rate and uses that money to buy a currency with a higher interest rate. The goal is to earn a profit from the difference between the two interest rates, known as the interest rate differential. In…

A liquidity provider is a financial institution or individual that offers buy and sell prices for a particular asset, ensuring there is enough volume for traders to execute orders efficiently. In Forex and other financial markets, liquidity providers are typically large banks, hedge funds, or market makers that supply the market with continuous pricing. They…

Fibonacci Retracement is a popular technical analysis tool used by traders. It helps identify potential support and resistance levels in a market. It is based on the Fibonacci sequence, a series of numbers where each number is the sum of the two before it. In trading, key Fibonacci levels—23.6%, 38.2%, 50%, 61.8%, and 78.6%—are drawn…