A closing order is a trade instruction used to exit an open position in the financial markets. When a trader closes an order, they are finalizing the trade by selling an asset they previously bought or buying back an asset they previously sold. This action locks in any profits or losses from the trade. Closing…
CFDs, or Contracts for Difference, are financial instruments that allow traders to speculate on the price movements of various assets without actually owning them. These assets can include stocks, indices, commodities, currencies, and more. When trading a CFD, you are entering into a contract with a broker to exchange the difference in the price of…
A carry trade is a trading strategy where a trader borrows money in a currency with a low interest rate and uses that money to buy a currency with a higher interest rate. The goal is to earn a profit from the difference between the two interest rates, known as the interest rate differential. In…
A Candlestick Chart is a popular type of financial chart used by traders to analyze price movements of assets like stocks, currencies, or commodities. Each “candlestick” on the chart represents the price action for a specific period of time, such as one minute, one hour, or one day. The candlestick shows four key pieces of…
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…
The Bid Price is the price at which a buyer is willing to purchase an asset, such as a currency pair, stock, or commodity. In trading, when you want to sell something, you will sell it at the bid price. It is the opposite of the ask price, which is the price a seller wants…
A bear market is a term used to describe a financial market where prices are falling over a period of time. It usually refers to a drop of 20% or more from recent highs in the price of stocks, currencies, commodities, or other financial assets. A bear market reflects a negative sentiment among investors and…
The base currency is the first currency listed in a currency pair in the foreign exchange (Forex) market. It is the currency you are buying or selling when you trade that pair. For example, in the EUR/USD pair, the euro (EUR) is the base currency, and the US dollar (USD) is the quote currency or…
The Average Directional Index (ADX) is a technical indicator used by traders to measure the strength of a market trend. It does not show whether the price is going up or down but simply tells how strong the trend is. The ADX is usually shown as a line on a chart, with values ranging from…