Trading News

A business model is an action plan for the successful operation of a business, identifying sources of revenue, the target customer base, products or services to be offered, pricing and costs, and any other necessary operational details. Types of Business Models The following are considered the most popular types of business models: Manufacturer The manufacturing […]

An original equipment manufacturer (OEM) is a company that manufactures products or components used by another company in the production of its finished goods. OEMs typically provide parts and materials for assembly into other products, but they can also design and manufacture complete items to be sold as finished products. OEMs are found in many […]

Liquid assets are those assets that can be easily converted into cash and are used to pay off short-term debts. Examples include cash, accounts receivable, marketable securities (e.g., bonds, stocks), etc. Conversely, illiquid assets represent ownership of physical property or rights that cannot be readily converted into money without a certain process. These include equipment […]

Leading indicators are used to anticipate changes in the economy, labor markets, or financial markets and can be used to inform strategies for mitigating risks. They are often economic measures that change before the overall economy begins to shift. For example, a rise in housing starts is a leading indicator of increased economic activity, whereas […]

The endowment effect is a cognitive bias where one is inclined to value what they already own more than something they do not own. This bias was first identified in a study by Kahneman, Knetsch, and Thaler (1990) titled Experimental Tests of the Endowment Effect and the Coase Theorem. The study found that people placed […]

A bear trap in financial markets is when a security, or a market as a whole, experiences an extremely sharp decline but eventually reverses. Typically, these drops are sudden and steep, resulting in heavy losses for investors holding the affected assets. In some cases, bear traps can be caused by market speculation or news events […]

Published on: Dec 20, 2022 FXCM has lowered its spreads on the Trading Station account. Users can start speculating on currencies and indices with competitive fees and market-leading trading tools. Tighter Spreads The revised spreads are available on major forex pairs and popular stock indices. The AUD/USD has seen the biggest improvement, with a spread of […]

As interest rates rise, the value of call options increases and the value of put options decreases, holding all else equal. Below we explain why. Positive Rho for Calls; Negative Rho for Puts Call options have positive Rho, which means as interest rates increase, call options tend to increase slightly in price, all else held […]

What Is a Cash and Carry Trade Strategy? A cash and carry trade is a type of price arbitrage strategy in which an investor buys an asset and simultaneously sells a futures or derivatives contract for the same asset, or vice versa. The goal of this strategy is to profit from the difference between the […]

What Is A Martingale System in Financial Markets? A Martingale system is a type of investment or trading strategy that involves increasing the amount of money invested in an asset as the price of that asset goes down. The idea behind this strategy is that the increased investment will eventually pay off when the price […]