Trading Glossary

What is a Share and how does it work?

A share is a partition of the total value of a company. Each share represents a unit of ownership in that company, and therefore also the value that it holds. Should a company choose to sell shares as a means of fundraising, this is known as equity finance. 

A share owner is called a shareholder (or stockholder). The ongoing value of a share, once it is introduced to the market, is its trading value at any given time, which can be either lower or higher than the original value. A share is worth whatever price it is currently trading at. An actual transaction of shares between a buyer and a seller is usually considered to provide the best market indicator as to the "true value" of that share at that time. The difference between current price and open price will represent either a profit or a loss to the investor who purchased it. 

There are different types of shares in the trading domain, including Cumulative & Non-cumulative Preference Shares, Participating & Non-participating Preference Shares, Convertible & Non-convertible Preference Shares, Redeemable & Un-redeemable Preference Shares.

It is also possible to use CFDs to trade shares. This enables traders to take a leveraged position on whether a share rises or falls. This different type of share trading opens up more trading opportunities by either buying or selling the asset without physically owning it. 

What are Share buybacks?

A share buyback, also known as a stock repurchase, is when a company buys back its own shares from the open market. This reduces the number of outstanding shares and increases the ownership stake of existing shareholders. Buybacks can be used as a way for a company to return excess cash to shareholders, increase earnings per share, or signal confidence in the company's future prospects.

Is share buyback a good thing?
Share buybacks can have both positive and negative effects on a company and its shareholders. On one hand, buybacks can be seen as a sign of a company's financial strength, as they suggest that the company has excess cash and believes its own stock is undervalued. Additionally, buybacks can help to boost earnings per share, which can increase the company's valuation. On the other hand, buybacks can also be criticized for diverting resources away from investments in growth or other opportunities, or for being used as a way to artificially boost the stock price. It's important for investors to evaluate the company's financial situation and the reason behind the buyback before making a decision on whether it is good or not.

What happens to share price after buyback?
Share price can be affected by a buyback in different ways, it will depend on the market conditions, the company's financial situation and the reason behind the buyback. In general, a buyback can help to boost the share price by increasing earnings per share and reducing the number of outstanding shares. Additionally, the announcement of a buyback can also signal confidence in the company's future prospects, which can attract more buyers to the stock. However, a buyback doesn't guarantee an increase in the stock price, if the market conditions are not favorable or if the company's financial situation is not good, the stock price could remain unchanged or even decrease.

What is the reason for share buyback?
A company may choose to buy back its own shares for a variety of reasons, including: 
-Returning excess cash to shareholders: A buyback can provide shareholders with a more direct benefit from the company's cash reserves, rather than leaving the money idle or reinvesting it in less profitable ventures. 
-Increasing earnings per share: By reducing the number of outstanding shares, buybacks can increase earnings per share, which can make the company look more valuable to investors. 
-Signaling confidence: A buyback can signal to the market that the company's management believes the stock is undervalued, which can attract more buyers to the stock. 
-Boosting stock price: By purchasing shares in the open market, a buyback can help to boost the stock price, which can benefit existing shareholders. 
-Mitigating dilution: If a company issues new shares, it can dilute the value of existing shares, buying back shares can help to mitigate this dilution. 
It's important to note that buybacks can also be used as a tool by management to artificially boost the stock price in the short term, rather than for the benefit of long-term shareholders.


 

iShares MSCI Taiwan (EWT) ETF tracks the investment results of an index composed of Taiwanese equities. The ETF provides exposure to large and mid-sized Taiwanese companies and can be used to access to the Taiwanese stock market. EWT includes 90 of the top companies on the Taiwanese Stock Exchange. It is heavily weighted toward the information technology and finance sectors, which account for 55.5% and 18.5% of the portfolio respectively.

The top ten holdings include Taiwan Semiconductor Manufacturing, Hon Hai Precision Industry Ltd, Formosa Plastics Corp and Chunghwa Telecom Ltd.

iShares MSCI South Korea (EWT) ETF tracks the investment result of an index composed of South Korean equities. It provides traders with exposure to large and mid-sized South Korean companies and is a way to access the South Korean Stock Market. EWY follows 114 of the top companies listed in the South Korean Stock Exchange, and reflects the market well.

With Samsung as one of the major companies represented in the portfolio, it is unsurprising that Information Technology companies comprise a large part of this ETF. Almost 30% of the portfolio is IT, the next largest sector is Finance with 14.06%. Hyundai, LG and Kia also feature in this ETF.

The Proshares Bitcoin Strategy ETF (Bitcoin ETF) offers managed exposure to bitcoin futures contracts. The Fund does not invest directly in bitcoin and may also invest in other instruments. It’s one of the first of its kind and marks a new way to get exposure to cryptocurrency price movements.

ProShares Ultra QQQ (QLD) aims to deliver daily investment results that are twice the performance of the Nasdaq 100 Index. This ETF provides leveraged exposure to a market-cap weighted index of 100 non-financial stocks listed on the NASDAQ.  This is a single-day bet and traders are advised that returns can vary dramatically if they hold positions for longer than one day.  All leveraged products carry more risk than unleveraged products.

The Nasdaq 100 is dominate by tech firms, so the performance of the index is closely tied to the sector. Top holdings include Apple, Amazon, Facebook and Tesla.

ProShares UltraShort QQQ (QID) aims to deliver daily investment results that are twice the inverse daily performance of the Nasdaq 100 Index. This is a single-day bet and traders are advised that returns can vary dramatically if they hold positions for longer than one day. This is the sister product to QLD, which delivers two times the daily performance of the Nasdaq 100.

As with most inverse and leveraged products, this fund is designed to provide inverse exposure on a daily basis, not as a long-term inverse bet against the index. All leveraged products carry more risk. Nasdaq 100 holdings include Apple, Amazon, Facebook and Tesla.

What are Earnings Per Share?

Earnings Per Share (EPS) is a financial metric that measures the amount of profit a company makes for each outstanding share of its common stock. It's calculated by dividing net income by the number of shares outstanding. Investors use EPS to measure how profitable a company is and to compare different companies in the same sector.

What is a good earnings per share? Is it better to have a high or low earnings per share?
There is no definitive answer to what constitutes a "good" earnings per share (EPS) as it can vary depending on the industry, the size of the company, and the expectations of the market. Generally, a higher EPS is considered better, as it indicates that a company is generating more profit per share of stock.

What is earnings per share vs dividend?
A dividend is a payment made by a company to its shareholders out of its profits or reserves. Whereas EPS is an indicator of a company's profitability.

ProShares UltraShort S&P500 (SDS) looks to deliver daily investment results that are twice the inverse of the daily performance of the S&P500. This is a leveraged product and designed as a single-day bet. Returns for periods longer than one day could expose investors to performance drift.

S&P500, the index that it inversely tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.

What are Spreads in trading?

The term Spreads in trading is defined as the gap between the highest price to be paid for any given asset, to the lowest price the current asset holder is willing to sell at. Different markets and assets generate different spreads. For example, the Forex market, where both buyers and sellers are very active with this “gap” or spread will be small. 
 
In trading, a spread is one of the key costs of online trading. Generally, the tighter the spread, the better value traders get from their trades. Also, spreads are implied costs, where it is presented to traders in subsequent trades, as the assets traders buy on leverage must increase above the level of the Spread, rather than the above the initial price, for traders to make profit.

What is the importance of a Spread?
The Spread is important, even a crucial piece of information to be aware of when analysing trading costs. An instrument’s spread is a variable number that directly affects the value of the trade. Several factors influence the spread in trading:
• Liquidity. How easily an asset can be bought or sold. 
• Volume. Quantity of any given asset that is traded daily. 
• Volatility. How much the market price changes in a given period.

Ethereum was launched in 2015, after founder Vitalik Buterin decided to improve on perceived problems with Bitcoin.

He wanted a cryptocurrency that could deliver outstanding functionality, especially in terms of processing speed. Ether's transaction speed is just 15 seconds, much faster than the 10 minutes Bitcoin transactions can take.

When most people talk about Ethereum, they are really talking about Ether (ETH), the underlying token currency of the Ethereum platform.

Ether is priced in USD. It was worth just $2.80 when it first launched, and hit an all-time high of $4,891.70 in November 2021.

Ethereum is the world's second-largest cryptocurrency by market cap. The cryptocurrency relies on blockchain, just like Bitcoin, but it is used in a different way. This has led many to view Ethereum has having real-world uses.

SLV, also known as iShares Silver Trust, tracks the price of silver bullion held in London. This ETF provides investors with direct exposure to silver as the ETF physically holds the precious metal in vaults in London. This fund is one of the most liquid of its peer group and is popular among retail and institutional investors.

This ETF is suitable for buy and hold strategies. Traders should consider this asset to gain exposure to the day to day price of silver bullion, to get access to physical silver or to diversify your portfolio and protect against inflation.

ProShares Ultra Silver, also known as AGQ, is a single-day bet, not a buy-and-hold ETF. AGQ is a leveraged ETF that aims to deliver daily investment results that equate to twice the daily price performance of silver bullion, measured by US Dollar for delivery in London.

ProShares Ultra Bloomberg Crude Oil ETF (UCO) is a leveraged asset that seeks to deliver twice the daily investment results of the Bloomberg WTI Crude Oil Subindex. This is a single-day bet and is not suitable for buy-and-hold investors. Results can vary significantly if held for periods longer than one day. This is a leveraged ETF so traders take on more risk than with an unleveraged product.

ProShares UltraShort Bloomberg Crude Oil (SCO), aims to deliver results that are twice the inverse daily performance of the Bloomberg WTI Crude Oil Subindex. It is an ETF product for traders looking to short crude oil in a single day bet. Trades that last for more than a day are not expected to see the same returns.

 The subindex reflects WTI Crude Oil prices and only consists of futures contracts on WTI Crude Oil. This is a leveraged product, all leveraged products carry more risk than unleveraged products.

What is Spread Betting?

Spread Betting is a type of financial speculation which allows you to take a position on the future direction of the price of a security, such as stocks, commodities or currencies. You can choose to speculate whether an asset will go up or down in value, without having to buy or sell it. Spread Betting enables you to take a view on the markets and gain access to the financial markets with limited capital outlay.

How does a spread bet work?
A spread bet is placed by betting on whether the asset's price will rise or fall. The investor can set their own stake size, which means they can take more or less risk according to their preferences. Spread bets are flexible and convenient, allowing you to benefit from even the slightest market movements.

What does a negative spread mean?
A negative spread in trading refers to a situation where the ask price for a security is lower than the bid price. This means that a trader could potentially sell a security for a higher price than they would have to pay to buy it. This is an unusual situation that can occur due to a temporary market anomaly or a technical error. Negative spreads are rare and they tend to be corrected quickly, as they represent an opportunity for arbitrage. Traders should be cautious when dealing with negative spreads and should consult with their broker or trading platform to understand the cause of the negative spread and its potential impact on their trade.
 

What is Short Selling and how does it work?

Short selling is a trading strategy where an investor borrows shares of a stock or security they believe will decrease in value, and then sells it on the market. If the price of the stock or security falls as expected, the investor can then buy the shares back at the lower price, return the borrowed shares, and keep the difference as profit. Short selling is considered a high-risk strategy because theoretically there is no limit to how high the price of a stock can go, so the potential loss is theoretically infinite.

What is the benefit of short selling?
The benefit of short selling is that it allows investors to benefit from a decline in the value of a security. While traditional investors can only benefit when the prices of the assets they hold increase, short sellers can do well when the prices decrease as well. This allows investors to potentially profit in both rising and falling markets. Additionally, short selling can also be used as a hedging tool, to offset the risk of long positions in a portfolio.

Is Short Selling a good idea?
Short selling can be a good idea for some investors, but it is considered a high-risk strategy and is not suitable for all investors. It requires a great deal of knowledge and experience to correctly identify the securities that are likely to decrease in value and to correctly time the trade. Additionally,because the potential losses from short selling can be theoretically infinite as explained above it is important for investors to fully understand the risks and potential rewards associated with short selling before engaging in this strategy.

What is a Risk/Reward Ratio in trading?

The risk/reward ratio is a known concept for those engaging in business. So, what is a Risk/Reward Ratio in trading, and does it follow the same guidelines and practices of the business world?

In trading, the Risk/Reward Ratio measures the expected gains of a given trade, asset, or position against the risk of potential loss. It is typically shown as a figure for the assessed risk separated by a ':' from the figure for the prospective reward. 

What is a good Risk/Reward Ratio?
Acceptable ratios can vary, based on multiple factors. You can calculate this by dividing your "reward" (the end result or net profit) by the price of your maximum risk. It is generally accepted that if a risk is equal or greater than the corresponding reward, the trade position will not be worth the risk. Equally generally acceptable is the notion that a ratio greater than 1:3 is minimally required in order to justify the risk, i.e. a good risk/reward ratio.

By definition, this ratio quantifies the relationship between the potential currency lost, if the trade or action taken do fail, versus realized sum (gained) if all goes as planned.
 
Traders make use of the Risk/Reward Ratio to as one of the means to determine viability or worthiness of a given investment. One way to limit risk is to issue stop-loss orders, which trigger automatic sales of stock or other assets when they hit a specific value. This enables traders to limit potential risks.

DBC, also known as the PowerShares DB Commodity Tracking ETF, tracks 14 commodities based on the futures curve. It aims to limit the effect of contango and maximise the effect of backwardation so that investors improve their returns. The commodities included in the ETF are gasoline, heating oil, Brent crude oil, WTI crude oil, gold, wheat, corn, soybeans, sugar, natural gas, zinc, copper, aluminium and silver.

Unlike other commodity ETFs, DBC rolls future contracts based on the shape of the future curve, rather than following a schedule. This allows the ETF to generate the best roll yield by minimising losses and maximising backwardation.

How do you read trading charts?

Trading charts are used to display historical price data for a security or financial instrument. They typically include a time frame on the x-axis, and the price of the security or instrument on the y-axis. Candlestick charts, bar charts and line charts are the most common types of charts used in trading. Candlestick charts are the most popular and provide a visual representation of the opening price, closing price, highest and lowest price of the security in a given period of time. It also shows the direction of the price movement, whether it went up or down. Traders use different technical analysis tools like trendlines, moving averages, and indicators to interpret the charts and make trading decisions. There is a great deal of nuance in reading charts and doing it correctly will require experience and an understanding of how your chart of choice is presenting information to you.

How do you predict if a stock will go up or down?
Traders use different technical analysis tools and techniques to predict if a stock will go up or down using trading charts. These include: 

Trendlines: By connecting price highs or lows over a period of time, traders can identify the direction of the trend and predict future price movements. 

Moving averages: By plotting the average price over a period of time, traders can identify trends and potential buying or selling opportunities. 

Indicators: Technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are mathematical calculations that are plotted on charts to help traders identify trends, momentum and potential buy or sell signals. 

Chart patterns: Traders also use chart patterns such as head and shoulders, double bottoms, and triangles to identify potential reversal points in the market and make predictions about future price movements. 

It's important to note that technical analysis is not an exact science and it's not a guarantee of future results. Traders should always use technical analysis in conjunction with fundamental analysis, which looks at a company's financial and economic conditions, to make informed trading decisions.

How do you know if a chart is bullish?
A chart is considered bullish if it is showing an upward trend or pattern, indicating that the price of a security or financial instrument is likely to rise. Bullish chart patterns include upward trending lines, ascending triangles, and bullish candlestick patterns such as the hammer or the bullish engulfing pattern. Traders often consider a stock to be bullish when it's trading above the moving average, especially when the moving average is trending upward.




