Forex Articles

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.

Businesses that deal with foreign currency average rate options to pay or receive money in foreign currencies. These options give businesses a hedge against potential fluctuation in prices of foreign currencies

Most of us have heard about or seen auctions, but few of us are aware of their mechanics. More importantly, auctions are also a key event in forex markets. Today, we will look at what an auction is, how it is conducted in live and online events, and other important things everyone must know about auctions. Let us find out more.

At the money refers to the situation where the strike price of an option is the same as or very similar to the current market price of the security. Both the call and put options can be at the money at the same time. ATM options describe the relationship between the strike price and the market price of a security.

Understanding forward point in Forex is especially important for anyone who is in the market or wants to get into it. There are diverse types of forward points, and it is also known as forward spread.

At-or-better, also written as At or better, refers to orders executed at a specific price, or more than that. At or better orders are a variation of limit orders. Limit orders also set a limit on the price at which the order would be executed. When you place an at or better order, you are implying that you are looking for a breakthrough or are willing to go to the next level.

An asset is an economic resource owned by an individual, corporation, or country. It can be anything that has economic value. Its owner may completely own it or have exclusive access to it. Cars, buildings, and cash or accounts receivable are some common examples of an asset. Let us take a deeper look at what is an asset, along with examples and types of assets.

In simple words, arbitrage trading refers to making profits off differences in prices in different forms or markets. Arbitrage traders would make the most of even the tiniest price differences in two or more markets.

Traders who pull out liquidity from the markets are known as aggressors in trading. Aggressors purchase at-market at the existing ask price instead of placing bids for shares. Instead of stating a selling price, they will trade at the prevailing at-market bid pricing.

Basis trading is a popular trading strategy across all asset classes where derivative products are available but primarily used in futures trading focused on commodity markets. Basis trading crypto is another sector that experiences an increase in this trading strategy due to its extreme volatility and availability of 24/7 trading.

The ask and bid price is a price quotation that states the best rate at which a security can be bought or sold at any point in time. The difference between the two price points is called a bid ask spread. The bid ask price is of significance to investors because it directly impacts their buying and selling of shares. They can’t sell at the price they buy something.