Suggested Articles
What does P/E Ratio Tell Us About Individual Stocks?
The price to earnings ratio, also known as the stock P/E ratio is one of the most popular measurement instruments in the stock market valuations. For some new investors, this might sound like a complicated term. However, the P/E ratio formula is indeed quite simple. In fact, one even does not need a special P/E […]
How to Build Solid Dividend Income Stock Portfolio?
One of the most important aspects of the stock market investing is the question of building a successful investment portfolio. This essentially represents the collection of stocks and other investments the investor owns. It goes without saying that not all portfolios are the same, they obviously differ in composition and the goal as well. For […]
How to Use Beta Indicator in Stock Market Trading?
The Beta indicator is one of the most important indicators in the Stock market trading. It essentially measures the degree of volatility of the stock, compared to the overall market. The mechanics behind this indicator is quite simple. If the stock has a beta of 1.00, it means that it is exactly as volatile as […]
3 Most Important Housing Indicators for Forex Traders
When it comes to the fundamental trading in Forex, there are dozens of different indicators traders can use. One of the most popular Forex indicators is the interest rate decision by the central bank. However, the consumer price index (CPI), gross domestic product (GDP), and unemployment rate announcements are also the best Indicators for active […]
How Does Money Supply Indicators Affect Exchange Rates?
The money supply is an important economic indicator in Forex trading. There are at least 4 different types of money supply indicators, with each having a different methodology of calculation. However, despite those differences, one thing to remember here is that the basic economic law of supply and demand does apply to currencies as well. […]
Are there Alternative Measures for Inflation in Forex Trading?
For several decades now, the consumer price index, also known as the CPI, has been one of the most well-known and frequently used ways to measure inflation. This indicator tracks the prices of thousands of goods and services. After gathering all the data and applying the weights to each category, the statistics agency comes up […]
How does Bond Market Influence Exchange Rates?
Bonds are one of the most popular investment vehicles in the financial markets. The essential principle behind this investment is quite simple. The governments and corporations issue bonds, choosing the nominal value for each of the issued security. Then they sell it at the auctions. The new owners of those bonds in return to lending […]
What is Trade Balance and How Traders Can Use it?
The trade balance is one of the most important announcements in Forex trading. It is usually listed as ‘high expected volatility’ in the economic calendars of several brokerage companies and Forex news websites. Despite its perceived complexity, the balance of trade definition is quite simple. This indicator measures the difference between the total value of […]
3 Most Essential Consumer Confidence Indicators in Forex
It goes without saying that there are dozens of leading economic indicators and news releases which usually have a significant impact on the currency exchange rates. One of the important announcements which very often lead to higher volatility in the market is Consumer Confidence Forex indicators. The reasoning for this is the fact that in […]
3 Most Important Unemployment Indicators for Forex Trading
Unemployment indicators are one of the most important measures of the economic strength of a given country. Consequently, the latest releases of those types of reports can have a major impact on the currency exchange rate movements. There are at least 3 unemployment indicators that can have a notable influence on the Forex market. The […]
How Traders Can Identify and Trade Highly Correlated Currency Pairs?
While reading the works of financial commentators and Forex analysts, we often hear the term ‘correlated currencies’. Consequently, many people wonder what is the meaning of this expression and how successful traders are using correlated currencies for their own advantage. This might sound rather a complicated term. However, the premise behind this is very simple. […]
What are Main Components of Gross Domestic Product?
The Gross Domestic Product, also known as GDP measures the total value of goods and services produced within a given country during the year. There are 4 components of Gross Domestic Product. With the majority of the world’s countries, the Consumption makes up the largest portion of the GDP. This component represents the household spending. […]
What is Consumer Price Index and How is it Measured?
The consumer price index measures the annual price change of the basket of goods and services in a given country. It is one of the most important and popular measures of inflation. Here it is worth mentioning that there is no one universally accepted method of measuring CPI. Each country and its respective statistical agency […]
Complete Guide to Trading Commodities Successfully
Traders using Forex brokerage accounts are not confined to trading just the currency pairs. Many market participants also trade commodities in those platforms. Those securities do have their own special characteristics, which can have a significant influence on market prices. Firstly, any thorough comparison of commodity prices to the currency exchange rates would conclude the […]
What are Main Principles of Trading Exotic Currencies?
Many experienced professional traders advise beginners to focus on just focusing on several major currency pairs. The reasoning behind this is the fact that this allows traders to become familiar with the characteristics of a number of currencies and gather more experience trading those pairs. There are also many experienced traders who prefer to limit […]