Contractionary monetary policy is the set of policies conducted by central banks aiming to curb inflation and slow overheated economic growth. Through its instruments, the central bank tries to halt the overall rise of prices in the economy and...
Monetary easing, relaxation or expansion is set of policies conducted by the central banks in order to push overall price level, to stimulate inflation and aggregate demand. Globally, central banks were using these expansionary policies in order to combat...
LIBOR stands for London Interbank Offered Rate and serves as a globally accepted key benchmark for short-term interest rate indicating borrowing costs between banks. It is produced for five currencies (CHF, EUR, GBP, JPY and USD) and seven tenors...
Leverage
Leverage allows investors to trade a much bigger volume than they initially would. Having limited capital investor can borrow a certain amount of the money from the broker and get much bigger market exposure.
Leverage in the forex market is...
Nasdaq Composite Index
Nasdaq Composite index includes more than 3000 stocks listed on the Nasdaq stock exchange. First introduced in 1971, it is one of three globally-followed US stock market indices along with Dow Jones Industrial Average and S&P 500....
Helicopter money is the phrase crafted by Milton Friedman in 1969 trying to explain the consequences of changes in base money. It is a theoretical unconventional monetary policy to be used in combating with deflation.
“Let us suppose now that...
Fractals are one of the indicators used in identifying trend reversals. Namely, fractals represent one of the simplest trade patterns, repeating over time. At least five bars in a bar chart are needed to form a pattern. Fractal can...
Currency exchange dates back from ancient times when traders exchanged coins originating from different countries. Silver and gold coins were used and valued based on their weights and their size. In the Roman empire, the government held a monopoly...
The Economic and Monetary Union (EMU) was set up in 1992 when twelve countries signed the Maastricht Treaty (The Treaty on European Union). It was one of the main steps in further integration of EU countries aiming to provide...
The US Dollar Index (USDX, DXY, DX) represents the value of the US Dollar against the basket of foreign currencies. The index is a weighted geometric mean of dollar value against the following currencies:
The currencies represent the most important...
