Take a look at our list of the financial terms associated with trading and the markets. From beginners starting their trading journey to experts with decades of experience, all traders need to clearly understand a huge number of terms.
Market Makers are financial institutions or investors that provide liquidity to the markets by placing buy and sell orders at specific prices. They are incentivized to do this in order to make profits from the bid-ask spread.
What is the difference between dealer and market maker?
A dealer and a market maker are both intermediaries in the securities market that provide liquidity and help facilitate trades. However, they have some key differences. A dealer is a person or entity that buys and sells securities for their own account and risk. They hold inventory of securities and make a profit by buying at a lower price and selling at a higher price.A market maker is a firm or individual that provides liquidity to the market by continuously buying and selling a security at publicly quoted prices. They are also called liquidity providers, and they make money by charging a bid-ask spread, the difference between the prices they are willing to buy and sell a security. They do not hold inventory of securities like dealers do.
Do market makers manipulate price?
Market makers are allowed to buy and sell securities at their own discretion, and they may adjust the prices they are willing to buy and sell a security in order to make a profit. However, they are also subject to regulatory oversight, and they must act in a fair and transparent manner. They are not allowed to manipulate prices, and any illegal activities such as insider trading, wash trading or any other form of market manipulation are strictly prohibited.
Market capitalization, commonly referred to as market cap, is a measure of a company's size and is calculated by multiplying the total number of its shares outstanding by the current market price of each share. Market cap can be used to help assess how much a company is worth in the eyes of investors.
Is high market cap good?
A high market capitalization (market cap) generally indicates that a company is well-established, has a strong financial performance, and is considered to be a reliable investment by the market. High market cap companies are often considered to be blue-chip stocks and are more stable and less risky than lower market cap companies.
However, a high market cap does not guarantee that a company will perform well in the future, it just reflects the current market's perception of the company, the stock price and the number of shares outstanding. The company may still be facing internal or external challenges, and the stock may be overvalued. Therefore, it's always important to do your own research and analysis before investing in any stock regardless of its market capitalization.
What is a good market capitalization?
A good market capitalization for an investment depends on the investor's individual preferences and goals. Generally, companies with a high market capitalization are considered to be well-established and financially stable, making them a more reliable investment. However, it is important to note that high market capitalization does not always guarantee future performance.
Is it better to have a small or large market cap?
Small-cap companies tend to be more risky but have higher growth potential. Large-cap companies are considered to be more stable but have lower growth potential. At the end of the day it will all depend on the investor's preference for risk and tolerance for profit/loss.
A market order is a type of stock order that allows an investor to purchase or sell securities at the current market price. It is one of the most common types of orders and it is executed as soon as it is placed, meaning the investor will get whatever price is currently available on the exchange.
Is it good to use market order?
A market order is an order to buy or sell a security at the best available current price. This type of order may provide an advantage over other types of orders by executing quickly, but it could also mean that the trade may not be filled at the desired price.
Why would you use a market order?
A market order is typically used when an investor wants to execute a trade quickly, and is willing to accept the current market price. This type of order is often used when an investor wants to take advantage of a price change or when they want to enter or exit a position quickly.
How long does a market order take?
A Market order is generally the fastest order to execute as it simply takes the current market price. You can expect a market order to be executed usually within seconds or minutes of being placed, as long as there is sufficient liquidity in the market.
In the financial and trading domains, the Grey Market enables traders to take positions on a company’s potential via yet-to-be-released Initial Public Offering (IPO). Asset and share prices in this market are more of a prediction of what the company’s total market capitalization will be at the end of its first trading day than any official or sanctioned price.
How do grey markets make money?
Grey markets make money by providing liquidity for new IPOs by allowing buyers and sellers to trade in newly issued stocks without the issuer's consent. This provides the issuer with a way to gain quick access to capital without relying on banks or other traditional sources of funding.
How do I get into grey market?
A grey market also refers to public companies and securities that are not listed, traded, or quoted in a U.S. stock exchange. Grey market securities have no market makers quoting the stock. Also, since they are not traded or quoted on an exchange or interdealer quotation system, investors' bids and offers are not collected in a central spot, so market transparency is diminished, and effective execution of orders is difficult.
A bullish market is a financial market condition where prices are rising or are expected to rise, characterized by optimism and investor confidence. It is the opposite of a bearish market, where prices are falling or expected to fall.
How long do bull markets last?
Bull markets can last anywhere from a few months to several years. The average bull market lasts about 3 years. However, the length of a bull market can vary greatly depending on various economic, political, and market factors.
How do you know if a market is bullish?
A market is considered bullish if stock prices are rising and investors are optimistic about future market performance. This is typically indicated by a sustained increase in market indexes such as the S&P 500 and the Dow Jones Industrial Average over a period of time. Additionally, high trading volume and strong investor confidence can also be indicators of a bullish market.
What is the longest bull market in history?
The longest bull market in history was the 1990-2000 bull market, which lasted for 113 months.
A bearish market is a condition in the stock market where prices are on a downward trend, characterized by widespread pessimism and investor fear. This often results in a decline in the value of securities, leading to a decline in the overall market.
How long do bear markets last?
The duration of a bear market can vary and can last anywhere from a few months to several years. It depends on a number of factors, including the underlying cause of the market downturn, the state of the overall economy, and government or central bank interventions.
How do you know if a market is bearish?
A market is considered bearish if there is a persistent downward trend in the prices of securities, typically accompanied by increased selling pressure and declining market indices such as the S&P 500. This can be indicated by technical analysis, such as chart patterns showing lower highs and lower lows, or by broader economic indicators such as declining gross domestic product (GDP) and rising unemployment.
What is the longest bear market in history?
The longest bear market in history is the Great Depression, which lasted from 1929 to 1939. During this time, the stock market experienced a severe decline, with the Dow Jones Industrial Average losing 89% of its value. The Great Depression was a global economic downturn that had far-reaching impacts and was marked by high levels of unemployment, homelessness, and economic hardship.
Financial Markets define any place (physical or virtual) or system which provides buyers and sellers with the means to trade financial instruments of any kind.
What are the types of financial markets?
Types of financial markets include stock markets, bond markets, foreign exchange markets, commodity markets, money markets, derivatives markets, and options markets.
What is the main function of financial markets?
The main function of financial markets is to facilitate the interaction between those who need capital with those who have capital to invest. In addition to raising capital, financial markets allow participants to transfer risk (generally through derivatives) and promote commerce. The term "market" can also be used for exchanges, or organizations which enable trade in financial securities.
Within the financial sector, the term "financial markets" is often used to refer just to the markets that are used to raise finances. For long term finance, they are usually called the capital markets; for short term finance, they are usually called money markets. The money market deals in short-term loans, generally for a period of a year or less.
MakerDAO describes itself as “a utility token, governance token, and recapitalization resource of the Maker system.” The purpose of the Maker system is to generate another token, using the Ethereum protocol, called Dai, that seeks to trade on exchanges at a value of exactly US$1.00. Maker is available on our platform in USD and is tradeable using the MKR/USD symbol.
The Federal Open Market Committee (FOMC) is the policy-making arm of the Federal Reserve System (the Fed) which is responsible for making monetary policy decisions. The FOMC is made up of 12 members, including the seven governors of the Federal Reserve Board and five of the 12 Reserve Bank presidents.
What does the Federal Open Market Committee impact?
The FOMC meets eight times a year to set the target for the federal funds rate, which is the interest rate at which banks lend and borrow money from each other overnight. The FOMC's decisions can have a significant impact on interest rates, the economy, and the stock market. The FOMC makes key decisions about interest rates and the growth of the United States money supply. It also directs operations undertaken by the Federal Reserve System in foreign exchange markets. They consider a wide array of factors such as trends in prices and wages, employment and production, business investment and inventories, foreign exchange markets, and fiscal policy.
The foreign exchange market, also known as forex, is a decentralized market where currencies are traded 24/5. It has an average daily trading volume of over $5 trillion and facilitates the exchange of one currency into another for businesses, investors, and traders. It is influenced by economic and political events.
Why is Foreign Exchange important?
The foreign exchange market is important because it allows businesses, investors and traders to convert one currency into another, facilitating international trade and investment. It also enables countries to maintain control over their monetary policy and stabilize their economies. Additionally, the foreign exchange market is a major source of financial market liquidity and is used by a wide range of market participants, including banks, corporations, governments, and individual traders. It also enables people to manage the risk associated with currency fluctuations.
How is Forex trading done?
Forex trading is done by buying and selling currency pairs, using a platform provided by a Forex broker such as markets.com. Traders use different strategies and analysis to predict the price movements and decide whether to buy or sell a certain currency pair. It can also be done through contracts for difference (CFDs) which allow traders to speculate on price movements without owning the underlying currency.
The WisdomTree Emerging Markets High Dividend ETF (DEM) tracks the WisdomTree Emerging Markets Dividend Index. The index is a fundamentally weighted index that is comprised of the highest dividend-yielding common stocks selected from the WisdomTree Emerging Markets Dividend Index. This provides it with some downside protection from market volatility.
DEM is an equity fund, and has a mix of market sectors. It includes stocks from key emerging markets such as Russia and China, with assets including China Contruction Bank, China Mobile and Norilsk Nickel.
A MetaTrader is an electronic trading platform widely used by online retail traders. The MetaTrader application consists of both a client and server component. The server component is run by the broker and the client software is provided to the broker’s customers, who use it to see live streaming prices and charts, to place orders, and to manage their accounts.The platform works on Microsoft Windows-based applications as well as on Andriod and Mac OS applications.
Marktets.com supports the use of both the MetaTrader 4 and MetaTrader 5 trading platforms with its traders.
Metatrader 4 is still one of the most popular and easy-to-use trading platforms. With Expert Advisors, micro-lots, hedging and one-click trading.
Metatrader 5 is a powerful upgrade and the most advanced online trading platform It is a multi-asset derivatives platform for trading on CFDs and enables traders to perform hedging and netting, and delivers more technical indicators as well as more insight with market depth and a wider number of timeframes.
Can I trade on MetaTrader without a broker?
While you can download and use the MetaTrader software without a broker, it is not possible to trade without one. In order to execute trades on MetaTrader, you will need to open an account with a broker that offers the platform and deposit funds into that account.
The definition of Assets in trading is as resources which provide an economic value. Assets include but are not limited to cash, property, rights, as well as resources that have the potential of generating. Assets are what businesses require and use to operate. Assets are considered as one of the three fundamentals of any financial calculation, together with liabilities and equity.
Trading Assets Definition
There are several ways of defining and classifying assets:
• Convertible – Liquidity based, as in how fast they can be converted into cash.
• Current Assets – Liquid assets that are expected to be converted to cash within a year.
• Fixed Assets – Cannot be easily and readily converted into cash.
• Physical Existence – Tangible or intangible assets defined by their material presence.
• Tangible Assets – Having physical substance, such as hardware, cash, & inventory.
• Intangible Assets – Resources without physical substance patents, licenses, & copyrights.
• Operating Assets – Necessary to the ongoing operation of a business.
• Non-Operating Assets – Non-functional such as idle equipment & vacant land.
What is a margin in finance?
A margin in finance is the amount of money an investor borrows to purchase or trade securities. It is the difference between the total value of the borrowed funds and the market value of the collateral provided as security for the loan. Margin trading allows investors to buy more securities than they would otherwise be able to purchase with just their own capital.
What is margin vs profit?
Margin and profit are related but different concepts in finance and trading.
Margin refers to the amount of money or collateral that is required to open a leveraged position, such as a margin account, which allows traders to buy securities by borrowing money from a broker. Profit, on the other hand, refers to the amount of money that is gained from a trade or investment, after all costs and expenses have been subtracted. Profit is the result of a successful trade, which is the difference between the buying and selling price.
How do I calculate margin?
There are a few different ways to calculate margin, depending on the context and the type of trade or investment.
One of the most common ways to calculate margin is to use the following formula:
Margin = (Value of Trade / Leverage) x 100%
A share is a partition of the total value of a company. Each share represents a unit of ownership in that company, and therefore also the value that it holds. Should a company choose to sell shares as a means of fundraising, this is known as equity finance.
A share owner is called a shareholder (or stockholder). The ongoing value of a share, once it is introduced to the market, is its trading value at any given time, which can be either lower or higher than the original value. A share is worth whatever price it is currently trading at. An actual transaction of shares between a buyer and a seller is usually considered to provide the best market indicator as to the "true value" of that share at that time. The difference between current price and open price will represent either a profit or a loss to the investor who purchased it.
There are different types of shares in the trading domain, including Cumulative & Non-cumulative Preference Shares, Participating & Non-participating Preference Shares, Convertible & Non-convertible Preference Shares, Redeemable & Un-redeemable Preference Shares.
It is also possible to use CFDs to trade shares. This enables traders to take a leveraged position on whether a share rises or falls. This different type of share trading opens up more trading opportunities by either buying or selling the asset without physically owning it.
Amortization is the process of charging the cost of an asset to expense over a specific timeframe. Amortization also defines the practice of spreading the repayment of a loan. This shifts the asset from the balance sheet to the income statement.
Amortization reflects the consumption of an intangible asset over what is considered a useful timeframe. It is used for the gradual write-down of the cost of those intangible assets that have a specific useful life. It is common to charge interest which is calculated based on the duration and other variables.
Amortization should not be confused with Depreciation. The difference between them is that amortization is about charging “Intangible Assets” to expense over time. While depreciation is about charging “Tangible Assets” to expense over time.
How to calculate amortization?
As we do not provide economic or trading advice we can only include here what is considered to be a generally agreed upon explanation. As stated, generally an Amortization can be calculated by using a straight-line formula such as: (book value - residual value) / useful life.
Margin trading refers to the practice of borrowing money from a broker to purchase securities. It allows traders to buy more securities than they could afford to buy with cash alone, by leveraging the securities they already own as collateral. This increases the potential returns but also increases the potential risks, as the trader is responsible for paying interest on the borrowed money and must also cover any losses. Margin trading is considered to be a high-risk strategy and is only suitable for experienced traders with a good understanding of the risks involved.
How much money do you need for margin?
The amount of money required for margin trading depends on the minimum deposit requirement set by the broker. For markets.com this is 100 of your local currency, with the exception of South Africa where it is 1000 rand.
What level of margin is safe?
The level of margin that is considered safe depends on the trader's risk tolerance and investment goals. A lower margin level is generally considered to be safer, as it reduces the potential for large losses
Take profit is an order type that is used by traders to automatically exit a trade when a certain profit level is reached. Once the specified price level is hit, the trade will be closed and the profit will be locked in. Take profit can also be used in short positions, where the trader is betting on the price to decrease. In this case, the trader would set a take profit order at a price level below the current market price. Once that price level is reached, the trade will be closed and the profit will be locked in.
When should I take profit on my shares?
The decision to take profit on a stock should be based on your own personal investment strategy and goals. Some investors may choose to take profit when a stock reaches a certain level of appreciation or when it reaches a technical resistance level. Others may choose to hold onto a stock for the long-term and only take profit when they need the money for other investments or expenses.
What is the purpose of take profit?
The purpose of a take profit order is to automatically lock in profit at a specific price level, without the need for a trader to constantly monitor the market. By setting a take profit order, a trader can set a specific level at which they want to exit a trade with a profit, and then let the market run its course. Additionally, it allows the trader to set a level of risk-reward they are comfortable with, and not be affected by emotions and human biases, which could cause them to hold on to a trade for too long or exit too soon.
A margin call is a demand from a broker to a trader that additional funds must be added to the trader’s account in order to maintain their current positions.
What would trigger a margin call?
A margin call occurs when an investor using margin (borrowed money) to trade in securities or other financial instruments, does not have enough money or equity in their account to meet the minimum margin requirement set by their broker. This can happen when the value of the securities in the account falls below a certain level, resulting in a negative balance in the margin account. A margin call can be a warning sign that the investor is taking on too much risk, and it can be a good opportunity to re-evaluate their investment strategy.
What happens if you get a margin call?
When a margin call happens, the broker will contact the investor and ask them to deposit additional funds into their account or sell some of their profiting securities to bring the account equity back above the minimum margin requirement. If the investor is unable to meet the margin call, the broker may take action to liquidate the investor's securities in order to bring the account back to a positive balance.
Do you lose money on a margin call?
A margin call itself does not necessarily mean that you will lose money, but it does indicate that you are at risk of losing money if you do not take action to meet the call. When a margin call occurs, it is a warning that your account balance has dropped below the minimum margin requirement set by your broker, and if you do not take action to bring it back above that level, your broker may take action to liquidate your securities in order to bring the account back to a positive balance.
Maintenance Margin, or “variation margin,” is considered as the minimum amount of equity (i.e., funds) which needs to be maintained in a trader’s margin account before a margin call is issued as due to the account value being below a minimum threshold and not being able to support open margin trade positions. Margin accounts are what leveraged trades use to trade, where they can purchase securities such as stocks, bonds, or options with funds borrowed from the brokerage.
How do you avoid maintenance margin?
To avoid maintenance margin issues, traders should monitor their account closely and adjust their leverage if needed. If your maintenance margin is not maintained it will result in a margin call, which may indicate that the trader should reconsider the risk exposure of their portfolio.
Why are maintenance margins important?
Maintenance margins are important to protect against losses due to fluctuations in the market. They ensure that traders maintain adequate capital reserves and can cover any potential losses.
A share buyback, also known as a stock repurchase, is when a company buys back its own shares from the open market. This reduces the number of outstanding shares and increases the ownership stake of existing shareholders. Buybacks can be used as a way for a company to return excess cash to shareholders, increase earnings per share, or signal confidence in the company's future prospects.
Is share buyback a good thing?
Share buybacks can have both positive and negative effects on a company and its shareholders. On one hand, buybacks can be seen as a sign of a company's financial strength, as they suggest that the company has excess cash and believes its own stock is undervalued. Additionally, buybacks can help to boost earnings per share, which can increase the company's valuation. On the other hand, buybacks can also be criticized for diverting resources away from investments in growth or other opportunities, or for being used as a way to artificially boost the stock price. It's important for investors to evaluate the company's financial situation and the reason behind the buyback before making a decision on whether it is good or not.
What happens to share price after buyback?
Share price can be affected by a buyback in different ways, it will depend on the market conditions, the company's financial situation and the reason behind the buyback. In general, a buyback can help to boost the share price by increasing earnings per share and reducing the number of outstanding shares. Additionally, the announcement of a buyback can also signal confidence in the company's future prospects, which can attract more buyers to the stock. However, a buyback doesn't guarantee an increase in the stock price, if the market conditions are not favorable or if the company's financial situation is not good, the stock price could remain unchanged or even decrease.
What is the reason for share buyback?
A company may choose to buy back its own shares for a variety of reasons, including:
-Returning excess cash to shareholders: A buyback can provide shareholders with a more direct benefit from the company's cash reserves, rather than leaving the money idle or reinvesting it in less profitable ventures.
-Increasing earnings per share: By reducing the number of outstanding shares, buybacks can increase earnings per share, which can make the company look more valuable to investors.
-Signaling confidence: A buyback can signal to the market that the company's management believes the stock is undervalued, which can attract more buyers to the stock.
-Boosting stock price: By purchasing shares in the open market, a buyback can help to boost the stock price, which can benefit existing shareholders.
-Mitigating dilution: If a company issues new shares, it can dilute the value of existing shares, buying back shares can help to mitigate this dilution.
It's important to note that buybacks can also be used as a tool by management to artificially boost the stock price in the short term, rather than for the benefit of long-term shareholders.
Companies in the Internet ETF (ARKW) are those that focus on or benefit from cloud computing technologies enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media.
Sectors covered include cloud computing & cyber security, eCommerce, Big Data & AI, mobile technology & Internet of Things, social platforms, and blockchain & P2P.
Genomic ETF (ARKG) constituents are companies designing technologies for, or are expected to benefit from, extending & enhancing the quality of human and other life by integrating technological and scientific developments and advancements in genomics into their business. Sectors covered include CRISPR, targeted therapeutics, bioinformatics, molecular diagnostics, stem cells, and agricultural biology.
Arbitrage is trading that makes use of small differences in price between identical assets in two or more markets. An asset will most likely be sold in different markets, forms or via a different financial products.
Arbitrage is one alternative trading strategy that can prove exceptionally profitable when leveraged by sophisticated traders. It also carries risks which need to be considered prior and during an arbitrage.
Arbitrage as a trading strategy is when an asset is simultaneously bought and sold in different markets, thus taking advantage of a price difference, and generating a potential profit. Arbitrage is commonly leveraged by hedge funds and other sophisticated investors.
What is an example of arbitrage?
Without going into actual trading advice, here are several examples of Arbitrage in Trading:
• Exchange rates
• Offshore operations
• Cryptocurrency
And perhaps the most obvious and common form of arbitrage which is acting as a go between or affiliate, earning commission on price differences between the seller and the buyer.
Types of arbitrage traders use:
• Pure arbitrage - Traders simultaneously buying and selling assets in different markets to take advantage of a price differences.
• Merger arbitrage – When two publicly traded companies merge. If the target is a publicly traded company, the acquiring company must purchase its outstanding shares Convertible arbitrage.
• Convertible Arbitrage. It is related to convertible bonds, also called convertible notes or convertible debt.
iShares MSCI Taiwan (EWT) ETF tracks the investment results of an index composed of Taiwanese equities. The ETF provides exposure to large and mid-sized Taiwanese companies and can be used to access to the Taiwanese stock market. EWT includes 90 of the top companies on the Taiwanese Stock Exchange. It is heavily weighted toward the information technology and finance sectors, which account for 55.5% and 18.5% of the portfolio respectively.
The top ten holdings include Taiwan Semiconductor Manufacturing, Hon Hai Precision Industry Ltd, Formosa Plastics Corp and Chunghwa Telecom Ltd.
Fibonacci retracement is a technical analysis tool that uses horizontal lines to indicate areas where a stock's price may experience support or resistance at the key Fibonacci levels before it continues to move in the original direction. These levels are derived from the Fibonacci sequence and are commonly used in conjunction with trend lines to find entry and exit points in the market. The key levels are 23.6%, 38.2%, 50%, 61.8% and 100%.
Unlike moving averages, Fibonacci retracement levels are static prices. They do not change. This allows quick and simple identification and allows traders and investors to react when price levels are tested. Because these levels are inflection points, traders expect some type of price action, either a break or a rejection.
Why do people use Fibonacci in trading?
Fibonacci retracement is used in trading as it enables traders to identify long-term trends by determining when an asset's price is likely to change direction. This is useful to traders since it can help them to decide when to open or close trading positions, or when to apply stops and limits to their trades.
Is Fibonacci retracement a good strategy?
Fibonacci retracement can be a powerful trading tool when used correctly. It is based on the principle of support and resistance levels and can help identify key levels of entry and exit. When combined with other technical indicators it can help traders take better informed decisions.
Trading charts are used to display historical price data for a security or financial instrument. They typically include a time frame on the x-axis, and the price of the security or instrument on the y-axis. Candlestick charts, bar charts and line charts are the most common types of charts used in trading. Candlestick charts are the most popular and provide a visual representation of the opening price, closing price, highest and lowest price of the security in a given period of time. It also shows the direction of the price movement, whether it went up or down. Traders use different technical analysis tools like trendlines, moving averages, and indicators to interpret the charts and make trading decisions. There is a great deal of nuance in reading charts and doing it correctly will require experience and an understanding of how your chart of choice is presenting information to you.
How do you predict if a stock will go up or down?
Traders use different technical analysis tools and techniques to predict if a stock will go up or down using trading charts. These include:
Trendlines: By connecting price highs or lows over a period of time, traders can identify the direction of the trend and predict future price movements.
Moving averages: By plotting the average price over a period of time, traders can identify trends and potential buying or selling opportunities.
Indicators: Technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are mathematical calculations that are plotted on charts to help traders identify trends, momentum and potential buy or sell signals.
