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…
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…
A flat position refers to a situation where a trader has no active trades in the market—they are neither long (buying) nor short (selling) any assets. Being flat means the trader is not exposed to market risk at that moment. Their account is fully in cash or settled equity. This is a common state for…
Discover the implications of the Trump Tariffs for the Euro. Understand this complex global landscape: tariff tensions and concerns over a global recession.
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…
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…
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,…
An economic indicator is a piece of data or a statistical figure that gives insight into a country’s economic performance and overall health. These indicators are released regularly by governments and independent organizations. They help traders, investors, and policymakers understand trends in areas such as growth, employment, inflation, and consumer activity. Examples of common economic…
An ECN (Electronic Communication Network) is a type of trading system that connects traders directly to liquidity providers, such as banks, hedge funds, and other market participants. This is done without the need for a traditional broker or dealing desk. ECN brokers facilitate transparent and fast trade execution by matching buy and sell orders in…