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jazzz · 09-10-2008, 08:08 AM

What is a Bull Market?

When the rise in market prices is combined with the belief of investors in a continued rising trend, the market is defined as a bull market.

What is a Bear Market?

When the fall in market prices is combined with the belief of investors in a continued falling trend, the market is defined as a bear market.

What is day trading?

Here positions are open and closed within the same day, and at the end of it no open position will remain for the next day. Day trading is intended for traders who wish to make a profit from the market's volatility within a short period, since the margin amount required for this kind of trade is relatively low. With the leverage that Finexo offers the traders, the small fluctuations of the market are greatly increased and so are the profits!

What is Hedge?

Hedging means protecting an investment from long-term changes in the market. The various hedging strategies, taken by both private and corporate traders, yield good profits at a minimum risk by neutralizing the market's volatility. Companies, for example, usually perform hedging, when they purchase a product from a foreign company, and the payment for it will only be transferred at a later stage. These companies use various kinds of hedging techniques in order to maintain the value of the currency, since a rise means loss.

What is a Spot Trade?

A spot trade refers to the direct exchange of currencies, taking place within the next 2 work days at most. This kind of trade is suited for traders wishing to hedge their investment from the rise or fall of the market within that period of time.

What is a Forward Trade?

Here too a direct exchange of currencies is performed, with the only difference that the date of the actual exchange succeeds the two-day period of a spot trade. Both sides establish the exchange rates and the date in which the actual trade will take place, as well as the added interest rates to the exchange.

What is Swap, Roll Over?

A trade within the Forex market (a spot trade) is a daily trade. If the position remains open after one work day, it may be charged with the relative interest rate corresponding to that currency pair.

09-10-2008, 08:08 AM	#4 (permalink)
jazzz Junior Crapper Join Date: Jul 2008 Posts: 74 My Mood: Thanks: 0 Thanked 1 Time in 1 Post	Re: Contribute free forex tutorials here.... What is a Bull Market? When the rise in market prices is combined with the belief of investors in a continued rising trend, the market is defined as a bull market. What is a Bear Market? When the fall in market prices is combined with the belief of investors in a continued falling trend, the market is defined as a bear market. What is day trading? Here positions are open and closed within the same day, and at the end of it no open position will remain for the next day. Day trading is intended for traders who wish to make a profit from the market's volatility within a short period, since the margin amount required for this kind of trade is relatively low. With the leverage that Finexo offers the traders, the small fluctuations of the market are greatly increased and so are the profits! What is Hedge? Hedging means protecting an investment from long-term changes in the market. The various hedging strategies, taken by both private and corporate traders, yield good profits at a minimum risk by neutralizing the market's volatility. Companies, for example, usually perform hedging, when they purchase a product from a foreign company, and the payment for it will only be transferred at a later stage. These companies use various kinds of hedging techniques in order to maintain the value of the currency, since a rise means loss. What is a Spot Trade? A spot trade refers to the direct exchange of currencies, taking place within the next 2 work days at most. This kind of trade is suited for traders wishing to hedge their investment from the rise or fall of the market within that period of time. What is a Forward Trade? Here too a direct exchange of currencies is performed, with the only difference that the date of the actual exchange succeeds the two-day period of a spot trade. Both sides establish the exchange rates and the date in which the actual trade will take place, as well as the added interest rates to the exchange. What is Swap, Roll Over? A trade within the Forex market (a spot trade) is a daily trade. If the position remains open after one work day, it may be charged with the relative interest rate corresponding to that currency pair. __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.