 

Cardano differs from other cryptos by taking a research-led, collaborative approach to cryptos. Traders of its ADA currency help operate the network and can vote on software changes. Cardano is priced in USD and the instrument allows you to trade the ADA/USD spot rate.

MakerDAO describes itself as “a utility token, governance token, and recapitalization resource of the Maker system.” The purpose of the Maker system is to generate another token, using the Ethereum protocol, called Dai, that seeks to trade on exchanges at a value of exactly US$1.00. Maker is available on our platform in USD and is tradeable using the MKR/USD symbol.

Soybeans are a “soft” commodity - referring to those that are grown and not mined. It is one of the world's most important legumes and is an essential source of protein. It is used extensively in cooking, both soybeans and soy oil, and is also used for animal feed in the form of soy meal.

Soybean is priced in USD per bushel. In July 2012, Soybeans reached an all-time high of $1790, while it reached a low of $208 in September 1959.

The US are the biggest producers of Soybeans, followed by Brazil, Argentina and Paraguay. Together they account for 85% of total production, and 94% of total exports. China is the biggest importer of soybeans.

The price of soybeans is affected by a number of factors, including growing conditions, the demand for biofuel and the strength of USD.

Soybean futures allow you to speculate on, or hedge against, changes in the price of soybeans. Futures rollover on the fourth Friday of February, April, June, October, and December.

AAVE is a decentralised lending system, letting users lend, borrow, and earn interest on crypto assets. It uses the Ethereum blockchain and works via a system of smart contracts that enables these assets to be managed by a distributed network of computers running its software. AAVE users don’t need to trust a particular person or institute to manage their assets. They only need to know the code will execute as written. AAVE is priced in USD and tradeable on our platform via the AAVE/USD symbol.
 

Silver (XAG) has long-been synonymous with money, indeed, in some languages the two words are the same. The white metal has been used for investment and jewellery for thousands of years, and its distinctive characteristics ensure it continues to be in high-demand.

Silver is priced in USD per troy ounce. Its price peaked at $49.45 in January 1980, and reached an all-time low of $3.55 in February 1991.

The majority (85%) of silver production comes from mining, with the remainder sourced from scrap and stockpiles. While silver can be recycled, it is less economical to do so than with other precious metals. The top producers of silver are Mexico, Peru and China.

Silver is widely used in photographic, industrial, medical and telecommunications technology. It is also highly sought after for investment purposes. Its price is influenced by industrial demand, demand for jewellery, coins, medals and silverware, as well as the price of gold and the strength of the US Dollar.

Wheat is one of the world's most important agricultural commodities, with around two-thirds of global production for food consumption. It is a “soft” commodity, which means it is grown and not mined.

Wheat is priced in USD per bushel, it reached a record high of $1194.50 in February 2008, but slumped to a record low of $192 in July 1999.

An incredibility versatile grain, wheat is harvested somewhere in the world every single month of the year. There is more land used for wheat production than any other crop worldwide, and it is behind only corn and rice in total production.

Wheat prices are affected by a number of factors, including import/export restrictions, stock levels and the strength of the USD. However, one of the biggest drivers of substantial volatility is supply-chain disruptions caused by natural disasters and extreme weather events.

Wheat futures allow you to speculate on, or hedge against, changes in the price of wheat. Futures rollover on the fourth Friday of February, April, June, August and November.

Sugar is a “soft” commodity - meaning it is grown rather than mined. It is produced from sugarcane or, less commonly, sugar beets and was once so rare and expensive it was known as White Gold. Despite obesity concerns, there is still a strong demand for sugar worldwide.

Sugar is priced in USD per lb. It reached its peak of $65.20 in November 1974 and hit an all-time low of $1.25 in January 1967.

Most of the world's sugar comes from sugarcane, with around 20% coming from sugar beets. A small minority is also produced from date palm, sorghum and sugar maple.

Brazil is the biggest producer of sugar in the world, accounting for 21% of total production. However, it is produced all over the world, with 70 countries producing sugar from sugarcane, 40 from sugar beets and 10 from both.

Factors than impact the price of sugar include global inventories, consumption outlook, weather conditions and outlooks, and government regulation.

Sugar futures allow you to speculate on, or hedge against, changes in the price of sugar. Futures rollover on the second Friday of February, April, June and September.

What are Trends in trading?

Trading trends refer to the overall direction of a security or market, often revealed through chart patterns or indicators. Traders use these trends to identify potential entry and exit points, as well as possible trading opportunities. Analyzing the financial markets in order to identify trends is an essential skill for successful traders. With knowledge of historical trends, investors can spot emerging ones and plan accordingly.

How do you identify a trend in trading?
Analyzing past market movements, changes in asset prices and economic data can be used to identify short-term and long-term trends. Using technical indicators such as moving averages, MACD, and stochastics can also help you spot potential trading opportunities and take advantage of prevailing market trends.

What are the 3 types of trends?
When analyzing the stock market, there are three primary trends that can be observed: short-term, intermediate-term, and long-term. Short-term trends generally last within one to three weeks, intermediate-term trends can range from one to four months, and long-term trends last more than a year. Being able to identify these different trend patterns will help investors maximize their potential returns. 

What is a margin?

What is a margin in finance?
A margin in finance is the amount of money an investor borrows to purchase or trade securities. It is the difference between the total value of the borrowed funds and the market value of the collateral provided as security for the loan. Margin trading allows investors to buy more securities than they would otherwise be able to purchase with just their own capital.

What is margin vs profit?
Margin and profit are related but different concepts in finance and trading. 

Margin refers to the amount of money or collateral that is required to open a leveraged position, such as a margin account, which allows traders to buy securities by borrowing money from a broker. Profit, on the other hand, refers to the amount of money that is gained from a trade or investment, after all costs and expenses have been subtracted. Profit is the result of a successful trade, which is the difference between the buying and selling price.

How do I calculate margin?
There are a few different ways to calculate margin, depending on the context and the type of trade or investment. 

One of the most common ways to calculate margin is to use the following formula: 

Margin = (Value of Trade / Leverage) x 100%

What is a Reversal?

A Reversal is when the direction of a financial market or asset moves in the opposite direction from its current trend. Reversals can occur over a period of time and can be either bullish (price increasing) or bearish (price decreasing). Being aware of these trends can help traders maximize their profits.

What is an example of reversal?
If the stock market has been rising for several weeks and then begins to fall, that's considered a reversal. Reversals are an important concept for investors to understand as they can indicate a change in sentiment that could lead to further movement in the same direction.
 

The iShares MSCI USA ESG Select ETF (SUSA) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics as identified by the index provider.

The United States Oil Fund (USO) is an ETF that aims to track the daily price movements of WTI Crude Oil. USO's Benchmark is the near-month crude oil futures contract traded on the NYMEX. The Crude Oil contract is WTI light, sweet crude delivered to Cushing Oklahoma.

This ETF is a good way to get commodity exposure without using a futures account and offers more options for traders such as intraday pricing and limit/stop orders.

Chainlink (LINK) connects contracts smartly by linking them with real world events, data, and payments. Using the LINK cryptocurrency, Chainlink is tradeable on our platform via the LINK/USD instrument.

ProShares UltraShort 20+ Year Treasury (TBT) aims to deliver daily investment results that reflect twice the inverse of the daily performance of the ICE US Treasury 20+ Year Bond Index. Traders would look to get a 200% return opposite to the movement of US Treasury Securities.

This is a leveraged product, and so carries more risk. As with many leveraged ETFs, it delivers daily results and it designed as a single day bet. Positions that are held for longer than a day will get differing results. This ETF can be a useful tactical position or hedge against rising interest rates.

Yearn.finance (YFI) is another Ethereum-led yield aggregator using the YFI token. Cryptos deposited on Yearn are leant out at the highest lending rate possible across a number of other platforms. Holders of YFI can participate in the protocol's governance and earn a percentage of the fees generated on the various Yearn Finance products through staking. Yearn is available on our platform via the YFI/USD symbol and is priced in USD.

What are Market Makers?

Market Makers are financial institutions or investors that provide liquidity to the markets by placing buy and sell orders at specific prices. They are incentivized to do this in order to make profits from the bid-ask spread.

What is the difference between dealer and market maker?
A dealer and a market maker are both intermediaries in the securities market that provide liquidity and help facilitate trades. However, they have some key differences. A dealer is a person or entity that buys and sells securities for their own account and risk. They hold inventory of securities and make a profit by buying at a lower price and selling at a higher price.A market maker is a firm or individual that provides liquidity to the market by continuously buying and selling a security at publicly quoted prices. They are also called liquidity providers, and they make money by charging a bid-ask spread, the difference between the prices they are willing to buy and sell a security. They do not hold inventory of securities like dealers do.

Do market makers manipulate price?
Market makers are allowed to buy and sell securities at their own discretion, and they may adjust the prices they are willing to buy and sell a security in order to make a profit. However, they are also subject to regulatory oversight, and they must act in a fair and transparent manner. They are not allowed to manipulate prices, and any illegal activities such as insider trading, wash trading or any other form of market manipulation are strictly prohibited.
 

Heating Oil is a low-viscosity petroleum product derived from crude oil. Around 25% of the yield of crude oil is devoted to heating oil, the second most after gasoline products. As a result, prices often closely follow those of WTI crude.

It is priced in USD per gallon, and has a historic high of $3.32 in April 2011. The record low was $0.87 in January 2016.

Heating oil is used as a fuel for furnaces and boilers to heat homes and businesses. It is especially popular in the British Isles and the North-eastern US. As a result, demand fluctuates seasonally, peaking in the colder months between October and March.

Price is, as a result, also affected by cold weather. Other factors affecting price include the price of alternative heating options, energy efficiency and insulation, refining costs and government regulations.

Heating Oil futures allow you to speculate on, or hedge against, changes in the price of Heating Oil. Futures rollover on the third Friday of every month.

What is base Currency?

For Forex trading, a “Base Currency” is the first currency in any currency pair, representing the traded currency. The second currency in the pair is the quote currency. Example: in EUR/USD, the Euro is the base currency, and you can buy 1 EUR by paying 1.1 USD. 

An exchange rate attached to a currency pair indicates how much of the quote currency is needed to buy a single unit of the mentioned base currency. For example, reading EUR/USD = 2.15 means that 1 Euro is equal to $2.15.

What is Base vs. Local currency?
When viewing or receiving a direct quote, the base currency = foreign currency. Likewise, the local currency in a pair is the quote currency.

What is Currency Appreciation?

Currency appreciation in relation to Forex trading is defined as when one currency in a forex pair increases in value relative to the other currency in that pair. As such, the now “stronger” currency will cost more of the “weaker” one to buy. The reverse is also true, as that same stronger currency can now buy more of the weaker one when sold.  
  
Is it good if a currency appreciates? 
As one of the currencies in a currency pair goes up (or down), as the demand for it drives it up (or lack of it) or demand for the other currency) drives it down, than the supply does also follows – either less (when in demand) or more of it (when not in demand).  
  
There are several reasons for Currency Appreciation, including the balance of trade, speculation on any of the currencies in that pair, or issues occurring within the international capital market. Traders may attempt to predict currency appreciation by utilizing the economic calendar. This calendar details economic issues which might determine the strengths and weaknesses of the global or local economies and currencies.

What is a Bearish Market?

A bearish market is a condition in the stock market where prices are on a downward trend, characterized by widespread pessimism and investor fear. This often results in a decline in the value of securities, leading to a decline in the overall market.

How long do bear markets last?
The duration of a bear market can vary and can last anywhere from a few months to several years. It depends on a number of factors, including the underlying cause of the market downturn, the state of the overall economy, and government or central bank interventions.

How do you know if a market is bearish?
A market is considered bearish if there is a persistent downward trend in the prices of securities, typically accompanied by increased selling pressure and declining market indices such as the S&P 500. This can be indicated by technical analysis, such as chart patterns showing lower highs and lower lows, or by broader economic indicators such as declining gross domestic product (GDP) and rising unemployment.

What is the longest bear market in history?
The longest bear market in history is the Great Depression, which lasted from 1929 to 1939. During this time, the stock market experienced a severe decline, with the Dow Jones Industrial Average losing 89% of its value. The Great Depression was a global economic downturn that had far-reaching impacts and was marked by high levels of unemployment, homelessness, and economic hardship.

What is Brent Crude?

Brent Crude is a physically and financially traded oil market based around the North Sea of Northwest Europe. In finance and trading the term refers to the price of the ICE (Intercontinental Exchange) or Brent Crude Oil futures contracts. The original Brent Crude referred only to a trading classification of sweet light crude oil extracted from the Brent oilfield in the North Sea. Additional oil blends from other oil fields have been added to the trade classification as time went by. The current Brent Crude blend consists of crude oil produced from the Forties, Oseberg, Ekofisk, and Troll oil fields.

Why is Brent crude so important?
Brent Crude is important to the financial and trading domains as it is a leading global price benchmark for Atlantic basin crude oils. It is used to set the price of two-thirds of the world's internationally traded crude oil supplies. It is one of the two main benchmark prices for purchases of oil worldwide, the other being West Texas Intermediate (WTI).

The Brent Crude oil marker is also known as Brent Blend, London Brent, and Brent petroleum.

XLM, or Lumens, is Stellar network’s cryptocurrency. It is designed to support instant global transactions to give access to low-cost financial services. Trade XLM/USD spot rates with this instrument.

The IBEX 35, or Spain 35, is the benchmark index for the Spanish stock market and tracks the performance of the top 35 most-traded and most-liquid companies on the Bolsa de Madrid (Madrid Stock Exchange).

The index is market capitalisation-weighted and free float-adjusted. It was launched on 14th January 1992 but has a base date of 30th December 2010 and a base level of 1,000. Selection is based upon liquidity, but there is a maximum weighting limit of 40%.

Financial & Real Estate Services is the most-represented sector in the index, accounting for around 34% of the weighting. The next-largest sector is Oil & Energy, with just over 20%, followed by Technology & Telecommunications with just over 15%. Consumer Goods, Basic Materials, Industry & Construction, and Consumer Services complete the list of sectors covered in descending order of weighting.

Spain 35 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Bolsa de Madrid. Contracts rollover on the second Friday of every month.

What is a Currency Pair?

A Currency Pair is a term used in the Foreign Exchange, or Forex, domain. Currency pairs compare the value of one currency to another — the base currency versus a second comparative or 'quote' currency. A currency pair shows how much of a currency is required to buy a single unit of the currency it is being compared to. It is also known as an exchange rate and is used for all currencies traded in FX markets. 

What is a foreign currency?
A foreign currency is, very simply, any currency used in a country that isn't your own.

What is the structure of a foreign exchange market?
The foreign exchange market is a decentralized market where global currencies are traded. In this market, participants buy, sell, exchange and speculate on currencies. It operates through a global network of banks, corporations, and individual traders, who buy and sell currencies for both hedging and speculative purposes. The market is open 24 hours a day and it is considered the largest and most liquid financial market in the world.

What are the most commonly traded currency pairs?
The most commonly traded currency pairs are USD/CAD, EUR/JPY, GBP/USD and AUD/CAD.

What is an ISO code?
Each currency is identified by an ISO code. An ISO code is a three-character abbreviated name that is standardised and internationally recognised. For example, the ISO code for the United States Dollar is USD. 

What is a Trade Execution?

A trade execution is the process of executing a trading order in the financial markets. This typically involves verifying all of the parameters for the order, sending the request to the market or exchange, monitoring execution, and ensuring all transaction requirements have been met.

Brokers execute Trade Execution Order in the following ways:
• By sending orders to a Stock Exchange
• Sending them to market makers
• Via their own inventory of securities

Why is execution of trade important?
Trade execution is important due to the fact that even digital orders are not fully instantaneous. Trade orders can be split into several batches to sell since price quotes are only for a specific number of shares. The trade execution price may differ from the price seen on the order screen.

