Articles

Our Articles section hosts a collection of articles to assist traders of various professional levels.

  • Failure and success of cryptocurrencies

    Several cryptocurrencies have been launched in recent years, often with very high expectations. Many of them failed soon after being snubbed by traders. According to Coinopsy.com, a crypto information provider which keeps track of crypto failures, 1,085 digital coins have already failed. A considerable figure,…

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  • Central banks and cryptocurrencies

    The news that the People Bank of China, the Chinese central bank, is seriously intent on issuing its own digital currency, called 'digital yuan', has provoked unprecedented international reactions. After years in which the central banks and the main international policy-makers, from the G20 to…

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  • COT Report-based Forex strategies

    COT Report (Commitment of Traders) is one of the most important provider of volume data in Forex. It is published by the Commodity Futures Trading Commission every Friday, around 2.30 pm EST. Traders are particularly concerned with the role that volume plays in driving currency…

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  • Interest rates, monetary policies and trading

    Interest rates are probably the main factor that contributes to determining the value of a currency, according to macroeconomic theory, as international investors want to own more local currency when the financial assets denominated in this currency increase in yield, just by virtue of the…

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  • When is the best time to enter a forex trade?

    This is a fundamental question for traders. The trouble is that there is no a single answer as this depends on the strategy and style of trading, which is personal. Nevertheless, we can summarize three approaches which are among the most popular. Trend channels are among…

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  • Fundamental and technical analysis in forex markets

    Fundamental and technical analysis in forex markets show several differences. Fundamental analysis is a technique of examining currencies so as to identify the intrinsic value of exchange rates for long term investment opportunities. As against, technical analysis is a method of evaluating and forecasting currencies…

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  • Correlation between currency pairs

    Currencies are always quoted in pairs in forex markets, one currency price against another. For example, the price of the euro is quoted against the US Dollar, the Swiss Franc against the Sterling, the Turkish lira against the Brazilian real and so on. Currency pairs…

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  • Are Bitcoin and gold correlated?

    In times of economic stagnation and financial instability, like these, both Bitcoin and gold are labelled as safe-haven assets, a hedge against financial risks. However, while the demand for gold has historically increased during uncertain times, we don't have sufficient data to say the same…

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  • Things to do and mistakes to avoid in carry trading

    Yesterday, we discussed about the main characteristics of carry trading strategies. Today we discuss about the actions a trader must follow to be successful with this strategy and the mistakes he has to avoid. The first think to do is following the actions of central…

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  • Carry trading

    Carry trading is one of the most famous forex strategies, which requires going long a 'high-yield' currency against a 'low-yield' one. The Japanese yen or the Swiss franc are commonly used as examples of 'cheap currencies' while emerging markets currencies as 'expansive currencies'. The success…

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  • From Draghi to Lagarde: what impact on the forex market?

    The mandate of Mario Draghi, the most powerful governor in the history of the European Central Bank, has come to an end. The savior of the euro, which will go down in history for his famous "whatever it takes" pronounced on July 26, 2012 in…

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  • The Euro and the Brexit

    When it comes to the effects of Brexit on the forex markets, it is normal to immediately think of the effects on sterling. The pound has lost -14.0% against the Euro since June 2016, when the fateful referendum which established the will of the British…

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  • The best 5 currencies to trade

    Forex trading is a way to diversify a trader's portfolio. It's also a very profitable business that can offer a trader opportunities to make money. But what are the best currencies to trade? Here is a list of the top five: 1. U.S. Dollar (USD)…

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  • The role of macroeconomics in forex trading

    Macroeconomic factors have always driven forex markets, as they influence traders' decisions and determine the value of a currency. Overall economic strength depends on many events and information that may rapidly change. Some of the factors that influence an economy's stance and drive changes in…

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  • The Correlation Between Oil and the Dollar (and how it is changing)

    Crude oil shows a strong correlation with many currency pairs in Forex markets. This evidence is confirmed by many empirical studies and supply a great help to forex traders. The main reason for this correlation is that oil contracts are denominated in U.S. dollars. Therefore,…

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  • Three Typical Short-term Forex Strategies (and how they work)

    Carry trade, momentum and term spread are among the most widely practised short-term multicurrency investment strategies in Forex markets. A carry trade strategy is one in which a trader borrows in currencies with low interest rates (funding currencies) and invest the sum in those with high interest rates…

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  • Swing Trading vs. Scalping Strategies in Forex markets

    Scalping and swing trading are two of the most popular trading strategies used by traders in their daily activity. They are very different and, sometimes, they are considered as opposites. The reason is simple. While scalping requires a trader to do hundreds of daily operations,…

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  • Moving Average Cross

    The Moving Average Cross is a simple but very effective strategy used by forex traders based on the intersection of two standard indicators used in technical analysis, the 'fast' exponential moving average and the 'slow' exponential moving average. We recall that the exponential moving average…

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  • Long or Short in Forex Markets

    ‘Going long’ in the ForEx markets means buying a currency, or a basket of currencies, betting on the possibility that their value may rise in the future, with the aim of making a profit by selling them when their price is higher than the purchase…

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  • Long Short Strategies in Forex Markets

    In Forex markets a long/short strategy is used to maximise traders' profits, from both the rise and fall of exchage rates. The reason why it was created is that such a strategy is more profitable than the simple 'buy and hold', or 'just go long'…

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  • When the rules of thumb are not respected in Forex market

    The international monetary economics textbooks teach a trivial rule of thumb: a domestic currency appreciates when a central bank hikes interest rates, as it makes the financial assets denominated in that currency relatively advantageous and depreciates when the rates are lowered, for the opposite reason. This should…

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  • Will Bitcoin exceed $100,000?

      Will Bitcoin exceed $100,000? Yes, at least according to the forecasts made by Murad Mahmudov, an old analyst of the investment bank Goldman Sachs who later became a strong supporter of Bitcoin, who has actually stated that the cryptocurrency will reach a value of $100,000.…

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  • Autotrading performs better

    Does Forex autotrading perform better? Is it better to trade by yourself or through a robot, expert advisors and so on? These questions are very easy to find in forex markets nowadays, as an increasing number of financial institutions rely on automated trading. This phenomeno…

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  • Things to know when trading the GBP/USD pair

    The GBP/USD Basics and History GBP / USD pair has a long history. Trade has been going on between these two currencies for so long that there is no way to state any kind of relative value for an original Pound other than to its…

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  • Correlation Among Cryptocurrencies

    Ever since cryptocurrencies have made their appearance on the Forex markets, traders have wondered what their level of correlation was. Knowing whether digital currencies follow the same trend or not is decisive for adopting profitable pair trading or portfolio diversification strategies. Two recent studies by…

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