Financial Markets Explained

Learn about the economy and the markets in general as we present a comprehensive explanation of the most commonly used jargon.

What influences a company’s share price

What influences a company’s share price

Financial Markets Explained
Ever noticed when the stock market crashes or corrects itself, it does so quickly and sharply? This is fear at work. When the market is positive and moves up, this is greed at work. The market always moves down quicker than it moves up, therefore we can deduce that fear is a stronger emotion than greed. This can also be interpreted in financial terms such as bullish and bearish, where the term bullish or bullish market means the market is positive and rising while bearish or bearish market refers to the stock market going southwards. At a basic level, a stock is the initial capital that a company has. When a company goes public (meaning that the ownership of the company shifts from a closed and private group of individuals to whoever wishes to buy a share in the company), it splits this...

ASIC – Australian Securities and Investments Commission

Financial Markets Explained
Australian Securities and Investments Commission is Australia’s corporate, markets and financial services regulator and one of the leading authority when it comes to regulating the OTC markets including forex and binary options brokers registered and operating from Australia. ASIC, the abbreviation for Australian Securities & Investments commission is Australia’s corporate, markets and financial services regulator and one of the leading authority when it comes to regulating the OTC markets including forex and binary options brokers registered and operating from Australia. As the financial services regulator, ASIC licenses and monitors financial services businesses to ensure that the licensed businesses operate efficiently, honestly and fairly. These businesses typically deal in supe
How to use Economic Data in forex trading

How to use Economic Data in forex trading

Financial Markets Explained
In this article we explain how to use economic data in forex trading. The following indicators in forex are beneficial to a more profitable trading in forex. We take a look at some of the economic data that can be used as indicators in forex. Remember that economic indicators usually contain revisions to previous data sets. So although the importance of figures lies in the extent to which they fall outside market expectations, be aware that an unexpected rise could be the result of a downward revision to the previous month. So look at revisions to older data before you use this as a basis for making a trade. Consumer Confidence Index (CCI) This is published on a monthly basis in the USA and is seen as one of the most accurate indicators of confidence. When consumers are more confide...