How is the forex spot rate calculated?

July 8, 2024 No Comments

A: The forex spot rate is determined by supply and demand. Banks all over the world are buying and selling different currencies to accommodate their customers’ requirements for trade or to exchange one currency into another. For example, an American bank receives a deposit from

How often do exchange rates fluctuate?

July 8, 2024 No Comments

A: Exchange rates float freely against one another, which means they are in constant fluctuation. Currency valuations are determined by the flows of currency in and out of a country. A high demand for a particular currency usually means that the value of that currency

In the forex market, how is the closing price of a currency pair determined?

July 8, 2024 No Comments

A: The foreign exchange market, or forex, is the market in which the currencies of the world are traded by governments, banks, institutional investors and speculators. The forex is the largest market in the world and is considered a 24-hour market because currencies are traded

Is it possible to trade forex options?

July 8, 2024 No Comments

A: Yes. Options are available for trading in almost every type of investment that trades in a market. Most investors are familiar with stock or equity options, however options are available to the retail forex currency trader as well. Currency Option Trading There are two

Is scalping a viable forex trading strategy?

July 8, 2024 No Comments

A: One way that investors borrow funds from brokerages is through margin accounts; it is these interest charges that allow them to charge such low commission rates. How do we calculate the interest charges? Well, each brokerage has a different method of calculation, so you

Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

July 8, 2024 No Comments

A: Typically there are different ways to trade in most markets. Traders have been classified into three groups, primarily based on the time frame they prefer to trade. For simplicity, we can label these three groups as day traders, swing traders and position traders. Some

Is there a world currency? If so, what is it?

July 8, 2024 No Comments

A: T here is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has been the U.S. dollar. At one time, all currencies were backed by gold, meaning that every country had to hold

Keynesian and Monetarist economics: How do they differ?

July 8, 2024 No Comments

A: Monetarist economics is Milton Friedman’s direct criticism of Keynesian economics theory, formulated by John Maynard Keynes. Simply put, the difference between these theories is that monetarist economics involves the control of money in the economy, while Keynesian economics involves government expenditures. Monetarists believe in

What am I buying and selling in the forex market?

July 8, 2024 No Comments

A: The forex market is the largest market in the world. According to the Triennial Central Bank Survey conducted by the Bank for International Settlements, the average daily trading volume reached $1.9 trillion in 2004. This huge trading volume provides the forex market with excellent

What are the advantages of using a mini forex account for trading?

July 8, 2024 No Comments

A: A mini forex trading account involves using a trading lot that is one-tenth the size of the standard lot of 100,000 units. In a mini lot, one pip of a currency pair based in U.S. dollars is equal to $1, compared to $10 for

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