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Black Wednesday refers to 16 September 1992, the day the U.K. government had to withdraw the pound sterling from the European Exchange Rate Mechanism (ERM).

Learn more about exactly what a "bubble" is, how it forms in a marketplace, and why learning its phases can potentially help your investment strategy.

Effective leverage relates the amount of account equity and value of an asset involved in a transaction. It is calculated by dividing the total position size by account equity.

Reversal trading attempts to capture profit through identifying the exhaustion point of a trend in price action. Reversals are an inherently risky counter-trend form of trade.

Position trading is an intermediate-term strategy that involves remaining active in a market for weeks, months or years. It is a commitment of both time and capital.

Why should one invest in the stock market? Actually, there are several reasons to do so, including low costs and a wealth of different vehicles explored in this article.

The realisation of long-term profitability is the primary goal of every trader and investor. There are many different philosophies regarding the "correct" way to achieve this objective, a vast majority of which involve minimising losses while maximising returns. Perhaps the most basic method of defining capital allocation is through the use of a risk vs reward ratio. Calculating Risk Vs Reward The risk vs reward ratio (R/R) is a direct…

What Is Swing Trading? Swing trading is one of the most popular disciplines applied to the financial markets. It is a short-term approach to the buying and selling of securities with the goal of achieving sustained profitability. Typically, a holding period of two to five days for open positions is implemented in the markets of futures, options, currencies and equities. The primary objective of swing trading is to capitalise on…

Breakout trading is a strategy implemented by market participants aimed at capitalising upon an upcoming trend or directional move in price. While there are many approaches that encourage trade execution in response to current price action, breakout trading promotes market entry through anticipating a forthcoming move. Breakout traders aspire to become active in the marketplace before, or very soon after, a strong trend in pricing begins. The philosophy behind selecting…

The stochastic oscillator examines the closing price of a security in relation to its trading range for a specified period. Its development is credited to Dr. George Lane.

Since the dawn of trade and exchange, people have been compelled to speculate upon the future value of nearly everything under the sun. Formulating an educated guess of what something will be worth next week, month or year remains one of mankind's favourite pastimes. The modern global derivatives market provides individuals an avenue by which to profit from successful prognostication. Derivatives products based upon traditional underlying assets such as commodities,…