Tag: forex education

What is a forex expert advisor?

Trading Articles
Contrary to what you might expect, a forex expert advisor is not a person who advises you on how to trade. In fact a forex Expert Advisor is a very sophisticated trading software tool. The forex Expert Advisor is a piece of software written specifically for the MetaTrader Platform. An Expert Advisor can just advise traders which trades to make or can be programmed to automatically execute the trades on a live account. Forex Expert advisors are written in a proprietary programming language called MQL4 or Metaquotes language, version 4. MetaTrader 4 is a trading platform that is free of charge and convenient for trading on the Forex market. The MT4 is also one of the most popular trading platforms available. The MetaTrader Indicators, MetaTrader Forex Expert Advisors, MetaTrader scripts a...
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...
What is a rollover or swap in forex trading

What is a rollover or swap in forex trading

Trading Articles
Often refereed to as a forex swap or forex rollover, a rollover or a swap in forex is the interest earned or deducted for holding a position open overnight. Each currency has an interest rate associated with it, and since forex currency trading is traded in pairs (ex: EUR/USD), every currency trade involves not only two different currencies but two different interest rates as well. Invariably, both interest rates will be different and this is how "swap" or "rollover" is either gained or paid. If the interest rate on the currency that is bought is higher than the interest rate of the currency you sold, then you will earn rollover (positive roll) and conversely, if the interest rate on the currency you bought is lower than the interest rate on the currency you sold, then you will pay roll...

Trading exchange traded funds or ETF’s explained

Trading Articles
ETF's, or exchange traded funds, were first introduced to the financial markets in early 90's. Exchange traded funds are used as an investment vehicle, traded similar to stocks or shares on stock exchanges. Collectively known as 'index trackers', Exchange traded funds and index funds are each ready made packages of securities that deliver the return of a particular market (e.g. US equity) by tracking that market’s index. The issue with exchange traded funds and ETF Option has always been liquidity, but things have changed in that regard. The Exchange traded funds are often attractive to investors because of their tax efficiency, low costs and similarity to stocks. ETFs have been called the most innovative investment medium of the last twenty years by 67% of investment professionals in M
Forex hedging tips explained

Forex hedging tips explained

Trading Articles
Hedging is nothing but a fancy term for insurance, often used in the financial markets despite most traders misreading this term as trying to make a profit from both rising and falling markets. The reason behind this gross misunderstanding of the term has largely to do with the term hedge funds. As one might already know, hedge funds are expected to perform regardless of the market direction; ie. Rising or falling markets. Therefore it is easy to see where this concept of hedging which is primarily all about minimizing losses by way of insurance had transformed itself into a misunderstood concept of making a profit irrespective of the market rising or falling. So what exactly is insurance? It is those small monthly premiums you pay towards either protecting your home against any theft o...