A liquidity provider is a financial institution or individual that offers buy and sell prices for a particular asset, ensuring there is enough volume for traders to execute orders efficiently. In Forex and other financial markets, liquidity providers are typically large banks, hedge funds, or market makers that supply the market with continuous pricing. They…
Leverage in trading refers to the ability to control a larger position in the market with a relatively smaller capital. It is typically expressed as a ratio, such as 1:10 or 1:100, meaning that for every $1 of your own money, you can trade with $10 or $100, respectively. Leverage is commonly offered by brokers,…
Liquidity refers to how easily and quickly an asset can be bought or sold in the market. This occurs without causing a significant change in its price. In trading, a highly liquid market—such as the Forex market—has many buyers and sellers, allowing trades to be executed almost instantly at stable prices. Low liquidity, on the…
Kiwi is a common trading slang used to refer to the New Zealand dollar (NZD) in the Forex market. The nickname comes from the kiwi bird, a national symbol of New Zealand. It is widely recognized by traders around the world. When someone says they’re trading the “Kiwi,” they usually mean they are involved in…
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…