Explained for beginners: The Purchasing Managers Index (PMI)

The Purchasing Managers Index (PMI) is an economic indicator that measures the activity level of purchasing managers in the manufacturing and services sectors of an economy. It is based on a monthly survey of purchasing managers who are asked to report on various aspects of their business, such as new orders, production, employment, supplier deliveries, and inventories. The PMI is widely used by investors, analysts, and policymakers as a tool for forecasting economic growth, inflation, and interest rates. It can also help businesses to identify trends in their industry and adjust their strategies accordingly. The PMI is published by various organizations, including the Institute for Supply Management (ISM) in the United States and Markit Economics in Europe and Asia.

Explained for beginners: Commodity currencies

Commodity currencies are currencies that tend to be strongly influenced by the prices of commodities such as oil, gas, metals, and agricultural products. These currencies are typically the currencies of countries that are major exporters of these commodities, and as such, their value is closely tied to the performance of their respective commodity markets.

How to avoid falling victim to price manipulation by an online forex broker

Forex brokers are regulated entities that are required to adhere to specific guidelines and regulations set by regulatory bodies in their respective jurisdictions. As such, it is unlikely for a reputable forex broker to manipulate the market as it would result in severe consequences such as legal action, fines, and loss of reputation.

Explained: the buy and hold strategy

The buy and hold strategy in forex trading is a long-term investment strategy where traders buy a currency pair and hold onto it for an extended period, regardless of short-term price fluctuations. The idea behind this strategy is to benefit from the overall appreciation of the currency pair over time. The buy and hold strategy require patience and a long-term outlook, as it may take several months or even years for the currency pair to appreciate in value. Traders using this strategy will typically monitor economic and political factors that may affect the value of the currency pair over time, such as interest rates, inflation, and geopolitical events.

The manual of setting stop loss in forex trading

Setting a Stop Loss order is an important risk management tool for traders in any market, including forex trading. There are several other factors to consider when setting your Stop Loss order:

Explained for beginners: Stop Loss

Stop loss is a risk management tool used by investors and traders to limit their potential losses in a trade or investment. It is an order placed with a broker or trading platform to automatically sell or buy a security if it reaches a certain price point. The stop loss order is triggered if the security's price falls below or rises above a specified level, which is known as the stop loss price.

What to consider before opening forex trading account?

When considering opening an online Forex trading account, there are several factors to keep in mind. These factors will vary depending on your experience level, starting capital, and trading style. However, there are some core considerations that apply to choosing the best Forex account, no matter your status as a trader. These include transaction costs, spreads, and commissions; trade routing, such as Straight Through Processing (STP) or Electronic Communication Network (ECN); trading software and platform; and the range of markets available.

Explained for beginners: VPS (Virtual Private Server)

A VPS, or Virtual Private Server, is a type of web hosting service that allows you to have your own virtual machine with dedicated resources within a shared server environment. It works by using virtualization technology to partition a physical server into multiple virtual servers, each with its own operating system, CPU, RAM, and disk space. This means that each VPS is isolated from other VPS on the same server, providing better security and performance compared to traditional shared hosting. Users have root access to their VPS, which allows them to install and configure any software they need. VPS hosting is often used by businesses or individuals who require more control over their hosting environment and greater scalability than traditional shared hosting can provide.

Understanding the pips in forex trading

In forex trading, a pip (short for "percentage in point" or "price interest point") is the smallest unit of measurement used to indicate changes in the exchange rate of a currency pair. It is usually the fourth decimal place in a currency pair, except for pairs that include the Japanese yen, where the pip is the second decimal place. About it, the forex traders should understand the following things:

Explained for beginners: Determining position size

Determining position size is an important aspect of forex trading as it helps traders manage their risk and maximize their potential profits. Here are some steps to follow to determine position size when forex trading:

Explained for beginners: Introducing Broker (IB) and White Label (WL)

Introducing Broker (IB) and White Label (WL) are two common terms used in the Forex trading industry.

An Introducing Broker is an individual or organization that introduces clients to a broker. The IB acts as a middleman between the client and the broker and earns a commission for each trade executed by the client. IBs can be individuals, companies, or even other brokers.

White Label, on the other hand, is a type of partnership where a company (the white label partner) uses the technology and services of another company (the broker) to provide Forex trading services under their own brand name. The white label partner typically markets the services and handles customer support while the broker provides the trading platform, liquidity, and other backend services. In this partnership, the white label partner shares revenue with the broker based on the volume of trades executed by their clients.

Advanced Explained: the relationship between inflation and the forex market

History has shown that there is a strong relationship between inflation and the forex market. Here are some key examples:

Understanding the difference between stock and forex trading

Forex and stocks are two different types of financial instruments that investors can trade. Forex stands for foreign exchange and involves trading currencies of different countries, while stocks involve buying and selling shares of ownership in a company.

How to avoid Forex trading pyramid schemes?

Forex trading pyramid schemes are illegal schemes that promise high returns on investment by recruiting new members into the scheme. Here are some common types of Forex trading pyramid schemes:

Explained for beginners: Forex Trading and Currency Futures

Forex trading, also known as foreign exchange trading, is the buying and selling of currencies on the foreign exchange market. This market is the largest financial market in the world, with trillions of dollars being traded every day. Forex traders aim to profit from the fluctuations in exchange rates between different currencies.