What is trade execution time?
Trade execution time is the period of time between a trade being placed and the completion of the trade. This includes market access, pricing, liquidity sourcing, risk management and settlement of funds. Trade execution time can vary depending on asset class, liquidity levels and other factors.

What is the Grey Market?

In the financial and trading domains, the Grey Market enables traders to take positions on a company’s potential via yet-to-be-released Initial Public Offering (IPO). Asset and share prices in this market are more of a prediction of what the company’s total market capitalization will be at the end of its first trading day than any official or sanctioned price.

How do grey markets make money? 
Grey markets make money by providing liquidity for new IPOs by allowing buyers and sellers to trade in newly issued stocks without the issuer's consent. This provides the issuer with a way to gain quick access to capital without relying on banks or other traditional sources of funding.

How do I get into grey market?
A grey market also refers to public companies and securities that are not listed, traded, or quoted in a U.S. stock exchange. Grey market securities have no market makers quoting the stock. Also, since they are not traded or quoted on an exchange or interdealer quotation system, investors' bids and offers are not collected in a central spot, so market transparency is diminished, and effective execution of orders is difficult.
 

What is Margin Trading?

Margin trading refers to the practice of borrowing money from a broker to purchase securities. It allows traders to buy more securities than they could afford to buy with cash alone, by leveraging the securities they already own as collateral. This increases the potential returns but also increases the potential risks, as the trader is responsible for paying interest on the borrowed money and must also cover any losses. Margin trading is considered to be a high-risk strategy and is only suitable for experienced traders with a good understanding of the risks involved.

How much money do you need for margin?
The amount of money required for margin trading depends on the minimum deposit requirement set by the broker. For markets.com this is 100 of your local currency, with the exception of South Africa where it is 1000 rand. 

What level of margin is safe?
The level of margin that is considered safe depends on the trader's risk tolerance and investment goals. A lower margin level is generally considered to be safer, as it reduces the potential for large losses

What is a Margin Call?

A margin call is a demand from a broker to a trader that additional funds must be added to the trader’s account in order to maintain their current positions. 

What would trigger a margin call?
A margin call occurs when an investor using margin (borrowed money) to trade in securities or other financial instruments, does not have enough money or equity in their account to meet the minimum margin requirement set by their broker. This can happen when the value of the securities in the account falls below a certain level, resulting in a negative balance in the margin account. A margin call can be a warning sign that the investor is taking on too much risk, and it can be a good opportunity to re-evaluate their investment strategy.

What happens if you get a margin call?
When a margin call happens, the broker will contact the investor and ask them to deposit additional funds into their account or sell some of their profiting securities to bring the account equity back above the minimum margin requirement. If the investor is unable to meet the margin call, the broker may take action to liquidate the investor's securities in order to bring the account back to a positive balance.

Do you lose money on a margin call?
A margin call itself does not necessarily mean that you will lose money, but it does indicate that you are at risk of losing money if you do not take action to meet the call. When a margin call occurs, it is a warning that your account balance has dropped below the minimum margin requirement set by your broker, and if you do not take action to bring it back above that level, your broker may take action to liquidate your securities in order to bring the account back to a positive balance.

What is Market Capitalization?

Market capitalization, commonly referred to as market cap, is a measure of a company's size and is calculated by multiplying the total number of its shares outstanding by the current market price of each share. Market cap can be used to help assess how much a company is worth in the eyes of investors.

Is high market cap good?
A high market capitalization (market cap) generally indicates that a company is well-established, has a strong financial performance, and is considered to be a reliable investment by the market. High market cap companies are often considered to be blue-chip stocks and are more stable and less risky than lower market cap companies.

However, a high market cap does not guarantee that a company will perform well in the future, it just reflects the current market's perception of the company, the stock price and the number of shares outstanding. The company may still be facing internal or external challenges, and the stock may be overvalued. Therefore, it's always important to do your own research and analysis before investing in any stock regardless of its market capitalization.

What is a good market capitalization?
A good market capitalization for an investment depends on the investor's individual preferences and goals. Generally, companies with a high market capitalization are considered to be well-established and financially stable, making them a more reliable investment. However, it is important to note that high market capitalization does not always guarantee future performance.

Is it better to have a small or large market cap?
Small-cap companies tend to be more risky but have higher growth potential. Large-cap companies are considered to be more stable but have lower growth potential. At the end of the day it will all depend on the investor's preference for risk and tolerance for profit/loss.

 

What is a Market Order?

A market order is a type of stock order that allows an investor to purchase or sell securities at the current market price. It is one of the most common types of orders and it is executed as soon as it is placed, meaning the investor will get whatever price is currently available on the exchange.

Is it good to use market order?
A market order is an order to buy or sell a security at the best available current price. This type of order may provide an advantage over other types of orders by executing quickly, but it could also mean that the trade may not be filled at the desired price.

Why would you use a market order?
A market order is typically used when an investor wants to execute a trade quickly, and is willing to accept the current market price. This type of order is often used when an investor wants to take advantage of a price change or when they want to enter or exit a position quickly.

How long does a market order take?
A Market order is generally the fastest order to execute as it simply takes the current market price. You can expect a market order to be executed usually within seconds or minutes of being placed, as long as there is sufficient liquidity in the market. 

 

What is Resistance Level?

In trading, resistance level is a price point at which the price of a security or financial instrument tends to encounter selling pressure, making it difficult for the price to rise above that level. The resistance level is seen as a ceiling, as the price has a hard time going above it. Traders use resistance levels to identify areas where they expect the price to stall or reverse direction. This can be determined by observing the historical price movement of a security or financial instrument, looking for areas where the price has consistently failed to break above. Resistance levels are also used in combination with support levels to identify potential price ranges and trade entry or exit points.

What happens when a stock hits resistance?
If a stock hits a resistance level it can cause the stock to stall, move sideways, or even reverse direction. At resistance level traders that have taken a long position might decide to take profits, while traders that have not yet taken a position might decide to wait for a break above the resistance before buying.

When a stock hits resistance, traders will typically observe the stock's behavior at that level to determine if the resistance level is likely to hold or if the stock is likely to break through it. If the stock breaks through resistance, it can be considered a bullish sign, indicating that the stock is likely to continue to rise. On the other hand, if the stock fails to break through resistance, it can be considered a bearish sign, indicating that the stock is likely to stall or reverse direction.


 

What is take profit?

Take profit is an order type that is used by traders to automatically exit a trade when a certain profit level is reached. Once the specified price level is hit, the trade will be closed and the profit will be locked in. Take profit can also be used in short positions, where the trader is betting on the price to decrease. In this case, the trader would set a take profit order at a price level below the current market price. Once that price level is reached, the trade will be closed and the profit will be locked in.

When should I take profit on my shares?
The decision to take profit on a stock should be based on your own personal investment strategy and goals. Some investors may choose to take profit when a stock reaches a certain level of appreciation or when it reaches a technical resistance level. Others may choose to hold onto a stock for the long-term and only take profit when they need the money for other investments or expenses.

What is the purpose of take profit?
The purpose of a take profit order is to automatically lock in profit at a specific price level, without the need for a trader to constantly monitor the market. By setting a take profit order, a trader can set a specific level at which they want to exit a trade with a profit, and then let the market run its course. Additionally, it allows the trader to set a level of risk-reward they are comfortable with, and not be affected by emotions and human biases, which could cause them to hold on to a trade for too long or exit too soon.


 

What is a Treasury Stock?

Treasury stock, also known as reacquired stock, is stock which a company has repurchased from shareholders. This stock is issued and bought back by the company for various reasons including to improve financial statements and reward shareholders through dividend payments. Companies must keep records of their treasury stock in order to report them on financial statements.

How is treasury stock different from common stock?
Treasury stock, also known as "buyback," is a corporation's own stock that has been purchased back by the issuing company from shareholders. Treasury stock does not give voting rights or dividend payments. In contrast, common stock gives owners voting rights and entitles them to dividends, when declared. Treasury stocks are used to offset dilution and strengthen balance sheets while still giving shareholders an opportunity to sell shares without market risk.

What is the benefit of treasury stock?
By purchasing their own stock, companies can benefit from reducing risk, enhancing corporate governance and even increasing profits. In addition, the stock may be held in reserve for future issuance or to protect against takeover attempts.

Is treasury stock debt or equity?
Treasury stock is a form of equity, rather than debt. It is a company's own shares which have been bought back and held by the company, resulting in the number of outstanding shares being reduced. The buyback is often used to increase shareholder value, reduce the supply of outstanding stock, or as part of employee compensation programs.

The Health Care Select Sector SPDR Fund (XLV) tracks US health care companies within the S&P 500. This asset uses the Health Care Select Sector Index as its tracking benchmark. The fund is caps weighted and only includes companies from the S&P 500, which means there are a lot of very large companies.

The index comprises just 62 holdings from the health care sector – lower than many in this segment - and includes many household names. Top holdings include Johnson & Johnson, Pfizer Inc, UnitedHealth Group and Merck & Co Inc.

The ARK Space Exploration & Innovation ETF's (ARKX) investment objective is long-term growth of capital. ARKX is an actively-managed exchange-traded fund (“ETF”) that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the Fund’s investment theme of Space Exploration and innovation. The Adviser defines “Space Exploration” as leading, enabling, or benefiting from technologically enabled products and/or services that occur beyond the surface of the Earth.

What is Exposure in Finance & Trading?

Exposure in finance and trading refers to the potential financial loss or gain that an individual or entity may incur as a result of changes in market conditions or prices. It can refer to the overall risk of a portfolio, or to the specific risk associated with a particular security or market.

What is Leverage? How does leverage effect exposure?
Leverage refers to the use of debt or other financial instruments to increase the potential return on an investment. In trading, leverage allows an investor to control a larger position with a smaller amount of capital. Leverage can increase exposure to potential losses as well as gains, as a small change in the value of the underlying asset can have a larger impact on the value of a leveraged position.

How do you calculate exposure in trading?
Exposure in trading can be calculated by multiplying the size of a position by the current market price of the underlying asset. The VaR method also can be used by taking into account the volatility of the market and any potential correlation with other assets in the portfolio.

The Consumer Discretionary Select Sector SPDR Fund (XLY) tracks US consumer discretionary companies within the S&P 500. This asset uses the Consumer Discretionary Select Sector Index as its tracking benchmark. The top ten holdings account for 66.2% of the fund’s portfolio.

The index comprises just 66 holdings from the consumer sector and includes many household names. Top holdings include Amazon, Home Depot, McDonalds and Nike.

What is an RSI (Relative Strength Index)?

RSI stands for Relative Strength Index and is a technical analysis indicator that measures the strength of a security's price action, by comparing the magnitude of recent gains to recent losses. The RSI ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. Traders often use the RSI as a buy or sell signal, depending on whether the RSI is above or below a certain level.


Is a higher RSI value better?
A higher RSI value generally indicates that a security is overbought, which means that it is trading at a relatively high price compared to its recent price history. Traders may interpret this as a signal to sell, or to be cautious about buying. Traditionally, an RSI value of 70 or above is considered to be overbought, and a value of 30 or below is considered to be oversold.
 

What Are Currency Futures Contracts?

Currency futures are legally binding agreements that are traded on exchanges, where traders can buy or sell a specific currency at a fixed exchange rate on a future date. These contracts allow traders to hedge against foreign exchange risks by fixing the price at which a currency can be obtained (exchanged). On the expiration date of the contract, the "counterparties" to the agreement must deliver the specified currency amount at the agreed-upon price.

What is the benefit of buying a currency futures contract? 
The main benefit of buying a currency futures contract is that it allows traders to fix the price of a currency and thus hedge against foreign exchange risks.

What is a futures contract in simple terms?
A futures contract is a legally binding agreement to buy or sell a specific asset at a fixed price on a future date.

What happens when currency futures expire? 
At expiration, the counterparties to the contract must deliver the specified currency amount at the agreed-upon price. Traders are responsible for having enough capital in their account to cover margins and losses which result after taking the position. If they wish to exit their obligation prior to the contract's delivery date, they need to close out their positions.

What is Arbitrage in Trading?

Arbitrage is trading that makes use of small differences in price between identical assets in two or more markets. An asset will most likely be sold in different markets, forms or via a different financial products. 

Arbitrage is one alternative trading strategy that can prove exceptionally profitable when leveraged by sophisticated traders. It also carries risks which need to be considered prior and during an arbitrage. 

Arbitrage as a trading strategy is when an asset is simultaneously bought and sold in different markets, thus taking advantage of a price difference, and generating a potential profit. Arbitrage is commonly leveraged by hedge funds and other sophisticated investors.


What is an example of arbitrage?
Without going into actual trading advice, here are several examples of Arbitrage in Trading:
• Exchange rates
• Offshore operations
• Cryptocurrency 
And perhaps the most obvious and common form of arbitrage which is acting as a go between or affiliate, earning commission on price differences between the seller and the buyer.

Types of arbitrage traders use:
• Pure arbitrage - Traders simultaneously buying and selling assets in different markets to take advantage of a price differences. 
• Merger arbitrage – When two publicly traded companies merge. If the target is a publicly traded company, the acquiring company must purchase its outstanding shares Convertible arbitrage. 
• Convertible Arbitrage. It is related to convertible bonds, also called convertible notes or convertible debt.

What is Hedging (to Hedge)?

Hedging, or to hedge, in the trading domain is defined as traders reducing their exposure to risk. Hedging is done by taking an offsetting position in an asset or investment that reduces the price risk of an existing position. 

Why is it called hedging?
"Hedge your bets" is a term which originated in the 1600s and means to decrease or limit one's risk. The origin of the phrase is thought to be derived from the action of literally fencing off an area with hedges

How does hedging work?
Hedging involves taking offsetting positions in different markets, such as futures contracts or derivatives to diversify risk if one instrument falls.

What is Reverse Stock Split?

A reverse stock split, also known as a "reverse split," is a corporate action in which a company reduces the number of outstanding shares by canceling a portion of its shares and increasing the par value of its remaining shares. This means that for every N shares that a shareholder owns, they will end up owning 1 share, where N is the reverse split ratio. For example, if a company performs a 1-for-2 reverse stock split, a shareholder who previously owned 100 shares would now own 50 shares. 

Is it better to buy before or after a reverse stock split?
It is not necessarily better to buy before or after a reverse stock split, as it depends on the specific circumstances of the company and the stock. A reverse stock split does not change the underlying value of the company, it only changes the number of shares outstanding and the stock price. However, it is important to understand that in general, companies that perform reverse stock splits tend to be struggling and have a low stock price. Buying before a reverse stock split may allow you to buy shares at a lower price, but it also means you're probably buying into a struggling company.

Is a reverse stock split good?
As with all things in the market, the answer is that it depends. The main reason for a company to perform a reverse stock split is to increase the per-share price of the stock, which can make the stock appear more attractive to investors and also bring it above a certain listing requirement in stock exchanges. Additionally, a reverse split can also help to reduce the number of shareholders and increase the liquidity of the stock, making it easier to trade. However, a reverse stock split can also be a sign of a struggling company, and it can also dilute the value of shares for the existing shareholders.


 

ProShares UltraPro Short QQQ (SQQQ) is an inverse leveraged ETF that tracks the performance of the Nasdaq 100 index. This ETF aims to deliver a daily output that is three times the inverse of the daily performance of the Nasdaq 100. That means SQQQ will deliver results that are 300% opposite to how the index has moved. They are a useful product for traders looking to go short or to hedge their other positions.

The Nasdaq 100 includes the largest companies on the Nasdaq stock market and holdings include Apple, 21st Century Fox Inc, Kraft Heinz and Facebook. This is a single-day bet and is not recommended for use for longer than periods of one day, as the results will differ. Leveraged products carry more risk.

