School Articles

Tapering is a series of actions which are taken by the central bank in order to try and fix the economy of just improve the overall performance of such. When the officials lose faith in excess stimulus, they usually agree to tampering.

Trading effect is one of the tools that help us measure the difference between the returns of the bond portfolio and any chosen benchmark. The difference comes up when portfolio goes through short-term alterations. Trading effect can also measure whether the current trade influence the portfolio in a good or in a bad way.

It goes like this – the situation in the market influences every trade that is put down for a certain direction. And that is quite common that the situation in the market is changing rapidly. That is where one has to adapt to the new situation and look for the new trading scenario that is going to be completely different from the previous variants of the trades.

Trading scenario can’t be developed beforehand and has to be made up and changed on the spot.

Technical analysis uses historical price and trading volume in chart format to attempt to predict the direction of securities prices and the demand for them. It does not make use of the tools of either top-down or bottom-up fundamental analysis. The entire premise of technical analysis would appear to fly in the face of the efficient markets. 

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

A trader is an individual who engages in the buying and selling of financial assets in any financial market, either for himself or on behalf of another person or institution. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer-term time horizon, while traders tend to hold assets for shorter periods of time to capitalize on short-term trends.

A trading strategy is a set of analyses that a forex trader uses to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis, chart analysis, or fundamental, news-based events. The trader’s currency trading strategy is usually made up of trading signals that trigger buy or sell decisions. Trading strategies are available on the internet or may be developed by traders themselves.