The financial markets are sophisticated systems. Everyone willing to succeed in trading needs to devote enough time to educate himself the general concepts, prepare himself by choosing a broker , opening an account, etc., and study the market that he is about to enter. It all pays in the end. An experienced trader is ...
Types of Options
Options have two variations regarding the way they can be exercised. The European option can be exercised only at the expiration date. The American option can be exercised at any time prior to expiry. Regarding the rights they give for the underlying asset, there are two types of options – call and put. ...
Commitment of Traders Report (COT)
The Forex market is decentralized, and investors can’t easily obtain reliable information about the positions of the market participants . A very practical way to understand the dynamics of the market is to analyze the Commitment of Traders report (COT). It was first published by the U.S. Commodity ...
Exchange Traded Funds (ETF)
ETFs are a basket of assets pooled together into one fund, that you can trade without having to buy all the components individually. These are funds that can be traded on an exchange, just like a stock (hence the name), and their price changes throughout the day. It all starts with a fund provider who owns the underlying ...
Market Risk
You must know the market you trade. You must know its specifics, and most importantly, you must understand the risks. The management of risk is a key factor in the forex trading systems. An unprepared trader is as doomed as an unexperienced one. Luck may sometimes smile upon you, but it’s far more ...
Risk Management
The purpose of risk management is to minimize the risks as much as possible. A trade with a high probability of profit, and zero risk is an extremely attractive idea, unfortunately it does not exist. A well-developed risk management system is mandatory for a long-term successful trading. The rules need to be clear and ...
Money Management
When you consider all the risks and develop a proper risk management strategy, you are left with one last equally important step – to prepare your money management rules. They give a mathematical expression of your risk management system, with one phrase standing above all. DO NOT RISK MORE THAN YOU CAN ...
Cryptocurrency
Cryptocurrency is a form of digital or virtual currency, that has no central issuing or regulating authority. Instead it uses a decentralized system to record transactions and manage the issuance of new units and relies on cryptography to prevent counterfeiting and fraudulent transactions. This ledger that exists in the ...
Blockchain
The blockchain is an immutable record of encrypted data managed by a cluster of computers. There is no central server, or any other single entity, owning the computing power or the data. Instead, every participating computer is an equal member of the network – the so-called peer-to-peer system. The ...
Crypto Mining
Mining, in the scope of blockchain technology, is the process of adding new blocks of data to the distributed public ledger of existing transactions, or the blockchain. The people who run mining operations on their computers are awarded for their work with crypto coins. Mining serves two main purposes. ...
Bitcoin Halving
With every 210 000 blocks mined, or approximately every 4 years, the reward given to Bitcoin miners, along with the creation rate of Bitcoins, is cut in half. These events are known as “halvings”. The process is hard-coded into the Bitcoin blockchain and as it is open-source, anyone can see the ...
Types of Crypto Coins
Today, there are thousands of different cryptocurrencies with various functions and specifications. Basically, they can be divided into three types of cryptos. BITCOIN This is the first ever decentralized cryptocurrency. It is up to now the most popular and the most widely accepted coin. It is the largest ...
Types of Orders in the Crypto Market
Orders, in the context of financial markets, are instructions given to the exchange to buy or sell certain asset. In order to be able to trade in the crypto markets, you need to know what kind of orders you can make and what are their specifics. Although crypto orders are basically the same as orders ...
Crypto Exchanges
Cryptocurrency exchanges are web-based platforms for exchanging cryptocurrencies against other digital or traditional currencies. They usually work 24/7, giving a constant access to trading. Depending on the characteristics of the exchanges they can be divided into three types. CENTRALIZED CRYPTOCURRENCY EXCHANGE ...