ProShares UltraPro Short S&P500 (SPXU) seeks daily investment results that are 300% the inverse of the daily performance of the S&P 500. This is a single day bet for traders looking to go short on S&P500 or hedge other trades. Like any leveraged product, there is more risk involved in this ETF than in unleveraged products.

S&P500, the index that it inversely tracks, is considered a benchmark for large-cap US equities. It comprises 500 leading companies, many of which are household names, and a broad range of sectors – although tech firms feature heavily. Holdings include Microsoft, Apple, Amazon, Berkshire Hathaway and Johnson & Johnson.

Materials Select Sector SPDR Fund (XLB) tracks US basic materials companies within the S&P 500. This asset uses the Materials Select Sector Index as its tracking benchmark. The limited spread and niche sector mean that it is heavily concentrated. Just a few holdings make up a big part of the portfolio, and there are only 24 holdings in total.

Top holdings for the benchmark index include DowDuPont Inc, Linde Plc, Ecolab Inc and The Sherwin-Williams Co.

The Sprott Silver Investment Trust (PSLV) seeks to provide a secure, convenient, and exchange-traded investment alternative for investors interested in holding physical silver bullion without the inconvenience that is typical of a direct investment in physical silver bullion. The Trust intends to achieve this by investing primarily in long-term holdings of unencumbered, fully allocated, physical silver bullion and does not speculate with regard to short-term changes in silver prices.

What is a Profit and Loss statement?

A Profit and Loss (P&L) statement is a financial report which provides a revenue summary for a company, reflecting its expenses (i.e., loss) and profit. The P&L statement provides an insight of a company’s operations and if it has the ability (and is capitalising on that ability) to generate profits, to increase revenue, and/or to reduce costs. Company executives and investors make use of P&L statements to analyse the financial health of companies. It is issued quarterly and annually by every public company, along with the balance sheet and the cash flow statement.

Is a profit and loss statement same as income?
A profit and loss (P&L) statement and an income statement are similar but not the same. Both show a company's revenues and expenses over a period of time, but the P&L statement is focused on the company's profitability, while the income statement is focused on the company's financial performance. P&L statement is a financial statement that shows a company's revenues, costs and expenses during a specific period, allowing to calculate the net income (profit or loss) of the company. Income statement, also known as statement of income or statement of operations, is a financial statement that reports a company's financial performance over a specific period of time, showing the revenues, costs, expenses and net income of the company.

What is a Heikin Ashi Candlestick chart?

The Heikin Ashi chart is a type of chart pattern used in technical analysis. Heikin Ashi charts are similar to a candlestick charts, but the main difference is that a Heikin Ashi chart uses the daily price averages to show the median price movement of an asset.

How do you use a Heikin-Ashi chart? 
Heikin-Ashi charts resemble candlestick charts, yet have a smoother appearance as they track a range of price movements, instead of tracking every price movement the way candlestick charts do. As with the standard candlestick charts, a Heikin-Ashi candle has a body and a wick. Yet , these candles do not have the same purpose as on a candlestick chart. The last price of a Heikin-Ashi candle is calculated by the average price of the current bar or timeframe.

Is it better to use Heikin-Ashi or candlestick?
Heikin-Ashi averages out price data to create a smoother, easier-to-read chart, while traditional candlestick charts provide more detailed price information. It ultimately depends on the investor's preferences and trading strategy which chart type is better.

Are Heikin-Ashi candles accurate?
Heikin-Ashi candles can be an accurate tool for gauging market trends, although they are often regarded to be less accurate than standard candlestick charts.
 

What is a Guaranteed Stop Order?

A Guaranteed stop order provides traders with a form of protection for their positions. They can have a guaranteed exit at the exact price they specify. This can be used regardless of market volatility. This is different from “standard” stop-loss orders, which may be filled at worse price levels than were requested due to “slippage”. A guaranteed stop loss order (GSLOs) will incur a fee / premium which will only be charged if it was triggered.

How does guaranteed stop work?
A guaranteed stop loss works in the same way as a standard one does, via instructions provided to the broker to close a position at a specific level, thereby reducing the risk should the market move against the trader.

Should I use guaranteed stop-loss?
Guaranteed stop-loss automatically exits you from the market at a certain predetermined price level in order to limit potential losses if the market goes against you. As such, especially for less experienced traders, it is a recommended strategy to mitigate losses.

The VanEck Vectors Social Sentiment ETF (BUZZ) will track the BUZZ NextGen AI US Sentiment Leaders Index. This index consists of the most-favourably talked about stocks online, whether on blogs, social media or Reddit.

What Is the Foreign Exchange Market?

The foreign exchange market, also known as forex, is a decentralized market where currencies are traded 24/5. It has an average daily trading volume of over $5 trillion and facilitates the exchange of one currency into another for businesses, investors, and traders. It is influenced by economic and political events.

Why is Foreign Exchange important?
The foreign exchange market is important because it allows businesses, investors and traders to convert one currency into another, facilitating international trade and investment. It also enables countries to maintain control over their monetary policy and stabilize their economies. Additionally, the foreign exchange market is a major source of financial market liquidity and is used by a wide range of market participants, including banks, corporations, governments, and individual traders. It also enables people to manage the risk associated with currency fluctuations.

How is Forex trading done?
Forex trading is done by buying and selling currency pairs, using a platform provided by a Forex broker such as markets.com. Traders use different strategies and analysis to predict the price movements and decide whether to buy or sell a certain currency pair. It can also be done through contracts for difference (CFDs) which allow traders to speculate on price movements without owning the underlying currency.
 

The iShares Global Clean Energy ETF (ICLN) seeks to track the investment results of an index composed of global equities in the clean energy sector.

The iShares MSCI KLD 400 Social ETF (DSI) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics as identified by the index provider.

The iShares ESG MSCI USA Leaders ETF (SUSL) seeks to track the investment results of an index composed of U.S. large and mid-capitalization stocks of companies with high environmental, social, and governance performance relative to their sector peers as determined by the index provider.

iShares MSCI Mexico ETF (EWW) offers traders exposure to a broad range of companies in Mexico and access to targeted Mexican stocks. It has 58 holdings, which include America Movil L, Formento Economico Mexicano, Walmart de Mexico and GPO Finance Banorte.

The fund has almost no technology, energy or utilities stocks as these sectors are government-run in Mexico. The sector-mix is 29.57% Consumer Staples, 21.13% Communication, 15.48% Financials, 12.27% Materials, 10.92% Industrials and the remaining split between real estate, consumer discretionary and health care.

TYO Fund seeks daily investment results of 300% of the inverse of the performance of the NYSE Current 10 Year U.S. Treasury Index.

Fintech ETF (ARKF) is an ETF focussing on innovative and disruptive financial technologies. Companies represented within ARKF transaction innovations, blockchain, risk transformation, frictionless funding platforms, customer facing platforms, and new Intermediaries. 

Polkadot (DOT) fuses two blockchains: the main, relay chain, where transactions are permanently agreed upon, and user-generated chains. Tradeable in USD, Polkadot is priced in USD and uses the DOT/USD spot rate.

Gilts are issues by the British Government and are generally considered to be low-risk investments. They traditionally have maturities of five, ten and 30 years. As with shares and funds, bond prices rise and fall as their attractiveness changes, based on changes in the market, economy and currency. The price is also affected by the attractiveness of other investments, particularly other ‘safe havens’ such as cash.

The UK Gilt 10 year bond reached a historic high of 16.09% in November 1981, and a record low of 0.52% in August 2016.

TRON’s goal is to create a decentralised internet. Its TRX cryptocurrency allows buyers to vote on who gets rewards for validating transactions on its blockchain. markets.com lets you trade TRX/USD at the latest spot rate.

EOS supports the EOS.IO blockchain protocol. The protocol’s architecture has the potential to eliminate user fees while processing millions of transactions per second. On our platform, EOS is priced in USD using the EOS/USD spot rate.

What are Blue-chip stocks?

Blue-chip stocks are shares of very large, successful, and reputable and financially companies. Blue-chip companies are mostly common household names. 

What is the difference between a regular stock and a blue-chip stock?
A blue-chip stock refers to a stock of a well-established, financially stable and reliable company with a long history of steady growth and stability. Regular stocks are any other stocks. Blue-chip stocks are generally considered a lower risk investment, while regular stocks can have varying degrees of risk.

How do you know if a stock is blue-chip?
Blue chip stocks are usually large, well-established and financially stable companies with a long history of steady growth, consistent profits and strong brand recognition.

What are some examples of bluechip stocks? 
Some examples of blue chip stocks are: 
Apple Inc. 
Microsoft Corporation 
Amazon.com Inc. 
Berkshire Hathaway 

BitcoinSV uses original Bitcoin protocol, as laid out by inventor Satoshi Nakamoto’s 2008 whitepaper. Thus, BitcoinSV should be stable, and enjoy high scalability. It is priced in USD and the instrument is tradeable using the BSV/USD spot rate.

Monero (XMR) uses blockchain tech focussed on tech. Because the public leger is obscured, external parties cannot see transaction sources, amounts, or destinations. That means no single XMR can be tainted or devalued after transactions. Use our platform to trade XMR/USD spot rates.

Tezos (XTZ) cryptocurrency is designed to run smart contracts with decentralised applications. The currnecy uses Liquid Proof of Stake model. This allows XTZ owners to delegate validation rights but still earn staking rewards, without giving up custody of their cryptocurrency. Trade XTZ/USD at latest spot rights on our platform.

Genomic ETF (ARKG) constituents are companies designing technologies for, or are expected to benefit from, extending & enhancing the quality of human and other life by integrating technological and scientific developments and advancements in genomics into their business. Sectors covered include CRISPR, targeted therapeutics, bioinformatics, molecular diagnostics, stem cells, and agricultural biology. 

Compound cryptocurrency is all about supply and demand. Its protocol, based on Ethereum blockchain, creates money markets with interests algorithmically derived from supply and demand levels. Users can earn or pay a floating interest rate without need for negotiating with other parties. Compound is priced in USD and tradeable through the COMP/USD symbol.

0x Token (ZRX) jusers can create markets for crypto assets representing any form of value – these could include markets for tokens representing physical real estate, to tokens representing shares of stocks and bonds, to tokens representing other crypto assets. It is priced in USD and tradebale via our platform using the ZRX/USD symbol.

IXN is an iShares Global Tech ETF seeks to track the investment results of an index composed of global equities in the technology sector, offering exposure to electronics, computer software and hardware, and informational technology companies. Targeting tech stocks from around the world, you can use this ETF to get a global view of this sector.

Robotics ETF (ARKQ) constituents are focused on, and are expected to substantially benefit from, the development of new products or services, technological improvements, and scientific research advancements in areas like energy, automation and manufacturing, materials, and transportation.

Companies within the ETF either develop, produce, or enable autonomous transportation, robotics & automation, 3D printing, energy storage, and space exploration.

Basic Attention Token (BAT) crypto was built to improve the security, fairness, and efficiency of digital advertising through the use of blockchain technology. Users are rewarded with BAT for viewing ad content, publishers can deliver higher-impact ads and advertisers can be assured their messaging is being viewed by a willing audience. Trade BAT in USD using the BAT/USD symbol.

Synthetix (SNX) is a decentralized protocol that lets users gain exposure to assets like other cryptos, gold, and stocks, without actually holding the underlying resource. These synthetic assets are backed by the platform's cryptocurrency, Synthetix Network Token (SNX), which is staked as collateral in order to generate rewards. It is priced in USD and can be traded using the SNX/USD symbol.

What are the risks associated with CFD and Forex trading?

CFDs are a leveraged financial instrument that allow traders to gain exposure to an underlying asset, such as shares, commodities or indices. While this provides great potential for profits, it also carries significant risks. The main risk is the possibility of losses greater than your initial deposit if the market moves against you. CFDs also have costs associated with trading such as commissions and spreads. Make sure you understand the risks before trading with CFDs.

What are the disadvantages of CFDs?
CFDs are complex instruments and may not be suitable for everyone due to the risk of leverage. CFDs also come with costs, including spreads and commissions which can cut into potential profits. Furthermore, it's important to understand how margin calls work as well as potential losses from unanticipated price movements or illiquidity in the market.


How much can you lose in a CFD trade?
In a CFD trade, you can potentially lose more than your initial investment, as the loss is based on the difference between the entry and exit price of the trade. It is important to set stop loss orders to limit potential losses. Additionally, using proper risk management strategies can help to minimize losses.

 

US Treasury Bonds are securities issued by the US government with maturities that vary from ten to 30 years. After initial auction, the bonds can be sold on the secondary market. A number of things can affect the price of TBonds, as with other bonds, shares and funds. US Treasury Bonds are primarily affected by interest rates, inflation and economic growth, as well as their reputation as a safe haven.

Historically, the US Government Bond 10Y (ZN) reached an all-time high of 15.82% in September 1981 and a record low of 1.36% in July 2016.

Industrial Select Sector SPDR Fund (XLI) tracks US industrial companies within the S&P 500. This asset uses the Industrial Select Sector Index as its tracking benchmark. The ETF provides concentrated exposure large-cap US industrial companies, with limited small and midcap companies.

The index comprises just 70 holdings from the industrial sector. Top holdings for the benchmark index include Boeing Co, 3M Co, Union Pacific Corp and Honeywell International Inc.

Lithium and Battery Tech ETF (LIT) tracks a market-cap weighted index of global lithium miners and battery producers. The asset invests in the full cycle of lithium, from mining to refining and battery production.  

For this reason, it doesn't offer the exposure of other assets to metals and mining sectors, instead is an investment for niche lithium exposure. Holdings in the ETF include Tesla, Albemarle corp, Panasonic, Samsung SDI and Enersys.
 

Financial Select Sector SPDR Fund (XLF) tracks US financial companies within the S&P 500. This asset uses the Financial Select Sector Index as its tracking benchmark. The ETF offers concentrated exposure large-cap US financial companies.

Just a few holdings make up a big part of the portfolio, and there are only 68 holdings in total. Top holdings for the benchmark index include Berkshire Hathaway Inc, JPMorgan Chase & Co and Bank of America.

Consumer Staples Select Sector SPDR Fund (XLP) tracks US consumer staples companies within the S&P 500. This asset uses the Consumer Staples Select Sector Index as its tracking benchmark. The fund provides strong and representative exposure to consumer staples and the companies are large-cap in the main.

The index comprises just 34 holdings from the consumer sector and includes many household names. Top holdings include Procter and Gamble, Coca-Cola, PepsiCo and Walmart.

Utilities Staples Select Sector SPDR Fund (XLU) tracks US utilities companies within the S&P 500. This asset uses the Utilities Select Sector Index as its tracking benchmark. The fund is concentrated to just a few large firms, as the index comprises just 30 holdings from the utilities sector. This can be a pro or a con depending on your trading strategy.

Top holdings include Nextera Energy Inc, Duke Energy Corp, Dominion Energy Inc and Southern Co.

What are Futures in Trading?

Futures are a specific type of derivative contract agreements to buy or sell a given asset (commodity or security) at a predetermined future date for a designated price. Futures are derivative financial contracts that obligate parties to buy or sell an asset at a predetermined future date and price. 

How does the futures market work?
A futures contract includes a seller and a buyer – which must buy and receive the underlying future asset. Similarly, the seller of the futures contract must provide and deliver the underlying asset to the buyer. The purpose of futures in trading is to allow traders to speculate on the price of a financial instrument or commodity. They are also used to hedge the price movement of an underlying asset. This helps traders to prevent potential losses from unfavourable price changes.

