The currency crises of the 1990s may have been influenced by reverse herding, the process in which money managers are less concerned about a crisis than they should be. Markets seemed complacent before these crises, even though there were reasons to believe that the next crisis might come. Reverse herding may explain this phenomenon in…
What Are Spot Exchange Rates?
Spot exchange rates are the rates of foreign currency that are immediately available for delivery. These rates are governed by the foreign exchange market and are dynamic in nature. They can also be hedged using derivative products. In this info, we will look at the basic characteristics of these rates. We will also discuss their…
The Balance of Payment in Forex Trading
In forex trading, the balance of payment is an important factor. It is the snapshot of a country’s trade with other countries and influences the demand for and supply of that country’s currency. In the current account portion of the balance of payments, the exchange rate of the currency is recorded. But this aspect of…
Maintaining a Consistent Strategy for Trading
Traders often like to tweak their strategies to improve short-term results. However, consistent strategies are based on doing the same thing consistently over time. The apt way to attain consistency is to set a daily trading routine, choose consistent trading hours and apply the right risk management techniques. In addition, it’s crucial to have a…
What are Wide Ranging Bars in Trading?
A wide-ranging bar in trading can be a very useful tool for trading. They can be used to identify a trend halt, a reversal signal, or a halt in momentum. However, the exact meaning of a wide-ranging bar depends on where you place the bar in the chart. Inside bar chart pattern An Inside Bar…
What Are Trading Statistics?
Trade data is a compilation of statistical data about international trade. It is usually organized by commodity, country, and time period. The data are helpful in understanding the overall economic health of a country and can help businesspeople improve their strategies. To learn more about trade statistics, read on! Listed below are a few examples….