Author: Editorial Team

ForexPromos Editorial Team is comprised of a selection of hand picked editors that bring you the latest breaking news from the financial markets. We also provide forex educative articles as well as comprehensive fx broker reviews.

What are bonds. How to trade bonds online

What are bonds. How to trade bonds online

Financial Markets Explained
Bonds are the lesser known financial investment products in comparison to stocks or forex. This is largely thanks to the fact that trading in bonds offer high level of security and low returns as compared to stocks which works in the opposite. The most important thing to know about bonds is that they work the same way as loans albeit on a larger scale and volume. Bonds are debt instruments, as compared to stocks which are equity instruments. During bankruptcy, bond holders are given preference before equity holders. This is also known as seniority. Seniority pertains to the order of repayment in the event of a sale or bankruptcy of the issuer. As a thumb rule, senior debt holders must be repaid first before repaying subordinated or junior debt. What are bonds A bond is basically a deb
What is the ISM Manufacturing PMI Indicator

What is the ISM Manufacturing PMI Indicator

Economic Indicators
The Institute for Supply Management (ISM) releases a monthly economic report known as the ISM manufacturing Purchase Manager Index (PMI). The ISM manufacturing PMI for short is one of the leading economic indicators which give an early glimpse into the health of the manufacturing sector in the US. The ISM was formerly known as National Association of Purchasing Management (NAPM). The ISM has been conducting its survey since the end of World War II. In this article, you will learn what the ISM manufacturing PMI report is, what the components of the report are, how to read the ISM manufacturing PMI report and how it affects the markets. What is the ISM manufacturing PMI report? The ISM manufacturing PMI is an economic indicator that reports the economic health of the manufacturing secto...
How does money disappear in a stock market crash

How does money disappear in a stock market crash

Financial Markets Explained
Where does money go when markets crash? "Brexit crash wiped out a record $3 trillion," the headlines screamed after the UK voted to leave the EU. It is not uncommon to read such headlines in the financial media which usually comes following a stock market crash. But what exactly does it mean? Where was the $3 trillion to begin with and how can money just disappear into thin air? In a stock market collapse do people really lose their pension and invested money? Who gets the lost money? Certainly the lost money can't just vaporize can it? A quick answer to the above question is "There was no $3 trillion to begin with." Read on below to get a more clear understanding of how money works in the stock market and more importantly how money is said to disappear during a stock market crash
Difference between Money and Currency explained

Difference between Money and Currency explained

Financial Markets Explained
Money and currency are often interchanged and used loosely. But what is money and what is currency? What are the differences between money and currency? If you were asked, “how much money does it take to buy a car” your typical answer would be, “You can buy the car for $50,000” What you mean by that is that you value your car at 50,000 US dollars. What if the buyer was from Germany? Your German customer will still pay you 50,000 US dollars, but in effect he is paying you €45,454 (at a EURUSD exchange rate of $1.10, or where 1 US dollar is equal to 1.10 euro). As you can see, the money value remains the same, but the currency value changes. Money is therefore a store of value, currency is a form of exchanging this value. What is money? Money is a term that is loosely used and is
Trading with stage analysis, the Stan Weinstein way

Trading with stage analysis, the Stan Weinstein way

Trading Strategies
Stage analysis trading strategy is a relatively popular trend trading strategy that was discussed in detail by Stan Weinstein, in the book, Secrets for Profiting in Bull and Bear markets. While the basic principle of trading with stage analysis is merely following the trend, Stan Weinstein gives a more structural approach to this trading strategy. According to Weinstein, stage analysis uses chart patterns in order to derive the four stages in a security's price. Once the stages are determined, there are specific guidelines that determine when to buy and sell. Stage analysis was initially described for the stock markets, but could very well be used for the forex markets as well. With stage analysis, traders can hold on to positions and helps to enter the trend at a relatively early stage...