Why does foreign exchange easily lead to liquidation?

Foreign exchange investment needs to remain calm at all times, if you do not know enough about yourself and the market to trade, the result can only be to let oneself suffer. Today we will talk about why foreign exchange investment can easily burst positions. Breaking a position is when your available margin is 0, […]

How do trading slippages come about? How to avoid it?

When we invest in the gold market, we will inevitably encounter a variety of risk factors, among them, trading slippage risk is one of the most common risks affecting investors’ expectations to make a single profit or loss, when the trading slippage occurs, it is easy for investors to make a list suffer unnecessary losses, […]

Natural rate hypothesis

1. Summary of natural rate hypothesis Fifty years ago, Milton Friedman articulated the natural rate hypothesis. It was composed of two sub-hypotheses: First, the natural rate of unemployment is independent of monetary policy. Second, there is no long-run trade-off between the deviation of unemployment from the natural rate and inflation. Both propositions have been challenged. […]

Free reserves

Self owned reserve refers to the foreign exchange reserve formed by the surplus under current account. The ultimate ownership of the own reserves belongs to the local monetary authority, so it can be freely controlled. Sources of own reserves The main source of self owned reserves is the current account surplus earned by providing goods […]

Maximum Drawdown Rate

1.Maximum drawdown rate Maximum drawdown rate: Pushes back at any historical point in the selected period, and the maximum return drawdown when the net product value reaches its lowest point. Maximum drawdown is used to describe the worst-case scenario that can occur after buying a product. Maximum drawdown is an important risk indicator that is […]

The Optimum Currency Zone Theory

The so-called currency area refers to a region in which the currencies of the member countries maintain a peg to each other and a joint float of currencies outside the zone. In theory, any country would face the question of the most modest currency zone, i.e. whether it would be appropriate to form a single […]

Prime Rate

Prime Rate definition The best rate is the basic lending rate that a bank lends to the most important or creditworthy customers, which is usually a premium to the average customer. In general, the best rate is higher than the interbank offer. In the U.S., the best rate is about 3% higher than the federal […]

Buying and selling in forex trading

Which Currencies May Investors Buy and Sell? Trading can be done in nearly all currencies. In other way, a few currencies known as the majors are used in most trades. These currencies are the U.S. dollar, the euro, the British pound, the Japanese yen, the Swiss franc, the Canadian dollar, and the Australian dollar. All […]

Market Maker

What Is a Market Maker? Market Maker is synonymous with the securities forex market, refers to the securities market, by an independent securities operating legal person with a certain strength and credibility as a licensed dealer, constantly to the public investors to report the purchase and sale price of certain securities (i.e., two-way quotation), and […]