Articles

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

  • 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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