December 31, 2018

What is Currency Peg?

What is Currency Peg?

Currency pegging is when a country attaches, or pegs, its exchange rate to another currency, or basket of currencies, or another measure of value, such as gold. Pegging is sometimes referred to as a fixed exchange rate. A currency peg is primarily used to provide stability to a currency by attaching its value, in a…

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December 31, 2018

What is a Currency Swap?

What is a Currency Swap?

In finance, a currency swap, also known as cross-currency swap, is a legal contract between two parties to exchange two currencies at a later date, but at a predetermined exchange rate. Usually, global banks operate as the facilitators or middlemen in a currency swap deal; but they can also be counterparties in currency swaps as…

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December 31, 2018

What is Arbitrage?

What is Arbitrage?

At its most basic, arbitrage can be defined as the concurrent purchase and sale of similar assets in different markets in order to take advantage of price differentials. When a trader uses arbitrage, they are essentially buying a cheaper asset and selling it at a higher price in a different market, thereby taking a profit…

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December 31, 2018

What Is Correlation and How to Trade It

What Is Correlation and How to Trade It

In the world of financial trading, asset correlation establishes how and when the prices of different financial instruments move in relation to each other. With regards to currencies and forex trading, correlation is the behaviour that certain currency pairs exhibit where they either move in one direction or in different directions, simultaneously: A currency pair…

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December 31, 2018

What is a Market Cycle and Why is it Important?

What is a Market Cycle and Why is it Important?

While asset prices may appear to move randomly up and down, technical analysis shows that there are distinct repetitive cycles that occur. These are predominantly driven by the market moves made by large institutional investors, and in order to trade successfully, individual traders should watch these market moves, or market cycles, closely. Join financial markets…

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December 31, 2018

Different Approaches to Cryptocurrency Regulation

Different Approaches to Cryptocurrency Regulation

The demand for digital currencies globally has continued to rise ever since their introduction in 2008. However, with more than 1500 types of cryptocurrencies, capped at trillions of dollars being traded globally, and with the expansion of the underlying blockchain ledger system, there is an increasing awareness by regulators and governments across the globe about…

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December 31, 2018

What is Carry Trade?

What is Carry Trade?

One of the most popular investments in the financial markets today is the carry trade. This involves selling or borrowing an asset with a low-interest rate, with the aim of using the proceeds to fund the purchase of another asset with a higher interest rate. By paying a low interest rate on one asset and…

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December 31, 2018

Top 10 Cryptos (That Are Not Bitcoin)

Top 10 Cryptos (That Are Not Bitcoin)

Since its launch in 2009, Bitcoin has dominated the cryptocurrency scene. To this date, it remains the poster child of the crypto world, the gold standard. But it has also inspired many spinoffs or crypto projects, and there are now over 1500 crypto coins on the market. Apart from Bitcoin, here are 10 of the…

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December 31, 2018

What is Volatility and How it Affects You?

What is Volatility and How it Affects You?

What is Volatility? Financial market volatility is defined as the rate at which the price of an asset rises, or falls, given a particular set of returns. It is often measured by looking at the standard deviation of annual returns over a set period of time. At its core, volatility is a measure of how…

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December 20, 2018

AvaTrade adds more cryptocurrencies and reduces crypto swaps

AvaTrade adds more cryptocurrencies and reduces crypto swaps

Dublin, December 18, 2018: AvaTrade, a leading forex and CFD broker, has taken yet another step in dominating the cryptocurrency trading market, by recently adding Stellar (XLMUSD) and Dash (DASHUSD) to its already rich portfolio. In addition to that, AvaTrade has reduced its overnight swaps on all cryptocurrency trades by over 50% and now has…

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