Chart patterns: Traders also use chart patterns such as head and shoulders, double bottoms, and triangles to identify potential reversal points in the market and make predictions about future price movements.
It's important to note that technical analysis is not an exact science and it's not a guarantee of future results. Traders should always use technical analysis in conjunction with fundamental analysis, which looks at a company's financial and economic conditions, to make informed trading decisions.
How do you know if a chart is bullish?
A chart is considered bullish if it is showing an upward trend or pattern, indicating that the price of a security or financial instrument is likely to rise. Bullish chart patterns include upward trending lines, ascending triangles, and bullish candlestick patterns such as the hammer or the bullish engulfing pattern. Traders often consider a stock to be bullish when it's trading above the moving average, especially when the moving average is trending upward.
Materials Select Sector SPDR Fund (XLB) tracks US basic materials companies within the S&P 500. This asset uses the Materials Select Sector Index as its tracking benchmark. The limited spread and niche sector mean that it is heavily concentrated. Just a few holdings make up a big part of the portfolio, and there are only 24 holdings in total.
Top holdings for the benchmark index include DowDuPont Inc, Linde Plc, Ecolab Inc and The Sherwin-Williams Co.
What do hawkish and dovish mean?
Hawks and doves are terms used by analysts and traders to categorise members of Central Bank committee ahead of their votes on monetary policy.
Hawkish: Refers to a monetary policy that is seen as being more aggressive and leaning towards higher interest rates. It implies a strong stance from the monetary authorities in order to keep inflationary pressures in check and provide an incentive for businesses to invest.
Dovish: Refers to a monetary policy that is seen as being less aggressive and leaning towards lower interest rates. It implies a softer stance from the monetary authorities, allowing businesses to have access to cheap credit, which can help stimulate the economy.
Does hawkish mean bullish?
No, hawkish does not mean bullish. Hawkish is an economic term that describes a central bank policy stance that is believed to favor higher interest rates and tighter monetary policy. It contrasts with dovish which is used to describe policies which favor lower interest rates and more accommodative monetary policy.
Is hawkish good for a currency?
Generally, yes. A hawkish monetary policy can be beneficial for a currency as it typically causes an increase in demand and prices of goods and services produced within the country.
A Guaranteed stop order provides traders with a form of protection for their positions. They can have a guaranteed exit at the exact price they specify. This can be used regardless of market volatility. This is different from “standard” stop-loss orders, which may be filled at worse price levels than were requested due to “slippage”. A guaranteed stop loss order (GSLOs) will incur a fee / premium which will only be charged if it was triggered.
How does guaranteed stop work?
A guaranteed stop loss works in the same way as a standard one does, via instructions provided to the broker to close a position at a specific level, thereby reducing the risk should the market move against the trader.
Should I use guaranteed stop-loss?
Guaranteed stop-loss automatically exits you from the market at a certain predetermined price level in order to limit potential losses if the market goes against you. As such, especially for less experienced traders, it is a recommended strategy to mitigate losses.
iShares MSCI South Korea (EWT) ETF tracks the investment result of an index composed of South Korean equities. It provides traders with exposure to large and mid-sized South Korean companies and is a way to access the South Korean Stock Market. EWY follows 114 of the top companies listed in the South Korean Stock Exchange, and reflects the market well.
With Samsung as one of the major companies represented in the portfolio, it is unsurprising that Information Technology companies comprise a large part of this ETF. Almost 30% of the portfolio is IT, the next largest sector is Finance with 14.06%. Hyundai, LG and Kia also feature in this ETF.
The Proshares Bitcoin Strategy ETF (Bitcoin ETF) offers managed exposure to bitcoin futures contracts. The Fund does not invest directly in bitcoin and may also invest in other instruments. It’s one of the first of its kind and marks a new way to get exposure to cryptocurrency price movements.
WisdomTree U.S. LargeCap Dividend (DLN) consists of the 300 largest companies ranked by market capitalisation from the WisdomTree Dividend Index. The Index is a fundamentally weighted index that measures the performance of large-cap dividend-paying US companies.
The top ten stock holdings account for 26.76% of the index and include Microsoft, Apple, Exxon Mobil and Verizon Communications. Four sectors (Information Technology, HealthCare, Consumer Staples and Financials) account for 56.4% of the index’s holdings. This ETF is a good option for traders looking for exposure to large cap equity from dividend-paying companies.
The ARK Space Exploration & Innovation ETF's (ARKX) investment objective is long-term growth of capital. ARKX is an actively-managed exchange-traded fund (“ETF”) that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the Fund’s investment theme of Space Exploration and innovation. The Adviser defines “Space Exploration” as leading, enabling, or benefiting from technologically enabled products and/or services that occur beyond the surface of the Earth.
ProShares Ultra QQQ (QLD) aims to deliver daily investment results that are twice the performance of the Nasdaq 100 Index. This ETF provides leveraged exposure to a market-cap weighted index of 100 non-financial stocks listed on the NASDAQ. This is a single-day bet and traders are advised that returns can vary dramatically if they hold positions for longer than one day. All leveraged products carry more risk than unleveraged products.
The Nasdaq 100 is dominate by tech firms, so the performance of the index is closely tied to the sector. Top holdings include Apple, Amazon, Facebook and Tesla.
ProShares UltraShort QQQ (QID) aims to deliver daily investment results that are twice the inverse daily performance of the Nasdaq 100 Index. This is a single-day bet and traders are advised that returns can vary dramatically if they hold positions for longer than one day. This is the sister product to QLD, which delivers two times the daily performance of the Nasdaq 100.
As with most inverse and leveraged products, this fund is designed to provide inverse exposure on a daily basis, not as a long-term inverse bet against the index. All leveraged products carry more risk. Nasdaq 100 holdings include Apple, Amazon, Facebook and Tesla.
Consumer Staples Select Sector SPDR Fund (XLP) tracks US consumer staples companies within the S&P 500. This asset uses the Consumer Staples Select Sector Index as its tracking benchmark. The fund provides strong and representative exposure to consumer staples and the companies are large-cap in the main.
The index comprises just 34 holdings from the consumer sector and includes many household names. Top holdings include Procter and Gamble, Coca-Cola, PepsiCo and Walmart.
The Health Care Select Sector SPDR Fund (XLV) tracks US health care companies within the S&P 500. This asset uses the Health Care Select Sector Index as its tracking benchmark. The fund is caps weighted and only includes companies from the S&P 500, which means there are a lot of very large companies.
The index comprises just 62 holdings from the health care sector – lower than many in this segment - and includes many household names. Top holdings include Johnson & Johnson, Pfizer Inc, UnitedHealth Group and Merck & Co Inc.
The Xtrackers MSCI U.S.A. ESG Leaders Equity ETF (USSG) holds a basket of companies that score highly for environmental, social, and governance (ESG) factors, with roughly marketlike sector exposure. The fund’s index uses MSCI’s ESG rating methodology to assign a score to all US large- and midcap stocks.
TYO Fund seeks daily investment results of 300% of the inverse of the performance of the NYSE Current 10 Year U.S. Treasury Index.
Chainlink (LINK) connects contracts smartly by linking them with real world events, data, and payments. Using the LINK cryptocurrency, Chainlink is tradeable on our platform via the LINK/USD instrument.
Fintech ETF (ARKF) is an ETF focussing on innovative and disruptive financial technologies. Companies represented within ARKF transaction innovations, blockchain, risk transformation, frictionless funding platforms, customer facing platforms, and new Intermediaries.
Polkadot (DOT) fuses two blockchains: the main, relay chain, where transactions are permanently agreed upon, and user-generated chains. Tradeable in USD, Polkadot is priced in USD and uses the DOT/USD spot rate.
The VanEck Vectors Social Sentiment ETF (BUZZ) will track the BUZZ NextGen AI US Sentiment Leaders Index. This index consists of the most-favourably talked about stocks online, whether on blogs, social media or Reddit.
TRON’s goal is to create a decentralised internet. Its TRX cryptocurrency allows buyers to vote on who gets rewards for validating transactions on its blockchain. markets.com lets you trade TRX/USD at the latest spot rate.
EOS supports the EOS.IO blockchain protocol. The protocol’s architecture has the potential to eliminate user fees while processing millions of transactions per second. On our platform, EOS is priced in USD using the EOS/USD spot rate.
Cardano differs from other cryptos by taking a research-led, collaborative approach to cryptos. Traders of its ADA currency help operate the network and can vote on software changes. Cardano is priced in USD and the instrument allows you to trade the ADA/USD spot rate.
ProShares Ultra Silver, also known as AGQ, is a single-day bet, not a buy-and-hold ETF. AGQ is a leveraged ETF that aims to deliver daily investment results that equate to twice the daily price performance of silver bullion, measured by US Dollar for delivery in London.
Tezos (XTZ) cryptocurrency is designed to run smart contracts with decentralised applications. The currnecy uses Liquid Proof of Stake model. This allows XTZ owners to delegate validation rights but still earn staking rewards, without giving up custody of their cryptocurrency. Trade XTZ/USD at latest spot rights on our platform.
The iShares Global Clean Energy ETF (ICLN) seeks to track the investment results of an index composed of global equities in the clean energy sector.
IXN is an iShares Global Tech ETF seeks to track the investment results of an index composed of global equities in the technology sector, offering exposure to electronics, computer software and hardware, and informational technology companies. Targeting tech stocks from around the world, you can use this ETF to get a global view of this sector.
Robotics ETF (ARKQ) constituents are focused on, and are expected to substantially benefit from, the development of new products or services, technological improvements, and scientific research advancements in areas like energy, automation and manufacturing, materials, and transportation.
Companies within the ETF either develop, produce, or enable autonomous transportation, robotics & automation, 3D printing, energy storage, and space exploration.
Synthetix (SNX) is a decentralized protocol that lets users gain exposure to assets like other cryptos, gold, and stocks, without actually holding the underlying resource. These synthetic assets are backed by the platform's cryptocurrency, Synthetix Network Token (SNX), which is staked as collateral in order to generate rewards. It is priced in USD and can be traded using the SNX/USD symbol.
Industrial Select Sector SPDR Fund (XLI) tracks US industrial companies within the S&P 500. This asset uses the Industrial Select Sector Index as its tracking benchmark. The ETF provides concentrated exposure large-cap US industrial companies, with limited small and midcap companies.
The index comprises just 70 holdings from the industrial sector. Top holdings for the benchmark index include Boeing Co, 3M Co, Union Pacific Corp and Honeywell International Inc.
Yearn.finance (YFI) is another Ethereum-led yield aggregator using the YFI token. Cryptos deposited on Yearn are leant out at the highest lending rate possible across a number of other platforms. Holders of YFI can participate in the protocol's governance and earn a percentage of the fees generated on the various Yearn Finance products through staking. Yearn is available on our platform via the YFI/USD symbol and is priced in USD.
Financial Select Sector SPDR Fund (XLF) tracks US financial companies within the S&P 500. This asset uses the Financial Select Sector Index as its tracking benchmark. The ETF offers concentrated exposure large-cap US financial companies.
Just a few holdings make up a big part of the portfolio, and there are only 68 holdings in total. Top holdings for the benchmark index include Berkshire Hathaway Inc, JPMorgan Chase & Co and Bank of America.
Utilities Staples Select Sector SPDR Fund (XLU) tracks US utilities companies within the S&P 500. This asset uses the Utilities Select Sector Index as its tracking benchmark. The fund is concentrated to just a few large firms, as the index comprises just 30 holdings from the utilities sector. This can be a pro or a con depending on your trading strategy.
Top holdings include Nextera Energy Inc, Duke Energy Corp, Dominion Energy Inc and Southern Co.
The Vanguard Value Fund (VTV) seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks. The Fund employs a "passive management"-- or indexing --investment approach designed to track the performance of the CRSP US Large Cap Value Index.
Innovation ETF (ARKK) is based on “disruptive innovation”, focusing on technologies or services that have the potential to change the world.
Companies within ARKK cover those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies, industrial innovation in energy, automation and manufacturing, the increased use of shared technology, infrastructure and services, and technologies that make financial services more efficient.
ProShares UltraShort Russell2000 (TWM) is a leveraged product that seeks to deliver twice the inverse of the daily performance of the USA2000 Index. Results aims to be 200% of the opposite to the movement of the index. This is a daily-bet, so results will vary dramatically for positions held longer than one day.
The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.
The Sprott Silver Investment Trust (PSLV) seeks to provide a secure, convenient, and exchange-traded investment alternative for investors interested in holding physical silver bullion without the inconvenience that is typical of a direct investment in physical silver bullion. The Trust intends to achieve this by investing primarily in long-term holdings of unencumbered, fully allocated, physical silver bullion and does not speculate with regard to short-term changes in silver prices.
UPRO, ProShares Ultra Pro S&P500, provides 3x daily exposure to the S&P 500 Index. The ETF aims to deliver daily returns that are three times that of the S&P 500 Index, which comprises US large cap equities. The S&P 500 represents some of the largest and most liquid US stocks on the market.
This is a leveraged product and, as such, carries more risk. It is an aggressive instrument, design for intraday trading, and should not be used as part of a buy-and-hold strategy.
Technology Select Sector SPDR Fund (XLK) tracks US tech companies within the S&P 500. This asset uses the Technology Select Sector Index as its tracking benchmark. As the tech firms in the index are just drawn from the S&P 500, there are some odd inclusions such as financial payment processors and telecoms companies.
The index comprises just 69 holdings from the tech sector, with two accounting for more than a third of the index – Microsoft Corp and Apple Inc. Other holdings include Visa, Intel and Cisco.
Energy Select Sector SPDR Fund (XLE) tracks US energy companies within the S&P 500. This asset uses the Energy Select Sector Index as its tracking benchmark. The ETF is offers concentrated exposure to oil and gas industry giants, as the S&P500 favours large-caps. Nevertheless, it is fairly representative of the whole energy market.
Just a few holdings make up a big part of the portfolio, and there are only 31 holdings in total. Top holdings for the benchmark index include Exxon Mobil Corp, Chevron Corp and ConocoPhillips.
ProShares UltraShort Bloomberg Crude Oil (SCO), aims to deliver results that are twice the inverse daily performance of the Bloomberg WTI Crude Oil Subindex. It is an ETF product for traders looking to short crude oil in a single day bet. Trades that last for more than a day are not expected to see the same returns.
The subindex reflects WTI Crude Oil prices and only consists of futures contracts on WTI Crude Oil. This is a leveraged product, all leveraged products carry more risk than unleveraged products.
ProShares UltraPro Russell2000 (URTY) seeks to deliver daily results that are three times daily performance of the USA2000 Index. This is an aggressive single-day bet and results will vary if positions are held for longer than a day.
This ETF is a leveraged product, which carry more risk. It aims to deliver results that are 300% of the returns of the USA2000 Index. The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.
The iShares ESG MSCI USA Leaders ETF (SUSL) seeks to track the investment results of an index composed of U.S. large and mid-capitalization stocks of companies with high environmental, social, and governance performance relative to their sector peers as determined by the index provider.
SPDR S&P ASX 50 Fund (SFY.AX) seeks to track the returns of the S&P/ASX 50 Index. The S&P/ASX 50 is an index of Australia’s large-cap equities. Traders can use it as a way to access the Australian Stock Market or gain exposure to Australian companies.
The index has a mix of sectors, and contains the 50 largest ASX listed stocks with the cut-off being a market capitalisation of around $5billion (AUD/). The portfolio accounts for 62% of Australia’s sharemarket capitalisation. Top holdings include Commonwealth Bank, BHP Billiton Limited, Woolworths Group and Telstra Corp.
ProShares UltraShort S&P500 (SDS) looks to deliver daily investment results that are twice the inverse of the daily performance of the S&P500. This is a leveraged product and designed as a single-day bet. Returns for periods longer than one day could expose investors to performance drift.
S&P500, the index that it inversely tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.
US Tech 100 (NQ) is a market capitalization-weighted stock market index that includes the hundred largest non-financial domestic and international companies.
The index is constituted by sectors such as Technology, Consumer Services, Healthcare, Industrials, Consumer Goods and Telecommunications.
The US Tech 100 index contains some of the largest companies in the world, including Apple, Amazon, Microsoft, Facebook, Google parent Alphabet and Netflix.
The US Tech 100 index futures allow you to speculate on, or hedge against, changes in the price of some of the world’s biggest stocks. Contracts rollover on the second Friday of March, June, September and December.
Direxion Daily Small Cap Bear 3x Shares (TZA) seeks to deliver daily results that are three times the inverse of the daily performance of the USA2000 Index. This is an aggressive single-day bet against the USA2000, and results will vary if positions are held for longer than a day.
This ETF is a leveraged product, which carry more risk. It aims to deliver results that are 300% opposite the returns of the USA2000 Index. The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.
An exchange, market or stock exchange is a marketplace where commodities, securities, derivatives, stocks and other financial instruments are traded. The core function of an exchange is to provide for organized trading and efficient distribution of market & stock information within the exchange. Exchanges provide their users the necessary platform from which to trade.
Why should you trade on an exchange?
Trading on an exchange offers security, reliability, liquidity and low costs. Exchange-regulated markets provide transparency, where all market participants have the same access to prices and trading information. Exchanges also offer robust risk management and safety protocols to protect against any price manipulation or abuse of the system.
What are types of exchange?
There are three main types of trading exchanges: traditional exchanges, dark pools, and electronic communication networks (ECNs). Traditional exchanges provide an organized marketplace to buy and sell securities while dark pools facilitate large orders in private forums. ECNs allow investors to directly access liquidity pools and execute trades with other participants in the market.
ProShares UltraPro QQQ (TQQQ) is a leveraged ETF that tracks the performance of the Nasdaq 100 index. This ETF aims to deliver a daily output that is three times the daily performance of the Nasdaq 100. That means TQQQ will deliver results that are 300% of how the index has moved.
The Nasdaq 100 includes the largest companies on the Nasdaq stock market and holdings include Apple, 21st Century Fox Inc, Kraft Heinz and Facebook. This is a single-day bet and is not recommended for use for longer than periods of one day, as the results will differ. Leveraged products carry more risk.
ProShares UltraPro Short S&P500 (SPXU) seeks daily investment results that are 300% the inverse of the daily performance of the S&P 500. This is a single day bet for traders looking to go short on S&P500 or hedge other trades. Like any leveraged product, there is more risk involved in this ETF than in unleveraged products.
S&P500, the index that it inversely tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.
For Forex trading, a “Base Currency” is the first currency in any currency pair, representing the traded currency. The second currency in the pair is the quote currency. Example: in EUR/USD, the Euro is the base currency, and you can buy 1 EUR by paying 1.1 USD.
An exchange rate attached to a currency pair indicates how much of the quote currency is needed to buy a single unit of the mentioned base currency. For example, reading EUR/USD = 2.15 means that 1 Euro is equal to $2.15.
What is Base vs. Local currency?
When viewing or receiving a direct quote, the base currency = foreign currency. Likewise, the local currency in a pair is the quote currency.
US Treasury Bonds 30Y (UB) are securities issued by the US government with maturities that vary from ten to 30 years. The U.S Treasury suspended issuance of the 30 year bond between February 2002 and February 2006. When bonds are sold on the secondary market, they can go up and down in price in the same way that shares and funds do. US Treasury Bond prices are primarily affected by interest rates, inflation and economic growth, as well as their reputation as a safe haven.
Historically, the US Government Bond 30Y reached an all-time high of 15.21% in 1981 and a record low of 2.11% in 2016.
XLM, or Lumens, is Stellar network’s cryptocurrency. It is designed to support instant global transactions to give access to low-cost financial services. Trade XLM/USD spot rates with this instrument.
JNUG, also known as Direxion Daily Junior Gold Miners Index Bull 3X Shares, aims to deliver three times the daily returns of junior gold and silver mining companies from developed and emerging markets. It seeks 300% of the performance of the MVIS Global Junior Gold Miners Index. The term junior refers to the size of the firms, which are considered to be small-cap.
This is a single-day fund, and funds should not be expected to provide three time the return of the benchmark index if positions are held for longer than one day. As a leveraged ETF, this asset carries more risk than ETFs that are not leveraged. This asset is aimed at intraday traders and is not suitable for all investors.
A commodity is a raw material asset such as oil, gas, gold, or wheat. Commodities can be categorised into either hard commodities or soft commodities.
What are Soft Commodities?
Soft commodities typically refer to raw materials that are grown rather than mined such as coffee beans or sugar.
What Are Hard Commodities?
Whereas hard commodities must be extracted such as natural gas or crude oil.
A commodity is often exchangeable for other commodities of the same type and can be purchased through either the spot market using cash, or through derivatives like futures.
The United States Oil Fund (USO) is an ETF that aims to track the daily price movements of WTI Crude Oil. USO's Benchmark is the near-month crude oil futures contract traded on the NYMEX. The Crude Oil contract is WTI light, sweet crude delivered to Cushing Oklahoma.
This ETF is a good way to get commodity exposure without using a futures account and offers more options for traders such as intraday pricing and limit/stop orders.
SPDR Gold Shares (GLD) is an investment fund incorporated in the USA. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust's expenses. The Trust holds gold and is expected from time to time to issue Baskets in exchange for deposits of gold and to distribute gold in connection with redemptions of Baskets.
The first US traded gold ETF and the first US-listed ETF backed by a physical asset
For many investors, the costs associated with buying GLD shares in the secondary market and the payment of the Trust's ongoing expenses may be lower than the costs associated with buying, storing and insuring physical gold in a traditional allocated gold bullion account.
Dow Jones Industrial Average - SPDR (DIA) mirrors the USA 30, which tracks 30 large-cap blue-chip companies – many of which are household names. The Dow Jones is one of the oldest indices in the world and is not considered to be volatile. However, because it is only 30 companies it is heavily influenced by the fortunes of those firms and is not a good indicator of the economy as a whole.
Stocks in the fund include Coca-Cola, Disney, Apple and Visa. The ETF is a good way to invest in the index. However, it is not ideal for those looking for broad exposure to US caps, as it only follows the top 30 companies. It is extremely liquid with a strong track record.
In Forex, an Ask is the price at which it is possible to buy the base currency of the selected currency pair. In trading, Ask Price or Offer Price are the lowest price at which a seller will sell their stock.
Ask is used in conjunction with Bid price, which is what the buyer is offering and is by definition lower than the price the selling is asking for. The difference between the buyer’s bid and a seller’s ask is called a “Spread”.
What Is the Bid Ask Spread?
Financial instruments have 2 key public prices: a bid and an ask. When traders wish to buy (a Buy Position), they effectively pay the Ask price. When traders open a sell position, then they are offered the bid price by potential buyers. For obvious reasons, the bid price tends to be lower than the ask price. This price differential is the bid ask spread.
ProShares UltraPro Short QQQ (SQQQ) is an inverse leveraged ETF that tracks the performance of the Nasdaq 100 index. This ETF aims to deliver a daily output that is three times the inverse of the daily performance of the Nasdaq 100. That means SQQQ will deliver results that are 300% opposite to how the index has moved. They are a useful product for traders looking to go short or to hedge their other positions.
The Nasdaq 100 includes the largest companies on the Nasdaq stock market and holdings include Apple, 21st Century Fox Inc, Kraft Heinz and Facebook. This is a single-day bet and is not recommended for use for longer than periods of one day, as the results will differ. Leveraged products carry more risk.
Ethereum was launched in 2015, after founder Vitalik Buterin decided to improve on perceived problems with Bitcoin.
He wanted a cryptocurrency that could deliver outstanding functionality, especially in terms of processing speed. Ether's transaction speed is just 15 seconds, much faster than the 10 minutes Bitcoin transactions can take.
When most people talk about Ethereum, they are really talking about Ether (ETH), the underlying token currency of the Ethereum platform.
Ether is priced in USD. It was worth just $2.80 when it first launched, and hit an all-time high of $4,891.70 in November 2021.
