If you are looking to make money investing and trading currencies, you have to learn the terms used. For example, quote currency. To a layman, this might not be that enlightening but in the world of currency trading, quote currency refers to the second currency quoted in a currency pair. Usually, quote […]
Archive for May, 2008
Transaction Risk Explained
When you are looking to make profit in currency trading, there is a thing that you call transaction risk. This is based on the time differential between the entering and the settling of a contract. The longer the time differential, the higher the risk as there is more chance for the exchange rates […]
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The Currency Carry Trade
For serious investors, the currency carry trade is a good way to earn large profit. But, at the same time, using this technique poses a lot of risks. But what is currency carry trade exactly? Well, this is a strategy wherein an investor uses the interest rate on different currencies to make […]
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The Survivor Bias
Another term that potential investors should learn is the survivor bias. This is the practice of mutual fund companies of dropping mutual funds with poor performance. This way, the proven losing funds will no longer be in their offered portfolio making it more alluring to investors. When deciding on investing on mutual […]
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What Is Forex Exactly
Investors utter a lot of terms that common people may not understand. That’s because investors have to learn a language of their own to make it easier for them to communicate. But there are terms that are commonly heard like Forex. But what is it exactly?
Well, it is the market where currencies […]
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