Education

P/E and P/B ratios are some of the most-used financial ratios because of their simplicity. But within their simplicity lies large negative implications for investors and traders. Read more

There exists a fundamental difference between speculating and investing. Do you know where you stand? Read more

Successful traders establish clearly-defined rules of money management. This involves determining how much of your overall portfolio you are willing to put at risk in any one trade, where you should put a stop loss and what trade size to choose. Read more

With Binary Touch Options, we can trade both One-Touch and No-Touch options. In this article, we analyse why they in fact provide similar risk profiles and are therefore two sides of the same coin... Read more

Binary Touch Options, though classified as exotics, are arguably one of the simplest, yet most powerful investment products. They provide great leverage, full knowledge of potential profit and loss, and a limited potential loss even when shorting. Read more

By keeping track of where stock prices have gone, stock and CFD traders can more accurately project where stock prices are going. This process of analysing past stock prices to determine future stock price movement is called technical analysis. Read more

Share prices move up and down and it is this price movement that motivates people to trade shares and CFDs. Supply and demand is what drives these movements and it is essential to understand how these forces work. Read more

More and more investors are taking advantage of the profit potential of the stock and contract for difference (CFD) markets. The basic concepts of each market are relatively simple to grasp. Read more

Technical analysis is complementary to fundamental analysis. If fundamental analysis helps determine whether you should trade a particular currency pair, technical analysis helps you determine when you should buy or sell that currency pair. Read more

In this post, we will briefly examine the influence of fundamental economic indicators on the forex market. Which indicators are most important? Why are interest rates so important? What impact does inflation have on interest rates? Read more

Currency pairs are the building blocks of the forex market, so it's important to learn the technicalities surrounding pairs and how to use pairs in trading forex. In this article, we will go over the basic mechanics of currency pairs. Read more

Here's my new tack: try using options, not independently, but in combination with spot, though not as a stop loss or hedging mechanism but rather as a way by which to participate on an intraday basis. Read more

Have you ever been sure that the spot price is going to be volatile, but unsure of the general direction? In this article we look at strategies that profit from the moves in spot regardless of direction. Read more

In this article we will focus on the important relationship that exists between the prices of a put option and a call option with the same strike and expiry. This is known as the put-call parity. Read more

The foreign exchange market is the biggest market in the world, with several trillion dollars changing hands every day. More amateur or 'retail' traders are getting involved. With a bit of education and a lot of practice, you could be one too. Read more

The fact that the Black-Scholes model is simple does not make it correct, i.e. it does not fit perfectly with the moves we observe in the market.  So what do we do? We adapt the pricing by modelling the volatility parameter to reflect the market.
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Up until now we have looked at some very simple models in order to understand the basic concept of how option pricing works and how models help us to determine the price. These models have been very simple and do not really resemble reality. Therefor Read more

Nervousness has gripped the market over the last few days as volatilities were paid following a bout of risk aversion on the Japanese earthquake. But the real sharp move happened on Monday/Tuesday following the freefall in the Nikkei. Read more

Options are often combined in strategies that meet one’s requirements. In this article we present some of the most common option strategies. Read more

Following the earthquake near Japan overnight, the market is obviously trying to get its head together to gauge to what extent it is going to affect all its various components. We take a look from an FX perspective... Read more