FXCM Research Team consists of a number of FXCM's Market and Product Specialists.
Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.
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What Are Commodity Dollars? The term "commodity dollar" is used to define a currency closely correlated with raw materials integral to a nation's export sector. Also referred to as a "commodity currency" or "comdoll," commodity dollars derive a great deal of their value from specific underlying assets. The markets of oil, gold and agricultural products often play key roles in the exchange rate valuations of these currencies. Generally speaking, the…
Buying and selling shares of stock is a fairly easy proposition, though it still bears trading risks. All you need is some money and a few minutes to set up an account. The easiest way is to apply online to any number of brokerage firms through which you do the buying and selling. The broker will require a few bits of personal information, such as your name and address, your…
One of the most difficult aspects of investing is to know when to sell a stock. In fact, knowing when to sell may be a more difficult decision than deciding which stocks to buy and when. For example, if a stock you bought starts losing money, should you consider selling it? Is it a temporary setback—in which case you may consider doubling down and buying more—or an indication of even…
Decentralised exchanges, or DEXs, provide investors with an alternative to centralised exchanges. Because DEXs do not harness a third party to hold or "custody" customer funds, they are not vulnerable to hacks in the same way as their centralised counterparts. However, these exchanges are not without their weaknesses, as they can suffer from problems such as low liquidity. Defining 'DEX' Decentralised exchanges allow peer-to-peer transactions, which make it so that…
What Is The Lehman Brothers Collapse? The collapse of Lehman Brothers in September 2008 was the largest instance of corporate bankruptcy in American history. The firm's failure is generally regarded as the seminal event of the global financial crisis, which triggered the Great Recession that followed. The effects are still being felt today in the form of weak economic growth and unprecedented central bank intervention in the global economy and…
Fundamental analysis and technical analysis are two of the main ways investors and traders determine which stocks or other assets to buy or sell. Fundamental analysis looks at a company's financial health to try to determine its future prospects, while technical analysis looks for patterns in the way a security has traded in the past in order to try to estimate how it will move in the future. Essentially, investors…
What Is Modern Portfolio Theory? Modern portfolio theory is an investing model designed to help investors structure a portfolio that seeks to maximise returns with a minimal level of risk, largely through diversification. Who Created Modern Portfolio Theory? The theory was devised by Harry Markowitz in an article entitled "Portfolio Selection" published in the Journal of Finance in 1952. In the article, he quantified a method for constructing such a…
What Is Seasonality? In finance, the term seasonality is used to describe periodic trends in supply/demand, business performance and asset pricing. This phenomenon occurs consistently on an annual basis, in concert with regional weather patterns, economic data releases or the celebration of assorted holidays. Seasonality is an important factor to consider when crafting investment decisions. If left unchecked, the enhanced volatility and market turbulence attributable to these trends can increase…
Whether you are trading foreign currencies, futures or stocks, securing the services of a top-notch broker is an important first step. While brokerage firms are bound by extensive regulatory guidelines and required to preserve the integrity of the markets, not all brokers are created equal. Finding the one best suited to satisfy your unique trade-related needs is the name of the game. As of year-end 2018, the Financial Industry Regulatory…
The stock market has offered investors compelling returns over the years, but those rewards are certainly not without risks. Investors can potentially benefit greatly from trading stocks, but you need to research this particular market thoroughly before getting started. No investment comes without risk, and the stock market is known for being volatile. Anyone who is not familiar with this volatility only needs to study famous market crashes, like those…
The global equities markets are opportune environments for active traders and investors alike. Whether you're building a retirement portfolio or pursuing profitability from speculative endeavours, online stock trading could be a viable way of achieving any number of financial objectives. Fortunately for aspiring stock traders, getting started in the markets isn't all too difficult. In fact, it is possible to begin your journey into the marketplace by completing five basic…
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