Ethereum is the world's second-largest cryptocurrency by market cap. The cryptocurrency relies on blockchain, just like Bitcoin, but it is used in a different way. This has led many to view Ethereum has having real-world uses.
The US Global JETS ETF tracks the performance, before fees and expenses, of the US Global Jets Index. The Index is composed of the common stock of US and international passenger airlines, aircraft manufacturers, airports, and terminal services companies listed on well-developed securities exchanges across the globe.
The Vanguard Total Stock Market ETF (VTI) tracks the total US market and is designed for traders looking for comprehensive, inexpensive exposures to full-market equities. It encompasses the entire market-cap spectrum and provides neutral coverage, with no sector or size bets.
This ETF looks to match the performance of the CRSP US Total Market Index. The sector breakdown is largely the same as its benchmark: Financials make up 19.70%, Tech is 19.10%, with consumer good, health care and industrials all around the 13% mark.
The S&P MidCap 400 ETF (MDY) looks to replicate the performance of the S&P Midcap 400 Index. The most widely-followed mid-cap index in existence, it serves as a good barometer for the performance and directional trends of US equities. The fund provides a good representation of the market and is popular in the midcap space.
Stocks in this index cover all major sectors including technology, health care, financial industries and manufacturing, and include many household names. Holdings include Teleflex, Dominos Pizza, Lamb Weston Holdings and Atmos Energy.
The Direxion Daily Financial Bear 3 (FAZ) Shares ETF tracks the inverse performance of the Russell 1000 Financial Services Index by 300%. It is the opposite of the The Direxion Daily Financial Bull 3X Shares ETF (FAS). Traders benefit when the underlying stocks fall, rather than rise. It is leveraged in the same way, so comes with high levels of volatility and risk.
This ETF allows traders to take a bearish view on the performance of commercial banks, a reduction in lending is what FAZ traders will be looking for.
Ripple (XRP) is among the largest cryptocurrencies by market cap, following Bitcoin and Ethereum.
Ripple, known as XRP, is priced in USD. It saw a high of $3.20 in January 2018.
When people talk about Ripple they are not just talking about the currency, but the Ripple network which could change the way people complete currency transfers.
Unlike other crypto payment networks, Ripple allows you to make money transfers in any form - be that Ripple, Bitcoin, USD, Yen or GDP. Plus, you can receive money in a different form to how it has been sent. For example, you could be sent Bitcoin but collect your money in USD.
Payments can happen in seconds, a significant improvement on the days or weeks required for a wire transfer with a bank.
The payment network has already seen endorsements, with American Express and Santander partnering with it for cross-border payments between the US and UK.
Crude Oil, also known as West Texas Intermediate (WTI), is a light, sweet crude that acts as benchmark for oil prices in the US.
Crude Oil is priced in USD per barrel. It reached a historic high of $145.31 in July 2008 and saw a record low of $1.17 in February 1946.
WTI contains less sulphur than Brent Crude (which acts as a benchmark for oil prices in Europe and the Middle East), which means it demands a premium price. Both WTI and Brent are light, sweet oils that are ideal for refining into gasoline.
It is produced, refined and consumed in North America, and is mostly sourced in Texas - which is where the name originates - as well as in Louisiana and North Dakota.
WTI price is sensitive to factors that impact the general price of oil, as well as geopolitical and economic events and natural disasters in the Midwest and Gulf Coast regions.
Platinum is one of the world's rarest metals, and mines are concentrates in just a handful of countries around the world.
Platinum is priced in USD per troy ounce. It saw a high of $2253 in March 2008, and a record low of $97.70 in January 1970.
Most of the world's platinum is produced in South Africa, which accounts for 80% of supply. Russia is a distant second with 11% and North America produces 6%.
Platinum is an important metal due to its ability to catalyse reactions and its strong resistance to corrosion. This makes it irreplaceable in a broad range of industrial and laboratory reactions, especially the catalytic converter which is the most widely used application of platinum.
The metal is also highly sought-after for jewellery, which is the second largest area of demand,
The concentration of platinum in South Africa (an often-volatile emerging market), combined with the importance of platinum as an industrial material, has led to instability in price.
Silver (XAG) has long-been synonymous with money, indeed, in some languages the two words are the same. The white metal has been used for investment and jewellery for thousands of years, and its distinctive characteristics ensure it continues to be in high-demand.
Silver is priced in USD per troy ounce. Its price peaked at $49.45 in January 1980, and reached an all-time low of $3.55 in February 1991.
The majority (85%) of silver production comes from mining, with the remainder sourced from scrap and stockpiles. While silver can be recycled, it is less economical to do so than with other precious metals. The top producers of silver are Mexico, Peru and China.
Silver is widely used in photographic, industrial, medical and telecommunications technology. It is also highly sought after for investment purposes. Its price is influenced by industrial demand, demand for jewellery, coins, medals and silverware, as well as the price of gold and the strength of the US Dollar.
The Swiss Market Index (SMI), also known as the Swiss 20, is a blue-chip index of the 20 largest and most-liquid companies traded on the SIX Swiss Exchange, covering around 80% of the total market capitalisation of Swiss equities. The index is weighted so that no component can exceed 20%, enabling it to be a key barometer of the Swiss stock market.
The index was launched on 30th June 1988, and has the same base date. It has a base value of 1,500 points, reached a high in January 2018 of 9,611.61, and an all-time low of 1,287.60 in January 1991.
Healthcare is the largest index sector, accounting for 37.5% of the total weighting, followed by Consumer Goods with 24%, and Financials with 21.6%. Industrials is the fourth-largest sector with 13.6%.
Swiss Market Index futures allow you to speculate on, or hedge against, changes in the price of major stocks on the SIX Swiss Exchange. Contracts rollover on the second Friday of March, June, September, and December.
Dash was launched in January 2014 as a rival to Bitcoin. Its popularity is largely down to a focus from designer Evan Duffield on transaction speed and user anonymity.
Dash is priced in USD per coin, and reached a peak value of $1,370.16 in December 2017.
One of the major complaints against stalwart crypto Bitcoin is its painfully slow transactions speed (a big factor in its hard fork into Bitcoin Cash in 2017). Dash has a highly favourable processing speed compared to Bitcoin and other cryptos.
Processing is so quick that two days after its launch, almost 10 percent of the total capacity had already been mined.
Dash is a portmanteau of the words Digital and Cash. It was originally called Xcoin, followed by Darkcoin, before Dash was settled on.
Since its launch, Dash has become increasingly popular and is accepted as a payment method by over 300 organisations around the world - including Apple. CEO Ryan Taylor has stated his belief that Dash will soon overtake Bitcoin in popularity.
EUR/USD describes the euro (base currency) and US Dollar (quote currency) exchange rate and reflects the respective currency strength of the two largest economic blocs on the planet.
The EUR/USD exchange rate is the most traded currency pair in the world, accounting for 23.1% of all forex trading. Daily average volumes for EUR/USD trading amounts to more than $1 trillion.
As it is so actively traded and highly liquid, EUR/USD enjoys very low spreads. The euro makes up a very large weighting in the dollar index and as such the EUR/USD is closely correlated to the dollar index.
Much of the activity in the EUR/USD pair is driven by international business as well as speculators; the scale of the US and Eurozone economies means that many global corporations and banks have a need to convert large quantities of euros into US Dollars every day. The interest rate differential between the European Central Bank and the Federal Reserve tends to exert the greatest impact on EUR/USD.
Gold is a precious metal and has been used for thousands of years for currency, jewellery and trading. It was first smelted by the ancient Egyptians in around 3600 BC. The desire for gold has led to wars, gold rushes and conquests.
It remains highly sought after for investment purposes and a strong jewellery demand - half of the gold consumption in the world is jewellery, and 40% is investments. It is also used in the manufacture of electronic and medical devices, which accounts for the remaining 10% of the market.
Gold is priced in USD per troy ounce. The lowest price for gold, historically, was $34.83 in January 1970, it reached a record high in September 2011 at $1898.25.
Gold has experienced some significant price fluctuations. There are many factors that can impact gold prices, including central bank reserves, worldwide jewellery and industrial demand (especially from emerging economies) and wealth protection. It can also be affected by the value of the US Dollar and interest rates.
Heating Oil is a low-viscosity petroleum product derived from crude oil. Around 25% of the yield of crude oil is devoted to heating oil, the second most after gasoline products. As a result, prices often closely follow those of WTI crude.
It is priced in USD per gallon, and has a historic high of $3.32 in April 2011. The record low was $0.87 in January 2016.
Heating oil is used as a fuel for furnaces and boilers to heat homes and businesses. It is especially popular in the British Isles and the North-eastern US. As a result, demand fluctuates seasonally, peaking in the colder months between October and March.
Price is, as a result, also affected by cold weather. Other factors affecting price include the price of alternative heating options, energy efficiency and insulation, refining costs and government regulations.
Heating Oil futures allow you to speculate on, or hedge against, changes in the price of Heating Oil. Futures rollover on the third Friday of every month.
Rice is a “soft” commodity - referring to those that are grown and not mined - and is the third most-farmed grain in the world, behind cotton and wheat. It is a food staple for billions of people, spread throughout Asia, the Middle East, and Latin America.
Rice is priced in USD per hundredweight (CWT). In April 2008 prices of the grain peaked at $24.46/CWT, while in February 1982 they hit a low of $0.75/CWT.
China produces the bulk of the world's rice. India, Indonesia, Bangladesh, Vietnam, and Thailand are also big producers.
Rice prices are affected by many factors, including stock levels, the pace of demand growth, and changes in government spending on agriculture. One of the biggest drivers of volatility is crude oil prices - rising prices push up the cost of production and transportation.
Rice futures allow you to speculate on, or hedge against, changes in the price of rice. Futures rollover on the fourth Friday of February, April, June, August, October, and December.
The Direxion Work From Home ETF (WFH) offers exposure to companies across four technology pillars, allowing investors to gain exposure to those companies that stand to benefit from an increasingly flexible work environment. The four pillars include Cloud Technologies, Cybersecurity, Online Project and Document Management, and Remote Communications. Companies are selected for inclusion in the index by ARTIS, a proprietary natural language processing algorithm, which uses key words to evaluate large volumes of publicly available information, such as annual reports, business descriptions and financial news.
Wheat is one of the world's most important agricultural commodities, with around two-thirds of global production for food consumption. It is a “soft” commodity, which means it is grown and not mined.
Wheat is priced in USD per bushel, it reached a record high of $1194.50 in February 2008, but slumped to a record low of $192 in July 1999.
An incredibility versatile grain, wheat is harvested somewhere in the world every single month of the year. There is more land used for wheat production than any other crop worldwide, and it is behind only corn and rice in total production.
Wheat prices are affected by a number of factors, including import/export restrictions, stock levels and the strength of the USD. However, one of the biggest drivers of substantial volatility is supply-chain disruptions caused by natural disasters and extreme weather events.
Wheat futures allow you to speculate on, or hedge against, changes in the price of wheat. Futures rollover on the fourth Friday of February, April, June, August and November.
Palladium has become popular with investors because it has a range of qualities that mean it is difficult to substitute with other metals. It belongs to a group of metals called platinum group metals (PMGs), and is 30 times rarer than gold.
Palladium is priced in USD per troy ounce. It reached a record high of $1126 in January 2018, and fell to an all-time low of $78.25 in August 1991.
Its industrial use is in catalytic converters, where it speeds up chemical reactions, but it is more durable than platinum. It is also popular in jewellery - when mixed with yellow gold it forms an alloy metal that looks like white gold but is much stronger.
Between 70 to 80% of the world output of palladium is produced in Russia and South Africa, so the price of the metal is strongly affected by the political climate in those countries.
Palladium futures allow you to speculate on, or hedge against, changes in the price of palladium. Futures rollover on the fourth Friday of March, May, August and December.
The US Dollar to Hungarian forint exchange rate is an exotic currency pair known by the abbreviation USD/HUF. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The forint is the 26th most-active currency, accounting for just 0.3% of daily transactions.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
As an emerging market currency, the forint is popular in times of confidence and is sold in favour of safer, lower-yielding assets when volatility increases.
Compared to its emerging market peers, Hungary has a small level of foreign currency debt, providing some insulation for the economy and its currency against external disruption. Hungary enjoys a strong economy, with low payroll and corporate taxes and growth that outpaces the EU average.
The euro to Romanian leu exchange rate has the abbreviation EUR/RON, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
While not a safe-haven asset, the euro is considered more stable than the Romanian leu, meaning that the EUR/RON strengthens in times of market uncertainty. Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria.
The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$104 billion worth of NZD is traded daily.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The New Zealand dollar is highly-sensitive to commodity prices. Dairy is the country's main industry; when dairy prices fall, the outlook for the New Zealand economy weakens, pushing the GBP/NZD exchange rate higher. When dairy prices rise, the opposite happens.
Sugar is a “soft” commodity - meaning it is grown rather than mined. It is produced from sugarcane or, less commonly, sugar beets and was once so rare and expensive it was known as White Gold. Despite obesity concerns, there is still a strong demand for sugar worldwide.
Sugar is priced in USD per lb. It reached its peak of $65.20 in November 1974 and hit an all-time low of $1.25 in January 1967.
Most of the world's sugar comes from sugarcane, with around 20% coming from sugar beets. A small minority is also produced from date palm, sorghum and sugar maple.
Brazil is the biggest producer of sugar in the world, accounting for 21% of total production. However, it is produced all over the world, with 70 countries producing sugar from sugarcane, 40 from sugar beets and 10 from both.
Factors than impact the price of sugar include global inventories, consumption outlook, weather conditions and outlooks, and government regulation.
Sugar futures allow you to speculate on, or hedge against, changes in the price of sugar. Futures rollover on the second Friday of February, April, June and September.
The Direxion Daily Financial Bull 3X (FAS) Shares ETF is a leveraged ETF, aiming to secure traders three times the daily returns on the performance of the Russell 1000 Financial Services Index. This increased exposure also increases risk, so this ETF is more suited to traders with the capital to withstand volatility and with a high risk tolerance.
The portfolio is composed of 70% stocks. Sector exposure is mostly financial services, which make up 77.21% of holdings, with another 15.99% in Real Estate. Commercial banks account for a high proportion of this ETF, with stocks including Berkshire Hathaway Inc, JPMorgan Chase & Co, Bank of America Corp, Visa, Wells Fargo and Citigroup all featuring.
The US Dollar to Polish zloty exchange rate is identified by the abbreviation USD/PLN. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The Polish zloty the 22nd most active currency, accounting for 0.7% of average daily turnover. Approximately $19 billion worth of USD/PLN is traded each day.
Poland is an emerging market economy, favoured by investors in times of market certainty because of its higher yielding assets.
The zloty reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the bloc. Positive Eurozone data can therefore support the zloty.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency.
The pound Sterling to Romanian leu exchange rate has the abbreviation GBP/RON, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet.
The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
Recently, political factors have seen their influence over pound pairings grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key - after nearly ten years the Bank of England has begun to raise interest rates.
Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria. GBP/RON appreciates in times of market uncertainty.
The pound Sterling to Singapore dollar exchange rate is abbreviated to GBP/SGD. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Singapore dollar accounts for 1.8% of all daily forex transactions, making it the 12th most-traded currency on the globe.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook.
The Singapore dollar has been allowed to float free by the Monetary Authority of Singapore (MAS) since 1985, but the range in which it is permitted to trade has never been disclosed. SGD has a weak correlation with the Chinese yuan. This, combined with a solid financial sector and property market, has made Singapore an attractive place for offshore investors, helping to keep the appeal of the local currency elevated.
The euro to Japanese yen exchange rate has the acronym EUR/JPY. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades. EUR/JPY accounts for 1.6% of all daily currency trades; $79 billion per day.
While a strong US Dollar can weaken demand for the Japanese yen, it has a much stronger impact upon the euro. This means that in times of safe-haven demand the EUR/JPY exchange rate falls and, although the euro is not a high-beta currency, the pairing appreciates when risk-appetite is strong.
Both the European Central Bank and the Bank of Japan maintain ultra-loose monetary stimulus, but the ECB has recently taken tentative steps towards normalisation. Although negative rates are unlikely to disappear any time soon in either economy, the fact the ECB is in more of a position to adjust borrowing costs stands in the euro's favour.
The pound Sterling to Turkish lira exchange rate has the abbreviation GBP/TRY, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.
Recently, political factors have seen their influence over pound pairings grow. The 2016 vote in favouring of leaving the EU has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key.
Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well.
The Turkish economy is largely fuelled by foreign currency loans, so a strong euro or dollar strengthens GBP/TRY as markets sell the lira on fear of higher credit costs for Turkey's corporations.
The euro to Norwegian krone exchange rate has the acronym EUR/NOK. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The krone is the 13th most-trade currency, accounting for 1.7% of all daily forex activity. Around $US28 billion worth of EUR/NOK - 0.6% of the total daily FX volume - is traded each day.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Norwegian economy is strongly-reliant upon crude oil and natural gas; the nation is one of the 5 top exporters of gas and oil, with the sector accounting for 22% of Norwegian GDP and 67% of the country's exports. The EU is an important trade partner for Norway, accounting for 72% of its trade. Eurozone economic data can therefore have an impact upon NOK as well as EUR.
The euro to Polish zloty exchange rate has the abbreviation EUR/PLN, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Polish Zloty is the 22nd most active currency, accounting for 0.7% of average daily turnover. US$13 billion worth of EUR/PLN is traded each day.
The euro is the currency of the Eurozone, which is overseen by the ECB. The euro has an inverse correlation with the US Dollar.
EUR/PLN strengthens in times of market uncertainty. Poland is an emerging market economy; it's assets are higher-yielding, but also more volatile.
The zloty also reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the currency bloc. This can soften the upside impact of positive Eurozone data upon the EUR/PLN pairing.
The United States Natural Gas Fund® LP (UNG) is an exchange-traded security that is designed to track in percentage terms the movements of natural gas prices. UNG issues shares that may be purchased and sold on the NYSE Arca.
The investment objective of UNG is for the daily changes in percentage terms of its shares' net NAV to reflect the daily changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana, as measured by the daily changes in the Benchmark Futures Contract, less UNG's expenses.
The Benchmark is the futures contract on natural gas as traded on the NYMEX. If the near month contract is within two weeks of expiration, the Benchmark will be the next month contract to expire. The natural gas contract is natural gas delivered at the Henry Hub, Louisiana.
UNG invests primarily in listed natural gas futures contracts and other natural gas related futures contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less.
SSO, also known as ProShares Ultra S&P500, is a leveraged product that looks to deliver twice the daily performance of the S&P500. This is a single-day product so the returns over periods of more than one day will differ.
S&P500, the index that it tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.
The US Dollar to South African rand exchange rate is identified by the abbreviation USD/ZAR. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The rand is the 20th most active currency, accounting for 1% of average daily turnover. Around $40 billion worth of USD/ZAR is traded each day.
USD/ZAR appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower-yielding, lower risk, assets. The South African rand is a highly-volatile currency thanks to the country's unstable economy, high levels of government debt, poor credit rating, and the political ramifications of apartheid.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency.
A Cryptocurrency is a digital currency supported by decentralised cryptographic technology. It does not rely on any central authority such as a central bank or government like a traditional currency. Instead, transactions are verified by multiple independent computers along a network. This creates several benefits including speed and general transparency.
Cryptocurrency ownership is recorded in a digital ledger. This ledger then uses strong cryptography to maintain the integrity of transaction records. This controls the creation of more digital currency within the network and to verifies the transfer of coin ownership. Cryptocurrencies are generally viewed as a distinct asset class, yet do not exist in physical form.
What is an example of a cryptocurrency?
Some examples of popular cryptocurrencies are Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH).
What is cryptocurrency CFD trading?
Cryptocurrency CFD trading is using CFDs to trade crypto. This enables traders to take a position on whether a cryptocurrency rises or falls. Cryptocurrency CFD trading opens up more trading opportunities as it allows traders to buy or sell the asset without physically owning it.
A long position is a market position where the investor has purchased a security such as a stock, commodity, or currency in expectation of it increasing in value. The holder of the position will benefit if the asset increases in value. A long position may also refer to an investor buying an option, where they will be able to purchase an underlying security at a specific price on or before the expiration date.
What is riskier a long or a short position?
A short position is considered riskier than a long position because the potential loss is theoretically unlimited, while the potential profit is limited to the amount of depreciation in the value of the security. When an investor short sells a stock, they borrow shares from someone else and sell them, with the hope that the price will drop so they can buy the shares back at a lower price and return them to the lender, pocketing the difference. In case the price of the stock rises instead, the loss for the short seller is theoretically unlimited as there is no limit to how high the stock price can go.
When should I buy a long position?
When an investor believes that the market will rise, they could consider purchasing a long position.
How can I protect my long position?
Protecting a long position often involves setting up a stop-loss order, which automatically sells the asset at a predetermined price. This ensures that any sharp market drops don't result in excessive losses for the investor.
The US Dollar to Indian rupee exchange rate is an exotic currency pair known by the abbreviation USD/INR. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The rupee is the 18th most-active currency, accounting for 1.1% of daily transactions.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. As an emerging market currency, the rupee is popular in times of confidence and is sold when volatility increases. As a result of rising global trade tensions, INR weakened to record lows in the second half of 2018.
India is a net oil importer, so rising crude prices increase import costs, widening the current account deficit. Foreign direct investment (FDI) is key for the Indian economy, which benefits from overseas businesses looking to take advantage of the tax exemptions and lower labour costs.
The US Dollar to Romanian leu exchange rate is identified by the abbreviation USD/RON. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria. USD/RON appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower-yielding, lower risk, currencies.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency, meaning central banks stockpile dollars to use in times of domestic currency weakness.
The US Dollar to Swedish Krona exchange rate is identified by the abbreviation USD/SEK. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The Swedish Krona is the 9th most-traded currency, accounting for 2.2% of daily transactions. US$112 billion worth of SEK is traded daily.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The Swedish krona shares a strong correlation with its Scandinavian peers the Norwegian krone and the Danish krone. These currencies - which all translate as “crown” - came about in 1873 when Sweden and Denmark formed the Scandinavian Monetary Union, backed by the gold standard. Norway joined two years later. When the union was dissolved after World War Two, the countries independently kept the currency.
The US Dollar to Singapore dollar exchange rate is identified by the abbreviation USD/SGD. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The Singapore dollar accounts for 1.8% of all daily forex transactions, making it the 12th most-traded currency on the globe.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The Singapore dollar has been allowed to float free by the Monetary Authority of Singapore (MAS) since 1985, but the range in which it is permitted to trade has never been disclosed. SGD has a weak correlation with the Chinese yuan. This, combined with a solid financial sector and property market, has made Singapore an attractive place for offshore investors, helping to keep the appeal of the local currency elevated.
The US Dollar to Japanese yen exchange rate is known by the abbreviated USD/JPY and is the second most-popular currency pair on the forex market. Around $901 billion worth of USD/JPY trades are conducted every day, which is nearly 18% of all forex activity. The pair is highly liquid, and therefore offers very low spreads. The pairing sees strong volatility during the Asian trading session as well as the North American session.
Interest rate differentials are a key volatility driver for the USD/JPY exchange rate. While the US Federal Reserve is currently normalising monetary policy as the economy recovers from the 2008 financial crisis, the Central Bank of Japan is maintaining an ultra-loose stimulus package. USD/JPY is therefore popular amongst carry traders.
The Japanese economy relies heavily upon trade because it lacks many of the natural resources needed for industry, so strength or weakness in global demand and commodity prices can have an impact upon the USD/JPY exchange rate.
The US Dollar to Mexican peso exchange rate is identified by the abbreviation USD/MXN. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The Mexican peso is the 11th most-traded currency, accounting for 1.9% of daily transactions.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency
MXN is tied to the price of crude oil because of Mexico's high reserves, which the government uses as collateral when borrowing to fund spending. 10% of Mexico's GDP comes from oil production, so when prices fall it not only pushes up borrowing costs, but also weakens the outlook for growth.
