Slippage

A resistance level is a price point on a chart where an asset’s upward movement tends to slow down or reverse due to an increase in selling pressure. Traders often view resistance as a barrier that the price struggles to break through. This level is usually identified by past price action. Past price action is…

Interest rate refers to the cost of borrowing money or the return earned on savings, usually expressed as a percentage of the amount borrowed or invested. In the context of central banks, the interest rate is the benchmark rate set to influence economic activity. When a central bank raises or lowers interest rates, it affects…

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…

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…

Free margin is the amount of available funds in a trading account that can be used to open new positions. It is calculated by subtracting the margin currently being used for open trades from the account equity. The account equity includes the balance plus or minus any unrealized profits or losses. In simple terms, free…

The base currency is the first currency listed in a currency pair in the foreign exchange (Forex) market. It is the currency you are buying or selling when you trade that pair. For example, in the EUR/USD pair, the euro (EUR) is the base currency, and the US dollar (USD) is the quote currency or…