How is rollover interest calculated?

July 7, 2024 No Comments

A: In the forex market, all trades must be settled in two business days. Traders who want to extend their positions without having to settle them must close their positions before 5pm Eastern Standard Time on the settlement day and re-open them the next trading

What does deflation mean to investors?

July 7, 2024 No Comments

A: The cause and effect of deflation are complex economic forces, which requires a short introduction to the concept and an explanation of how it affects investors. Deflation is a macroeconomic condition where a country experiences lowering prices. This is the opposite of inflation, which

How is spread calculated when trading in the forex market?

July 7, 2024 No Comments

A: First, remember that in the forex markets investors trade one currency for another. Therefore, currencies are quoted in terms of their price in another currency. In order to express this information easily, currencies are always quoted in pairs (e.g. USD/CAD). The first currency is

What does rollover mean in the context of the forex market?

July 7, 2024 No Comments

A: In the forex (FX) market, rollover is the process of extending the settlement date of an open position. In most currency trades, a trader is required to take delivery of the currency two days after the transaction date. However, by rolling over the position

How is the forex spot rate calculated?

July 7, 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 7, 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 7, 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

How do I use the relative strength index to create a forex trading strategy?

July 7, 2024 No Comments

A: The relative strength index (RSI) is most commonly used to indicate temporary overbought or oversold conditions in a market. An intraday forex trading strategy can be devised to take advantage of indications from the RSI that a market is overextended and therefore likely to

How do I use the Zig Zag Indicator to create a forex trading strategy?

July 7, 2024 No Comments

A: The Zig Zag indicator, named for the pattern of straight lines that appear to zig zag across a technical analysis chart, operates as a filter for directional changes in price movements. Technical analysts and forex traders apply the Zig Zag filter to remove unnecessary

How do traders and analyst create profitable Swing Trading strategies in forex?

July 7, 2024 No Comments

A: There are numerous opportunities for creating profitable swing trading strategies in the forex market. Although many swing traders focus on anticipating the breakout after a period of consolidation, channel trading is arguably one of the simplest swing strategies to implement. When a currency pair

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