Cross-border trade with the US also generates strong demand for pesos. The currency therefore weakens when trade comes under threat.
The pound Sterling to Canadian dollar exchange rate is identified by the abbreviation GBP/CAD. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The Canadian dollar is highly-sensitive to changes in the US Dollar, as well as the price of crude oil, as this is Canada's main export. When oil prices fall, the outlook for the Canadian economy weakens, pushing the GBP/CAD exchange rate higher. When oil prices rise, the opposite happens.
IWM, also known as iShares USA2000 ETF which seeks to mirror the performance of the USA2000 Index. The ETF has a basket of shares that is similarly weighted to the USA2000 Index, and comprises well-diversified small-cap stocks. It has around 2,000 holdings, all small cap stocks with market capitalisation of less than $1bn.
The portfolio is made up of multiple sectors including 24.52% financials, 16.60% information technology, 16.47% health care, 14.72% consumer discretionary and 12.71% industrials. The remainder is split between materials, energy, utilities, consumer staple and telecoms. Stocks include Etsy, Hubspot and Planet Fitness Inc.
The US Dollar to Turkish lira exchange rate is identified by the abbreviation USD/TRY. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.
Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well. USD/TRY appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower risk currencies.
The Turkish economy is largely fuelled by foreign currency loans, a strong USD can prompt further lira selling on fear of higher credit costs for Turkey's corporations.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The euro to Swiss franc exchange rate is identified by the abbreviation EUR/CHF. On average US$44 billion worth of euros are converted into Swiss francs every day, making up 0.9% of the total global forex volume. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. the Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.
The euro and the Swiss franc share a strong correlation; the franc was actually pegged to the euro until January 2014, where the Swiss National Bank shocked markets by allowing the currency to float free - a move which saw CHF surge around 30% in a single day.
The EUR/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is viewed as a safe haven asset, while the fate of the Eurozone forever hangs in the balance as political and economic developments cause tension between its constituent nations.
The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Australian dollar accounts for 7% of all daily forex trading, making it the 5th most-popular currency on the exchange market. US$348 billion worth of AUD/ is traded every day.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The Australian Dollar is commodity-correlated; the domestic economy is highly-reliant upon exports of iron ore, for which Australia accounts for over 50% of the global supply.
The pound Sterling to Swiss franc exchange rate is identified by the abbreviation GBP/CHF. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.
Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the GBP/CHF exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on Sterling.
The Swiss franc is strongly-correlated to euro strength; the franc was actually pegged to the euro until January 2014, when the Swiss National Bank shocked markets by allowing the currency to float free.
The GBP/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is a safe-haven asset because of Switzerland's strong and stable economy. It is a wealthy nation with a strong banking sector and its citizens enjoy a great quality of life.
The pound Sterling to Japanese yen exchange rate is identified by the abbreviation GBP/JPY. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The GBP/JPY exchange rate is heavily-influenced by movement in the US Dollar. The Japanese yen is a safe-haven asset, meaning that it appreciates in times of low risk-appetite. However, when USD is strong the lower-yielding yen is less appealing.
The iShares MSCI KLD 400 Social ETF (DSI) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics as identified by the index provider.
The iShares MSCI USA ESG Select ETF (SUSA) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics as identified by the index provider.
The Swiss franc to Japanese yen exchange rate has the acronym CHF/JPY. The Swiss franc is the 7th most traded currency on global markets, accounting for 4.8% of daily turnover. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.
Both the Swiss franc and the Japanese yen are safe-haven assets, so the pairing is less susceptible to the influence of market uncertainty as pairings that trade a high-yield asset against a safe-haven. However, markets prefer the Japanese yen to the Swiss franc in times of uncertainty; the pair hit a low of ¥74.65 in 2008 during the financial crisis.
Since then the franc has gained much ground thanks to the Bank of Japan's ultra-loose monetary stimulus package.
The Swiss franc is closely correlated to the euro, meaning that it has an inverse correlation by proxy to the US Dollar. The Japanese yen is sensitive to commodity price movements as Japan lacks many of the natural resources used to fuel industry.
The CAC 40, also known as the France 40, is a blue-chip index and stock market barometer comprising of the 40 companies listed in Paris with the highest liquidity and free-float market capitalisation. It is the most-traded index administered by Euronext.
The index has a base level of 1,000, taken from the 31st December 1987. It was launched on 15th June 1988. The index hit a record high of 6,922.33 in September 2000, with an all-time low of 893.82 recorded in January 1988.
Personal & Household Goods is the biggest sector in the index, comprising around 13% of the total weighting, followed closely by Industrial Goods & Services. Oil & Gas is the third-biggest sector, with a weighting of just under 12%. Healthcare and Banks are the fourth and fifth largest sectors respectively. Companies are limited to a 15% weighting.
CAC 40 index futures allow you to speculate on, or hedge against, changes in the price of major French stocks. Futures rollover on the second Friday of each month.
The euro to pound Sterling exchange rate is identified by the abbreviation EUR/GBP. The pairing accounts for 2% - US$100 billion - of all daily FX transactions. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. GBP is the 4th most-traded currency, accounting for 13% of all daily trades.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. This weakens the EUR/GBP exchange rate when the dollar is strong, even if USD strength is pushing Sterling lower elsewhere.
Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the EUR/GBP exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on the pairing, with GBP the more affected as economists agree the UK will come off worse.
The STOXX Europe 50 Index, also known simply as the Europe 50, is Europe's blue-chip index, comprising of 50 stocks from 17 countries; Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The index peaked at 4,557.57 in July 2007 and hit a record low of 1,809.98 in March 2009.
Companies in the Healthcare industry make up a fifth of the index, while Banks is the second-largest sector represented, with a weighting of 15.6%. Personal & Household Goods is the third largest sector with a weighting of 12.3%, but Oil & Gas is only 10 basis points smaller.
The stocks are mostly from Great Britain (33.6%), Switzerland (18%), France (17.9%), and Germany (14.9%). The index includes a capping factor to ensure that it cannot be dominated by one single country or component.
Europe 50 index futures allow you to speculate on, or hedge against, changes in the price of major European stocks. Futures rollover on the second Friday of March, June, September, and December.
The UK 100 is a blue-chip index of the largest 100 companies on the London Stock Exchange in terms of market capitalisation. Companies are only included if they meet relevant size and liquidity requirements.
The index was launched on 3rd January 1984, with a base date of 30th December 1983 and a base level of 1,000 points.
In terms of weighting, the three largest sectors of the UK 100 as of H2 2018 are Oil & Gas (16.56%), Banks (12.70%), and Personal & Household Goods (12.37%).
Traditionally the index has lagged its peers, such as the larger FTSE 250 and the US S&P 500. The index fluctuates in response to market risk sentiment and the strength of the pound Sterling. The UK 100 contains many international companies who report their earnings in other currencies, so a stronger pound weakens company profits.
Because of this, the UK 100 is also considered to be an unreliable indicator of the health of the UK economy because of its large international component.
The US Dollar Index, introduced in 1973, allows you to take a position on the overall strength of USD as measured by its performance against a basket of currencies. When it was launched the index had a base level of 100; it reached an all-time high of 164.72 in February 1985, and struck a low of 70.698 in March 2008.
Unlike the trade-weighted index of the US Dollar produced by the US Federal Reserve, the composition of the USDX has remained unaltered since its inception, save for one change: in January 1999 the euro was created, so many individual European currencies were removed from the index and replaced by the euro. Despite this change, the euro still has the same weighting in the index (57.6%) as all the currencies that it replaced combined.
After the euro, the Japanese yen is the second-largest proponent in the dollar index, with a weighting of 13.6%. The British pound with 11.9%, and the Canadian dollar, with 9.1%, are the next two largest components.
IWO, also known as iShares USA2000 Growth ETF, replicated the performance of the USA2000 Growth Index. This ETF is comprised of small public US companies that are expected to grow at an above-average rate. The index uses two-year growth forecasts and historical sales to identify growth.
Unsurprisingly, given that the focus is on growth, technology features heavily in the sector breakdown. Health care, Information Technology and Industrials account for 62.07% of the portfolio. It has over 1,200 holdings and stocks include Etsy, Haemonetics, Hubspot and Trade Desk Inc.
SLV, also known as iShares Silver Trust, tracks the price of silver bullion held in London. This ETF provides investors with direct exposure to silver as the ETF physically holds the precious metal in vaults in London. This fund is one of the most liquid of its peer group and is popular among retail and institutional investors.
This ETF is suitable for buy and hold strategies. Traders should consider this asset to gain exposure to the day to day price of silver bullion, to get access to physical silver or to diversify your portfolio and protect against inflation.
NUGT, also known as the Direxion Daily Gold Miners Index Bull 3x Shares, aims to deliver three times the daily return of the NYSE Arca Gold Miners Index. This is a leveraged fund. It is designed for intraday trades and it is not recommended for periods of greater than one day.
The NYSE Arca Gold Miners Index is a market-cap weighted index of public companies with global operations in developed and emerging markets. The companies in the index are primarily involved in gold mining, with some also involved in silver mining. Top holdings include Newmont Mining, Barrick Gold, Franco Nevada and Newcrest Mining. Canadian companies represent 52.14% of the asset.
SPY, also known as the SPDR S&P 500 ETF Trust, is one of the oldest and best-recognised ETFs. Unsurprisingly, given the name, it seeks to replicate the results of the S&P500 index. SPY tracks large and midcap US stocks.
S&P500, the index that it tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.
The FXE, also known as CurrencyShares Euro Trust, tracks the changes in the value of the euro relative to the US Dollar. An ETF is the easiest way for a trader to buy exposure to foreign currency markets. These funds use cash deposits or futures contracts to track the euro's movements over time.
This ETF provides investors with an opportunity to invest in EUR/USD, such as those who think that the US Dollar is weakening or think that the Euro is strengthening. It tracks the EUR/USD exchange rate very well and is an extremely liquid fund.
iShares MSCI Mexico ETF (EWW) offers traders exposure to a broad range of companies in Mexico and access to targeted Mexican stocks. It has 58 holdings, which include America Movil L, Formento Economico Mexicano, Walmart de Mexico and GPO Finance Banorte.
The fund has almost no technology, energy or utilities stocks as these sectors are government-run in Mexico. The sector-mix is 29.57% Consumer Staples, 21.13% Communication, 15.48% Financials, 12.27% Materials, 10.92% Industrials and the remaining split between real estate, consumer discretionary and health care.
Euro Bonds (FBGL) or German Government Bonds, are issued with original maturities of 10 and 30 years. Bunds are a highly liquid debt security as they are eligible to be used as insurance reserves for trusts and are accepted as collateral by the ECB.
Bunds are often used to determine the strength of the Eurozone is doing relative to Germany: Investors who are bearish about Germany’s obligations to the Eurozone may demand higher returns, pushing bond yields higher. However, those seeking a safe haven may accept lower yields. Bunds are influenced by interest rates and ECB monetary policy. The Germany 10Y Bond reached a high of 10.80% in September 1981 and a record low of -0.19% in July 2016.
The IBEX 35, or Spain 35, is the benchmark index for the Spanish stock market and tracks the performance of the top 35 most-traded and most-liquid companies on the Bolsa de Madrid (Madrid Stock Exchange).
The index is market capitalisation-weighted and free float-adjusted. It was launched on 14th January 1992 but has a base date of 30th December 2010 and a base level of 1,000. Selection is based upon liquidity, but there is a maximum weighting limit of 40%.
Financial & Real Estate Services is the most-represented sector in the index, accounting for around 34% of the weighting. The next-largest sector is Oil & Energy, with just over 20%, followed by Technology & Telecommunications with just over 15%. Consumer Goods, Basic Materials, Industry & Construction, and Consumer Services complete the list of sectors covered in descending order of weighting.
Spain 35 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Bolsa de Madrid. Contracts rollover on the second Friday of every month.
Futures contracts for Orange juice (ORA) are based upon frozen concentrated orange juice (FCOJ).
Brazil is by far the world's largest producer of oranges, harvesting 20 million metric tonnes per year. China is in second spot, but still far behind, with an annual yield of 7 million, followed by the EU (6.5 million), the US (4.8 million), and Mexico (4.6 million).
Factors that can affect the supply - and therefore the price - of orange juice include weather, crop disease, and the strength of the US dollar. For instance, orange juice futures often increase in price when hurricanes travel towards Florida, a key growing region. Consumer demand often plays a role as well; orange juice is a popular breakfast staple, but a move away from drinks with high sugar content has seen demand decline in recent years.
Gilts are issues by the British Government and are generally considered to be low-risk investments. They traditionally have maturities of five, ten and 30 years. As with shares and funds, bond prices rise and fall as their attractiveness changes, based on changes in the market, economy and currency. The price is also affected by the attractiveness of other investments, particularly other ‘safe havens’ such as cash.
The UK Gilt 10 year bond reached a historic high of 16.09% in November 1981, and a record low of 0.52% in August 2016.
West Texas Intermediate or WTI is a benchmark type of oil that is central to commodities trading. These benchmarks indicate quality and also the source of the oil. The three dominant benchmarks for oil are WTI, Brent Crude and Dubai/Oman. These are similar indicators as Scottish and Norwegian might be for smoked salmon, for example.
What is the difference between West Texas Intermediate and Brent crude?
The different benchmarks for oil come from different regions and have different chemical compositions. They have what are called 'quality spreads' and 'location spreads' which affect price differences.
What is West Texas Intermediate Used For?
West Texas Intermediate is a high-quality oil that is easily refined. The price of WTI is often reported on in news reports on the oil industry and oil commodities, together with Brent Crude Oil which originates from the North Sea. Oil futures contracts on the New York Mercantile Exchange (NYMEX) use West Texas Intermediate as an underlying commodity.
The WIG 20 Index, or Poland 20, is a blue-chip stock market index of the 20 most actively traded and liquid companies on the Warsaw Stock Exchange. Constituents are chosen from the top 20 companies trading on the Warsaw Stock Exchange as of the third Friday of February, May, August, and November.
The ranking is based upon turnover values for the previous 12 months and a closing price from the previous five trading sessions is used to calculate free float capitalisation.
The index has been calculated since 16th April, 1994 as a base value of 1,000 points. To keep the index diverse, no more than five companies from a single sector may be included in the index at any one time. Sectors covered by the index includes Commercial Banks, Oil & Gas Exploration & Production, Insurance, Metals Mining, and more.
Poland 20 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Warsaw Stock Exchange. Futures rollover on the 2nd Friday of March, June, September, and December.
The Cboe Volatility Index (VIX) represents the market’s expectations for near-term price changes of the S&P 500 Index (SPX). The Cboe Volatility Index is used to track volatility within that index. As it is derived from the prices of SPX index options, it generates a 30-day forward potential of volatility.
How is the CBOE volatility index calculated?
Volatility is often seen as a way to measure and speculate on market sentiment, as well as assessing risks. The VIX is calculated through the prices of SPX index options and is represented as a percentage. If the VIX value increases, it is likely that the S&P 500 is falling, and if the VIX value declines, then the S&P 500 is likely to be experiencing stability.
How do you trade the CBOE VIX?
The CBOE VIX can be traded on most major financial markets. To trade it, you need to buy or sell contracts for the futures, options or exchange-traded products linked to it. Trading in these contracts can be done through a broker and usually requires a margin account.
A Day Order, or 'good for day order' is a stock market order which remains valid only for the day on which it was entered and is canceled automatically at the end of the trading day. Day orders are used when an investor does not want their order to remain open after the close of trading.
Day Order vs. Market Order
A Day Order is to be filled if and when the indicated asset reaches the specified price as per the order. In the event that the asset does not hit the price specified in the order, the order is then allowed to expire without any further action required. As such day orders are easy for traders to issue, follow up and process they are considered a default trading method both by the traders as well as by trading platforms.
A Market Order on the other hand, is an order to buy or sell a security immediately. While a market order does provide for immediate execution, it does not guarantee the execution price.
Automated trading is also referred to as Algo Trading (Algorithmic is abbreviated to Algo) – is the use of algorithms for executing orders utilizing automated and pre-programmed trading instructions via advanced mathematical tools. Trading variables such as price, timing and volume are factors in Algo trading.
How does algo trading work?
Algo trading works by capitalizing on fast decision-making processes as human intervention is minimized. As such, Algo Trading enables automated trading systems to take advantage of opportunities arising in the market even before human traders can even spot them. It uses processes- and rules-based algorithms to employ strategies for executing trades. Algo trading is mostly used by large institutional investors and traders
The DAX, also known as the Germany 40, is a blue-chip index of the top 30 stocks trading on the Frankfurt Stock Exchange. The DAX boasts extreme liquidity and is one of the most-traded index derivatives across the globe.
The index has a base value of 1,000, with a base date of 31st December 1987. As of 18th June 1999, the DAX indices price has been calculated using equity prices from the Frankfurt XETRA all-electronic trading system. DAX is best-known barometer of the domestic stock exchange, representing around 80% of the total market.
Pharma & Healthcare is the biggest sector in the DAX, accounting for 14.2% of the index. Automobiles are next, with 13.9% of the total weighting, followed by Chemicals with 12.7%.
The DAX is one of only a few of the major country stock indices to factor in dividend yields.
DAX index futures allow you to speculate on, or hedge against, changes in the price of major German stocks. Futures rollover on the second Friday of March, June, September, and December.
What are Support Levels?
Support levels refer to the levels at which the price of an asset tends to stop falling and stabilize. These levels are determined by analyzing past price movements and identifying a floor at which buying pressure is strong enough to prevent the price from falling further. Traders and investors use support levels as a guide for placing buy orders, and as a signal for potential buying opportunities.
What does support level mean in Crypto?
Support levels mean the same thing regardless of the asset class in question.
What is the best indicator for support and resistance?
There are several indicators that can be used to identify support and resistance levels in a market. Some commonly used indicators include moving averages, Fibonacci retracements, and pivot points. However, no single indicator is considered to be the "best" as different indicators may work better in different market conditions and for different traders. Ultimately, the best indicator is the one that works best for you and fits your individual trading style and strategy.
EUR/HUF is the abbreviation for the euro to Hungarian forint exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The forint is the 26th most-active currency, accounting for just 0.3% of daily transactions. US$5 billion worth of EUR/HUF is traded each day.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
EUR/HUF strengthens in times of market uncertainty. As an emerging market currency, the forint is popular in times of confidence but is sold in favour of safer, lower-yielding assets when volatility increases.
Compared to its emerging market peers, Hungary has a small level of foreign currency debt, providing some insulation for the economy and its currency against external disruption.
EUR/CZK is the abbreviation for the euro to Czech koruna exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The koruna is the 28th most-traded currency, accounting for just 0.3% of daily transactions.
The euro is the currency of the 19-nation Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Czech economy is strongly intertwined with that of the Eurozone; in particular Germany, which receives the bulk of Czech exports. Recent strength in the Eurozone has benefited the Czech Republic, contributing to an unemployment rate that is amongst the lowest in Europe.
In April 2017, the Czech National Bank exited its exchange rate commitment to cap CZK strength, implemented in November 2013, allowing the currency to fluctuate unrestrained.
USD/CHF is the symbol for the US Dollar to Swiss franc exchange rate. The pairing accounts for 3.6% ($180 billion) of all daily forex activity. The Swiss franc is the 7th most popular trading currency in the world and is involved in nearly 5% of all forex transactions each day.
The US Dollar and Swiss franc are both safe-haven currencies, meaning that the pairing is less responsive to risk-appetite on the global market than other pairings. However, the Swiss franc shares a strong correlation with the euro, so anything that weakens the euro would benefit the US Dollar and pressure the franc lower. If the euro strengthens, the USD/CHF pairing is likely to depreciate. The franc used to be pegged to the euro, but the Swiss National Bank unexpectedly allowed the currency to float free in January 2015.
CHF is a popular choice with traders because of Switzerland's strong and stable economy. It is a wealthy nation with a strong banking sector and its citizens enjoy a great quality of life.
USD/NOK is the symbol for the US Dollar to Norwegian krone exchange rate. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The krone is the 13th most-trade currency, accounting for 1.7% of all daily forex activity. Around $US48 billion worth of USD/NOK - 0.9% of the total daily volume - is traded each day.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The Norwegian economy is strongly-reliant upon crude oil and natural gas; the nation is one of the 5 top exporters of gas and oil, with the sector accounting for 22% of Norwegian GDP and 67% of the country's exports. USD/NOK therefore benefits doubly in times of low risk-appetite.
The EU is an important trade partner for Norway, accounting for 72% of its trade. Eurozone economic data can therefore have an impact upon NOK.
USD/DKK is the symbol for the US Dollar to Denmark krone exchange rate. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The Denmark krone is the 21st most-traded currency in the world and is involved in 0.8% of all forex transactions each day. On average US$42 billion worth of krone is exchanged each day.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The Danish krone is pegged to the euro through the European Exchange Rate Mechanism, also known as ERM 2. The central fixed rate is 746.038 krone per €100 but, unlike the standard +/- 15% fluctuation permitted under ERM 2, the Krone is limited to a fluctuation of just +/- 2.25%. Because it is pegged to the euro, the krone is also highly-vulnerable to USD strength - even when traded against other currencies.
CFDs are a leveraged financial instrument that allow traders to gain exposure to an underlying asset, such as shares, commodities or indices. While this provides great potential for profits, it also carries significant risks. The main risk is the possibility of losses greater than your initial deposit if the market moves against you. CFDs also have costs associated with trading such as commissions and spreads. Make sure you understand the risks before trading with CFDs.
What are the disadvantages of CFDs?
CFDs are complex instruments and may not be suitable for everyone due to the risk of leverage. CFDs also come with costs, including spreads and commissions which can cut into potential profits. Furthermore, it's important to understand how margin calls work as well as potential losses from unanticipated price movements or illiquidity in the market.
How much can you lose in a CFD trade?
In a CFD trade, you can potentially lose more than your initial investment, as the loss is based on the difference between the entry and exit price of the trade. It is important to set stop loss orders to limit potential losses. Additionally, using proper risk management strategies can help to minimize losses.
Futures are a specific type of derivative contract agreements to buy or sell a given asset (commodity or security) at a predetermined future date for a designated price. Futures are derivative financial contracts that obligate parties to buy or sell an asset at a predetermined future date and price.
How does the futures market work?
A futures contract includes a seller and a buyer – which must buy and receive the underlying future asset. Similarly, the seller of the futures contract must provide and deliver the underlying asset to the buyer. The purpose of futures in trading is to allow traders to speculate on the price of a financial instrument or commodity. They are also used to hedge the price movement of an underlying asset. This helps traders to prevent potential losses from unfavourable price changes.
What are examples of Futures?
There are numerous types of futures and futures contracts in the trading and financial markets. The following are a few examples of futures that can be traded on: Soft Commodities such as food or agricultural products, fuels, precious metals, treasury bonds, currencies and more.
A Currency Pair is a term used in the Foreign Exchange, or Forex, domain. Currency pairs compare the value of one currency to another — the base currency versus a second comparative or 'quote' currency. A currency pair shows how much of a currency is required to buy a single unit of the currency it is being compared to. It is also known as an exchange rate and is used for all currencies traded in FX markets.
What is a foreign currency?
A foreign currency is, very simply, any currency used in a country that isn't your own.
What is the structure of a foreign exchange market?
The foreign exchange market is a decentralized market where global currencies are traded. In this market, participants buy, sell, exchange and speculate on currencies. It operates through a global network of banks, corporations, and individual traders, who buy and sell currencies for both hedging and speculative purposes. The market is open 24 hours a day and it is considered the largest and most liquid financial market in the world.
What are the most commonly traded currency pairs?
The most commonly traded currency pairs are USD/CAD, EUR/JPY, GBP/USD and AUD/CAD.
What is an ISO code?
Each currency is identified by an ISO code. An ISO code is a three-character abbreviated name that is standardised and internationally recognised. For example, the ISO code for the United States Dollar is USD.
