Volatility

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…

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 bull market is a term used to describe a financial market where prices are rising over a period of time. It usually refers to a steady increase of 20% or more in the price of stocks, currencies, commodities, or other financial assets. A bull market reflects positive sentiment among investors and traders, often driven…

High-Frequency Trading (HFT) is a type of algorithmic trading that uses powerful computers and advanced technology to execute a large number of orders at extremely high speeds. These speeds are often in fractions of a second. HFT strategies are typically used by institutional traders and rely on small price differences. These price differences exist for…

Algorithmic trading, often referred to as algo trading, is a sophisticated method of executing financial transactions using pre-programmed instructions generated by algorithms. These algorithms are designed to analyze market data, such as price movements, volume, and timing, to execute trades automatically. The primary goal of algorithmic trading is to leverage speed and accuracy. By removing…

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…