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In forex, the term "pip" is an acronym that stands for "percentage in point." Pips represent the smallest increments of currency pricing and are key to the establishment of bid/ask spreads. For the active forex trader, pips play an important role in both risk and trade management. Exchange rate fluctuations are typically quantified in pips, making them the de facto measurement of profit and loss for currency traders. Accordingly, the…
As the world's largest trading marketplace, the forex offers traders and investors countless avenues by which to pursue almost any financial goal. From the execution of carry trade strategies to intraday scalping practices, participants are privy to unparalleled opportunity. The ability to trade on margin is a primary reason why. Warning: Ad-blockers may prevent calculator from loading. Margin is a good-faith deposit made by an active trader to a brokerage…
The Special Drawing Right (SDR) is an international reserve asset. Created by the IMF in 1969, SDRs are used to facilitate transactions and supplement IMF member country reserves. An SDR is a potential claim on the freely usable currencies of IMF members.
Learn more about what constitutes a currency war, which occurs when multiple countries devalue or depreciate their currencies at the same time.
Python is one of many programming languages used by algo traders to create a trading strategy. A Python wrapper simplifies a function into a much shorter expression that can be used repeatedly. When programming a trading strategy, one may need to use the same function or series of functions repeatedly, for example to authenticate login credentials, to pull live data, or to place a trade. Fxcmpy can easily be installed…
Learn the ins and outs of the PEG ratio, including how to calculate it and include it as part of your strategy, at FXCM Insights.
An automated trading strategy contains a set of rules which will take particular actions in response to incoming market data. When automating a trading strategy, the trader may want to add rules to trade only during certain market conditions. Rob Pasche of QuantNews presents three tools which can be added to an automated trading strategy to filter for ranging markets. The Average Directional Index indicates whether the price of an instrument…
Front-running is an unethical and illegal trading practice in which a broker with advance knowledge of a specific market order in a currency or other financial security for a client earns a profit by placing an order for their own account in advance of the client's larger order. Front-running is akin to insider trading, in that the perpetrator has advance knowledge of the larger client order and buys ahead of…
Leading, coincident and lagging indicators are constructed by the Conference Board to reveal common turning point patterns in economic data. Learn more at FXCM.
The FIX API is a set of clearly defined rules and methods designed specifically for the electronic transfer of financial data. Developed in 1992 for equities, it has evolved into being one of the industry standards in the markets of securities around the world.
A forex robot is a computer program that recognises and places trades on behalf of the trader. Just like with any tool, it’s up to the individual to determine its overall suitability.
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