A bullish market is a financial market condition where prices are rising or are expected to rise, characterized by optimism and investor confidence. It is the opposite of a bearish market, where prices are falling or expected to fall.
How long do bull markets last?
Bull markets can last anywhere from a few months to several years. The average bull market lasts about 3 years. However, the length of a bull market can vary greatly depending on various economic, political, and market factors.
How do you know if a market is bullish?
A market is considered bullish if stock prices are rising and investors are optimistic about future market performance. This is typically indicated by a sustained increase in market indexes such as the S&P 500 and the Dow Jones Industrial Average over a period of time. Additionally, high trading volume and strong investor confidence can also be indicators of a bullish market.
What is the longest bull market in history?
The longest bull market in history was the 1990-2000 bull market, which lasted for 113 months.
A bearish market is a condition in the stock market where prices are on a downward trend, characterized by widespread pessimism and investor fear. This often results in a decline in the value of securities, leading to a decline in the overall market.
How long do bear markets last?
The duration of a bear market can vary and can last anywhere from a few months to several years. It depends on a number of factors, including the underlying cause of the market downturn, the state of the overall economy, and government or central bank interventions.
How do you know if a market is bearish?
A market is considered bearish if there is a persistent downward trend in the prices of securities, typically accompanied by increased selling pressure and declining market indices such as the S&P 500. This can be indicated by technical analysis, such as chart patterns showing lower highs and lower lows, or by broader economic indicators such as declining gross domestic product (GDP) and rising unemployment.
What is the longest bear market in history?
The longest bear market in history is the Great Depression, which lasted from 1929 to 1939. During this time, the stock market experienced a severe decline, with the Dow Jones Industrial Average losing 89% of its value. The Great Depression was a global economic downturn that had far-reaching impacts and was marked by high levels of unemployment, homelessness, and economic hardship.
The definition of Assets in trading is as resources which provide an economic value. Assets include but are not limited to cash, property, rights, as well as resources that have the potential of generating. Assets are what businesses require and use to operate. Assets are considered as one of the three fundamentals of any financial calculation, together with liabilities and equity.
Trading Assets Definition
There are several ways of defining and classifying assets:
• Convertible – Liquidity based, as in how fast they can be converted into cash.
• Current Assets – Liquid assets that are expected to be converted to cash within a year.
• Fixed Assets – Cannot be easily and readily converted into cash.
• Physical Existence – Tangible or intangible assets defined by their material presence.
• Tangible Assets – Having physical substance, such as hardware, cash, & inventory.
• Intangible Assets – Resources without physical substance patents, licenses, & copyrights.
• Operating Assets – Necessary to the ongoing operation of a business.
• Non-Operating Assets – Non-functional such as idle equipment & vacant land.
Amortization is the process of charging the cost of an asset to expense over a specific timeframe. Amortization also defines the practice of spreading the repayment of a loan. This shifts the asset from the balance sheet to the income statement.
Amortization reflects the consumption of an intangible asset over what is considered a useful timeframe. It is used for the gradual write-down of the cost of those intangible assets that have a specific useful life. It is common to charge interest which is calculated based on the duration and other variables.
Amortization should not be confused with Depreciation. The difference between them is that amortization is about charging “Intangible Assets” to expense over time. While depreciation is about charging “Tangible Assets” to expense over time.
How to calculate amortization?
As we do not provide economic or trading advice we can only include here what is considered to be a generally agreed upon explanation. As stated, generally an Amortization can be calculated by using a straight-line formula such as: (book value - residual value) / useful life.
Arbitrage is trading that makes use of small differences in price between identical assets in two or more markets. An asset will most likely be sold in different markets, forms or via a different financial products.
Arbitrage is one alternative trading strategy that can prove exceptionally profitable when leveraged by sophisticated traders. It also carries risks which need to be considered prior and during an arbitrage.
Arbitrage as a trading strategy is when an asset is simultaneously bought and sold in different markets, thus taking advantage of a price difference, and generating a potential profit. Arbitrage is commonly leveraged by hedge funds and other sophisticated investors.
What is an example of arbitrage?
Without going into actual trading advice, here are several examples of Arbitrage in Trading:
• Exchange rates
• Offshore operations
• Cryptocurrency
And perhaps the most obvious and common form of arbitrage which is acting as a go between or affiliate, earning commission on price differences between the seller and the buyer.
Types of arbitrage traders use:
• Pure arbitrage - Traders simultaneously buying and selling assets in different markets to take advantage of a price differences.
• Merger arbitrage – When two publicly traded companies merge. If the target is a publicly traded company, the acquiring company must purchase its outstanding shares Convertible arbitrage.
• Convertible Arbitrage. It is related to convertible bonds, also called convertible notes or convertible debt.
The ARK Space Exploration & Innovation ETF's (ARKX) investment objective is long-term growth of capital. ARKX is an actively-managed exchange-traded fund (“ETF”) that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the Fund’s investment theme of Space Exploration and innovation. The Adviser defines “Space Exploration” as leading, enabling, or benefiting from technologically enabled products and/or services that occur beyond the surface of the Earth.
Consumer Staples Select Sector SPDR Fund (XLP) tracks US consumer staples companies within the S&P 500. This asset uses the Consumer Staples Select Sector Index as its tracking benchmark. The fund provides strong and representative exposure to consumer staples and the companies are large-cap in the main.
The index comprises just 34 holdings from the consumer sector and includes many household names. Top holdings include Procter and Gamble, Coca-Cola, PepsiCo and Walmart.
Chainlink (LINK) connects contracts smartly by linking them with real world events, data, and payments. Using the LINK cryptocurrency, Chainlink is tradeable on our platform via the LINK/USD instrument.
Cardano differs from other cryptos by taking a research-led, collaborative approach to cryptos. Traders of its ADA currency help operate the network and can vote on software changes. Cardano is priced in USD and the instrument allows you to trade the ADA/USD spot rate.
ProShares UltraShort Bloomberg Crude Oil (SCO), aims to deliver results that are twice the inverse daily performance of the Bloomberg WTI Crude Oil Subindex. It is an ETF product for traders looking to short crude oil in a single day bet. Trades that last for more than a day are not expected to see the same returns.
The subindex reflects WTI Crude Oil prices and only consists of futures contracts on WTI Crude Oil. This is a leveraged product, all leveraged products carry more risk than unleveraged products.
For Forex trading, a “Base Currency” is the first currency in any currency pair, representing the traded currency. The second currency in the pair is the quote currency. Example: in EUR/USD, the Euro is the base currency, and you can buy 1 EUR by paying 1.1 USD.
An exchange rate attached to a currency pair indicates how much of the quote currency is needed to buy a single unit of the mentioned base currency. For example, reading EUR/USD = 2.15 means that 1 Euro is equal to $2.15.
What is Base vs. Local currency?
When viewing or receiving a direct quote, the base currency = foreign currency. Likewise, the local currency in a pair is the quote currency.
A commodity is a raw material asset such as oil, gas, gold, or wheat. Commodities can be categorised into either hard commodities or soft commodities.
What are Soft Commodities?
Soft commodities typically refer to raw materials that are grown rather than mined such as coffee beans or sugar.
What Are Hard Commodities?
Whereas hard commodities must be extracted such as natural gas or crude oil.
A commodity is often exchangeable for other commodities of the same type and can be purchased through either the spot market using cash, or through derivatives like futures.
Dow Jones Industrial Average - SPDR (DIA) mirrors the USA 30, which tracks 30 large-cap blue-chip companies – many of which are household names. The Dow Jones is one of the oldest indices in the world and is not considered to be volatile. However, because it is only 30 companies it is heavily influenced by the fortunes of those firms and is not a good indicator of the economy as a whole.
Stocks in the fund include Coca-Cola, Disney, Apple and Visa. The ETF is a good way to invest in the index. However, it is not ideal for those looking for broad exposure to US caps, as it only follows the top 30 companies. It is extremely liquid with a strong track record.
In Forex, an Ask is the price at which it is possible to buy the base currency of the selected currency pair. In trading, Ask Price or Offer Price are the lowest price at which a seller will sell their stock.
Ask is used in conjunction with Bid price, which is what the buyer is offering and is by definition lower than the price the selling is asking for. The difference between the buyer’s bid and a seller’s ask is called a “Spread”.
What Is the Bid Ask Spread?
Financial instruments have 2 key public prices: a bid and an ask. When traders wish to buy (a Buy Position), they effectively pay the Ask price. When traders open a sell position, then they are offered the bid price by potential buyers. For obvious reasons, the bid price tends to be lower than the ask price. This price differential is the bid ask spread.
Dash was launched in January 2014 as a rival to Bitcoin. Its popularity is largely down to a focus from designer Evan Duffield on transaction speed and user anonymity.
Dash is priced in USD per coin, and reached a peak value of $1,370.16 in December 2017.
One of the major complaints against stalwart crypto Bitcoin is its painfully slow transactions speed (a big factor in its hard fork into Bitcoin Cash in 2017). Dash has a highly favourable processing speed compared to Bitcoin and other cryptos.
Processing is so quick that two days after its launch, almost 10 percent of the total capacity had already been mined.
Dash is a portmanteau of the words Digital and Cash. It was originally called Xcoin, followed by Darkcoin, before Dash was settled on.
Since its launch, Dash has become increasingly popular and is accepted as a payment method by over 300 organisations around the world - including Apple. CEO Ryan Taylor has stated his belief that Dash will soon overtake Bitcoin in popularity.
A Cryptocurrency is a digital currency supported by decentralised cryptographic technology. It does not rely on any central authority such as a central bank or government like a traditional currency. Instead, transactions are verified by multiple independent computers along a network. This creates several benefits including speed and general transparency.
Cryptocurrency ownership is recorded in a digital ledger. This ledger then uses strong cryptography to maintain the integrity of transaction records. This controls the creation of more digital currency within the network and to verifies the transfer of coin ownership. Cryptocurrencies are generally viewed as a distinct asset class, yet do not exist in physical form.
What is an example of a cryptocurrency?
Some examples of popular cryptocurrencies are Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH).
What is cryptocurrency CFD trading?
Cryptocurrency CFD trading is using CFDs to trade crypto. This enables traders to take a position on whether a cryptocurrency rises or falls. Cryptocurrency CFD trading opens up more trading opportunities as it allows traders to buy or sell the asset without physically owning it.
The Swiss franc to Japanese yen exchange rate has the acronym CHF/JPY. The Swiss franc is the 7th most traded currency on global markets, accounting for 4.8% of daily turnover. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.
Both the Swiss franc and the Japanese yen are safe-haven assets, so the pairing is less susceptible to the influence of market uncertainty as pairings that trade a high-yield asset against a safe-haven. However, markets prefer the Japanese yen to the Swiss franc in times of uncertainty; the pair hit a low of ¥74.65 in 2008 during the financial crisis.
Since then the franc has gained much ground thanks to the Bank of Japan's ultra-loose monetary stimulus package.
The Swiss franc is closely correlated to the euro, meaning that it has an inverse correlation by proxy to the US Dollar. The Japanese yen is sensitive to commodity price movements as Japan lacks many of the natural resources used to fuel industry.
The US Dollar Index, introduced in 1973, allows you to take a position on the overall strength of USD as measured by its performance against a basket of currencies. When it was launched the index had a base level of 100; it reached an all-time high of 164.72 in February 1985, and struck a low of 70.698 in March 2008.
Unlike the trade-weighted index of the US Dollar produced by the US Federal Reserve, the composition of the USDX has remained unaltered since its inception, save for one change: in January 1999 the euro was created, so many individual European currencies were removed from the index and replaced by the euro. Despite this change, the euro still has the same weighting in the index (57.6%) as all the currencies that it replaced combined.
After the euro, the Japanese yen is the second-largest proponent in the dollar index, with a weighting of 13.6%. The British pound with 11.9%, and the Canadian dollar, with 9.1%, are the next two largest components.
The Cboe Volatility Index (VIX) represents the market’s expectations for near-term price changes of the S&P 500 Index (SPX). The Cboe Volatility Index is used to track volatility within that index. As it is derived from the prices of SPX index options, it generates a 30-day forward potential of volatility.
How is the CBOE volatility index calculated?
Volatility is often seen as a way to measure and speculate on market sentiment, as well as assessing risks. The VIX is calculated through the prices of SPX index options and is represented as a percentage. If the VIX value increases, it is likely that the S&P 500 is falling, and if the VIX value declines, then the S&P 500 is likely to be experiencing stability.
How do you trade the CBOE VIX?
The CBOE VIX can be traded on most major financial markets. To trade it, you need to buy or sell contracts for the futures, options or exchange-traded products linked to it. Trading in these contracts can be done through a broker and usually requires a margin account.
A Day Order, or 'good for day order' is a stock market order which remains valid only for the day on which it was entered and is canceled automatically at the end of the trading day. Day orders are used when an investor does not want their order to remain open after the close of trading.
Day Order vs. Market Order
A Day Order is to be filled if and when the indicated asset reaches the specified price as per the order. In the event that the asset does not hit the price specified in the order, the order is then allowed to expire without any further action required. As such day orders are easy for traders to issue, follow up and process they are considered a default trading method both by the traders as well as by trading platforms.
A Market Order on the other hand, is an order to buy or sell a security immediately. While a market order does provide for immediate execution, it does not guarantee the execution price.
Automated trading is also referred to as Algo Trading (Algorithmic is abbreviated to Algo) – is the use of algorithms for executing orders utilizing automated and pre-programmed trading instructions via advanced mathematical tools. Trading variables such as price, timing and volume are factors in Algo trading.
How does algo trading work?
Algo trading works by capitalizing on fast decision-making processes as human intervention is minimized. As such, Algo Trading enables automated trading systems to take advantage of opportunities arising in the market even before human traders can even spot them. It uses processes- and rules-based algorithms to employ strategies for executing trades. Algo trading is mostly used by large institutional investors and traders
A Currency Pair is a term used in the Foreign Exchange, or Forex, domain. Currency pairs compare the value of one currency to another — the base currency versus a second comparative or 'quote' currency. A currency pair shows how much of a currency is required to buy a single unit of the currency it is being compared to. It is also known as an exchange rate and is used for all currencies traded in FX markets.
What is a foreign currency?
A foreign currency is, very simply, any currency used in a country that isn't your own.
What is the structure of a foreign exchange market?
The foreign exchange market is a decentralized market where global currencies are traded. In this market, participants buy, sell, exchange and speculate on currencies. It operates through a global network of banks, corporations, and individual traders, who buy and sell currencies for both hedging and speculative purposes. The market is open 24 hours a day and it is considered the largest and most liquid financial market in the world.
What are the most commonly traded currency pairs?
The most commonly traded currency pairs are USD/CAD, EUR/JPY, GBP/USD and AUD/CAD.
What is an ISO code?
Each currency is identified by an ISO code. An ISO code is a three-character abbreviated name that is standardised and internationally recognised. For example, the ISO code for the United States Dollar is USD.
In the financial and trading domains, the Grey Market enables traders to take positions on a company’s potential via yet-to-be-released Initial Public Offering (IPO). Asset and share prices in this market are more of a prediction of what the company’s total market capitalization will be at the end of its first trading day than any official or sanctioned price.
How do grey markets make money?
Grey markets make money by providing liquidity for new IPOs by allowing buyers and sellers to trade in newly issued stocks without the issuer's consent. This provides the issuer with a way to gain quick access to capital without relying on banks or other traditional sources of funding.
How do I get into grey market?
A grey market also refers to public companies and securities that are not listed, traded, or quoted in a U.S. stock exchange. Grey market securities have no market makers quoting the stock. Also, since they are not traded or quoted on an exchange or interdealer quotation system, investors' bids and offers are not collected in a central spot, so market transparency is diminished, and effective execution of orders is difficult.
Financial Markets define any place (physical or virtual) or system which provides buyers and sellers with the means to trade financial instruments of any kind.
What are the types of financial markets?
Types of financial markets include stock markets, bond markets, foreign exchange markets, commodity markets, money markets, derivatives markets, and options markets.
What is the main function of financial markets?
The main function of financial markets is to facilitate the interaction between those who need capital with those who have capital to invest. In addition to raising capital, financial markets allow participants to transfer risk (generally through derivatives) and promote commerce. The term "market" can also be used for exchanges, or organizations which enable trade in financial securities.
Within the financial sector, the term "financial markets" is often used to refer just to the markets that are used to raise finances. For long term finance, they are usually called the capital markets; for short term finance, they are usually called money markets. The money market deals in short-term loans, generally for a period of a year or less.
The Federal Open Market Committee (FOMC) is the policy-making arm of the Federal Reserve System (the Fed) which is responsible for making monetary policy decisions. The FOMC is made up of 12 members, including the seven governors of the Federal Reserve Board and five of the 12 Reserve Bank presidents.
What does the Federal Open Market Committee impact?
The FOMC meets eight times a year to set the target for the federal funds rate, which is the interest rate at which banks lend and borrow money from each other overnight. The FOMC's decisions can have a significant impact on interest rates, the economy, and the stock market. The FOMC makes key decisions about interest rates and the growth of the United States money supply. It also directs operations undertaken by the Federal Reserve System in foreign exchange markets. They consider a wide array of factors such as trends in prices and wages, employment and production, business investment and inventories, foreign exchange markets, and fiscal policy.
The foreign exchange market, also known as forex, is a decentralized market where currencies are traded 24/5. It has an average daily trading volume of over $5 trillion and facilitates the exchange of one currency into another for businesses, investors, and traders. It is influenced by economic and political events.
Why is Foreign Exchange important?
The foreign exchange market is important because it allows businesses, investors and traders to convert one currency into another, facilitating international trade and investment. It also enables countries to maintain control over their monetary policy and stabilize their economies. Additionally, the foreign exchange market is a major source of financial market liquidity and is used by a wide range of market participants, including banks, corporations, governments, and individual traders. It also enables people to manage the risk associated with currency fluctuations.
How is Forex trading done?
Forex trading is done by buying and selling currency pairs, using a platform provided by a Forex broker such as markets.com. Traders use different strategies and analysis to predict the price movements and decide whether to buy or sell a certain currency pair. It can also be done through contracts for difference (CFDs) which allow traders to speculate on price movements without owning the underlying currency.
Genomic ETF (ARKG) constituents are companies designing technologies for, or are expected to benefit from, extending & enhancing the quality of human and other life by integrating technological and scientific developments and advancements in genomics into their business. Sectors covered include CRISPR, targeted therapeutics, bioinformatics, molecular diagnostics, stem cells, and agricultural biology.
Fibonacci retracement is a technical analysis tool that uses horizontal lines to indicate areas where a stock's price may experience support or resistance at the key Fibonacci levels before it continues to move in the original direction. These levels are derived from the Fibonacci sequence and are commonly used in conjunction with trend lines to find entry and exit points in the market. The key levels are 23.6%, 38.2%, 50%, 61.8% and 100%.
Unlike moving averages, Fibonacci retracement levels are static prices. They do not change. This allows quick and simple identification and allows traders and investors to react when price levels are tested. Because these levels are inflection points, traders expect some type of price action, either a break or a rejection.
Why do people use Fibonacci in trading?
Fibonacci retracement is used in trading as it enables traders to identify long-term trends by determining when an asset's price is likely to change direction. This is useful to traders since it can help them to decide when to open or close trading positions, or when to apply stops and limits to their trades.
Is Fibonacci retracement a good strategy?
Fibonacci retracement can be a powerful trading tool when used correctly. It is based on the principle of support and resistance levels and can help identify key levels of entry and exit. When combined with other technical indicators it can help traders take better informed decisions.
A Guaranteed stop order provides traders with a form of protection for their positions. They can have a guaranteed exit at the exact price they specify. This can be used regardless of market volatility. This is different from “standard” stop-loss orders, which may be filled at worse price levels than were requested due to “slippage”. A guaranteed stop loss order (GSLOs) will incur a fee / premium which will only be charged if it was triggered.
How does guaranteed stop work?
A guaranteed stop loss works in the same way as a standard one does, via instructions provided to the broker to close a position at a specific level, thereby reducing the risk should the market move against the trader.
Should I use guaranteed stop-loss?
Guaranteed stop-loss automatically exits you from the market at a certain predetermined price level in order to limit potential losses if the market goes against you. As such, especially for less experienced traders, it is a recommended strategy to mitigate losses.
The Health Care Select Sector SPDR Fund (XLV) tracks US health care companies within the S&P 500. This asset uses the Health Care Select Sector Index as its tracking benchmark. The fund is caps weighted and only includes companies from the S&P 500, which means there are a lot of very large companies.
The index comprises just 62 holdings from the health care sector – lower than many in this segment - and includes many household names. Top holdings include Johnson & Johnson, Pfizer Inc, UnitedHealth Group and Merck & Co Inc.
Fintech ETF (ARKF) is an ETF focussing on innovative and disruptive financial technologies. Companies represented within ARKF transaction innovations, blockchain, risk transformation, frictionless funding platforms, customer facing platforms, and new Intermediaries.
EOS supports the EOS.IO blockchain protocol. The protocol’s architecture has the potential to eliminate user fees while processing millions of transactions per second. On our platform, EOS is priced in USD using the EOS/USD spot rate.
Financial Select Sector SPDR Fund (XLF) tracks US financial companies within the S&P 500. This asset uses the Financial Select Sector Index as its tracking benchmark. The ETF offers concentrated exposure large-cap US financial companies.
Just a few holdings make up a big part of the portfolio, and there are only 68 holdings in total. Top holdings for the benchmark index include Berkshire Hathaway Inc, JPMorgan Chase & Co and Bank of America.
Energy Select Sector SPDR Fund (XLE) tracks US energy companies within the S&P 500. This asset uses the Energy Select Sector Index as its tracking benchmark. The ETF is offers concentrated exposure to oil and gas industry giants, as the S&P500 favours large-caps. Nevertheless, it is fairly representative of the whole energy market.
Just a few holdings make up a big part of the portfolio, and there are only 31 holdings in total. Top holdings for the benchmark index include Exxon Mobil Corp, Chevron Corp and ConocoPhillips.
The iShares ESG MSCI USA Leaders ETF (SUSL) seeks to track the investment results of an index composed of U.S. large and mid-capitalization stocks of companies with high environmental, social, and governance performance relative to their sector peers as determined by the index provider.
An exchange, market or stock exchange is a marketplace where commodities, securities, derivatives, stocks and other financial instruments are traded. The core function of an exchange is to provide for organized trading and efficient distribution of market & stock information within the exchange. Exchanges provide their users the necessary platform from which to trade.
Why should you trade on an exchange?
Trading on an exchange offers security, reliability, liquidity and low costs. Exchange-regulated markets provide transparency, where all market participants have the same access to prices and trading information. Exchanges also offer robust risk management and safety protocols to protect against any price manipulation or abuse of the system.
What are types of exchange?
There are three main types of trading exchanges: traditional exchanges, dark pools, and electronic communication networks (ECNs). Traditional exchanges provide an organized marketplace to buy and sell securities while dark pools facilitate large orders in private forums. ECNs allow investors to directly access liquidity pools and execute trades with other participants in the market.
SPDR Gold Shares (GLD) is an investment fund incorporated in the USA. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust's expenses. The Trust holds gold and is expected from time to time to issue Baskets in exchange for deposits of gold and to distribute gold in connection with redemptions of Baskets.
The first US traded gold ETF and the first US-listed ETF backed by a physical asset
For many investors, the costs associated with buying GLD shares in the secondary market and the payment of the Trust's ongoing expenses may be lower than the costs associated with buying, storing and insuring physical gold in a traditional allocated gold bullion account.
Ethereum was launched in 2015, after founder Vitalik Buterin decided to improve on perceived problems with Bitcoin.
He wanted a cryptocurrency that could deliver outstanding functionality, especially in terms of processing speed. Ether's transaction speed is just 15 seconds, much faster than the 10 minutes Bitcoin transactions can take.