What are examples of Futures?
There are numerous types of futures and futures contracts in the trading and financial markets. The following are a few examples of futures that can be traded on: Soft Commodities such as food or agricultural products, fuels, precious metals, treasury bonds, currencies and more.

Innovation ETF (ARKK) is based on “disruptive innovation”, focusing on technologies or services that have the potential to change the world.

Companies within ARKK cover those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies, industrial innovation in energy, automation and manufacturing, the increased use of shared technology, infrastructure and services, and technologies that make financial services more efficient.

The Vanguard Value Fund (VTV) seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks. The Fund employs a "passive management"-- or indexing --investment approach designed to track the performance of the CRSP US Large Cap Value Index.

ProShares UltraShort Russell2000 (TWM) is a leveraged product that seeks to deliver twice the inverse of the daily performance of the USA2000 Index. Results aims to be 200% of the opposite to the movement of the index. This is a daily-bet, so results will vary dramatically for positions held longer than one day. 

The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.

The Xtrackers MSCI U.S.A. ESG Leaders Equity ETF (USSG) holds a basket of companies that score highly for environmental, social, and governance (ESG) factors, with roughly marketlike sector exposure. The fund’s index uses MSCI’s ESG rating methodology to assign a score to all US large- and midcap stocks.

The Nuveen ESG Small-Cap ETF (NUSC) is primarily composed of equity securities issued by small- capitalization companies listed on U.S. exchanges that satisfy certain environmental, social and governance (“ESG”) criteria. The fund seeks to track the investments results, before fees and expenses, of the TIAA ESG USA Small-Cap Index.

What are Online Brokers?

Online brokers are digital trading platforms that allow users to trade stocks, options, ETFs and other financial products online. They offer convenience and competitive pricing, making them popular among individual investors and traders.

What are the three types of brokers?
Trading brokers come in three main varieties: full-service, discount, and online. Full-service brokers offer a variety of services such as research, advice, and account management. Discount brokers are low-cost and may only offer basic services. Online brokers provide customers access to the markets with limited assistance.

Are online brokers safe?
Online brokers are generally safe when used correctly. It is important to use trusted and reliable providers, keep your account secure, and be mindful of any potential risks when trading online. For example, markets.com is fully regulated and controlled for maximum security and safety while you trade.




 

What are Trading Alerts?

Trading alerts are notifications or signals that are sent to traders to inform them of potential trading opportunities or market conditions that may affect their trades. These alerts can be generated by software programs, financial analysts, or other sources, and can be delivered via email, text message, or other forms of communication. They are typically used by traders to help them make more informed trading decisions and stay up-to-date on market conditions.

How do I set up trade alerts?
To set up trade alerts, you will need to use a trading platform or software that offers the alert feature. You can set up trading alerts easily on markets.com.

Can I set an alert for a stock price?
A stock price alert is just one of the types of trade alerts you can set up through markets.com.

UPRO, ProShares Ultra Pro S&P500, provides 3x daily exposure to the S&P 500 Index. The ETF aims to deliver daily returns that are three times that of the S&P 500 Index, which comprises US large cap equities. The S&P 500 represents some of the largest and most liquid US stocks on the market. 

This is a leveraged product and, as such, carries more risk. It is an aggressive instrument, design for intraday trading, and should not be used as part of a buy-and-hold strategy.

Companies in the Internet ETF (ARKW) are those that focus on or benefit from cloud computing technologies enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media.

Sectors covered include cloud computing & cyber security, eCommerce, Big Data & AI, mobile technology & Internet of Things, social platforms, and blockchain & P2P.

China AMC CSI 300 Index comprises 300 stocks from A-share companies in China. A-shares are stocks trades on the Shenzhen or Shanghai stock exchanges and are generally only available to Chinese citizens. This ensures they command a significant premium compared to H-shares which are listed on the Hong Kong Stock Exchange and available primarily for foreign investors. 

China AMC CSI 300 Index ETF mirrors the performance of the CSI 300 Index. It is a benchmark of the 300 largest and most liquid Chinese stocks.

Technology Select Sector SPDR Fund (XLK) tracks US tech companies within the S&P 500. This asset uses the Technology Select Sector Index as its tracking benchmark. As the tech firms in the index are just drawn from the S&P 500, there are some odd inclusions such as financial payment processors and telecoms companies.

The index comprises just 69 holdings from the tech sector, with two accounting for more than a third of the index – Microsoft Corp and Apple Inc. Other holdings include Visa, Intel and Cisco.

Energy Select Sector SPDR Fund (XLE) tracks US energy companies within the S&P 500. This asset uses the Energy Select Sector Index as its tracking benchmark. The ETF is offers concentrated exposure to oil and gas industry giants, as the S&P500 favours large-caps. Nevertheless, it is fairly representative of the whole energy market.

Just a few holdings make up a big part of the portfolio, and there are only 31 holdings in total. Top holdings for the benchmark index include Exxon Mobil Corp, Chevron Corp and ConocoPhillips.

ProShares UltraPro Russell2000 (URTY) seeks to deliver daily results that are three times daily performance of the USA2000 Index. This is an aggressive single-day bet and results will vary if positions are held for longer than a day.

This ETF is a leveraged product, which carry more risk. It aims to deliver results that are 300% of the returns of the USA2000 Index. The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.

WisdomTree U.S. LargeCap Dividend (DLN) consists of the 300 largest companies ranked by market capitalisation from the WisdomTree Dividend Index. The Index is a fundamentally weighted index that measures the performance of large-cap dividend-paying US companies.

The top ten stock holdings account for 26.76% of the index and include Microsoft, Apple, Exxon Mobil and Verizon Communications. Four sectors (Information Technology, HealthCare, Consumer Staples and Financials) account for 56.4% of the index’s holdings. This ETF is a good option for traders looking for exposure to large cap equity from dividend-paying companies.

SPDR S&P ASX 50 Fund (SFY.AX) seeks to track the returns of the S&P/ASX 50 Index. The S&P/ASX 50 is an index of Australia’s large-cap equities. Traders can use it as a way to access the Australian Stock Market or gain exposure to Australian companies.

The index has a mix of sectors, and contains the 50 largest ASX listed stocks with the cut-off being a market capitalisation of around $5billion (AUD/). The portfolio accounts for 62% of Australia’s sharemarket capitalisation. Top holdings include Commonwealth Bank, BHP Billiton Limited, Woolworths Group and Telstra Corp.

US Tech 100 (NQ) is a market capitalization-weighted stock market index that includes the hundred largest non-financial domestic and international companies.

The index is constituted by sectors such as Technology, Consumer Services, Healthcare, Industrials, Consumer Goods and Telecommunications.

The US Tech 100 index contains some of the largest companies in the world, including Apple, Amazon, Microsoft, Facebook, Google parent Alphabet and Netflix.

The US Tech 100 index futures allow you to speculate on, or hedge against, changes in the price of some of the world’s biggest stocks. Contracts rollover on the second Friday of March, June, September and December.

Direxion Daily Small Cap Bear 3x Shares (TZA) seeks to deliver daily results that are three times the inverse of the daily performance of the USA2000 Index. This is an aggressive single-day bet against the USA2000, and results will vary if positions are held for longer than a day.

This ETF is a leveraged product, which carry more risk. It aims to deliver results that are 300% opposite the returns of the USA2000 Index. The USA2000 Index covers US small cap companies and a broad range of sectors including finance and tech. Holdings include Etsy, Planet Fitness and Hubspot.

What are Non-Farm Payrolls (NFP)?

Non-farm payrolls are a monthly statistic representing how many people are employed in the US, in manufacturing, construction and goods companies. These statistical reports also known as non-farms, or NFP. The name is derived from jobs that aren’t included in these statistics, which are : agricultural workers and those employed by private households or non-profit organizations. The NFP report data is generally released on the 1st Friday of any calendar month and has the potential to significantly impact multiple markets, including on a global level. 

The NFP report is comprised of the following three segments:
• The numbers: jobs created or lost.
• Unemployment rate.
• Average Hourly Earnings. Reflecting the changes in wages enterprises pay for labour.

NFPs are very important to Forex traders as they follow it to see how the USD currency pairs react. Gold is also a popular asset to trade on NFP results.

ProShares UltraPro QQQ (TQQQ) is a leveraged ETF that tracks the performance of the Nasdaq 100 index. This ETF aims to deliver a daily output that is three times the daily performance of the Nasdaq 100. That means TQQQ will deliver results that are 300% of how the index has moved.

The Nasdaq 100 includes the largest companies on the Nasdaq stock market and holdings include Apple, 21st Century Fox Inc, Kraft Heinz and Facebook. This is a single-day bet and is not recommended for use for longer than periods of one day, as the results will differ. Leveraged products carry more risk.

US Treasury Bonds 30Y (UB) are securities issued by the US government with maturities that vary from ten to 30 years. The U.S Treasury suspended issuance of the 30 year bond between February 2002 and February 2006. When bonds are sold on the secondary market, they can go up and down in price in the same way that shares and funds do. US Treasury Bond prices are primarily affected by interest rates, inflation and economic growth, as well as their reputation as a safe haven. 

Historically, the US Government Bond 30Y reached an all-time high of 15.21% in 1981 and a record low of 2.11% in 2016.

What is Algo Trading?

Automated trading is also referred to as Algo Trading (Algorithmic is abbreviated to Algo) – is the use of algorithms for executing orders utilizing automated and pre-programmed trading instructions via advanced mathematical tools. Trading variables such as price, timing and volume are factors in Algo trading.
 
How does algo trading work?
Algo trading works by capitalizing on fast decision-making processes as human intervention is minimized. As such, Algo Trading enables automated trading systems to take advantage of opportunities arising in the market even before human traders can even spot them. It uses processes- and rules-based algorithms to employ strategies for executing trades. Algo trading is mostly used by large institutional investors and traders

JNUG, also known as Direxion Daily Junior Gold Miners Index Bull 3X Shares, aims to deliver three times the daily returns of junior gold and silver mining companies from developed and emerging markets. It seeks 300% of the performance of the MVIS Global Junior Gold Miners Index. The term junior refers to the size of the firms, which are considered to be small-cap. 

This is a single-day fund, and funds should not be expected to provide three time the return of the benchmark index if positions are held for longer than one day. As a leveraged ETF, this asset carries more risk than ETFs that are not leveraged. This asset is aimed at intraday traders and is not suitable for all investors.

SPDR Gold Shares (GLD) is an investment fund incorporated in the USA. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust's expenses. The Trust holds gold and is expected from time to time to issue Baskets in exchange for deposits of gold and to distribute gold in connection with redemptions of Baskets.

The first US traded gold ETF and the first US-listed ETF backed by a physical asset

For many investors, the costs associated with buying GLD shares in the secondary market and the payment of the Trust's ongoing expenses may be lower than the costs associated with buying, storing and insuring physical gold in a traditional allocated gold bullion account.

Dow Jones Industrial Average - SPDR (DIA) mirrors the USA 30, which tracks 30 large-cap blue-chip companies – many of which are household names. The Dow Jones is one of the oldest indices in the world and is not considered to be volatile. However, because it is only 30 companies it is heavily influenced by the fortunes of those firms and is not a good indicator of the economy as a whole.

Stocks in the fund include Coca-Cola, Disney, Apple and Visa. The ETF is a good way to invest in the index. However, it is not ideal for those looking for broad exposure to US caps, as it only follows the top 30 companies. It is extremely liquid with a strong track record.

What is a Commodity?

A commodity is a raw material asset such as oil, gas, gold, or wheat. Commodities can be categorised into either hard commodities or soft commodities. 

What are Soft Commodities?
Soft commodities typically refer to raw materials that are grown rather than mined such as coffee beans or sugar. 

What Are Hard Commodities?
Whereas hard commodities must be extracted such as natural gas or crude oil. 

A commodity is often exchangeable for other commodities of the same type and can be purchased through either the spot market using cash, or through derivatives like futures.

The WisdomTree Emerging Markets High Dividend ETF (DEM) tracks the WisdomTree Emerging Markets Dividend Index. The index is a fundamentally weighted index that is comprised of the highest dividend-yielding common stocks selected from the WisdomTree Emerging Markets Dividend Index. This provides it with some downside protection from market volatility.

DEM is an equity fund, and has a mix of market sectors. It includes stocks from key emerging markets such as Russia and China, with assets including China Contruction Bank, China Mobile and Norilsk Nickel.

The Vanguard Total Stock Market ETF (VTI) tracks the total US market and is designed for traders looking for comprehensive, inexpensive exposures to full-market equities. It encompasses the entire market-cap spectrum and provides neutral coverage, with no sector or size bets.

This ETF looks to match the performance of the CRSP US Total Market Index. The sector breakdown is largely the same as its benchmark: Financials make up 19.70%, Tech is 19.10%, with consumer good, health care and industrials all around the 13% mark.

The S&P MidCap 400 ETF (MDY) looks to replicate the performance of the S&P Midcap 400 Index. The most widely-followed mid-cap index in existence, it serves as a good barometer for the performance and directional trends of US equities. The fund provides a good representation of the market and is popular in the midcap space.

Stocks in this index cover all major sectors including technology, health care, financial industries and manufacturing, and include many household names. Holdings include Teleflex, Dominos Pizza, Lamb Weston Holdings and Atmos Energy.

Bitcoin Cash is the younger, more user-friendly, brother of Bitcoin. It was born in August 2017, arising from a fork of Bitcoin Classic.

It is priced in USD per Bitcoin and saw a record high of $3,816 in December 2017. Bitcoin Cash futures trade as BCC.

The break from Bitcoin Classic came about after frustration of the one MB limit. This causes major issues with transaction processing times and limits the number of transactions the network can process.

A number of solutions were proposed, with Bitcoin Cash ‘born' in mid-2017 with an increased blocksize of eight MB. Everyone who previously owned Bitcoin Classic received the same about in Bitcoin Cash.

Despite being one of the youngest cryptocurrencies, Bitcoin Cash has soared in popularity - it is now the world's third-largest cryptocurrency by market value. However, it has experienced significant volatility in its short life so far.

Ripple (XRP) is among the largest cryptocurrencies by market cap, following Bitcoin and Ethereum.

Ripple, known as XRP, is priced in USD. It saw a high of $3.20 in January 2018.

When people talk about Ripple they are not just talking about the currency, but the Ripple network which could change the way people complete currency transfers.

Unlike other crypto payment networks, Ripple allows you to make money transfers in any form - be that Ripple, Bitcoin, USD, Yen or GDP. Plus, you can receive money in a different form to how it has been sent. For example, you could be sent Bitcoin but collect your money in USD.

Payments can happen in seconds, a significant improvement on the days or weeks required for a wire transfer with a bank.

The payment network has already seen endorsements, with American Express and Santander partnering with it for cross-border payments between the US and UK.
 

The Direxion Daily Financial Bear 3 (FAZ) Shares ETF tracks the inverse performance of the Russell 1000 Financial Services Index by 300%. It is the opposite of the The Direxion Daily Financial Bull 3X Shares ETF (FAS). Traders benefit when the underlying stocks fall, rather than rise. It is leveraged in the same way, so comes with high levels of volatility and risk. 

This ETF allows traders to take a bearish view on the performance of commercial banks, a reduction in lending is what FAZ traders will be looking for.

Natural gas is a found deep underground, alongside coal and other fossil fuel deposits. It is extensively used in the US, accounting for 25% of US energy consumption. The gas primarily consists of methane.

It is priced in USD per British thermal units (mmBtu). The highest price recorded for Natural gas was $15.30 in December 2005, a record low of $1.02 was seen in January 1992.

Natural gas is used as a source of energy generation, especially for heating and cooling systems. It is often preferred to goal or oil as it produces less greenhouse gases than other fossil fuels.

