Understanding Leverage in Forex Leverage is one of the most important concepts for anyone trading foreign exchange. It allows a trader to control a larger market position with a smaller amount of capital, but it also increases the speed and size…
What Moves Currency Prices?
What Moves Currency Prices? Currency prices are constantly changing. The Australian dollar may strengthen against the US dollar one day and weaken the next, while the Japanese yen, euro or British pound can react sharply to economic news, central-bank decisions or…
Major, Minor, and Exotic Currency Pairs Explained
Major, Minor, and Exotic Currency Pairs Explained The foreign exchange market is built around currency pairs, but not all pairs behave in the same way. Major, minor, and exotic currency pairs differ in liquidity, market participation, volatility, spreads, and the economic…
How the Forex Market Works
How the Forex Market Works The foreign exchange market, or forex market, is the global marketplace where currencies are bought and sold. Unlike a traditional stock exchange, forex is not centred on one physical exchange. Instead, currency transactions take place through…
What Is Forex Trading?
What Is Forex Trading? Forex trading, short for foreign exchange trading, involves buying one currency while simultaneously selling another. The objective is generally to speculate on changes in the relative value of currencies, although foreign exchange markets also play a fundamental…
How Industrial Demand Affects Silver and Copper Prices
How Industrial Demand Affects Silver and Copper Prices Silver and copper are both important metals in global financial markets, but their prices are influenced by more than investor sentiment or commodity-market speculation. Industrial demand is a central part of the fundamental…
Introduction to Micro Metals Contracts
Introduction to Micro Metals Contracts Micro metals contracts are smaller-sized futures contracts designed to provide exposure to metals markets with a lower notional contract size than their standard-sized counterparts. For traders, this structure can make it possible to manage market exposure…
Why Gold, Silver, and Platinum Move Together
Why Gold, Silver, and Platinum Move Together Gold, silver, and platinum are three of the most closely watched precious metals in global financial markets. Although each has its own supply-demand dynamics and industrial uses, their prices can often move in the…
What Are Calendar Spreads in Metals Trading?
What Are Calendar Spreads in Metals Trading? A calendar spread in metals trading involves taking two positions in the same metal with different contract delivery months. A trader may, for example, buy a near-month copper futures contract while simultaneously selling a…
The Copper-Gold Spread Explained: What Traders Should Know
The Copper-Gold Spread Explained: What Traders Should Know The copper-gold spread is a way of comparing the price performance of two commodities that often respond to very different economic forces. Copper is closely associated with industrial activity, construction, manufacturing and global…