Purchasing power parity (PPP) is a theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries. This means that the exchange rate between two countries should equal the ratio of the two countries’ price level of a fixed basket of goods [...]
Entries Tagged as 'FOREX Terminology and Notation'
Purchasing Power Parity
July 26th, 2008 · No Comments
Tags: FOREX Terminology and Notation
Forex Trading Terms
July 8th, 2008 · No Comments
Long / Short
When you first enter the Forex market you either go long by buying a currency or go short by selling a currency. When a currency is going up, you want to buy that currency so you go long. For example, if after researching currencies you learn that euros are expected to increase in [...]
Tags: FOREX Terminology and Notation
Forex – Limit Orders and Stop-Loss Orders
July 8th, 2008 · No Comments
Limit Orders (Take Profit)
Use a limit order to protect your profits. This will get you set up to exit the Forex market as planned without letting your emotions get the better of you. Avoid being tempted to ride a gain that could turn into a loss by sticking with the trade for too long.
If you [...]