Just ten countries account for close to 80% of the proven natural gas supplies in the world, with Russia sitting on 25% of total reserves. The Middle East is home to several the remaining top producers, excluding the US.

Gas futures allow you to speculate on, or hedge against, changes in the price of gas.

Crude Oil, also known as West Texas Intermediate (WTI), is a light, sweet crude that acts as benchmark for oil prices in the US.

Crude Oil is priced in USD per barrel. It reached a historic high of $145.31 in July 2008 and saw a record low of $1.17 in February 1946.

WTI contains less sulphur than Brent Crude (which acts as a benchmark for oil prices in Europe and the Middle East), which means it demands a premium price. Both WTI and Brent are light, sweet oils that are ideal for refining into gasoline.

It is produced, refined and consumed in North America, and is mostly sourced in Texas - which is where the name originates - as well as in Louisiana and North Dakota.

WTI price is sensitive to factors that impact the general price of oil, as well as geopolitical and economic events and natural disasters in the Midwest and Gulf Coast regions.

Platinum is one of the world's rarest metals, and mines are concentrates in just a handful of countries around the world.

Platinum is priced in USD per troy ounce. It saw a high of $2253 in March 2008, and a record low of $97.70 in January 1970.

Most of the world's platinum is produced in South Africa, which accounts for 80% of supply. Russia is a distant second with 11% and North America produces 6%.

Platinum is an important metal due to its ability to catalyse reactions and its strong resistance to corrosion. This makes it irreplaceable in a broad range of industrial and laboratory reactions, especially the catalytic converter which is the most widely used application of platinum.

The metal is also highly sought-after for jewellery, which is the second largest area of demand,

The concentration of platinum in South Africa (an often-volatile emerging market), combined with the importance of platinum as an industrial material, has led to instability in price.

What are Financial Derivatives?

Financial Derivatives are financial products that derive their value from the price of an underlying asset. These derivatives are often used by traders as a device to speculate on the future price movements of an asset, whether that be up or down, without having to buy the asset itself.

What are the four financial derivatives?
The four most common types of financial derivatives are futures contracts, options contracts, swaps and forward contracts.

What are the advantages of financial derivatives?
Financial derivatives can provide several benefits such as hedging, leveraging and portfolio diversification. These financial instruments help in managing risk by protecting investors from price volatility, enable high leverage to increase profits and also allow for better portfolio diversification through a wider range of investments.

Financial Derivatives examples
The most common underlying assets for derivatives are:
• Stocks
• Bonds
• Commodities
• Currencies
• Interest Rates
• Market Indexes (Indices)


Note: In CFD Trading traders get access to all the above Financial Derivatives as well as additional ones more suitable for trading CFDs. As such, CFDs enable traders to buy a prediction on a stock (up or down) without owning the stock itself.
 

Bitcoin is the first of the ‘cryptocurrencies' and remains the most stable. It was created in 2009 by Satoshi Nakamoto, whose identity remains a mystery.

His creation - Bitcoin - is a cashless currency. Balances are kept online and it is decentralised, allowing anonymity. Despite Bitcoin not being legal tender in most countries, it has continued to increase in popularity and its launch has sparked the creation of a number of other cryptocurrencies.

It is priced in USD per Bitcoin and saw a record high of $68,789.63 in Nov 2021. Bitcoin futures trade as BTC.

Bitcoin has been criticised for its links to illegal activity and the dark web, as well as the high demand for energy created by ‘mining' Bitcoins. A PIN is necessary to access your

Bitcoins, with as many as 20% of all Bitcoins thought to be lost to forgotten PINs.

Bitcoin futures allow you to speculate on, or hedge against, changes in the price of Bitcoin. Futures rollover on the last Thursday of every month.

The Swiss Market Index (SMI), also known as the Swiss 20, is a blue-chip index of the 20 largest and most-liquid companies traded on the SIX Swiss Exchange, covering around 80% of the total market capitalisation of Swiss equities. The index is weighted so that no component can exceed 20%, enabling it to be a key barometer of the Swiss stock market.

The index was launched on 30th June 1988, and has the same base date. It has a base value of 1,500 points, reached a high in January 2018 of 9,611.61, and an all-time low of 1,287.60 in January 1991.

Healthcare is the largest index sector, accounting for 37.5% of the total weighting, followed by Consumer Goods with 24%, and Financials with 21.6%. Industrials is the fourth-largest sector with 13.6%.

Swiss Market Index futures allow you to speculate on, or hedge against, changes in the price of major stocks on the SIX Swiss Exchange. Contracts rollover on the second Friday of March, June, September, and December.

Cocoa is a “soft” commodity - referring to those that are grown rather than mined - and comes from the Theobroma tree, whose name translates as “God food” in Greek. Cocoa beans are primarily used to produce chocolate, cocoa powder and cocoa butter, the latter of which is widely-used in beauty products.

Cocoa is priced in USD per metric tonne. The highest price for cocoa on record is $4,361.58/MT, which was reached in July 1977. Cocoa traded at its lowest recorded level of $211/MT in July 1965.

West Africa accounts for around 70% of the global market supply, while Cote d'lvoire, Ghana and Indonesia are the top three cocoa producers. Latin America is a key market player as well.

As a “soft” commodity, cocoa prices are heavily affected by weather and climate news - adverse conditions could affect harvests.

Cocoa futures allow you to speculate on, or hedge against, changes in the price of cocoa. Futures rollover on the first Friday of February, April, June, August, and November.

Copper is found in ore deposits around the world and top producers include Chile, China, Peru and the US. It was the first metal to be used by humans and remains essential for a variety of uses: it is the world's third most widely used metal, after iron and aluminium.

Copper is priced in USD per lb. it's all-time high was $4.58, which it reached in February 2011. Copper hit a record low of $1.94 in January 2016.

Like silver and gold, it is malleable and a good conductor of electricity, however it is also relatively inexpensive which makes it ideal for industrial applications such as wiring, plumbing and circuitry.

The price of copper is influenced by a number of factors including the strength of the US Dollar, demand from China and extraction costs. However, the energy-intensive refining process mean it is also susceptible to changes in oil prices.

Instability in the political climate of key countries where copper is mined can also affect the price.

Cotton is a “soft” commodity - meaning it is grown and not mined - and has for thousands of years been one of the most important crops. Its lightweight and absorbent fibres mean that cotton is the most popular natural fibre on the planet.

China, India, and the US are the top producers of cotton in the world; in the US cotton primarily comes from Florida, Mississippi, California, Texas, and Arizona.

The fibre is priced in USD per lb. It reached a record high price of $210.64 during March 2011 and struck a record low of $5.66 during December 1930.

As well as weather conditions, cotton prices are heavily influenced by demand for competing synthetic fibres and changes in government policy. Cotton farmers enjoy heavy subsidies in the US, so a change here could have significant consequences.

Cotton futures allow you to speculate on, or hedge against, changes in the price of cotton. Futures rollover on the third Friday of February, April, June, and November.

Dash was launched in January 2014 as a rival to Bitcoin. Its popularity is largely down to a focus from designer Evan Duffield on transaction speed and user anonymity.

Dash is priced in USD per coin, and reached a peak value of $1,370.16 in December 2017.

One of the major complaints against stalwart crypto Bitcoin is its painfully slow transactions speed (a big factor in its hard fork into Bitcoin Cash in 2017). Dash has a highly favourable processing speed compared to Bitcoin and other cryptos.

Processing is so quick that two days after its launch, almost 10 percent of the total capacity had already been mined.

Dash is a portmanteau of the words Digital and Cash. It was originally called Xcoin, followed by Darkcoin, before Dash was settled on.

Since its launch, Dash has become increasingly popular and is accepted as a payment method by over 300 organisations around the world - including Apple. CEO Ryan Taylor has stated his belief that Dash will soon overtake Bitcoin in popularity.

EUR/USD describes the euro (base currency) and US Dollar (quote currency) exchange rate and reflects the respective currency strength of the two largest economic blocs on the planet.

The EUR/USD exchange rate is the most traded currency pair in the world, accounting for 23.1% of all forex trading. Daily average volumes for EUR/USD trading amounts to more than $1 trillion.

As it is so actively traded and highly liquid, EUR/USD enjoys very low spreads. The euro makes up a very large weighting in the dollar index and as such the EUR/USD is closely correlated to the dollar index.

Much of the activity in the EUR/USD pair is driven by international business as well as speculators; the scale of the US and Eurozone economies means that many global corporations and banks have a need to convert large quantities of euros into US Dollars every day. The interest rate differential between the European Central Bank and the Federal Reserve tends to exert the greatest impact on EUR/USD.

Gold is a precious metal and has been used for thousands of years for currency, jewellery and trading. It was first smelted by the ancient Egyptians in around 3600 BC. The desire for gold has led to wars, gold rushes and conquests.

It remains highly sought after for investment purposes and a strong jewellery demand - half of the gold consumption in the world is jewellery, and 40% is investments. It is also used in the manufacture of electronic and medical devices, which accounts for the remaining 10% of the market.

Gold is priced in USD per troy ounce. The lowest price for gold, historically, was $34.83 in January 1970, it reached a record high in September 2011 at $1898.25.

Gold has experienced some significant price fluctuations. There are many factors that can impact gold prices, including central bank reserves, worldwide jewellery and industrial demand (especially from emerging economies) and wealth protection. It can also be affected by the value of the US Dollar and interest rates.

Rice is a “soft” commodity - referring to those that are grown and not mined - and is the third most-farmed grain in the world, behind cotton and wheat. It is a food staple for billions of people, spread throughout Asia, the Middle East, and Latin America.

Rice is priced in USD per hundredweight (CWT). In April 2008 prices of the grain peaked at $24.46/CWT, while in February 1982 they hit a low of $0.75/CWT.

China produces the bulk of the world's rice. India, Indonesia, Bangladesh, Vietnam, and Thailand are also big producers.

Rice prices are affected by many factors, including stock levels, the pace of demand growth, and changes in government spending on agriculture. One of the biggest drivers of volatility is crude oil prices - rising prices push up the cost of production and transportation.

Rice futures allow you to speculate on, or hedge against, changes in the price of rice. Futures rollover on the fourth Friday of February, April, June, August, October, and December.

Coffee is a “soft” commodity - referring to those that are grown rather than mined. It is the world's second-most popular commodity, behind only crude oil. The market is worth around $100 billion.

Over 50 countries worldwide grow coffee, with around two-thirds of the global supply produced in the Americas. Brazil, Vietnam, and Colombia are the three largest producers.

Coffee is priced in USD per lb. It hit a record high of $339.86/lb during April 1977, while the lowest price on record is $42.50/lb in October 2001.

Coffee is a highly-traded commodity that is often bought by speculators, so risk appetite has a strong effect on prices. Around half of the coffee produced on the globe is bought by just four companies: Kraft, P&G, Sara Lee, and Nestle, so changes in the fortunes of these companies can also impact prices.

Coffee futures allow you to speculate on, or hedge against, changes in the price of coffee. Futures rollover on the second Friday of February, April, June, August, and November.

The Direxion Work From Home ETF (WFH) offers exposure to companies across four technology pillars, allowing investors to gain exposure to those companies that stand to benefit from an increasingly flexible work environment. The four pillars include Cloud Technologies, Cybersecurity, Online Project and Document Management, and Remote Communications. Companies are selected for inclusion in the index by ARTIS, a proprietary natural language processing algorithm, which uses key words to evaluate large volumes of publicly available information, such as annual reports, business descriptions and financial news.

Corn is a soft commodity - referring to those that are grown rather than mined - and is valued for its versatility. As well as being a dietary staple it has many other uses, from biofuels to animal feed.

Corn is grown in every continent on the globe with the exception on Antarctica. 40% of global corn supplies are produced in the US, while China, Brazil, the EU, and Argentina are also major players.

Corn is priced in USD per bushel. In August 2012 corn struck a record high of $849, while the lowest price ever recorded was $22.90 in November 1932.

As corn is a soft commodity, prices are vulnerable to weather conditions which can affect harvests. The strength of emerging market economies also affects prices, as demand for meat products rises as incomes rise, and much of the corn produced each year is used for animal feed.

Corn futures allow you to speculate on, or hedge against, changes in the price of corn. Futures rollover on the fourth Friday of February, April, June, and November.

Palladium has become popular with investors because it has a range of qualities that mean it is difficult to substitute with other metals. It belongs to a group of metals called platinum group metals (PMGs), and is 30 times rarer than gold.

Palladium is priced in USD per troy ounce. It reached a record high of $1126 in January 2018, and fell to an all-time low of $78.25 in August 1991.

Its industrial use is in catalytic converters, where it speeds up chemical reactions, but it is more durable than platinum. It is also popular in jewellery - when mixed with yellow gold it forms an alloy metal that looks like white gold but is much stronger.

Between 70 to 80% of the world output of palladium is produced in Russia and South Africa, so the price of the metal is strongly affected by the political climate in those countries.

Palladium futures allow you to speculate on, or hedge against, changes in the price of palladium. Futures rollover on the fourth Friday of March, May, August and December.

The New Zealand dollar to Japanese yen exchange rate is identified by the abbreviation NZD/JPY. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$104 billion worth of NZD is traded daily. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.

The pair is highly sensitive to changes in market risk-appetite, as the New Zealand dollar is a commodity-correlated currency and the Japanese yen is a safe-haven currency.

New Zealand's main industry is diary; when dairy prices fall, the outlook for the New Zealand economy weakens, pushing the NZD/JPY exchange rate lower. When dairy prices rise, the opposite happens.

In times of market uncertainty, appetite for the safe-haven Japanese yen can increase sharply. However, the yen is often softened by the Bank of Japan's ultra-loose monetary stimulus package, which includes quantitative easing and negative interest rates.

What are Support Levels?

What are Support Levels?
Support levels refer to the levels at which the price of an asset tends to stop falling and stabilize. These levels are determined by analyzing past price movements and identifying a floor at which buying pressure is strong enough to prevent the price from falling further. Traders and investors use support levels as a guide for placing buy orders, and as a signal for potential buying opportunities.

What does support level mean in Crypto?
Support levels mean the same thing regardless of the asset class in question.

What is the best indicator for support and resistance?
There are several indicators that can be used to identify support and resistance levels in a market. Some commonly used indicators include moving averages, Fibonacci retracements, and pivot points. However, no single indicator is considered to be the "best" as different indicators may work better in different market conditions and for different traders. Ultimately, the best indicator is the one that works best for you and fits your individual trading style and strategy.

 

The US Dollar to Hungarian forint exchange rate is an exotic currency pair known by the abbreviation USD/HUF. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The forint is the 26th most-active currency, accounting for just 0.3% of daily transactions.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.

As an emerging market currency, the forint is popular in times of confidence and is sold in favour of safer, lower-yielding assets when volatility increases.

Compared to its emerging market peers, Hungary has a small level of foreign currency debt, providing some insulation for the economy and its currency against external disruption. Hungary enjoys a strong economy, with low payroll and corporate taxes and growth that outpaces the EU average.

The euro to Romanian leu exchange rate has the abbreviation EUR/RON, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.

The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.

While not a safe-haven asset, the euro is considered more stable than the Romanian leu, meaning that the EUR/RON strengthens in times of market uncertainty. Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria.

The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$104 billion worth of NZD is traded daily.

Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.

The New Zealand dollar is highly-sensitive to commodity prices. Dairy is the country's main industry; when dairy prices fall, the outlook for the New Zealand economy weakens, pushing the GBP/NZD exchange rate higher. When dairy prices rise, the opposite happens.

The Canadian dollar to Japanese yen exchange rate is identified by the abbreviation CAD/JPY. The Canadian dollar is the 6th most-popular currency, making up one side in 5.1% of daily trades. The Japanese yen is the 3rd most-traded currency, accounting for 22%.

