Previously we have talked about intermarket analysis and how 4 major financial markets can influence each other. Now, just to repeat what we have already talked about and to talk more specifically about forex and what and how other markets influence it, I’m writing this post.Foreign exchange and Equity marketsEquity markets do have significant impact on the foreign exchange price movements. On equity markets there are huge movements of money, of currencies – for example when investors change m...
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Currencies are traded in pairs and exchanged against each other. The majority of currencies are traded against US Dollar. The first currency in the exchange pair is called Base Currency and the second currency is called the Counter Currency or Quote Currency.The exchange rate tells you how much of the counter currency must be paid to buy one unit of the base currency. The exchange rate also tells the seller how much is received in the counter currency when selling one base unit. For example, a...
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Forex trading in simple words means trading with currency. Forex, FX, Foreign exchange, it means trading with currency and right now it’s the fastest growing market in the world. Trillions of dollars are traded every day. The main players in this market are banks, investors, hedge funds and regular people who are interested in taking a bite from this trillian dollar market, regular people like me and you. The purpose of Forex traders is to get profit from buying and selling foreign currencies ...
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