Mindblown: a blog about philosophy.

Whereas there are thousands of securities on the stock market, in the Forex market most trading takes place in only a few currencies; the U.S. Dollar ($), European Currency Unit (€), Japanese Yen (¥), British Pound Sterling (£), Swiss Franc (Sf), Canadian Dollar (Can$), and to a lesser extent, the Australian and New Zealand Dollars.…

Buying or selling currencies in response to economic or political events which occur are reactive, whereas buying or selling currencies on anticipated events is speculative. The bulk of currency activity is generated by market participants anticipating the direction of currency prices. In general, the value of a currency versus other currencies is a reflection of…

The most popular forex currency pairs are known as the “major pairs.” These pairs involve the world’s most widely traded currencies and typically have the highest liquidity and trading volume. Here are the most popular forex currency pairs: These pairs are considered the major currency pairs and are commonly traded by forex traders around the…

Leverage refers to the use of borrowed funds or financial instruments to increase the potential return on an investment. In other words, leverage is the practice of using a small amount of money to control a larger amount of assets. Leverage can be used in many different contexts, such as in investing, business, and finance.…

A margin call is a demand by a broker or lender for an investor to deposit additional funds or securities into their margin account to bring it up to the required level. This typically occurs when the value of the investor’s account falls below a certain threshold, which is set by the broker or lender.…

The Forex market is exciting and accessible to small retail traders because of the industry’s high leverage options. Leverage gives a trader the ability to increase the potential return on an investment. Leverage works both ways however; it increases potential returns, but it also increases potential risk. Therefore leveraging magnifies both gains and losses. Contract…

Fundamental analysis involves examining the intrinsic value of a nation’s currency based on economic news releases that reflect the strength, or weakness, of a country’s economy. Fundamental traders follow these news announcements, known as “fundamental indicators,” because they paint a picture of a currency’s strength in relation to other countries. Fundamental indicators are reports that…

Gross Domestic Product (GDP) Gross Domestic Product is one of the major economic indicators that generally reflect the state of the economy of the whole country. GDP measures an economy’s total expenditure on newly produced goods and services and the total income earned from the production of these goods and services. In particular, the GDP…

Inflation’s Impact on an Economy Inflation measures at what rate prices in an economy are rising. Inflation is tied directly to the purchasing power of a currency within its borders and affects its standing on the international markets. Prices of goods, houses, labor, production materials, etc., are all closely monitored to see if their prices…

Employment indicators reflect the overall health of an economy or business cycle. In order to understand how an economy is functioning, it is important to know how many jobs are being created, what percentage of the work force is actively working, and how many new people are claiming unemployment. We have already mentioned, on the…