Jobless Claims refer to the number of people who file for unemployment benefits after losing their jobs. This economic indicator is released weekly, primarily in the United States. It serves as a real-time snapshot of the labor market’s health. There are two main types: Initial Jobless Claims, which count new applications, and Continuing Claims, which…
The J-curve is an economic concept that describes how a country’s trade balance may initially worsen after a currency devaluation or depreciation, before eventually improving. The curve is named after its shape, which resembles the letter “J”—showing an initial dip followed by a rise. This effect is commonly seen in international trade, especially when a…
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…
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…
Inflation is the rate at which the general level of prices for goods and services rises over time, leading to a decrease in the purchasing power of money. In other words, when inflation occurs, each unit of currency buys fewer goods and services than it did before. Central banks and governments closely monitor inflation because…
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…
Hedging is a risk management strategy used by traders and investors to protect their positions from unwanted price movements. In simple terms, it involves opening a second trade that will gain value if the original trade starts to lose. This way, potential losses in one position can be offset by gains in another. Hedging is…
Grid trading is a trading strategy that involves placing a series of buy and sell orders at set intervals above and below a fixed price level. This forms a “grid” of orders. The idea is to profit from price fluctuations without needing to predict market direction. When the market moves, some of these orders are…
Gross Domestic Product (GDP) is a key economic indicator. It measures the total value of all goods and services produced within a country over a specific period, usually a quarter or a year. It reflects the overall health and size of a country’s economy. Additionally, it is widely used by traders, investors, and policymakers to…