Forex Articles

Balance of payments refers to the difference between inflow and outflow of money in a given timeframe. It’s abbreviated to BOP or BoP.

A back-to-back loan is an arrangement between two entities in different countries that act as a hedge against currency risk.

The Back Office comprises the administrative sections of an office that enables the front office and the middle office to function well.

Understanding the break-even point definition is essential for companies, chief operating officers, and accountants. It is also crucial for traders and investors. Without knowing the break-even point (BEP) of a product, service, trade, or investment, any operations will lack efficiency and could operate at an underlying loss despite showing an overlying profit.

Economic, social, and geopolitical issues governed the interwar period, from the end of World War I to the start of World War II. In July 1944, 730 delegates from forty-four allied nations met in Bretton Woods, New Hampshire, USA, during the United Nations Monetary and Financial Conference, aiming to avoid mistakes from the Treaty of Versailles, which ultimately led to World War II, and to eliminate the “beggar thy neighbor” policies.

Breakout trading is one of the most exciting and most used trading strategies, relying on price action without technical indicators. Some traders prefer to confirm a breakout or breakdown with a technical indicator, but the purest form uses candlestick charts and support or resistance levels. Breakout trading falls under naked trading, referring to a clean chart. Some traders use a 20-DMA to gauge the trend, but the fine-tuning of any breakout trading strategy depends on individual preferences.

The Black-Scholes Model, sometimes referred to as the Black-Scholes-Merton Model, is a mathematical model using six variables to calculate the theoretical value of a European-style option contract.

Clearing, and settlements, which are often used in the same sentence but refer to something different, are the building blocks of today's payment systems.

Big figure applies to highly liquid and volatile markets, like the Forex market, where rapid moves in price action are frequent. Abbreviations and synonyms of big figure are big fig and handle, respectively.

At Best is nothing more than a set of instructions that forces an order to be executed at only the most desirable price. While they are mostly market orders, sometimes they also require some degree of discretion from the concerned broker.

The bid price and ask price are the two components of a two-way price quotation system, the norm in financial markets. The bid price represents the price a market participant offers to buy an asset, while the ask price is the selling price. Market makers continuously offer bid prices for trading instruments, which are generally lower than ask prices.

A bear market and a bull market are phrases most people have heard before, but what is a bear market? Most investors fear a bear market. They run for the exits, hoard cash, and hope their portfolio allocations can weather the storm.

A trader or investor who believes the price of an asset, sector, industry group, or the market, in general, will decrease in value is known as a bear. A bear in trading terms seeks to profit from a contraction in prices and stands opposite of a bull who believes price action will increase.

Basket trading is an active strategy primarily used by institutional traders, hedge funds, and algorithmic or quantitative traders and fund managers, but is it suitable for retail traders?

Understanding the term basis and basis finance is essential for every trader, and we will outline why it matters. Basis can refer to three distinct terms in finance, one referring directly to trading costs, another associated with a trading strategy, and one essential basis definition finance with tax implications and potential fines if not reported accordingly.