When most people talk about Ethereum, they are really talking about Ether (ETH), the underlying token currency of the Ethereum platform.
Ether is priced in USD. It was worth just $2.80 when it first launched, and hit an all-time high of $4,891.70 in November 2021.
Ethereum is the world's second-largest cryptocurrency by market cap. The cryptocurrency relies on blockchain, just like Bitcoin, but it is used in a different way. This has led many to view Ethereum has having real-world uses.
The Direxion Daily Financial Bear 3 (FAZ) Shares ETF tracks the inverse performance of the Russell 1000 Financial Services Index by 300%. It is the opposite of the The Direxion Daily Financial Bull 3X Shares ETF (FAS). Traders benefit when the underlying stocks fall, rather than rise. It is leveraged in the same way, so comes with high levels of volatility and risk.
This ETF allows traders to take a bearish view on the performance of commercial banks, a reduction in lending is what FAZ traders will be looking for.
EUR/USD describes the euro (base currency) and US Dollar (quote currency) exchange rate and reflects the respective currency strength of the two largest economic blocs on the planet.
The EUR/USD exchange rate is the most traded currency pair in the world, accounting for 23.1% of all forex trading. Daily average volumes for EUR/USD trading amounts to more than $1 trillion.
As it is so actively traded and highly liquid, EUR/USD enjoys very low spreads. The euro makes up a very large weighting in the dollar index and as such the EUR/USD is closely correlated to the dollar index.
Much of the activity in the EUR/USD pair is driven by international business as well as speculators; the scale of the US and Eurozone economies means that many global corporations and banks have a need to convert large quantities of euros into US Dollars every day. The interest rate differential between the European Central Bank and the Federal Reserve tends to exert the greatest impact on EUR/USD.
Gold is a precious metal and has been used for thousands of years for currency, jewellery and trading. It was first smelted by the ancient Egyptians in around 3600 BC. The desire for gold has led to wars, gold rushes and conquests.
It remains highly sought after for investment purposes and a strong jewellery demand - half of the gold consumption in the world is jewellery, and 40% is investments. It is also used in the manufacture of electronic and medical devices, which accounts for the remaining 10% of the market.
Gold is priced in USD per troy ounce. The lowest price for gold, historically, was $34.83 in January 1970, it reached a record high in September 2011 at $1898.25.
Gold has experienced some significant price fluctuations. There are many factors that can impact gold prices, including central bank reserves, worldwide jewellery and industrial demand (especially from emerging economies) and wealth protection. It can also be affected by the value of the US Dollar and interest rates.
Heating Oil is a low-viscosity petroleum product derived from crude oil. Around 25% of the yield of crude oil is devoted to heating oil, the second most after gasoline products. As a result, prices often closely follow those of WTI crude.
It is priced in USD per gallon, and has a historic high of $3.32 in April 2011. The record low was $0.87 in January 2016.
Heating oil is used as a fuel for furnaces and boilers to heat homes and businesses. It is especially popular in the British Isles and the North-eastern US. As a result, demand fluctuates seasonally, peaking in the colder months between October and March.
Price is, as a result, also affected by cold weather. Other factors affecting price include the price of alternative heating options, energy efficiency and insulation, refining costs and government regulations.
Heating Oil futures allow you to speculate on, or hedge against, changes in the price of Heating Oil. Futures rollover on the third Friday of every month.
The euro to Romanian leu exchange rate has the abbreviation EUR/RON, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
While not a safe-haven asset, the euro is considered more stable than the Romanian leu, meaning that the EUR/RON strengthens in times of market uncertainty. Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria.
The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$104 billion worth of NZD is traded daily.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The New Zealand dollar is highly-sensitive to commodity prices. Dairy is the country's main industry; when dairy prices fall, the outlook for the New Zealand economy weakens, pushing the GBP/NZD exchange rate higher. When dairy prices rise, the opposite happens.
The Direxion Daily Financial Bull 3X (FAS) Shares ETF is a leveraged ETF, aiming to secure traders three times the daily returns on the performance of the Russell 1000 Financial Services Index. This increased exposure also increases risk, so this ETF is more suited to traders with the capital to withstand volatility and with a high risk tolerance.
The portfolio is composed of 70% stocks. Sector exposure is mostly financial services, which make up 77.21% of holdings, with another 15.99% in Real Estate. Commercial banks account for a high proportion of this ETF, with stocks including Berkshire Hathaway Inc, JPMorgan Chase & Co, Bank of America Corp, Visa, Wells Fargo and Citigroup all featuring.
The pound Sterling to Romanian leu exchange rate has the abbreviation GBP/RON, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet.
The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
Recently, political factors have seen their influence over pound pairings grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key - after nearly ten years the Bank of England has begun to raise interest rates.
Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria. GBP/RON appreciates in times of market uncertainty.
The pound Sterling to Singapore dollar exchange rate is abbreviated to GBP/SGD. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Singapore dollar accounts for 1.8% of all daily forex transactions, making it the 12th most-traded currency on the globe.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook.
The Singapore dollar has been allowed to float free by the Monetary Authority of Singapore (MAS) since 1985, but the range in which it is permitted to trade has never been disclosed. SGD has a weak correlation with the Chinese yuan. This, combined with a solid financial sector and property market, has made Singapore an attractive place for offshore investors, helping to keep the appeal of the local currency elevated.
The euro to Japanese yen exchange rate has the acronym EUR/JPY. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades. EUR/JPY accounts for 1.6% of all daily currency trades; $79 billion per day.
While a strong US Dollar can weaken demand for the Japanese yen, it has a much stronger impact upon the euro. This means that in times of safe-haven demand the EUR/JPY exchange rate falls and, although the euro is not a high-beta currency, the pairing appreciates when risk-appetite is strong.
Both the European Central Bank and the Bank of Japan maintain ultra-loose monetary stimulus, but the ECB has recently taken tentative steps towards normalisation. Although negative rates are unlikely to disappear any time soon in either economy, the fact the ECB is in more of a position to adjust borrowing costs stands in the euro's favour.
The pound Sterling to Turkish lira exchange rate has the abbreviation GBP/TRY, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.
Recently, political factors have seen their influence over pound pairings grow. The 2016 vote in favouring of leaving the EU has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key.
Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well.
The Turkish economy is largely fuelled by foreign currency loans, so a strong euro or dollar strengthens GBP/TRY as markets sell the lira on fear of higher credit costs for Turkey's corporations.
The euro to Norwegian krone exchange rate has the acronym EUR/NOK. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The krone is the 13th most-trade currency, accounting for 1.7% of all daily forex activity. Around $US28 billion worth of EUR/NOK - 0.6% of the total daily FX volume - is traded each day.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Norwegian economy is strongly-reliant upon crude oil and natural gas; the nation is one of the 5 top exporters of gas and oil, with the sector accounting for 22% of Norwegian GDP and 67% of the country's exports. The EU is an important trade partner for Norway, accounting for 72% of its trade. Eurozone economic data can therefore have an impact upon NOK as well as EUR.
The euro to Polish zloty exchange rate has the abbreviation EUR/PLN, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Polish Zloty is the 22nd most active currency, accounting for 0.7% of average daily turnover. US$13 billion worth of EUR/PLN is traded each day.
The euro is the currency of the Eurozone, which is overseen by the ECB. The euro has an inverse correlation with the US Dollar.
EUR/PLN strengthens in times of market uncertainty. Poland is an emerging market economy; it's assets are higher-yielding, but also more volatile.
The zloty also reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the currency bloc. This can soften the upside impact of positive Eurozone data upon the EUR/PLN pairing.
The pound Sterling to Canadian dollar exchange rate is identified by the abbreviation GBP/CAD. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The Canadian dollar is highly-sensitive to changes in the US Dollar, as well as the price of crude oil, as this is Canada's main export. When oil prices fall, the outlook for the Canadian economy weakens, pushing the GBP/CAD exchange rate higher. When oil prices rise, the opposite happens.
The euro to Swiss franc exchange rate is identified by the abbreviation EUR/CHF. On average US$44 billion worth of euros are converted into Swiss francs every day, making up 0.9% of the total global forex volume. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. the Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.
The euro and the Swiss franc share a strong correlation; the franc was actually pegged to the euro until January 2014, where the Swiss National Bank shocked markets by allowing the currency to float free - a move which saw CHF surge around 30% in a single day.
The EUR/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is viewed as a safe haven asset, while the fate of the Eurozone forever hangs in the balance as political and economic developments cause tension between its constituent nations.
The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Australian dollar accounts for 7% of all daily forex trading, making it the 5th most-popular currency on the exchange market. US$348 billion worth of AUD/ is traded every day.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The Australian Dollar is commodity-correlated; the domestic economy is highly-reliant upon exports of iron ore, for which Australia accounts for over 50% of the global supply.
The pound Sterling to Swiss franc exchange rate is identified by the abbreviation GBP/CHF. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.
Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the GBP/CHF exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on Sterling.
The Swiss franc is strongly-correlated to euro strength; the franc was actually pegged to the euro until January 2014, when the Swiss National Bank shocked markets by allowing the currency to float free.
The GBP/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is a safe-haven asset because of Switzerland's strong and stable economy. It is a wealthy nation with a strong banking sector and its citizens enjoy a great quality of life.
The pound Sterling to Japanese yen exchange rate is identified by the abbreviation GBP/JPY. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.
Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.
The GBP/JPY exchange rate is heavily-influenced by movement in the US Dollar. The Japanese yen is a safe-haven asset, meaning that it appreciates in times of low risk-appetite. However, when USD is strong the lower-yielding yen is less appealing.
The CAC 40, also known as the France 40, is a blue-chip index and stock market barometer comprising of the 40 companies listed in Paris with the highest liquidity and free-float market capitalisation. It is the most-traded index administered by Euronext.
The index has a base level of 1,000, taken from the 31st December 1987. It was launched on 15th June 1988. The index hit a record high of 6,922.33 in September 2000, with an all-time low of 893.82 recorded in January 1988.
Personal & Household Goods is the biggest sector in the index, comprising around 13% of the total weighting, followed closely by Industrial Goods & Services. Oil & Gas is the third-biggest sector, with a weighting of just under 12%. Healthcare and Banks are the fourth and fifth largest sectors respectively. Companies are limited to a 15% weighting.
CAC 40 index futures allow you to speculate on, or hedge against, changes in the price of major French stocks. Futures rollover on the second Friday of each month.
The euro to pound Sterling exchange rate is identified by the abbreviation EUR/GBP. The pairing accounts for 2% - US$100 billion - of all daily FX transactions. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. GBP is the 4th most-traded currency, accounting for 13% of all daily trades.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. This weakens the EUR/GBP exchange rate when the dollar is strong, even if USD strength is pushing Sterling lower elsewhere.
Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the EUR/GBP exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on the pairing, with GBP the more affected as economists agree the UK will come off worse.
The STOXX Europe 50 Index, also known simply as the Europe 50, is Europe's blue-chip index, comprising of 50 stocks from 17 countries; Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The index peaked at 4,557.57 in July 2007 and hit a record low of 1,809.98 in March 2009.
Companies in the Healthcare industry make up a fifth of the index, while Banks is the second-largest sector represented, with a weighting of 15.6%. Personal & Household Goods is the third largest sector with a weighting of 12.3%, but Oil & Gas is only 10 basis points smaller.
The stocks are mostly from Great Britain (33.6%), Switzerland (18%), France (17.9%), and Germany (14.9%). The index includes a capping factor to ensure that it cannot be dominated by one single country or component.
Europe 50 index futures allow you to speculate on, or hedge against, changes in the price of major European stocks. Futures rollover on the second Friday of March, June, September, and December.
NUGT, also known as the Direxion Daily Gold Miners Index Bull 3x Shares, aims to deliver three times the daily return of the NYSE Arca Gold Miners Index. This is a leveraged fund. It is designed for intraday trades and it is not recommended for periods of greater than one day.
The NYSE Arca Gold Miners Index is a market-cap weighted index of public companies with global operations in developed and emerging markets. The companies in the index are primarily involved in gold mining, with some also involved in silver mining. Top holdings include Newmont Mining, Barrick Gold, Franco Nevada and Newcrest Mining. Canadian companies represent 52.14% of the asset.
The FXE, also known as CurrencyShares Euro Trust, tracks the changes in the value of the euro relative to the US Dollar. An ETF is the easiest way for a trader to buy exposure to foreign currency markets. These funds use cash deposits or futures contracts to track the euro's movements over time.
This ETF provides investors with an opportunity to invest in EUR/USD, such as those who think that the US Dollar is weakening or think that the Euro is strengthening. It tracks the EUR/USD exchange rate very well and is an extremely liquid fund.
Euro Bonds (FBGL) or German Government Bonds, are issued with original maturities of 10 and 30 years. Bunds are a highly liquid debt security as they are eligible to be used as insurance reserves for trusts and are accepted as collateral by the ECB.
Bunds are often used to determine the strength of the Eurozone is doing relative to Germany: Investors who are bearish about Germany’s obligations to the Eurozone may demand higher returns, pushing bond yields higher. However, those seeking a safe haven may accept lower yields. Bunds are influenced by interest rates and ECB monetary policy. The Germany 10Y Bond reached a high of 10.80% in September 1981 and a record low of -0.19% in July 2016.
Gilts are issues by the British Government and are generally considered to be low-risk investments. They traditionally have maturities of five, ten and 30 years. As with shares and funds, bond prices rise and fall as their attractiveness changes, based on changes in the market, economy and currency. The price is also affected by the attractiveness of other investments, particularly other ‘safe havens’ such as cash.
The UK Gilt 10 year bond reached a historic high of 16.09% in November 1981, and a record low of 0.52% in August 2016.
The DAX, also known as the Germany 40, is a blue-chip index of the top 30 stocks trading on the Frankfurt Stock Exchange. The DAX boasts extreme liquidity and is one of the most-traded index derivatives across the globe.
The index has a base value of 1,000, with a base date of 31st December 1987. As of 18th June 1999, the DAX indices price has been calculated using equity prices from the Frankfurt XETRA all-electronic trading system. DAX is best-known barometer of the domestic stock exchange, representing around 80% of the total market.
Pharma & Healthcare is the biggest sector in the DAX, accounting for 14.2% of the index. Automobiles are next, with 13.9% of the total weighting, followed by Chemicals with 12.7%.
The DAX is one of only a few of the major country stock indices to factor in dividend yields.
DAX index futures allow you to speculate on, or hedge against, changes in the price of major German stocks. Futures rollover on the second Friday of March, June, September, and December.
EUR/HUF is the abbreviation for the euro to Hungarian forint exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The forint is the 26th most-active currency, accounting for just 0.3% of daily transactions. US$5 billion worth of EUR/HUF is traded each day.
The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
EUR/HUF strengthens in times of market uncertainty. As an emerging market currency, the forint is popular in times of confidence but is sold in favour of safer, lower-yielding assets when volatility increases.
Compared to its emerging market peers, Hungary has a small level of foreign currency debt, providing some insulation for the economy and its currency against external disruption.
EUR/CZK is the abbreviation for the euro to Czech koruna exchange rate. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The koruna is the 28th most-traded currency, accounting for just 0.3% of daily transactions.
The euro is the currency of the 19-nation Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.
The Czech economy is strongly intertwined with that of the Eurozone; in particular Germany, which receives the bulk of Czech exports. Recent strength in the Eurozone has benefited the Czech Republic, contributing to an unemployment rate that is amongst the lowest in Europe.
In April 2017, the Czech National Bank exited its exchange rate commitment to cap CZK strength, implemented in November 2013, allowing the currency to fluctuate unrestrained.
Futures are a specific type of derivative contract agreements to buy or sell a given asset (commodity or security) at a predetermined future date for a designated price. Futures are derivative financial contracts that obligate parties to buy or sell an asset at a predetermined future date and price.
How does the futures market work?
A futures contract includes a seller and a buyer – which must buy and receive the underlying future asset. Similarly, the seller of the futures contract must provide and deliver the underlying asset to the buyer. The purpose of futures in trading is to allow traders to speculate on the price of a financial instrument or commodity. They are also used to hedge the price movement of an underlying asset. This helps traders to prevent potential losses from unfavourable price changes.
What are examples of Futures?
There are numerous types of futures and futures contracts in the trading and financial markets. The following are a few examples of futures that can be traded on: Soft Commodities such as food or agricultural products, fuels, precious metals, treasury bonds, currencies and more.
Companies in the Internet ETF (ARKW) are those that focus on or benefit from cloud computing technologies enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media.
Sectors covered include cloud computing & cyber security, eCommerce, Big Data & AI, mobile technology & Internet of Things, social platforms, and blockchain & P2P.
iShares MSCI Taiwan (EWT) ETF tracks the investment results of an index composed of Taiwanese equities. The ETF provides exposure to large and mid-sized Taiwanese companies and can be used to access to the Taiwanese stock market. EWT includes 90 of the top companies on the Taiwanese Stock Exchange. It is heavily weighted toward the information technology and finance sectors, which account for 55.5% and 18.5% of the portfolio respectively.
The top ten holdings include Taiwan Semiconductor Manufacturing, Hon Hai Precision Industry Ltd, Formosa Plastics Corp and Chunghwa Telecom Ltd.
iShares MSCI South Korea (EWT) ETF tracks the investment result of an index composed of South Korean equities. It provides traders with exposure to large and mid-sized South Korean companies and is a way to access the South Korean Stock Market. EWY follows 114 of the top companies listed in the South Korean Stock Exchange, and reflects the market well.
With Samsung as one of the major companies represented in the portfolio, it is unsurprising that Information Technology companies comprise a large part of this ETF. Almost 30% of the portfolio is IT, the next largest sector is Finance with 14.06%. Hyundai, LG and Kia also feature in this ETF.
The iShares Global Clean Energy ETF (ICLN) seeks to track the investment results of an index composed of global equities in the clean energy sector.
IXN is an iShares Global Tech ETF seeks to track the investment results of an index composed of global equities in the technology sector, offering exposure to electronics, computer software and hardware, and informational technology companies. Targeting tech stocks from around the world, you can use this ETF to get a global view of this sector.
Industrial Select Sector SPDR Fund (XLI) tracks US industrial companies within the S&P 500. This asset uses the Industrial Select Sector Index as its tracking benchmark. The ETF provides concentrated exposure large-cap US industrial companies, with limited small and midcap companies.
The index comprises just 70 holdings from the industrial sector. Top holdings for the benchmark index include Boeing Co, 3M Co, Union Pacific Corp and Honeywell International Inc.
Innovation ETF (ARKK) is based on “disruptive innovation”, focusing on technologies or services that have the potential to change the world.
Companies within ARKK cover those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies, industrial innovation in energy, automation and manufacturing, the increased use of shared technology, infrastructure and services, and technologies that make financial services more efficient.
JNUG, also known as Direxion Daily Junior Gold Miners Index Bull 3X Shares, aims to deliver three times the daily returns of junior gold and silver mining companies from developed and emerging markets. It seeks 300% of the performance of the MVIS Global Junior Gold Miners Index. The term junior refers to the size of the firms, which are considered to be small-cap.
This is a single-day fund, and funds should not be expected to provide three time the return of the benchmark index if positions are held for longer than one day. As a leveraged ETF, this asset carries more risk than ETFs that are not leveraged. This asset is aimed at intraday traders and is not suitable for all investors.
The US Global JETS ETF tracks the performance, before fees and expenses, of the US Global Jets Index. The Index is composed of the common stock of US and international passenger airlines, aircraft manufacturers, airports, and terminal services companies listed on well-developed securities exchanges across the globe.
A long position is a market position where the investor has purchased a security such as a stock, commodity, or currency in expectation of it increasing in value. The holder of the position will benefit if the asset increases in value. A long position may also refer to an investor buying an option, where they will be able to purchase an underlying security at a specific price on or before the expiration date.
What is riskier a long or a short position?
A short position is considered riskier than a long position because the potential loss is theoretically unlimited, while the potential profit is limited to the amount of depreciation in the value of the security. When an investor short sells a stock, they borrow shares from someone else and sell them, with the hope that the price will drop so they can buy the shares back at a lower price and return them to the lender, pocketing the difference. In case the price of the stock rises instead, the loss for the short seller is theoretically unlimited as there is no limit to how high the stock price can go.
When should I buy a long position?
When an investor believes that the market will rise, they could consider purchasing a long position.
How can I protect my long position?
Protecting a long position often involves setting up a stop-loss order, which automatically sells the asset at a predetermined price. This ensures that any sharp market drops don't result in excessive losses for the investor.
Market Makers are financial institutions or investors that provide liquidity to the markets by placing buy and sell orders at specific prices. They are incentivized to do this in order to make profits from the bid-ask spread.
What is the difference between dealer and market maker?
A dealer and a market maker are both intermediaries in the securities market that provide liquidity and help facilitate trades. However, they have some key differences. A dealer is a person or entity that buys and sells securities for their own account and risk. They hold inventory of securities and make a profit by buying at a lower price and selling at a higher price.A market maker is a firm or individual that provides liquidity to the market by continuously buying and selling a security at publicly quoted prices. They are also called liquidity providers, and they make money by charging a bid-ask spread, the difference between the prices they are willing to buy and sell a security. They do not hold inventory of securities like dealers do.
Do market makers manipulate price?
Market makers are allowed to buy and sell securities at their own discretion, and they may adjust the prices they are willing to buy and sell a security in order to make a profit. However, they are also subject to regulatory oversight, and they must act in a fair and transparent manner. They are not allowed to manipulate prices, and any illegal activities such as insider trading, wash trading or any other form of market manipulation are strictly prohibited.
Market capitalization, commonly referred to as market cap, is a measure of a company's size and is calculated by multiplying the total number of its shares outstanding by the current market price of each share. Market cap can be used to help assess how much a company is worth in the eyes of investors.
Is high market cap good?
A high market capitalization (market cap) generally indicates that a company is well-established, has a strong financial performance, and is considered to be a reliable investment by the market. High market cap companies are often considered to be blue-chip stocks and are more stable and less risky than lower market cap companies.
However, a high market cap does not guarantee that a company will perform well in the future, it just reflects the current market's perception of the company, the stock price and the number of shares outstanding. The company may still be facing internal or external challenges, and the stock may be overvalued. Therefore, it's always important to do your own research and analysis before investing in any stock regardless of its market capitalization.
What is a good market capitalization?
A good market capitalization for an investment depends on the investor's individual preferences and goals. Generally, companies with a high market capitalization are considered to be well-established and financially stable, making them a more reliable investment. However, it is important to note that high market capitalization does not always guarantee future performance.
Is it better to have a small or large market cap?
Small-cap companies tend to be more risky but have higher growth potential. Large-cap companies are considered to be more stable but have lower growth potential. At the end of the day it will all depend on the investor's preference for risk and tolerance for profit/loss.
A market order is a type of stock order that allows an investor to purchase or sell securities at the current market price. It is one of the most common types of orders and it is executed as soon as it is placed, meaning the investor will get whatever price is currently available on the exchange.
Is it good to use market order?
A market order is an order to buy or sell a security at the best available current price. This type of order may provide an advantage over other types of orders by executing quickly, but it could also mean that the trade may not be filled at the desired price.
Why would you use a market order?
A market order is typically used when an investor wants to execute a trade quickly, and is willing to accept the current market price. This type of order is often used when an investor wants to take advantage of a price change or when they want to enter or exit a position quickly.
How long does a market order take?
A Market order is generally the fastest order to execute as it simply takes the current market price. You can expect a market order to be executed usually within seconds or minutes of being placed, as long as there is sufficient liquidity in the market.
MakerDAO describes itself as “a utility token, governance token, and recapitalization resource of the Maker system.” The purpose of the Maker system is to generate another token, using the Ethereum protocol, called Dai, that seeks to trade on exchanges at a value of exactly US$1.00. Maker is available on our platform in USD and is tradeable using the MKR/USD symbol.
