Forex

The acronym "CFD" stands for a contract for differences, which is a derivative product to exchange the difference in the value of an underlying asset.

A stock index is used to describe the stock market's performance or a specific part of it and compare the returns on investments. In general, an index uses a weighted average of stock prices. The Nasdaq, S&P 500 and Dow Jones Industrial Average are examples of stock indices. In this article, we'll tell you all about them and how to make money with them.

The value of each world currency is often tied to interest rates. Since forex involves betting on the value of one currency against another, trades deal with two different interest rates. And traders should pay attention to the payment applied when they hold a position overnight. Depending on the interest rate of the two currencies, you can either profit or lose money from it.

A gap is a space on a chart where a security's rate both increases or decreases from the preceding day's ending with no trading activity happening between these time intervals. As a consequence, the asset's chart reveals a gap in the standard price pattern. The ambitious trader can understand and use these gaps to potentially gain profit.

Forex trading attracts a lot of people, and each and every one of them has its own unique approach. Some feel comfortable when trading long-term. Others find day trading or active scalping more interesting. Some people enjoy an automated process, and others prefer to open each deal by themselves. Automated forex trading is carried out by forex bots, which are essentially special trading software.

Every new trader comes across the concept of the lot. On most trading platforms, the lot size should be set independently. So, what is a lot? Does its size matter? How can it affect the trade? You'll learn the answers to these and many more questions after reading this article.

Let’s say you own some shares and want to offset some of the risks of stock ownership. Since you know that when stock prices fall, bond values increase, you can buy high-grade corporate bonds or US treasurys. This is just one example of hedging.

It all comes down to interest rates. As an investor, all you're doing is putting up a lump-sum payment for future cash flow.

Other than being the largest and most talked-about financial market, forex has a very appealing characteristic: around-the-clock operation. Being available and opening its doors to international participants at any time of day is arguably its best characteristic. Even though forex never sleeps, here's what you should know about FX exchange hours.

Stock indices are an important part of financial markets and provide information for a basket of stocks, not just one. Created in 1984 by the Frank Russell Company, the Russell 2000 index quickly became a household name. While indices like S&P 500 act as a reference point for large-capitalisation stocks, Russell 2000 reflects small-cap stocks in the United States.