Will the Euro Rise in the Face of Tariffs?
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
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…
Exotic Currency
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
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,…
Economic Indicator
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…
ECN
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…
Drawdown
Drawdown refers to the decline in a trader’s account balance from its highest point to its lowest point before recovering. It is usually expressed as a percentage and helps measure the risk and performance of a trading strategy. For example, if a trader’s account grows to $10,000 but then drops to $8,000 before recovering, the…
Devaluation
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…
Day Trading
Day trading is a trading strategy where traders buy and sell financial assets within the same day, aiming to profit from short-term price movements. Unlike long-term investors, day traders do not hold positions overnight, as they seek to take advantage of small fluctuations in price during market hours. This approach is common in markets like…