For people who are interested in trading currencies, currency binary is one thing that they should be familiar with. This is a relatively new trading strategy which involves betting on whether the exchange rate will fall or rise.
Investopedia explains:
“For example, assume that the exchange rate for the EUR/USD is currently 1.25; an investor who buys […]

New investors would surely be perplexed with what the Big Mac PPP is all about. Basically it is just a study to measure how overvalued or undervalued a certain currency is. According to Investopedia, Big Mac PPP is “a survey done by The Economist that determines what a country’s exchange rate would […]

Rational pricing is a theory which serious investors should be familiar with. According to Investopedia, this theory states that “the market prices of assets will represent the arbitrage-free pricing level for those assets. This is based on the assumption that any deviation from arbitrage-free price levels for an asset will result in arbitrageurs immediately […]

If you are going to invest or is already starting, then you have to have a blotter. This is basically a record of trades and its details. This is a good tool to have as it will give you an idea of what you did and how it turned out. This is […]

This term is used by people dealing in currencies. Basically, it is a method which monetary authorities employ to make limit the amount of domestic currency in the foreign exchange. The result of this is that it will equalize the effects of foreign exchange transactions on the domestic monetary base.

There are two theories that you might be interested in if you are serious about investing. One is the Theory of the Firm and the other is the Theory of the Consumer. The Theory of the Firm states that corporations are there to make decisions to have bigger profits. The other theory […]

One theory how Earth came to be is the Big Bang Theory. In money matters, the Big Bang is not a theory but the day when the London Stock Exchange became a private limited company. That happened on October 27, 1986. The said occurrence revitalized the London Stock Exchange because it allowed […]

In investing on currency trading, you have to learn the terms like exotic currency. Basically, an exotic currency is one which is thinly traded. The Uruguayan peso, Thai baht, and the Iraqi dinari are some examples of exotic currency. Trading these currencies tend to be expensive. If you are just starting […]

This term is quite new. This was coined by Federal Reserve Board Chairman Alan Greenspan earlier this month when describing the state of the economy in the United States. Greenspan used the term to denote an economic environment where recession has not yet hit all areas of the economy (which is good in a […]

Even if you are not yet investing, you might have experienced money illusion. It is described as that psychological state where people think that they have more wealth than they actually have. An example of this is an employer raising the wages in consonance with inflation. People tend to think that they […]