The pair is highly sensitive to changes in market risk-appetite, as the Canadian dollar is a commodity-correlated currency and the Japanese yen is a safe-haven currency.

The Canadian dollar is highly sensitive to changes in the price of crude oil - Canada's primary export. In turn, crude prices often respond to market appetite for risk, so the strength of the CAD/JPY exchange rate is largely dictated by whether traders are feeling optimistic or pessimistic over global conditions.

In times of market uncertainty, appetite for the safe-haven Japanese yen can increase sharply. However, the yen is often softened by the Bank of Japan's ultra-loose monetary stimulus package, which includes quantitative easing and negative interest rates.

The Australian dollar to Japanese yen exchange rate goes by the abbreviation AUD/JPY. The Australian dollar is often known as the “Aussie”, and is the 5th most-traded currency in the world, being involved in 6.9% of all daily forex trades. The Japanese yen is the 3rd most-traded currency, accounting for 22% of all daily trades.

The Australian dollar is a commodity-correlated currency and is sensitive to price changes in iron ore, of which Australia is the world's largest exporter. The Japanese yen is a safe-haven asset, and is popular in times of uncertainty. Falling risk appetite undermines the AUD/JPY pairing, while market confidence pushes it higher.

A key driver of AUD/JPY volatility is the interest rate differential between the two nations. Like other central banks, the Reserve Bank of Australia cut interest rates in response to the 2008 financial crisis, but Australia's strong economy limited the need for easing. In contrast, the Bank of Japan still maintains ultra-loose stimulus.

The US Dollar to Polish zloty exchange rate is identified by the abbreviation USD/PLN. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The Polish zloty the 22nd most active currency, accounting for 0.7% of average daily turnover. Approximately $19 billion worth of USD/PLN is traded each day.

Poland is an emerging market economy, favoured by investors in times of market certainty because of its higher yielding assets.

The zloty reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the bloc. Positive Eurozone data can therefore support the zloty.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency.

The pound Sterling to Romanian leu exchange rate has the abbreviation GBP/RON, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet.

The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.

Recently, political factors have seen their influence over pound pairings grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key - after nearly ten years the Bank of England has begun to raise interest rates.

Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria. GBP/RON appreciates in times of market uncertainty.

The pound Sterling to Singapore dollar exchange rate is abbreviated to GBP/SGD. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Singapore dollar accounts for 1.8% of all daily forex transactions, making it the 12th most-traded currency on the globe.

Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook.

The Singapore dollar has been allowed to float free by the Monetary Authority of Singapore (MAS) since 1985, but the range in which it is permitted to trade has never been disclosed. SGD has a weak correlation with the Chinese yuan. This, combined with a solid financial sector and property market, has made Singapore an attractive place for offshore investors, helping to keep the appeal of the local currency elevated.

The Direxion Daily Financial Bull 3X (FAS) Shares ETF is a leveraged ETF, aiming to secure traders three times the daily returns on the performance of the Russell 1000 Financial Services Index. This increased exposure also increases risk, so this ETF is more suited to traders with the capital to withstand volatility and with a high risk tolerance. 

The portfolio is composed of 70% stocks. Sector exposure is mostly financial services, which make up 77.21% of holdings, with another 15.99% in Real Estate. Commercial banks account for a high proportion of this ETF, with stocks including Berkshire Hathaway Inc, JPMorgan Chase & Co, Bank of America Corp, Visa, Wells Fargo and Citigroup all featuring.

The euro to Japanese yen exchange rate has the acronym EUR/JPY. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades. EUR/JPY accounts for 1.6% of all daily currency trades; $79 billion per day.

While a strong US Dollar can weaken demand for the Japanese yen, it has a much stronger impact upon the euro. This means that in times of safe-haven demand the EUR/JPY exchange rate falls and, although the euro is not a high-beta currency, the pairing appreciates when risk-appetite is strong.

Both the European Central Bank and the Bank of Japan maintain ultra-loose monetary stimulus, but the ECB has recently taken tentative steps towards normalisation. Although negative rates are unlikely to disappear any time soon in either economy, the fact the ECB is in more of a position to adjust borrowing costs stands in the euro's favour.

The pound Sterling to Turkish lira exchange rate has the abbreviation GBP/TRY, and is classed as an exotic currency pair. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of GBP is traded every single day, making it the fourth most-active currency on the planet. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.

Recently, political factors have seen their influence over pound pairings grow. The 2016 vote in favouring of leaving the EU has created significant uncertainty regarding the UK economic outlook. The monetary policy outlook is also key.

Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well.

The Turkish economy is largely fuelled by foreign currency loans, so a strong euro or dollar strengthens GBP/TRY as markets sell the lira on fear of higher credit costs for Turkey's corporations.

The euro to Norwegian krone exchange rate has the acronym EUR/NOK. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. The krone is the 13th most-trade currency, accounting for 1.7% of all daily forex activity. Around $US28 billion worth of EUR/NOK - 0.6% of the total daily FX volume - is traded each day.

The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar.

The Norwegian economy is strongly-reliant upon crude oil and natural gas; the nation is one of the 5 top exporters of gas and oil, with the sector accounting for 22% of Norwegian GDP and 67% of the country's exports. The EU is an important trade partner for Norway, accounting for 72% of its trade. Eurozone economic data can therefore have an impact upon NOK as well as EUR.

The euro to Polish zloty exchange rate has the abbreviation EUR/PLN, and is classed as an exotic currency pair. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. US$1.59 trillion worth of euros are traded daily. The Polish Zloty is the 22nd most active currency, accounting for 0.7% of average daily turnover. US$13 billion worth of EUR/PLN is traded each day.

The euro is the currency of the Eurozone, which is overseen by the ECB. The euro has an inverse correlation with the US Dollar.

EUR/PLN strengthens in times of market uncertainty. Poland is an emerging market economy; it's assets are higher-yielding, but also more volatile.

The zloty also reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the currency bloc. This can soften the upside impact of positive Eurozone data upon the EUR/PLN pairing.

What is Stock Dilution?

Stock dilution is the decrease in existing shareholders' ownership of a company as a result of the issuance of new shares. It typically occurs when companies raise capital by issuing additional shares, thereby reducing the stake of existing shareholders.

Why do companies dilute stock?
Companies dilute stock to raise capital for future growth and investments, often through the sale of additional shares. This allows companies to raise money without having to take out loans or issue bonds. Diluting stock can help reduce overall debt and create a healthier financial situation for the company.

Is stock dilution a good thing?
It depends. If done properly, diluting stock can help raise funds for business operations and growth. It also encourages investors to purchase shares due to the lower price per share. However, too much dilution can weaken shareholder equity and damage investor confidence.

What does dilution do to stock price?
Dilution decreases a stock's price by decreasing its earnings per share (EPS). This happens when a company issues new shares to the public, increasing the total number of shares outstanding and resulting in lower EPS for existing shareholders. Dilution can also occur through corporate acquisitions, mergers or issuing debt that is converted into equity.

The United States Natural Gas Fund® LP (UNG) is an exchange-traded security that is designed to track in percentage terms the movements of natural gas prices. UNG issues shares that may be purchased and sold on the NYSE Arca.

The investment objective of UNG is for the daily changes in percentage terms of its shares' net NAV to reflect the daily changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana, as measured by the daily changes in the Benchmark Futures Contract, less UNG's expenses.

The Benchmark is the futures contract on natural gas as traded on the NYMEX. If the near month contract is within two weeks of expiration, the Benchmark will be the next month contract to expire. The natural gas contract is natural gas delivered at the Henry Hub, Louisiana.

UNG invests primarily in listed natural gas futures contracts and other natural gas related futures contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less.

What is a Dividend and how does it work?

A dividend is a payment made by a company to its shareholders out of its profits. It's typically paid quarterly, with the amount of each dividend depending on how profitable the company is and how much the board of directors chooses to distribute. Dividends can be used as income or reinvested back into the company to purchase additional shares.

How many shares do you need to get dividends?
The exact number of shares you need to get dividends depends on the company's policy and dividend payout rate. Generally, owning at least one share qualifies you for receiving dividends.

Is a dividend a good thing for traders?
Yes. Dividends provide traders with regular income and the potential for capital gains if the dividend is reinvested into more shares. This can be beneficial to traders, as it can create a passive stream of income and add to their overall yeild.
 

The USA 30, is a blue-chip index of US companies that covers all industries excluding Transportation and Utilities.

It is the second-oldest stock market index in existence and was launched on 26th May 1896, with a base date of the same year. The index peaked at 26,616.71 in January 2018, while its lowest recorded level was 41.20 in July 1932.

The last surviving component of the original index, the Thomas Edison-founded General Electric, was removed from the Dow in 2018.

The index is predominantly made up of industrial companies, which account for 21.5% of the index. Financials are not far behind, however, with 19.2% of the total weighting. Consumer services is the third-largest sector with 16.7% of the index.

The USA 30 contains some of the world's biggest companies, including Apple, Microsoft, Disney, JPMorgan Chase and Johnson & Johnson.

What are Trailing Stop Orders in trading?

Trailing Stop Orders are a type of stock order that lets investors adjust the stop price as a security rises or falls. This order works by continuously monitoring the price of a security and dynamically adjusts the stop price with every tick. The advantage of this type of order is that it allows investors to limit their losses, while locking in profits, without having to manually modify the stop-loss point.

Are Trailing Stop Orders good?
Trailing Stop Orders can be a good way to protect profits in your trading. They allow you to set an automated stop-loss that trails the price of a stock, adjusting up as it rises, while allowing you to lock in some gains if the stock begins to fall. This is especially useful when dealing with volatile stocks, giving you more control over your position.

What is a disadvantage of a trailing stop loss?
Trailing stop losses can help minimize risk when trading, however they also limit potential gains. The stop price adjusts based on market conditions, so as the price increases, the stop loss will move up. If the stock drops significantly and your trailing stop loss is too close, it may be triggered before you have a chance to react.

Which is better stop limit or trailing stop?
It depends entirely on the trader. A stop limit will sell at the specified price, while a trailing stop will track price changes and sell when the specified amount is exceeded. Different traders may have different needs and objectives, so which type of order is best will vary. Consider your goals before deciding which option is right for you.

The US Dollar to Brazilian real exchange rate is known by the acronym USD/BRL. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.

The Brazilian real is the 19th most actively traded currency, accounting for 1% of all average daily turnover. US $45 billion worth of over-the-counter USD/BRL trades are made every day.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.

The real was adopted in July 1994 and was pegged against the US Dollar until 1999. The USD/BRL exchange rate is a popular one with carry traders; those who borrow dollars, convert them into real and then use the proceeds to buy debt issued in Brazil, where interest rates are significantly higher than in the United States. Times of market uncertainty can deter carry traders, as high USD/BRL volatility can weaken profits made from exploiting the interest rate differential.

What is an Ask in Stock?

In Forex, an Ask is the price at which it is possible to buy the base currency of the selected currency pair. In trading, Ask Price or Offer Price are the lowest price at which a seller will sell their stock. 
 
Ask is used in conjunction with Bid price, which is what the buyer is offering and is by definition lower than the price the selling is asking for. The difference between the buyer’s bid and a seller’s ask is called a “Spread”.

What Is the Bid Ask Spread?
Financial instruments have 2 key public prices: a bid and an ask. When traders wish to buy (a Buy Position), they effectively pay the Ask price. When traders open a sell position, then they are offered the bid price by potential buyers. For obvious reasons, the bid price tends to be lower than the ask price. This price differential is the bid ask spread.

The New Zealand dollar to US Dollar exchange rate is represented by the acronym NZD/USD. The New Zealand dollar, also known as the ‘Kiwi' because of the bird depicted upon the NZ$1 coin is the smallest major in terms of trading volume, accounting for 2.1% of daily forex trades. Around $104 billion worth of NZD is traded each day.

The New Zealand economy is heavily reliant upon exports, with dairy being the nation's biggest industry. Mining is also important and, like its antipodean neighbour Australia, New Zealand relies heavily upon trade with China. Data from China that shows strength or weakness in industry or consumer demand can have a strong impact upon NZD/USD.

As a commodity-correlated currency the New Zealand dollar is also highly-sensitive to risk-appetite. In times of geopolitical or economic uncertainty the NZD/USD exchange rate weakens, while market confidence tends to push NZD/USD higher.

The US Dollar to South African rand exchange rate is identified by the abbreviation USD/ZAR. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The rand is the 20th most active currency, accounting for 1% of average daily turnover. Around $40 billion worth of USD/ZAR is traded each day.

USD/ZAR appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower-yielding, lower risk, assets. The South African rand is a highly-volatile currency thanks to the country's unstable economy, high levels of government debt, poor credit rating, and the political ramifications of apartheid.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency.

The Australian dollar to New Zealand dollar exchange rate is abbreviated to AUD/NZD. The Australian dollar accounts for 7% of all daily forex trading, making it the 5th most-popular currency on the exchange market. The New Zealand dollar is the 10th most-traded currency, accounting for 2.1% of daily transactions. US$348 billion worth of AUD/ is traded every day, while US$104 billion worth of NZD is traded daily.

Both the Australian Dollar and the New Zealand Dollar are commodity-correlated. The Australian economy is highly-reliant upon exports of iron ore, for which Australia accounts for over 50% of the global supply. The New Zealand economy relies on exports of dairy; the nation's biggest industry.

Because of the similar structure of their economies, the monetary policies of the RBA and the RBNZ are quite similar, with interest rates held roughly at the same levels. Any indication of upcoming divergences can therefore create volatility for the AUD/NZD pairing.

The US Dollar to Indian rupee exchange rate is an exotic currency pair known by the abbreviation USD/INR. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The rupee is the 18th most-active currency, accounting for 1.1% of daily transactions.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. As an emerging market currency, the rupee is popular in times of confidence and is sold when volatility increases. As a result of rising global trade tensions, INR weakened to record lows in the second half of 2018.

India is a net oil importer, so rising crude prices increase import costs, widening the current account deficit. Foreign direct investment (FDI) is key for the Indian economy, which benefits from overseas businesses looking to take advantage of the tax exemptions and lower labour costs.

The US Dollar to Romanian leu exchange rate is identified by the abbreviation USD/RON. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The Romanian leu the 34th most-active currency, accounting for just 0.1% of average daily turnover.

Romania is an emerging market economy and is one of Europe's poorest nations. The country wanted to adopt the euro, but has so far failed to meet the criteria. USD/RON appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower-yielding, lower risk, currencies.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency, meaning central banks stockpile dollars to use in times of domestic currency weakness.

The US Dollar to Swedish Krona exchange rate is identified by the abbreviation USD/SEK. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.

The Swedish Krona is the 9th most-traded currency, accounting for 2.2% of daily transactions. US$112 billion worth of SEK is traded daily.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.

The Swedish krona shares a strong correlation with its Scandinavian peers the Norwegian krone and the Danish krone. These currencies - which all translate as “crown” - came about in 1873 when Sweden and Denmark formed the Scandinavian Monetary Union, backed by the gold standard. Norway joined two years later. When the union was dissolved after World War Two, the countries independently kept the currency.

The US Dollar to Singapore dollar exchange rate is identified by the abbreviation USD/SGD. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.

The Singapore dollar accounts for 1.8% of all daily forex transactions, making it the 12th most-traded currency on the globe.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.

The Singapore dollar has been allowed to float free by the Monetary Authority of Singapore (MAS) since 1985, but the range in which it is permitted to trade has never been disclosed. SGD has a weak correlation with the Chinese yuan. This, combined with a solid financial sector and property market, has made Singapore an attractive place for offshore investors, helping to keep the appeal of the local currency elevated.

