FXCM Research Team

Stop-loss vs stop-limit orders: What are they and how do you use them? Keeping an eye on the price of stocks or other securities can be nerve-wracking and time-consuming. Instead, investors could place a stop-loss or stop-limit order with their chosen broker. When a price reaches a specific level, the orders serve as directions to execute trades. The goal is to help investors bag profits and mitigate potential losses. The…

How to trade the UK 100 index: Everything you need to know The FTSE 100 is a share index of the 100 companies with the highest market capitalisation listed on the London Stock Exchange. In practice, it's home to the most significant UK-regulated businesses; giants like AstraZeneca, Shell, HSBC and BP. The UK 100 is a derivative product based on the FTSE 100. If you want to trade on both…

How to trade the NASDAQ 100: Everything you need to know The NASDAQ 100 (NAS100) stock index is one of the largest and most famous in the world. Hosting the US businesses with largest capitalisations and growth prospects, including the likes of Apple, Microsoft and Alphabet, the NASDAQ 100 is naturally a gauge of sentiment within the US technology sector and growth stocks in general. If you're a would-be investor…

As a trader, you'll no doubt have strategies and preferences in mind when building a personal investment portfolio. It can be driven by an interest in – or knowledge of – a specific industry. Maybe you have a portfolio containing traditional shares? Or perhaps you have a keen eye for markets with attractive spreads and volatility? Whatever your chosen approach, it's worth knowing how to hedge your portfolio to mitigate…

The U.S. Federal Reserve's balance sheet consists of the Fed's portfolio of U.S. Treasury and government-guaranteed mortgage-backed securities (MBS). Along with controlling short-term interest rates, the balance sheet is one of the Fed's main instruments for conducting monetary policy in order to execute its mandate of maintaining moderate interest rates and full employment. Since the global financial crisis in 2008, and then again during the COVID-19 pandemic-induced economic lockdown in…

According to the Oxford dictionary, a market is an area and occasion where people buy and sell goods. Markets come in a vast array of types, specifically financial and physical. In this article, we'll break down what a spot market is, what it does and how it differs from derivatives markets. What Is A Spot Market? A spot market is a space where securities, financial instruments, or commodities are exchanged…

According to the International Monetary Fund (IMF), a price is the amount of money that a buyer gives to a seller in exchange for a good or service. Prices come in all shapes and sizes, depending largely on the asset class in question. Commodities, shares, crypto and currency are all subject to pricing. For instance, currencies are priced relative to one another in terms of an exchange rate. Assets such…

The world of finance is composed of assets, markets and participants. It's the dialogue between each facet that facilitates the process of price discovery. However, without base levels of liquidity and participation, efficient asset pricing grinds to a halt. Read on to learn more about illiquid assets and what they mean to active traders and investors. What Is An Illiquid Asset? An illiquid asset is a good or service that…