A MetaTrader is an electronic trading platform widely used by online retail traders. The MetaTrader application consists of both a client and server component. The server component is run by the broker and the client software is provided to the broker’s customers, who use it to see live streaming prices and charts, to place orders, and to manage their accounts.The platform works on Microsoft Windows-based applications as well as on Andriod and Mac OS applications.
Marktets.com supports the use of both the MetaTrader 4 and MetaTrader 5 trading platforms with its traders.
Metatrader 4 is still one of the most popular and easy-to-use trading platforms. With Expert Advisors, micro-lots, hedging and one-click trading.
Metatrader 5 is a powerful upgrade and the most advanced online trading platform It is a multi-asset derivatives platform for trading on CFDs and enables traders to perform hedging and netting, and delivers more technical indicators as well as more insight with market depth and a wider number of timeframes.
Can I trade on MetaTrader without a broker?
While you can download and use the MetaTrader software without a broker, it is not possible to trade without one. In order to execute trades on MetaTrader, you will need to open an account with a broker that offers the platform and deposit funds into that account.
What is a margin in finance?
A margin in finance is the amount of money an investor borrows to purchase or trade securities. It is the difference between the total value of the borrowed funds and the market value of the collateral provided as security for the loan. Margin trading allows investors to buy more securities than they would otherwise be able to purchase with just their own capital.
What is margin vs profit?
Margin and profit are related but different concepts in finance and trading.
Margin refers to the amount of money or collateral that is required to open a leveraged position, such as a margin account, which allows traders to buy securities by borrowing money from a broker. Profit, on the other hand, refers to the amount of money that is gained from a trade or investment, after all costs and expenses have been subtracted. Profit is the result of a successful trade, which is the difference between the buying and selling price.
How do I calculate margin?
There are a few different ways to calculate margin, depending on the context and the type of trade or investment.
One of the most common ways to calculate margin is to use the following formula:
Margin = (Value of Trade / Leverage) x 100%
Margin trading refers to the practice of borrowing money from a broker to purchase securities. It allows traders to buy more securities than they could afford to buy with cash alone, by leveraging the securities they already own as collateral. This increases the potential returns but also increases the potential risks, as the trader is responsible for paying interest on the borrowed money and must also cover any losses. Margin trading is considered to be a high-risk strategy and is only suitable for experienced traders with a good understanding of the risks involved.
How much money do you need for margin?
The amount of money required for margin trading depends on the minimum deposit requirement set by the broker. For markets.com this is 100 of your local currency, with the exception of South Africa where it is 1000 rand.
What level of margin is safe?
The level of margin that is considered safe depends on the trader's risk tolerance and investment goals. A lower margin level is generally considered to be safer, as it reduces the potential for large losses
A margin call is a demand from a broker to a trader that additional funds must be added to the trader’s account in order to maintain their current positions.
What would trigger a margin call?
A margin call occurs when an investor using margin (borrowed money) to trade in securities or other financial instruments, does not have enough money or equity in their account to meet the minimum margin requirement set by their broker. This can happen when the value of the securities in the account falls below a certain level, resulting in a negative balance in the margin account. A margin call can be a warning sign that the investor is taking on too much risk, and it can be a good opportunity to re-evaluate their investment strategy.
What happens if you get a margin call?
When a margin call happens, the broker will contact the investor and ask them to deposit additional funds into their account or sell some of their profiting securities to bring the account equity back above the minimum margin requirement. If the investor is unable to meet the margin call, the broker may take action to liquidate the investor's securities in order to bring the account back to a positive balance.
Do you lose money on a margin call?
A margin call itself does not necessarily mean that you will lose money, but it does indicate that you are at risk of losing money if you do not take action to meet the call. When a margin call occurs, it is a warning that your account balance has dropped below the minimum margin requirement set by your broker, and if you do not take action to bring it back above that level, your broker may take action to liquidate your securities in order to bring the account back to a positive balance.
Maintenance Margin, or “variation margin,” is considered as the minimum amount of equity (i.e., funds) which needs to be maintained in a trader’s margin account before a margin call is issued as due to the account value being below a minimum threshold and not being able to support open margin trade positions. Margin accounts are what leveraged trades use to trade, where they can purchase securities such as stocks, bonds, or options with funds borrowed from the brokerage.
How do you avoid maintenance margin?
To avoid maintenance margin issues, traders should monitor their account closely and adjust their leverage if needed. If your maintenance margin is not maintained it will result in a margin call, which may indicate that the trader should reconsider the risk exposure of their portfolio.
Why are maintenance margins important?
Maintenance margins are important to protect against losses due to fluctuations in the market. They ensure that traders maintain adequate capital reserves and can cover any potential losses.
Materials Select Sector SPDR Fund (XLB) tracks US basic materials companies within the S&P 500. This asset uses the Materials Select Sector Index as its tracking benchmark. The limited spread and niche sector mean that it is heavily concentrated. Just a few holdings make up a big part of the portfolio, and there are only 24 holdings in total.
Top holdings for the benchmark index include DowDuPont Inc, Linde Plc, Ecolab Inc and The Sherwin-Williams Co.
What do hawkish and dovish mean?
Hawks and doves are terms used by analysts and traders to categorise members of Central Bank committee ahead of their votes on monetary policy.
Hawkish: Refers to a monetary policy that is seen as being more aggressive and leaning towards higher interest rates. It implies a strong stance from the monetary authorities in order to keep inflationary pressures in check and provide an incentive for businesses to invest.
Dovish: Refers to a monetary policy that is seen as being less aggressive and leaning towards lower interest rates. It implies a softer stance from the monetary authorities, allowing businesses to have access to cheap credit, which can help stimulate the economy.
Does hawkish mean bullish?
No, hawkish does not mean bullish. Hawkish is an economic term that describes a central bank policy stance that is believed to favor higher interest rates and tighter monetary policy. It contrasts with dovish which is used to describe policies which favor lower interest rates and more accommodative monetary policy.
Is hawkish good for a currency?
Generally, yes. A hawkish monetary policy can be beneficial for a currency as it typically causes an increase in demand and prices of goods and services produced within the country.
The Proshares Bitcoin Strategy ETF (Bitcoin ETF) offers managed exposure to bitcoin futures contracts. The Fund does not invest directly in bitcoin and may also invest in other instruments. It’s one of the first of its kind and marks a new way to get exposure to cryptocurrency price movements.
Polkadot (DOT) fuses two blockchains: the main, relay chain, where transactions are permanently agreed upon, and user-generated chains. Tradeable in USD, Polkadot is priced in USD and uses the DOT/USD spot rate.
Crude Oil, also known as West Texas Intermediate (WTI), is a light, sweet crude that acts as benchmark for oil prices in the US.
Crude Oil is priced in USD per barrel. It reached a historic high of $145.31 in July 2008 and saw a record low of $1.17 in February 1946.
WTI contains less sulphur than Brent Crude (which acts as a benchmark for oil prices in Europe and the Middle East), which means it demands a premium price. Both WTI and Brent are light, sweet oils that are ideal for refining into gasoline.
It is produced, refined and consumed in North America, and is mostly sourced in Texas - which is where the name originates - as well as in Louisiana and North Dakota.
WTI price is sensitive to factors that impact the general price of oil, as well as geopolitical and economic events and natural disasters in the Midwest and Gulf Coast regions.
Platinum is one of the world's rarest metals, and mines are concentrates in just a handful of countries around the world.
Platinum is priced in USD per troy ounce. It saw a high of $2253 in March 2008, and a record low of $97.70 in January 1970.
Most of the world's platinum is produced in South Africa, which accounts for 80% of supply. Russia is a distant second with 11% and North America produces 6%.
Platinum is an important metal due to its ability to catalyse reactions and its strong resistance to corrosion. This makes it irreplaceable in a broad range of industrial and laboratory reactions, especially the catalytic converter which is the most widely used application of platinum.
The metal is also highly sought-after for jewellery, which is the second largest area of demand,
The concentration of platinum in South Africa (an often-volatile emerging market), combined with the importance of platinum as an industrial material, has led to instability in price.
Palladium has become popular with investors because it has a range of qualities that mean it is difficult to substitute with other metals. It belongs to a group of metals called platinum group metals (PMGs), and is 30 times rarer than gold.
Palladium is priced in USD per troy ounce. It reached a record high of $1126 in January 2018, and fell to an all-time low of $78.25 in August 1991.
Its industrial use is in catalytic converters, where it speeds up chemical reactions, but it is more durable than platinum. It is also popular in jewellery - when mixed with yellow gold it forms an alloy metal that looks like white gold but is much stronger.
Between 70 to 80% of the world output of palladium is produced in Russia and South Africa, so the price of the metal is strongly affected by the political climate in those countries.
Palladium futures allow you to speculate on, or hedge against, changes in the price of palladium. Futures rollover on the fourth Friday of March, May, August and December.
The iShares MSCI KLD 400 Social ETF (DSI) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics as identified by the index provider.
The iShares MSCI USA ESG Select ETF (SUSA) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics as identified by the index provider.
iShares MSCI Mexico ETF (EWW) offers traders exposure to a broad range of companies in Mexico and access to targeted Mexican stocks. It has 58 holdings, which include America Movil L, Formento Economico Mexicano, Walmart de Mexico and GPO Finance Banorte.
The fund has almost no technology, energy or utilities stocks as these sectors are government-run in Mexico. The sector-mix is 29.57% Consumer Staples, 21.13% Communication, 15.48% Financials, 12.27% Materials, 10.92% Industrials and the remaining split between real estate, consumer discretionary and health care.
Futures contracts for Orange juice (ORA) are based upon frozen concentrated orange juice (FCOJ).
Brazil is by far the world's largest producer of oranges, harvesting 20 million metric tonnes per year. China is in second spot, but still far behind, with an annual yield of 7 million, followed by the EU (6.5 million), the US (4.8 million), and Mexico (4.6 million).
Factors that can affect the supply - and therefore the price - of orange juice include weather, crop disease, and the strength of the US dollar. For instance, orange juice futures often increase in price when hurricanes travel towards Florida, a key growing region. Consumer demand often plays a role as well; orange juice is a popular breakfast staple, but a move away from drinks with high sugar content has seen demand decline in recent years.
The WIG 20 Index, or Poland 20, is a blue-chip stock market index of the 20 most actively traded and liquid companies on the Warsaw Stock Exchange. Constituents are chosen from the top 20 companies trading on the Warsaw Stock Exchange as of the third Friday of February, May, August, and November.
The ranking is based upon turnover values for the previous 12 months and a closing price from the previous five trading sessions is used to calculate free float capitalisation.
The index has been calculated since 16th April, 1994 as a base value of 1,000 points. To keep the index diverse, no more than five companies from a single sector may be included in the index at any one time. Sectors covered by the index includes Commercial Banks, Oil & Gas Exploration & Production, Insurance, Metals Mining, and more.
Poland 20 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Warsaw Stock Exchange. Futures rollover on the 2nd Friday of March, June, September, and December.
A share is a partition of the total value of a company. Each share represents a unit of ownership in that company, and therefore also the value that it holds. Should a company choose to sell shares as a means of fundraising, this is known as equity finance.
A share owner is called a shareholder (or stockholder). The ongoing value of a share, once it is introduced to the market, is its trading value at any given time, which can be either lower or higher than the original value. A share is worth whatever price it is currently trading at. An actual transaction of shares between a buyer and a seller is usually considered to provide the best market indicator as to the "true value" of that share at that time. The difference between current price and open price will represent either a profit or a loss to the investor who purchased it.
There are different types of shares in the trading domain, including Cumulative & Non-cumulative Preference Shares, Participating & Non-participating Preference Shares, Convertible & Non-convertible Preference Shares, Redeemable & Un-redeemable Preference Shares.
It is also possible to use CFDs to trade shares. This enables traders to take a leveraged position on whether a share rises or falls. This different type of share trading opens up more trading opportunities by either buying or selling the asset without physically owning it.
Take profit is an order type that is used by traders to automatically exit a trade when a certain profit level is reached. Once the specified price level is hit, the trade will be closed and the profit will be locked in. Take profit can also be used in short positions, where the trader is betting on the price to decrease. In this case, the trader would set a take profit order at a price level below the current market price. Once that price level is reached, the trade will be closed and the profit will be locked in.
When should I take profit on my shares?
The decision to take profit on a stock should be based on your own personal investment strategy and goals. Some investors may choose to take profit when a stock reaches a certain level of appreciation or when it reaches a technical resistance level. Others may choose to hold onto a stock for the long-term and only take profit when they need the money for other investments or expenses.
What is the purpose of take profit?
The purpose of a take profit order is to automatically lock in profit at a specific price level, without the need for a trader to constantly monitor the market. By setting a take profit order, a trader can set a specific level at which they want to exit a trade with a profit, and then let the market run its course. Additionally, it allows the trader to set a level of risk-reward they are comfortable with, and not be affected by emotions and human biases, which could cause them to hold on to a trade for too long or exit too soon.
A share buyback, also known as a stock repurchase, is when a company buys back its own shares from the open market. This reduces the number of outstanding shares and increases the ownership stake of existing shareholders. Buybacks can be used as a way for a company to return excess cash to shareholders, increase earnings per share, or signal confidence in the company's future prospects.
Is share buyback a good thing?
Share buybacks can have both positive and negative effects on a company and its shareholders. On one hand, buybacks can be seen as a sign of a company's financial strength, as they suggest that the company has excess cash and believes its own stock is undervalued. Additionally, buybacks can help to boost earnings per share, which can increase the company's valuation. On the other hand, buybacks can also be criticized for diverting resources away from investments in growth or other opportunities, or for being used as a way to artificially boost the stock price. It's important for investors to evaluate the company's financial situation and the reason behind the buyback before making a decision on whether it is good or not.
What happens to share price after buyback?
Share price can be affected by a buyback in different ways, it will depend on the market conditions, the company's financial situation and the reason behind the buyback. In general, a buyback can help to boost the share price by increasing earnings per share and reducing the number of outstanding shares. Additionally, the announcement of a buyback can also signal confidence in the company's future prospects, which can attract more buyers to the stock. However, a buyback doesn't guarantee an increase in the stock price, if the market conditions are not favorable or if the company's financial situation is not good, the stock price could remain unchanged or even decrease.
What is the reason for share buyback?
A company may choose to buy back its own shares for a variety of reasons, including:
-Returning excess cash to shareholders: A buyback can provide shareholders with a more direct benefit from the company's cash reserves, rather than leaving the money idle or reinvesting it in less profitable ventures.
-Increasing earnings per share: By reducing the number of outstanding shares, buybacks can increase earnings per share, which can make the company look more valuable to investors.
-Signaling confidence: A buyback can signal to the market that the company's management believes the stock is undervalued, which can attract more buyers to the stock.
-Boosting stock price: By purchasing shares in the open market, a buyback can help to boost the stock price, which can benefit existing shareholders.
-Mitigating dilution: If a company issues new shares, it can dilute the value of existing shares, buying back shares can help to mitigate this dilution.
It's important to note that buybacks can also be used as a tool by management to artificially boost the stock price in the short term, rather than for the benefit of long-term shareholders.
Trading charts are used to display historical price data for a security or financial instrument. They typically include a time frame on the x-axis, and the price of the security or instrument on the y-axis. Candlestick charts, bar charts and line charts are the most common types of charts used in trading. Candlestick charts are the most popular and provide a visual representation of the opening price, closing price, highest and lowest price of the security in a given period of time. It also shows the direction of the price movement, whether it went up or down. Traders use different technical analysis tools like trendlines, moving averages, and indicators to interpret the charts and make trading decisions. There is a great deal of nuance in reading charts and doing it correctly will require experience and an understanding of how your chart of choice is presenting information to you.
How do you predict if a stock will go up or down?
Traders use different technical analysis tools and techniques to predict if a stock will go up or down using trading charts. These include:
Trendlines: By connecting price highs or lows over a period of time, traders can identify the direction of the trend and predict future price movements.
Moving averages: By plotting the average price over a period of time, traders can identify trends and potential buying or selling opportunities.
Indicators: Technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are mathematical calculations that are plotted on charts to help traders identify trends, momentum and potential buy or sell signals.
Chart patterns: Traders also use chart patterns such as head and shoulders, double bottoms, and triangles to identify potential reversal points in the market and make predictions about future price movements.
It's important to note that technical analysis is not an exact science and it's not a guarantee of future results. Traders should always use technical analysis in conjunction with fundamental analysis, which looks at a company's financial and economic conditions, to make informed trading decisions.
How do you know if a chart is bullish?
A chart is considered bullish if it is showing an upward trend or pattern, indicating that the price of a security or financial instrument is likely to rise. Bullish chart patterns include upward trending lines, ascending triangles, and bullish candlestick patterns such as the hammer or the bullish engulfing pattern. Traders often consider a stock to be bullish when it's trading above the moving average, especially when the moving average is trending upward.
ProShares Ultra QQQ (QLD) aims to deliver daily investment results that are twice the performance of the Nasdaq 100 Index. This ETF provides leveraged exposure to a market-cap weighted index of 100 non-financial stocks listed on the NASDAQ. This is a single-day bet and traders are advised that returns can vary dramatically if they hold positions for longer than one day. All leveraged products carry more risk than unleveraged products.
The Nasdaq 100 is dominate by tech firms, so the performance of the index is closely tied to the sector. Top holdings include Apple, Amazon, Facebook and Tesla.
ProShares UltraShort QQQ (QID) aims to deliver daily investment results that are twice the inverse daily performance of the Nasdaq 100 Index. This is a single-day bet and traders are advised that returns can vary dramatically if they hold positions for longer than one day. This is the sister product to QLD, which delivers two times the daily performance of the Nasdaq 100.
As with most inverse and leveraged products, this fund is designed to provide inverse exposure on a daily basis, not as a long-term inverse bet against the index. All leveraged products carry more risk. Nasdaq 100 holdings include Apple, Amazon, Facebook and Tesla.
TYO Fund seeks daily investment results of 300% of the inverse of the performance of the NYSE Current 10 Year U.S. Treasury Index.
TRON’s goal is to create a decentralised internet. Its TRX cryptocurrency allows buyers to vote on who gets rewards for validating transactions on its blockchain. markets.com lets you trade TRX/USD at the latest spot rate.
Tezos (XTZ) cryptocurrency is designed to run smart contracts with decentralised applications. The currnecy uses Liquid Proof of Stake model. This allows XTZ owners to delegate validation rights but still earn staking rewards, without giving up custody of their cryptocurrency. Trade XTZ/USD at latest spot rights on our platform.
Robotics ETF (ARKQ) constituents are focused on, and are expected to substantially benefit from, the development of new products or services, technological improvements, and scientific research advancements in areas like energy, automation and manufacturing, materials, and transportation.
Companies within the ETF either develop, produce, or enable autonomous transportation, robotics & automation, 3D printing, energy storage, and space exploration.
Synthetix (SNX) is a decentralized protocol that lets users gain exposure to assets like other cryptos, gold, and stocks, without actually holding the underlying resource. These synthetic assets are backed by the platform's cryptocurrency, Synthetix Network Token (SNX), which is staked as collateral in order to generate rewards. It is priced in USD and can be traded using the SNX/USD symbol.
ProShares UltraShort Russell2000 (TWM) is a leveraged product that seeks to deliver twice the inverse of the daily performance of the USA2000 Index. Results aims to be 200% of the opposite to the movement of the index. This is a daily-bet, so results will vary dramatically for positions held longer than one day.
The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.
The Sprott Silver Investment Trust (PSLV) seeks to provide a secure, convenient, and exchange-traded investment alternative for investors interested in holding physical silver bullion without the inconvenience that is typical of a direct investment in physical silver bullion. The Trust intends to achieve this by investing primarily in long-term holdings of unencumbered, fully allocated, physical silver bullion and does not speculate with regard to short-term changes in silver prices.
UPRO, ProShares Ultra Pro S&P500, provides 3x daily exposure to the S&P 500 Index. The ETF aims to deliver daily returns that are three times that of the S&P 500 Index, which comprises US large cap equities. The S&P 500 represents some of the largest and most liquid US stocks on the market.
This is a leveraged product and, as such, carries more risk. It is an aggressive instrument, design for intraday trading, and should not be used as part of a buy-and-hold strategy.
Technology Select Sector SPDR Fund (XLK) tracks US tech companies within the S&P 500. This asset uses the Technology Select Sector Index as its tracking benchmark. As the tech firms in the index are just drawn from the S&P 500, there are some odd inclusions such as financial payment processors and telecoms companies.
The index comprises just 69 holdings from the tech sector, with two accounting for more than a third of the index – Microsoft Corp and Apple Inc. Other holdings include Visa, Intel and Cisco.
ProShares UltraPro Russell2000 (URTY) seeks to deliver daily results that are three times daily performance of the USA2000 Index. This is an aggressive single-day bet and results will vary if positions are held for longer than a day.
This ETF is a leveraged product, which carry more risk. It aims to deliver results that are 300% of the returns of the USA2000 Index. The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.
SPDR S&P ASX 50 Fund (SFY.AX) seeks to track the returns of the S&P/ASX 50 Index. The S&P/ASX 50 is an index of Australia’s large-cap equities. Traders can use it as a way to access the Australian Stock Market or gain exposure to Australian companies.
The index has a mix of sectors, and contains the 50 largest ASX listed stocks with the cut-off being a market capitalisation of around $5billion (AUD/). The portfolio accounts for 62% of Australia’s sharemarket capitalisation. Top holdings include Commonwealth Bank, BHP Billiton Limited, Woolworths Group and Telstra Corp.
ProShares UltraShort S&P500 (SDS) looks to deliver daily investment results that are twice the inverse of the daily performance of the S&P500. This is a leveraged product and designed as a single-day bet. Returns for periods longer than one day could expose investors to performance drift.
S&P500, the index that it inversely tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.
Direxion Daily Small Cap Bear 3x Shares (TZA) seeks to deliver daily results that are three times the inverse of the daily performance of the USA2000 Index. This is an aggressive single-day bet against the USA2000, and results will vary if positions are held for longer than a day.
This ETF is a leveraged product, which carry more risk. It aims to deliver results that are 300% opposite the returns of the USA2000 Index. The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.
ProShares UltraPro QQQ (TQQQ) is a leveraged ETF that tracks the performance of the Nasdaq 100 index. This ETF aims to deliver a daily output that is three times the daily performance of the Nasdaq 100. That means TQQQ will deliver results that are 300% of how the index has moved.
The Nasdaq 100 includes the largest companies on the Nasdaq stock market and holdings include Apple, 21st Century Fox Inc, Kraft Heinz and Facebook. This is a single-day bet and is not recommended for use for longer than periods of one day, as the results will differ. Leveraged products carry more risk.
ProShares UltraPro Short S&P500 (SPXU) seeks daily investment results that are 300% the inverse of the daily performance of the S&P 500. This is a single day bet for traders looking to go short on S&P500 or hedge other trades. Like any leveraged product, there is more risk involved in this ETF than in unleveraged products.
S&P500, the index that it inversely tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.
XLM, or Lumens, is Stellar network’s cryptocurrency. It is designed to support instant global transactions to give access to low-cost financial services. Trade XLM/USD spot rates with this instrument.
ProShares UltraPro Short QQQ (SQQQ) is an inverse leveraged ETF that tracks the performance of the Nasdaq 100 index. This ETF aims to deliver a daily output that is three times the inverse of the daily performance of the Nasdaq 100. That means SQQQ will deliver results that are 300% opposite to how the index has moved. They are a useful product for traders looking to go short or to hedge their other positions.
The Nasdaq 100 includes the largest companies on the Nasdaq stock market and holdings include Apple, 21st Century Fox Inc, Kraft Heinz and Facebook. This is a single-day bet and is not recommended for use for longer than periods of one day, as the results will differ. Leveraged products carry more risk.