The US Dollar to Japanese yen exchange rate is known by the abbreviated USD/JPY and is the second most-popular currency pair on the forex market. Around $901 billion worth of USD/JPY trades are conducted every day, which is nearly 18% of all forex activity. The pair is highly liquid, and therefore offers very low spreads. The pairing sees strong volatility during the Asian trading session as well as the North American session.

Interest rate differentials are a key volatility driver for the USD/JPY exchange rate. While the US Federal Reserve is currently normalising monetary policy as the economy recovers from the 2008 financial crisis, the Central Bank of Japan is maintaining an ultra-loose stimulus package. USD/JPY is therefore popular amongst carry traders.

The Japanese economy relies heavily upon trade because it lacks many of the natural resources needed for industry, so strength or weakness in global demand and commodity prices can have an impact upon the USD/JPY exchange rate.

The US Dollar to Mexican peso exchange rate is identified by the abbreviation USD/MXN. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion.

The Mexican peso is the 11th most-traded currency, accounting for 1.9% of daily transactions.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD. It is the most popular reserve currency

MXN is tied to the price of crude oil because of Mexico's high reserves, which the government uses as collateral when borrowing to fund spending. 10% of Mexico's GDP comes from oil production, so when prices fall it not only pushes up borrowing costs, but also weakens the outlook for growth.

Cross-border trade with the US also generates strong demand for pesos. The currency therefore weakens when trade comes under threat.

The pound Sterling to Canadian dollar exchange rate is identified by the abbreviation GBP/CAD. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth.

Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.

The Canadian dollar is highly-sensitive to changes in the US Dollar, as well as the price of crude oil, as this is Canada's main export. When oil prices fall, the outlook for the Canadian economy weakens, pushing the GBP/CAD exchange rate higher. When oil prices rise, the opposite happens.

What is cryptocurrency?

A Cryptocurrency is a digital currency supported by decentralised cryptographic technology. It does not rely on any central authority such as a central bank or government like a traditional currency. Instead, transactions are verified by multiple independent computers along a network. This creates several benefits including speed and general transparency. 

Cryptocurrency ownership is recorded in a digital ledger. This ledger then uses strong cryptography to maintain the integrity of transaction records. This controls the creation of more digital currency within the network and to verifies the transfer of coin ownership. Cryptocurrencies are generally viewed as a distinct asset class, yet do not exist in physical form.  
 
What is an example of a cryptocurrency? 
Some examples of popular cryptocurrencies are Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH).

What is cryptocurrency CFD trading?
Cryptocurrency CFD trading is using CFDs to trade crypto. This enables traders to take a position on whether a cryptocurrency rises or falls. Cryptocurrency CFD trading opens up more trading opportunities as it allows traders to buy or sell the asset without physically owning it.

What are Financial Instruments?

Financial instruments are a way to place money into financial markets, they can take many forms such as stocks, bonds, derivatives, currencies, commodities, etc. They are used by investors, companies and governments as a means of raising capital, hedging risk, and/or generating additional income. They represent a claim on some type of underlying asset or cash flow. They can be traded on financial markets and their value can fluctuate with market conditions.

What are the 5 financial instruments?
The five main types of financial instruments are: money market instruments, debt securities, equity securities, derivatives, and foreign exchange instruments. There are many more subsets of financial instrument but all of them will fall into one of these 5 broad categories. 

1. Money market instruments (also known as Cash Instruments). These are financial instruments where their values are influenced by the condition of the markets (the value given to any given cash currency at any specific point in time). 

2. Debt securities – Which are negotiable financial instruments. Debt securities provide their owners with regular payments of interest and guaranteed repayment of principal. 

3. Equity securities - Equity securities are another form of financial instruments and represent the ownership of shares of stock. 

4. Derivative instruments – These are instruments which are linked to a specific financial instrument or indicator or commodity, and through which specific financial speculative actions can be traded in financial markets in their own right. 

5. Foreign Exchange Instruments - Which are represented on the foreign market and mainly consist of currency agreements and derivatives.

Is cash a financial instrument?
Yes, cash is the most basic form of financial instrument. It is widely accepted and can be used to purchase goods and services as well as other investments. Cash is an essential part of most financial transactions, allowing people to pay for their purchases with ease.
 

The Australian dollar to Canadian dollar exchange rate has the abbreviation CAD. The Australian dollar is often known as the “Aussie”, while the Canadian dollar has been nicknamed the “Loonie” after the bird depicted on the C$1 coin. The Australian dollar is the 5th most-traded currency in the world, and is involved in 6.9% of all daily forex trades. The Canadian dollar is the 6th most popular currency, and makes up one side in 5.1% of all daily trades.

Both the Australian dollar and Canadian dollar are commodity-correlated currencies, and along with the New Zealand dollar make up the commodity trio, or commodity bloc.

The movement of particular commodity prices can have a significant impact upon the pairing. The Australian economy is heavily reliant upon iron ore exports, so changes in the price of this can push AUD/CAD higher or lower. Canada is one of the world's largest oil exporters, so changes in the crude market can also drive price action.

The US Dollar to Turkish lira exchange rate is identified by the abbreviation USD/TRY. The US Dollar is by far the world's most-traded currency, accounting for 87% of all over-the-counter FX each day - $4.4 trillion. The lira is the 16th most active currency, accounting for 1.4% of average daily turnover.

Turkey is an emerging market and relies heavily upon the EU for both imports and exports; weakness in the Eurozone economy is therefore a bad sign for Turkey as well. USD/TRY appreciates in times of market uncertainty, as traders move away from higher-yielding, but higher risk, emerging market currencies into lower risk currencies.

The Turkish economy is largely fuelled by foreign currency loans, a strong USD can prompt further lira selling on fear of higher credit costs for Turkey's corporations.

The US Dollar is not only the most ubiquitous currency on the globe, but also a safe-haven asset. In times of market uncertainty traders withdraw from riskier assets into stable USD.

The euro to Swiss franc exchange rate is identified by the abbreviation EUR/CHF. On average US$44 billion worth of euros are converted into Swiss francs every day, making up 0.9% of the total global forex volume. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. the Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.

The euro and the Swiss franc share a strong correlation; the franc was actually pegged to the euro until January 2014, where the Swiss National Bank shocked markets by allowing the currency to float free - a move which saw CHF surge around 30% in a single day.

The EUR/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is viewed as a safe haven asset, while the fate of the Eurozone forever hangs in the balance as political and economic developments cause tension between its constituent nations.

The pound Sterling to Australian dollar exchange rate is abbreviated to GBP/AUD/. GBP is present in 13% of all daily forex trades and on average US$649 billion worth of pound Sterling is traded every single day. The Australian dollar accounts for 7% of all daily forex trading, making it the 5th most-popular currency on the exchange market. US$348 billion worth of AUD/ is traded every day.

Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.

The Australian Dollar is commodity-correlated; the domestic economy is highly-reliant upon exports of iron ore, for which Australia accounts for over 50% of the global supply.

The pound Sterling to Swiss franc exchange rate is identified by the abbreviation GBP/CHF. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Swiss franc is the 7th most-traded currency, and is involved in 4.8% of all daily trades.

Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the GBP/CHF exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on Sterling.

The Swiss franc is strongly-correlated to euro strength; the franc was actually pegged to the euro until January 2014, when the Swiss National Bank shocked markets by allowing the currency to float free.

The GBP/CHF pair is likely to weaken in times of market uncertainty; the Swiss franc is a safe-haven asset because of Switzerland's strong and stable economy. It is a wealthy nation with a strong banking sector and its citizens enjoy a great quality of life.

The pound Sterling to Japanese yen exchange rate is identified by the abbreviation GBP/JPY. GBP is the 4th most-traded currency, accounting for 13% of all daily trades; US$649 billion worth. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.

Recently, political factors have seen their influence over the pound grow. This is because the Brexit referendum, which resulted in the UK voting to leave the EU, has created significant uncertainty regarding the UK economic outlook. Signs of upheaval in government as Downing Street tries to negotiate a Brexit deal that pleases all sides of the debate, as well as fears that the UK will crash out of the EU with no deal in place, weigh heavily on Sterling.

The GBP/JPY exchange rate is heavily-influenced by movement in the US Dollar. The Japanese yen is a safe-haven asset, meaning that it appreciates in times of low risk-appetite. However, when USD is strong the lower-yielding yen is less appealing.

The Swiss franc to Japanese yen exchange rate has the acronym CHF/JPY. The Swiss franc is the 7th most traded currency on global markets, accounting for 4.8% of daily turnover. The Japanese yen is the 3rd most-traded currency, involved in 22% of all daily currency trades.

Both the Swiss franc and the Japanese yen are safe-haven assets, so the pairing is less susceptible to the influence of market uncertainty as pairings that trade a high-yield asset against a safe-haven. However, markets prefer the Japanese yen to the Swiss franc in times of uncertainty; the pair hit a low of ¥74.65 in 2008 during the financial crisis.

Since then the franc has gained much ground thanks to the Bank of Japan's ultra-loose monetary stimulus package.

The Swiss franc is closely correlated to the euro, meaning that it has an inverse correlation by proxy to the US Dollar. The Japanese yen is sensitive to commodity price movements as Japan lacks many of the natural resources used to fuel industry.

The Swiss franc to Polish zloty exchange rate has the abbreviation CHF/PLN, and is classed as an exotic currency pair. The franc is the 7th most active currency in the FX market, accounting for nearly 5% of average daily turnover. The Zloty the 22nd most active currency, accounting for 0.7% of average daily turnover.

The CHF/PLN pair is likely to strengthen in times of market uncertainty; the Swiss franc is a safe-haven asset because of Switzerland's strong and stable economy. Poland is an emerging market economy; it's assets are higher-yielding, but also more volatile.

The Swiss franc is strongly-correlated to euro strength; the franc was pegged to the euro until January 2014, when the SNB shocked markets by allowing the currency to float free. However, the zloty also reflects the strength or weakness of the Eurozone economy due to the strong trading relationship between Poland and the Eurozone, as well as the fact that Poland could eventually become a member of the currency bloc.

The CAC 40, also known as the France 40, is a blue-chip index and stock market barometer comprising of the 40 companies listed in Paris with the highest liquidity and free-float market capitalisation. It is the most-traded index administered by Euronext.

The index has a base level of 1,000, taken from the 31st December 1987. It was launched on 15th June 1988. The index hit a record high of 6,922.33 in September 2000, with an all-time low of 893.82 recorded in January 1988.

Personal & Household Goods is the biggest sector in the index, comprising around 13% of the total weighting, followed closely by Industrial Goods & Services. Oil & Gas is the third-biggest sector, with a weighting of just under 12%. Healthcare and Banks are the fourth and fifth largest sectors respectively. Companies are limited to a 15% weighting.

CAC 40 index futures allow you to speculate on, or hedge against, changes in the price of major French stocks. Futures rollover on the second Friday of each month.

The euro to pound Sterling exchange rate is identified by the abbreviation EUR/GBP. The pairing accounts for 2% - US$100 billion - of all daily FX transactions. The euro is the 2nd most-traded currency on the planet, making up one side of 31% of daily trades. GBP is the 4th most-traded currency, accounting for 13% of all daily trades.

The euro is the currency of the Eurozone, which is overseen by the European Central Bank. The euro, also known as the common currency, the single currency, or the single unit, has an inverse correlation with the US Dollar. This weakens the EUR/GBP exchange rate when the dollar is strong, even if USD strength is pushing Sterling lower elsewhere.

Since the UK's vote in 2016 to leave the European Union, politics has become a stronger driver of movement for the EUR/GBP exchange rate. Uncertainty over the future relationship between the UK and the bloc weighs on the pairing, with GBP the more affected as economists agree the UK will come off worse.

The STOXX Europe 50 Index, also known simply as the Europe 50, is Europe's blue-chip index, comprising of 50 stocks from 17 countries; Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The index peaked at 4,557.57 in July 2007 and hit a record low of 1,809.98 in March 2009.

Companies in the Healthcare industry make up a fifth of the index, while Banks is the second-largest sector represented, with a weighting of 15.6%. Personal & Household Goods is the third largest sector with a weighting of 12.3%, but Oil & Gas is only 10 basis points smaller.

The stocks are mostly from Great Britain (33.6%), Switzerland (18%), France (17.9%), and Germany (14.9%). The index includes a capping factor to ensure that it cannot be dominated by one single country or component.

Europe 50 index futures allow you to speculate on, or hedge against, changes in the price of major European stocks. Futures rollover on the second Friday of March, June, September, and December.

What are Bollinger Bands?

Bollinger Bands® are a helpful technical analysis tool. They assist traders to identify short-term price movements and potential entry and exit points.

A Bollinger Band typically consists of a moving average band (the middle band), as well as an upper and lower band which are set above and below the moving average. This represents the volatility of reviewed asset. When comparing a share’s position relative to these bands, traders may be able to determine if that share’s price is low or high. Bollinger bands are good indicators and are good for day trading.

Additionally, the width of this band can serve as an indicator of the share’s volatility. Narrower bands indicate less volatility while wider ones indicate higher volatility. A Bollinger Band typically uses a 20-period moving average. These “periods” can represent any timeframe from 5 minutes per frame to hours or even days.

The  UK 100 is a blue-chip index of the largest 100 companies on the London Stock Exchange in terms of market capitalisation. Companies are only included if they meet relevant size and liquidity requirements.

The index was launched on 3rd January 1984, with a base date of 30th December 1983 and a base level of 1,000 points.

In terms of weighting, the three largest sectors of the UK 100 as of H2 2018 are Oil & Gas (16.56%), Banks (12.70%), and Personal & Household Goods (12.37%).

Traditionally the index has lagged its peers, such as the larger FTSE 250 and the US S&P 500. The index fluctuates in response to market risk sentiment and the strength of the pound Sterling. The UK 100 contains many international companies who report their earnings in other currencies, so a stronger pound weakens company profits.

Because of this, the UK 100 is also considered to be an unreliable indicator of the health of the UK economy because of its large international component.

The US Dollar Index, introduced in 1973, allows you to take a position on the overall strength of USD as measured by its performance against a basket of currencies. When it was launched the index had a base level of 100; it reached an all-time high of 164.72 in February 1985, and struck a low of 70.698 in March 2008.

Unlike the trade-weighted index of the US Dollar produced by the US Federal Reserve, the composition of the USDX has remained unaltered since its inception, save for one change: in January 1999 the euro was created, so many individual European currencies were removed from the index and replaced by the euro. Despite this change, the euro still has the same weighting in the index (57.6%) as all the currencies that it replaced combined.

After the euro, the Japanese yen is the second-largest proponent in the dollar index, with a weighting of 13.6%. The British pound with 11.9%, and the Canadian dollar, with 9.1%, are the next two largest components.

What is an Ex-Dividend Date?

The term Ex-Dividend date refers to a cut-off date where shareholders buying shares from a company will not be eligible for upcoming dividends for those shares. 

Why is it important to know the ex-dividend date?
Knowing the ex-dividend date is important for investors as it determines whether they are eligible to receive the next dividend payment. On this day, stocks typically drop in price by an amount equal to the dividend paid, so understanding this date is essential for making informed decisions.

The Ex-Dividend Date is one of four dates relevant to a company’s dividends: The other three are:
• Declaration Date – When a company announces that it plans to issue dividends in the foreseeable future
• Record Date - When the dividend issuing company examines and closes its list of shareholders
• Payable Date - When the eligible shareholders are to be paid by the company 


What happens if I sell on ex-dividend date?
If you sell the stock on its ex-dividend date, you will not receive the next dividend. The buyer of the stock will receive the dividend and any capital gains, but you as the seller will miss out on this benefit.