Trading News

Bank of England Bond-buying Question

The UK’s Bank of England is setting aside £65bn to buy corporate bonds, in a move seen as an attempt to prop up the country’s struggling markets. By purchasing these corporate bonds, it’s seeking to improve liquidity in the market for private companies and make it easier for them to raise funds. But was it […]

The UK’s 2022 Fiscal Mistake – An Example of Fiscal Policy’s Impact on Currencies & Markets

In September 2022, the UK imposed a tax cut as an attempt to stimulate the economy. In this article, we cover the broad-level impact of this fiscal proposal on financial markets. Financial Market Impacts That led to the plunge or UK currency, bonds, and financial assets because the tax cuts were unfunded (i.e., they lead […]

Hedge Funds Don’t Beat the Market – Is This a Bad Thing?

A common criticism of hedge funds is that they don’t beat the market (commonly taken as the S&P 500, which is the world’s most tracked equity benchmark). Some even use this as a way to question why hedge funds exist in the first place. Namely, if something doesn’t add value, then shouldn’t natural forces do […]

What Causes A Currency to Fall? [Top Factors]

Currencies rise and fall for various reasons, but FX is a fundamentally macro asset class. While equities may move a lot based on idiosyncratic factors happening at the company or the individual trading patterns of a singular entity, currencies are much more heavily influenced by country- or jurisdiction-level factors. Factors that influence the fall in […]

Net International Investment Position (NIIP)

A country’s net international investment position (NIIP) is the value of all its foreign financial assets minus all its foreign financial liabilities. A country’s NIIP can be either positive or negative. A positive NIIP indicates that a country is a creditor to the rest of the world and a negative NIIP indicates that it is […]

Banks Bucking Financial Trends

There’s no denying that the economy is in a state of flux at the moment, with increasing interest rates and soaring energy costs being just two of the challenges facing businesses and individuals alike. However, there are some areas of the financial sector that seem to have remained unrattled by all this commotion and are […]

Apple Removes MT4 & MT5 From Its App Store

MetaTrader 4 (MT4) and MetaTrader (MT5) can no longer be downloaded from the Apple App Store. MT4 and MT5 account for around 80% of the retail trading app market, so the move will affect a significant portion of brokers and traders. Fortunately, the applications are still available on Google Play and existing users will not […]

The Hidden Downsides To Shell Dividends

Shell plc is an oil and gas company founded in Britain and has grown into a multinational business. Its headquarters remain in London and it’s listed on the London Stock Exchange (LSE) as well as on Euronext Amsterdam and the New York Stock Exchange. Shell is currently experiencing a huge amount of success as they […]

How Money Creation Works

The way money creation works in an economy and how the commercial banking system operates is broadly misunderstood. The way that it’s commonly taught in introductory economics textbooks is that a commercial bank takes in other people’s money (i.e., deposits) and then lends out this money in the form of loans. For non-bank financial institutions, […]

Psychological Biases in Trading & How to Avoid Them

Psychology is a big component of trading. The decisions we make are a product of the processing of the information that our brain takes in. This means that our psychological biases can have a big impact on our trading decisions. There are many different psychological biases that can affect traders, but some of the more […]

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