The S&P MidCap 400 ETF (MDY) looks to replicate the performance of the S&P Midcap 400 Index. The most widely-followed mid-cap index in existence, it serves as a good barometer for the performance and directional trends of US equities. The fund provides a good representation of the market and is popular in the midcap space.
Stocks in this index cover all major sectors including technology, health care, financial industries and manufacturing, and include many household names. Holdings include Teleflex, Dominos Pizza, Lamb Weston Holdings and Atmos Energy.
Ripple (XRP) is among the largest cryptocurrencies by market cap, following Bitcoin and Ethereum.
Ripple, known as XRP, is priced in USD. It saw a high of $3.20 in January 2018.
When people talk about Ripple they are not just talking about the currency, but the Ripple network which could change the way people complete currency transfers.
Unlike other crypto payment networks, Ripple allows you to make money transfers in any form - be that Ripple, Bitcoin, USD, Yen or GDP. Plus, you can receive money in a different form to how it has been sent. For example, you could be sent Bitcoin but collect your money in USD.
Payments can happen in seconds, a significant improvement on the days or weeks required for a wire transfer with a bank.
The payment network has already seen endorsements, with American Express and Santander partnering with it for cross-border payments between the US and UK.
Silver (XAG) has long-been synonymous with money, indeed, in some languages the two words are the same. The white metal has been used for investment and jewellery for thousands of years, and its distinctive characteristics ensure it continues to be in high-demand.
Silver is priced in USD per troy ounce. Its price peaked at $49.45 in January 1980, and reached an all-time low of $3.55 in February 1991.
The majority (85%) of silver production comes from mining, with the remainder sourced from scrap and stockpiles. While silver can be recycled, it is less economical to do so than with other precious metals. The top producers of silver are Mexico, Peru and China.
Silver is widely used in photographic, industrial, medical and telecommunications technology. It is also highly sought after for investment purposes. Its price is influenced by industrial demand, demand for jewellery, coins, medals and silverware, as well as the price of gold and the strength of the US Dollar.
The Swiss Market Index (SMI), also known as the Swiss 20, is a blue-chip index of the 20 largest and most-liquid companies traded on the SIX Swiss Exchange, covering around 80% of the total market capitalisation of Swiss equities. The index is weighted so that no component can exceed 20%, enabling it to be a key barometer of the Swiss stock market.
The index was launched on 30th June 1988, and has the same base date. It has a base value of 1,500 points, reached a high in January 2018 of 9,611.61, and an all-time low of 1,287.60 in January 1991.
Healthcare is the largest index sector, accounting for 37.5% of the total weighting, followed by Consumer Goods with 24%, and Financials with 21.6%. Industrials is the fourth-largest sector with 13.6%.
Swiss Market Index futures allow you to speculate on, or hedge against, changes in the price of major stocks on the SIX Swiss Exchange. Contracts rollover on the second Friday of March, June, September, and December.
Rice is a “soft” commodity - referring to those that are grown and not mined - and is the third most-farmed grain in the world, behind cotton and wheat. It is a food staple for billions of people, spread throughout Asia, the Middle East, and Latin America.
Rice is priced in USD per hundredweight (CWT). In April 2008 prices of the grain peaked at $24.46/CWT, while in February 1982 they hit a low of $0.75/CWT.
China produces the bulk of the world's rice. India, Indonesia, Bangladesh, Vietnam, and Thailand are also big producers.
Rice prices are affected by many factors, including stock levels, the pace of demand growth, and changes in government spending on agriculture. One of the biggest drivers of volatility is crude oil prices - rising prices push up the cost of production and transportation.
Rice futures allow you to speculate on, or hedge against, changes in the price of rice. Futures rollover on the fourth Friday of February, April, June, August, October, and December.
Sugar is a “soft” commodity - meaning it is grown rather than mined. It is produced from sugarcane or, less commonly, sugar beets and was once so rare and expensive it was known as White Gold. Despite obesity concerns, there is still a strong demand for sugar worldwide.
Sugar is priced in USD per lb. It reached its peak of $65.20 in November 1974 and hit an all-time low of $1.25 in January 1967.
Most of the world's sugar comes from sugarcane, with around 20% coming from sugar beets. A small minority is also produced from date palm, sorghum and sugar maple.
Brazil is the biggest producer of sugar in the world, accounting for 21% of total production. However, it is produced all over the world, with 70 countries producing sugar from sugarcane, 40 from sugar beets and 10 from both.
Factors than impact the price of sugar include global inventories, consumption outlook, weather conditions and outlooks, and government regulation.
Sugar futures allow you to speculate on, or hedge against, changes in the price of sugar. Futures rollover on the second Friday of February, April, June and September.
SSO, also known as ProShares Ultra S&P500, is a leveraged product that looks to deliver twice the daily performance of the S&P500. This is a single-day product so the returns over periods of more than one day will differ.
S&P500, the index that it tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.
IWM, also known as iShares USA2000 ETF which seeks to mirror the performance of the USA2000 Index. The ETF has a basket of shares that is similarly weighted to the USA2000 Index, and comprises well-diversified small-cap stocks. It has around 2,000 holdings, all small cap stocks with market capitalisation of less than $1bn.
The portfolio is made up of multiple sectors including 24.52% financials, 16.60% information technology, 16.47% health care, 14.72% consumer discretionary and 12.71% industrials. The remainder is split between materials, energy, utilities, consumer staple and telecoms. Stocks include Etsy, Hubspot and Planet Fitness Inc.
IWO, also known as iShares USA2000 Growth ETF, replicated the performance of the USA2000 Growth Index. This ETF is comprised of small public US companies that are expected to grow at an above-average rate. The index uses two-year growth forecasts and historical sales to identify growth.
Unsurprisingly, given that the focus is on growth, technology features heavily in the sector breakdown. Health care, Information Technology and Industrials account for 62.07% of the portfolio. It has over 1,200 holdings and stocks include Etsy, Haemonetics, Hubspot and Trade Desk Inc.
SLV, also known as iShares Silver Trust, tracks the price of silver bullion held in London. This ETF provides investors with direct exposure to silver as the ETF physically holds the precious metal in vaults in London. This fund is one of the most liquid of its peer group and is popular among retail and institutional investors.
This ETF is suitable for buy and hold strategies. Traders should consider this asset to gain exposure to the day to day price of silver bullion, to get access to physical silver or to diversify your portfolio and protect against inflation.
SPY, also known as the SPDR S&P 500 ETF Trust, is one of the oldest and best-recognised ETFs. Unsurprisingly, given the name, it seeks to replicate the results of the S&P500 index. SPY tracks large and midcap US stocks.
S&P500, the index that it tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.
The IBEX 35, or Spain 35, is the benchmark index for the Spanish stock market and tracks the performance of the top 35 most-traded and most-liquid companies on the Bolsa de Madrid (Madrid Stock Exchange).
The index is market capitalisation-weighted and free float-adjusted. It was launched on 14th January 1992 but has a base date of 30th December 2010 and a base level of 1,000. Selection is based upon liquidity, but there is a maximum weighting limit of 40%.
Financial & Real Estate Services is the most-represented sector in the index, accounting for around 34% of the weighting. The next-largest sector is Oil & Energy, with just over 20%, followed by Technology & Telecommunications with just over 15%. Consumer Goods, Basic Materials, Industry & Construction, and Consumer Services complete the list of sectors covered in descending order of weighting.
Spain 35 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Bolsa de Madrid. Contracts rollover on the second Friday of every month.
What are Support Levels?
Support levels refer to the levels at which the price of an asset tends to stop falling and stabilize. These levels are determined by analyzing past price movements and identifying a floor at which buying pressure is strong enough to prevent the price from falling further. Traders and investors use support levels as a guide for placing buy orders, and as a signal for potential buying opportunities.
What does support level mean in Crypto?
Support levels mean the same thing regardless of the asset class in question.
What is the best indicator for support and resistance?
There are several indicators that can be used to identify support and resistance levels in a market. Some commonly used indicators include moving averages, Fibonacci retracements, and pivot points. However, no single indicator is considered to be the "best" as different indicators may work better in different market conditions and for different traders. Ultimately, the best indicator is the one that works best for you and fits your individual trading style and strategy.
CFDs are a leveraged financial instrument that allow traders to gain exposure to an underlying asset, such as shares, commodities or indices. While this provides great potential for profits, it also carries significant risks. The main risk is the possibility of losses greater than your initial deposit if the market moves against you. CFDs also have costs associated with trading such as commissions and spreads. Make sure you understand the risks before trading with CFDs.
What are the disadvantages of CFDs?
CFDs are complex instruments and may not be suitable for everyone due to the risk of leverage. CFDs also come with costs, including spreads and commissions which can cut into potential profits. Furthermore, it's important to understand how margin calls work as well as potential losses from unanticipated price movements or illiquidity in the market.
How much can you lose in a CFD trade?
In a CFD trade, you can potentially lose more than your initial investment, as the loss is based on the difference between the entry and exit price of the trade. It is important to set stop loss orders to limit potential losses. Additionally, using proper risk management strategies can help to minimize losses.
The WisdomTree Emerging Markets High Dividend ETF (DEM) tracks the WisdomTree Emerging Markets Dividend Index. The index is a fundamentally weighted index that is comprised of the highest dividend-yielding common stocks selected from the WisdomTree Emerging Markets Dividend Index. This provides it with some downside protection from market volatility.
DEM is an equity fund, and has a mix of market sectors. It includes stocks from key emerging markets such as Russia and China, with assets including China Contruction Bank, China Mobile and Norilsk Nickel.
WisdomTree U.S. LargeCap Dividend (DLN) consists of the 300 largest companies ranked by market capitalisation from the WisdomTree Dividend Index. The Index is a fundamentally weighted index that measures the performance of large-cap dividend-paying US companies.
The top ten stock holdings account for 26.76% of the index and include Microsoft, Apple, Exxon Mobil and Verizon Communications. Four sectors (Information Technology, HealthCare, Consumer Staples and Financials) account for 56.4% of the index’s holdings. This ETF is a good option for traders looking for exposure to large cap equity from dividend-paying companies.
The Xtrackers MSCI U.S.A. ESG Leaders Equity ETF (USSG) holds a basket of companies that score highly for environmental, social, and governance (ESG) factors, with roughly marketlike sector exposure. The fund’s index uses MSCI’s ESG rating methodology to assign a score to all US large- and midcap stocks.
The VanEck Vectors Social Sentiment ETF (BUZZ) will track the BUZZ NextGen AI US Sentiment Leaders Index. This index consists of the most-favourably talked about stocks online, whether on blogs, social media or Reddit.
ProShares Ultra Silver, also known as AGQ, is a single-day bet, not a buy-and-hold ETF. AGQ is a leveraged ETF that aims to deliver daily investment results that equate to twice the daily price performance of silver bullion, measured by US Dollar for delivery in London.
Yearn.finance (YFI) is another Ethereum-led yield aggregator using the YFI token. Cryptos deposited on Yearn are leant out at the highest lending rate possible across a number of other platforms. Holders of YFI can participate in the protocol's governance and earn a percentage of the fees generated on the various Yearn Finance products through staking. Yearn is available on our platform via the YFI/USD symbol and is priced in USD.
Utilities Staples Select Sector SPDR Fund (XLU) tracks US utilities companies within the S&P 500. This asset uses the Utilities Select Sector Index as its tracking benchmark. The fund is concentrated to just a few large firms, as the index comprises just 30 holdings from the utilities sector. This can be a pro or a con depending on your trading strategy.
Top holdings include Nextera Energy Inc, Duke Energy Corp, Dominion Energy Inc and Southern Co.
The Vanguard Value Fund (VTV) seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks. The Fund employs a "passive management"-- or indexing --investment approach designed to track the performance of the CRSP US Large Cap Value Index.
US Tech 100 (NQ) is a market capitalization-weighted stock market index that includes the hundred largest non-financial domestic and international companies.
The index is constituted by sectors such as Technology, Consumer Services, Healthcare, Industrials, Consumer Goods and Telecommunications.
The US Tech 100 index contains some of the largest companies in the world, including Apple, Amazon, Microsoft, Facebook, Google parent Alphabet and Netflix.
The US Tech 100 index futures allow you to speculate on, or hedge against, changes in the price of some of the world’s biggest stocks. Contracts rollover on the second Friday of March, June, September and December.
US Treasury Bonds 30Y (UB) are securities issued by the US government with maturities that vary from ten to 30 years. The U.S Treasury suspended issuance of the 30 year bond between February 2002 and February 2006. When bonds are sold on the secondary market, they can go up and down in price in the same way that shares and funds do. US Treasury Bond prices are primarily affected by interest rates, inflation and economic growth, as well as their reputation as a safe haven.
Historically, the US Government Bond 30Y reached an all-time high of 15.21% in 1981 and a record low of 2.11% in 2016.
The United States Oil Fund (USO) is an ETF that aims to track the daily price movements of WTI Crude Oil. USO's Benchmark is the near-month crude oil futures contract traded on the NYMEX. The Crude Oil contract is WTI light, sweet crude delivered to Cushing Oklahoma.
This ETF is a good way to get commodity exposure without using a futures account and offers more options for traders such as intraday pricing and limit/stop orders.
The Vanguard Total Stock Market ETF (VTI) tracks the total US market and is designed for traders looking for comprehensive, inexpensive exposures to full-market equities. It encompasses the entire market-cap spectrum and provides neutral coverage, with no sector or size bets.
This ETF looks to match the performance of the CRSP US Total Market Index. The sector breakdown is largely the same as its benchmark: Financials make up 19.70%, Tech is 19.10%, with consumer good, health care and industrials all around the 13% mark.
The Direxion Work From Home ETF (WFH) offers exposure to companies across four technology pillars, allowing investors to gain exposure to those companies that stand to benefit from an increasingly flexible work environment. The four pillars include Cloud Technologies, Cybersecurity, Online Project and Document Management, and Remote Communications. Companies are selected for inclusion in the index by ARTIS, a proprietary natural language processing algorithm, which uses key words to evaluate large volumes of publicly available information, such as annual reports, business descriptions and financial news.
Wheat is one of the world's most important agricultural commodities, with around two-thirds of global production for food consumption. It is a “soft” commodity, which means it is grown and not mined.
Wheat is priced in USD per bushel, it reached a record high of $1194.50 in February 2008, but slumped to a record low of $192 in July 1999.
An incredibility versatile grain, wheat is harvested somewhere in the world every single month of the year. There is more land used for wheat production than any other crop worldwide, and it is behind only corn and rice in total production.
Wheat prices are affected by a number of factors, including import/export restrictions, stock levels and the strength of the USD. However, one of the biggest drivers of substantial volatility is supply-chain disruptions caused by natural disasters and extreme weather events.
Wheat futures allow you to speculate on, or hedge against, changes in the price of wheat. Futures rollover on the fourth Friday of February, April, June, August and November.
The US Dollar to Hungarian forint exchange rate is an exotic currency pair known by the abbreviation USD/HUF. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The forint is the 26th most-active currency, accounting for just 0.3% of daily transactions.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
As an emerging market currency, the forint is popular in times of confidence and is sold in favour of safer, lower-yielding assets when volatility increases.
Compared to its emerging market peers, Hungary has a small level of foreign currency debt, providing some insulation for the economy and its currency against external disruption. Hungary enjoys a strong economy, with low payroll and corporate taxes and growth that outpaces the EU average.
The US Dollar to Polish zloty exchange rate is identified by the abbreviation USD/PLN. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The Polish zloty the 22nd most active currency, accounting for 0.7% of average daily turnover. Approximately $19 billion worth of USD/PLN is traded each day.
Poland is an emerging market economy, favoured by investors in times of market certainty because of its higher yielding assets.
The zloty reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the bloc. Positive Eurozone data can therefore support the zloty.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency.
The United States Natural Gas Fund® LP (UNG) is an exchange-traded security that is designed to track in percentage terms the movements of natural gas prices. UNG issues shares that may be purchased and sold on the NYSE Arca.
The investment objective of UNG is for the daily changes in percentage terms of its shares' net NAV to reflect the daily changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana, as measured by the daily changes in the Benchmark Futures Contract, less UNG's expenses.
The Benchmark is the futures contract on natural gas as traded on the NYMEX. If the near month contract is within two weeks of expiration, the Benchmark will be the next month contract to expire. The natural gas contract is natural gas delivered at the Henry Hub, Louisiana.
UNG invests primarily in listed natural gas futures contracts and other natural gas related futures contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less.
The US Dollar to South African rand exchange rate is identified by the abbreviation USD/ZAR. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The rand is the 20th most active currency, accounting for 1% of average daily turnover. Around $40 billion worth of USD/ZAR is traded each day.
USD/ZAR appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower-yielding, lower risk, assets. The South African rand is a highly-volatile currency thanks to the country's unstable economy, high levels of government debt, poor credit rating, and the political ramifications of apartheid.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency.
The US Dollar to Indian rupee exchange rate is an exotic currency pair known by the abbreviation USD/INR. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The rupee is the 18th most-active currency, accounting for 1.1% of daily transactions.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. As an emerging market currency, the rupee is popular in times of confidence and is sold when volatility increases. As a result of rising global trade tensions, INR weakened to record lows in the second half of 2018.
India is a net oil importer, so rising crude prices increase import costs, widening the current account deficit. Foreign direct investment (FDI) is key for the Indian economy, which benefits from overseas businesses looking to take advantage of the tax exemptions and lower labour costs.
The US Dollar to Romanian leu exchange rate is identified by the abbreviation USD/RON. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.
Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria. USD/RON appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower-yielding, lower risk, currencies.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency, meaning central banks stockpile dollars to use in times of domestic currency weakness.
The US Dollar to Swedish Krona exchange rate is identified by the abbreviation USD/SEK. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The Swedish Krona is the 9th most-traded currency, accounting for 2.2% of daily transactions. US$112 billion worth of SEK is traded daily.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The Swedish krona shares a strong correlation with its Scandinavian peers the Norwegian krone and the Danish krone. These currencies - which all translate as “crown” - came about in 1873 when Sweden and Denmark formed the Scandinavian Monetary Union, backed by the gold standard. Norway joined two years later. When the union was dissolved after World War Two, the countries independently kept the currency.
The US Dollar to Singapore dollar exchange rate is identified by the abbreviation USD/SGD. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The Singapore dollar accounts for 1.8% of all daily forex transactions, making it the 12th most-traded currency on the globe.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The Singapore dollar has been allowed to float free by the Monetary Authority of Singapore (MAS) since 1985, but the range in which it is permitted to trade has never been disclosed. SGD has a weak correlation with the Chinese yuan. This, combined with a solid financial sector and property market, has made Singapore an attractive place for offshore investors, helping to keep the appeal of the local currency elevated.
The US Dollar to Japanese yen exchange rate is known by the abbreviated USD/JPY and is the second most-popular currency pair on the forex market. Around $901 billion worth of USD/JPY trades are conducted every day, which is nearly 18% of all forex activity. The pair is highly liquid, and therefore offers very low spreads. The pairing sees strong volatility during the Asian trading session as well as the North American session.
Interest rate differentials are a key volatility driver for the USD/JPY exchange rate. While the US Federal Reserve is currently normalising monetary policy as the economy recovers from the 2008 financial crisis, the Central Bank of Japan is maintaining an ultra-loose stimulus package. USD/JPY is therefore popular amongst carry traders.
The Japanese economy relies heavily upon trade because it lacks many of the natural resources needed for industry, so strength or weakness in global demand and commodity prices can have an impact upon the USD/JPY exchange rate.
The US Dollar to Mexican peso exchange rate is identified by the abbreviation USD/MXN. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The Mexican peso is the 11th most-traded currency, accounting for 1.9% of daily transactions.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency
MXN is tied to the price of crude oil because of Mexico's high reserves, which the government uses as collateral when borrowing to fund spending. 10% of Mexico's GDP comes from oil production, so when prices fall it not only pushes up borrowing costs, but also weakens the outlook for growth.
Cross-border trade with the US also generates strong demand for pesos. The currency therefore weakens when trade comes under threat.
The US Dollar to Turkish lira exchange rate is identified by the abbreviation USD/TRY. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.
Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well. USD/TRY appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower risk currencies.
The Turkish economy is largely fuelled by foreign currency loans, a strong USD can prompt further lira selling on fear of higher credit costs for Turkey's corporations.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The UK 100 is a blue-chip index of the largest 100 companies on the London Stock Exchange in terms of market capitalisation. Companies are only included if they meet relevant size and liquidity requirements.
The index was launched on 3rd January 1984, with a base date of 30th December 1983 and a base level of 1,000 points.
In terms of weighting, the three largest sectors of the UK 100 as of H2 2018 are Oil & Gas (16.56%), Banks (12.70%), and Personal & Household Goods (12.37%).
Traditionally the index has lagged its peers, such as the larger FTSE 250 and the US S&P 500. The index fluctuates in response to market risk sentiment and the strength of the pound Sterling. The UK 100 contains many international companies who report their earnings in other currencies, so a stronger pound weakens company profits.
Because of this, the UK 100 is also considered to be an unreliable indicator of the health of the UK economy because of its large international component.
West Texas Intermediate or WTI is a benchmark type of oil that is central to commodities trading. These benchmarks indicate quality and also the source of the oil. The three dominant benchmarks for oil are WTI, Brent Crude and Dubai/Oman. These are similar indicators as Scottish and Norwegian might be for smoked salmon, for example.
What is the difference between West Texas Intermediate and Brent crude?
The different benchmarks for oil come from different regions and have different chemical compositions. They have what are called 'quality spreads' and 'location spreads' which affect price differences.
What is West Texas Intermediate Used For?
West Texas Intermediate is a high-quality oil that is easily refined. The price of WTI is often reported on in news reports on the oil industry and oil commodities, together with Brent Crude Oil which originates from the North Sea. Oil futures contracts on the New York Mercantile Exchange (NYMEX) use West Texas Intermediate as an underlying commodity.
USD/CHF is the symbol for the US Dollar to Swiss franc exchange rate. The pairing accounts for 3.6% ($180 billion) of all daily forex activity. The Swiss franc is the 7th most popular trading currency in the world and is involved in nearly 5% of all forex transactions each day.
The US Dollar and Swiss franc are both safe-haven currencies, meaning that the pairing is less responsive to risk-appetite on the global market than other pairings. However, the Swiss franc shares a strong correlation with the euro, so anything that weakens the euro would benefit the US Dollar and pressure the franc lower. If the euro strengthens, the USD/CHF pairing is likely to depreciate. The franc used to be pegged to the euro, but the Swiss National Bank unexpectedly allowed the currency to float free in January 2015.
CHF is a popular choice with traders because of Switzerland's strong and stable economy. It is a wealthy nation with a strong banking sector and its citizens enjoy a great quality of life.
USD/NOK is the symbol for the US Dollar to Norwegian krone exchange rate. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The krone is the 13th most-trade currency, accounting for 1.7% of all daily forex activity. Around $US48 billion worth of USD/NOK - 0.9% of the total daily volume - is traded each day.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The Norwegian economy is strongly-reliant upon crude oil and natural gas; the nation is one of the 5 top exporters of gas and oil, with the sector accounting for 22% of Norwegian GDP and 67% of the country's exports. USD/NOK therefore benefits doubly in times of low risk-appetite.
The EU is an important trade partner for Norway, accounting for 72% of its trade. Eurozone economic data can therefore have an impact upon NOK.
USD/DKK is the symbol for the US Dollar to Denmark krone exchange rate. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.
The Denmark krone is the 21st most-traded currency in the world and is involved in 0.8% of all forex transactions each day. On average US$42 billion worth of krone is exchanged each day.
The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.
The Danish krone is pegged to the euro through the European Exchange Rate Mechanism, also known as ERM 2. The central fixed rate is 746.038 krone per €100 but, unlike the standard +/- 15% fluctuation permitted under ERM 2, the Krone is limited to a fluctuation of just +/- 2.25%. Because it is pegged to the euro, the krone is also highly-vulnerable to USD strength - even when traded against other currencies.
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