Category: Forex101

Re-Imagining Short-Selling

Short-selling is one of the most basic principles of the Forex, or actually, in any trade. So for those who have yet to grasp its definition, consider this (hypothetical) analogy: A cow is priced at $200. Investor A is betting the price will drop to $150 two months from now. So he borrows one cow from his local Farmer friend A and sells them at $200. (thus he is “short” 1 cow or $200 as he doesn’t actually own the animal). Two months from now, his prediction comes true, so he now......

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To peg, or not to peg?
Forex101 |
December 13, 2014

To peg, or not to peg?

A fixed system, also known as the “currency peg”, refers to a country’s exchange-rate being pegged to another country’s currency (usually the US dollar), so that people know what exchange...

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