Develop a trading plan: This should include your trading goals, risk tolerance, and the markets you will trade. Build a solid foundation: Take the time to learn about the markets and trading strategies. This may involve taking courses, reading books and articles, and practicing with a demo account. Understand risk [...]
Short Selling Explained Short Selling may seem like a complex concept, and counter-intuitive that you are able to make a profit on something that goes down in price - but it's rather simple! The Short Explanation: (Absolutely no pun intended!) Shorting is essentially betting against a Security like a stock [...]
What Does OTC (Over-The-Counter) Mean? The Short Explanation: OTC trading or Over-The-Counter trading, or off-exchange trading is done directly between two parties, outside an exchange. The OTC Market is decentralised, where people trades happen directly between the participants. This means the trades are not supervised by an exchange. The safest [...]
What Are Swaps? The Short Explanation: A swap is a type of a derivative contract between two parties to exchange financial instruments, such as: Interest rates, currencies, cashsflows, derivatives or securities. The instrument used in a Swap can be almost anything, but most swaps involve cash based on a notional [...]
What Are Forwards? The Short Explanation: Forwards are a derivative instrument, much like Futures, meaning they are an agreement between two parties to buy or sell an asset for a predetermined price at a future date. Where Forwards differ from Futures though, is that they are customisable and not traded [...]
What is a Candlestick Chart? The Short Explanation: Candlesticks are a useful visualisation of the price movements of a security, derivative, or currency. Candlesticks visualise four price points: Open, close, high, and low. Typically a candlestick shows the four price points of a single day. Candlesticks can be used to [...]
What Are Bonds? The Short Explanation: Bonds are units of debt issued by corporations or governments, which allows the issuer to raise capital by taking a loan from the investors. Bonds are considered fixed-income securities as typically a bond pays back a fixed interest rate (coupon) to the debt holders. [...]
What Are Securities? The Short Explanation: The definition of securities tend to have a different meaning all around the world. In the US typically all financial assets that can be traded can be considered as securities. The FCA defines securities differently in the UK. Most common types of securities are [...]
What is Technical Analysis? The Short Explanation: Technical Analysis is a methodology used to identify buying opportunities or evaluate investments. It works based on the assumption that the historical trading activity or volume and price changes can be a good indication of any future price movements of a stock or [...]
What is Fundamental Analysis? The Short Version: Fundamental Analysis is a method of measuring a security's intrinsic or fair value by examining related economical and financial factors. Everything that can affect the value of the security can be analysed in Fundamental Analysis. This may include everything from the macroeconomic factors [...]
