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Showing posts from June, 2023

Most Important Economic Indicators for Forex Trader

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 The fundamental analysis looks at the leading economic indicators in the Forex market to determine how they can influence the currency exchange rates. Obviously, there are dozens of different metrics to measure the economic performance of any nation. Indicators are used throughout the whole process of Forex trading ; there are many indicators which can be made useful for many things and in many ways. With experience traders learn to utilize indicators and combine them to find what they need. Here are some basics about Forex economic indicators, which are very important for certain, markets.  Indicators help traders understand the economic situation of a relevant country, and the impact it will have on currencies. Governments and financial institutions will release official economic data from time to time to inform the public of the changes in a country’s economy. These releases have an impact on traders, and should be on a trader’s watch list. Those releases can either increase market

What is the US Nonfarm Payrolls or NFP?

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The United States nonfarm payrolls report is probably one of the most important economic releases every month. The nonfarm payrolls or NFP for short has a strong influence on the markets, even if it’s just short-term. Released every month on the first Friday at 0830 EST, the nonfarm payrolls report that accounts for the number of jobs. In particular, the NFP accounts for jobs in the goods, services, construction and manufacturing sectors. What are the components of the nonfarm payrolls? The official name of the jobs report is called the Employment Situation. The primary components of the nonfarm payrolls report are: The number of jobs created during the month The monthly unemployment rate The average hours worked during the week The average wages earned per hour The labor force participation rate While the number of subpoints in the Employment Situation report might seem a bit too overwhelming, there are only two key data points of interest. The markets mostly react to the headline nu

Forex vs Stocks: Which is Better?

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 Determining whether forex is better than stocks, or stocks are better than forex, is difficult to define exactly. This is because while they have similarities, Forex and stocks are actually very different. The Forex and Stick exchange markets have similarities, but are over all different in their process execution. Forex is revolved around currency trading, while the Stock market deals with shares and obligations. The biggest stock exchanges are in some of the world’s biggest cities; New York, London and Tokyo.  The volume of involved money is perhaps the biggest difference between the two. Buying shares on the stock market requires a very big capital which could be around 10,000 or 100,000 dollars, and then the trade is slow and steady. The Forex market on the other hand is more volatile and can make more spastic movements, however it is much cheaper to invest in Forex with brokers as cheap as 100-200 dollars.  The stock Exchange market is split in to two main categories, the primary