Category: Uncategorized

Before you open a trade, you need to calculate the right lot size that matches your account balance & minimizes the risk of blowing your account. If you attempt to trade a lot size that is too big for your account balance, any losses you make will be very significant & your free margin will…

Definition of Stop Loss A Stop Loss (SL) is a market order you give to your forex broker to close your trade when the exchange rate of the currency pair you are trading, reaches your specified stop price. How Does Stop Loss Work in Forex? Stop Loss orders are triggered automatically once the price or…

What is Fiscal Policy? Fiscal policy is when a government tries to steer the economy in a desired direction by using tools such as taxation or adjusting government expenditure. When a government tries to speed up the economy it resorts to Expansionary Fiscal Policy & when it wants to slow down an overheating economy it…

Every forex broker is supposed to display their license & regulation information on their website. This is key & if you cannot find this information easily on their website, you may be dealing with a scam. At the bottom of a broker’s website, you should always find information on where the forex broker is regulated,…

NFP means Nonfarm Payroll and is a report released every month by the United States Bureau of Labor Statistics showing the Employment Situation in the United States. It is called Nonfarm Payroll because the report only addresses the number of new jobs created in Nonfarm sectors of the economy. The NFP report does not include…

Standard Accounts Standard Accounts are Spread-only Accounts that have a straightforward pricing structure as there are no commission payments. However, Standard Accounts have wider & less transparent spreads making you take longer to reach profit on a trade because you must overcome the spread first which shows as a negative balance when you enter a…

GDP means Gross Domestic Product and is a measure of how much goods & services a country is producing within its borders (not imports). When a country’s GDP is not growing it signifies unproductivity which equates high unemployment. GDP is measured quarterly because investors need this information to make decisions and cannot wait till the…

Inflation is an increase in the price of goods and services. Inflation can be caused by too much money being in circulation or when the demand for goods & services outpaces the supply. For example after the covid 19 pandemic, inflation in Europe increased not necessarily because there was too much money in circulation, but…

CPI stands for Consumer Price Index and is an indicator of whether the inflation in an economy is rising or falling. As a trader, you want to keep an eye the United States CPI report released every month by the US Bureau of Labour Statistics https://www.bls.gov/cpi/ Why? Because the US Dollar is the most traded…

An Interest rate can be defined as “the price of money” meaning an interest is the cost you pay for borrowing money, or the fee you’re paid for lending out your money. Interest rates are so important that they affect the exchange rates of all currency pairs & also affect the prices of stocks. How?…