Month: April 2021

Borrowing (usually money) at a comparatively low interest rate, then converting it into another currency that offers a higher interest rate, and depositing it for interest. Alternately, one may invest in financial instruments or real estate that also offer a higher yield than the currency borrowed. A market of decreasing security value, reinforced by and reinforcing investor pessimism. As investors seek to sell securities, the prices of these securities decrease even more. These conditions are usually defined by a 20% move lower from highs over a specified period of time. Alvexo’s mobile app and web-based trading platform were designed keeping in mind the users’ needs and are incredibly easy to navigate and use.

Foreign Exchange (Forex/FX):

The United Kingdom’s regional exchanges merged with the LSE in 1973, which was then privatized in 1986 (the Big Bang), and today, the exchange lists 2500 companies from 68 countries. An analysis form based on identifying the intrinsic value of an asset. This form of analysis relies on real-world indicators and events, such as economic indicators (GDP, employment, interest rates), policymaker and business leader statements, and other current affairs. Based on fundamental analysis, investors try and determine if an instrument’s market price is undervalued or overvalued relative to intrinsic value. Trading CFDs involves a significant risk of loss that may not be suitable for all investors.

Fiscal policy may be neutral (when the economy is balanced, expansionary (during a recession) or contractionary (when the economy is expanding, mostly to pay off debts). An opposing transaction to an existing position with the intention of closing (liquidating) the initial position. A person (or agency) that arranges and/or negotiates a transaction between the parties to that transaction (buyer – seller), to be distinguished from an agent, who acts on behalf of one of the parties. The point at which an investment aimed at generating revenue sees returns, equaling the cost of entering the investment. Investor behaviour, or a market, may be described as bearish when values begin to fall.

Used Margin:

(Secondary Currency) The second currency quoted in a currency pair, it is the currency for which one unit of base currency can be traded, and equal to the pair’s value. 1933 (through the merger of the National Metal Exchange, the New York Rubber Exchange, the National Raw Silk Exchange and the New York Hide Exchange). The world’s largest physical futures exchange (following its merger in 1994 with the New York Mercantile Exchange), COMEX trades both electronically and in open auction (trading floor – Pit). A buy signal is an indication for investors to invest, usually based in events or conditions that suggest a potential future return on that investment.

US citizens or residents, as expected, are barred from using their services. The monetary difference between a country’s import and export values. If positive, referred to as a surplus, if negative – a trade deficit.

• The amount of securities purchased at that price (lot size) will usually be specified alongside.
• Opening a transaction – initiating a transaction – that will later be closed, the relative prices at both points dictating profit or loss on that transaction.
• Before deciding to trade Contracts for Difference (CFDs), you should carefully consider your trading objectives, level of experience and risk appetite.
• A bullish belt hold refers to a candlestick pattern that characteristically forms towards the end of a bearish market, signalling entry into a bullish one.
• Hedge fund managers will typically offset riskier investments with low-risk instruments or assets with matching derivatives.

Contract Size:

Position is opened (the trade is initiated), then closed (the trade is concluded). A position can be long (for an owned security) or short (for a borrowed security). The sum of a trader’s profits and losses on open positions should all trades be closed. In the event that usable margin falls below required margin, the broker’s system will begin to close positions. The last day upon which a futures contract must be closed out before cash settlement or the underlying asset is actually delivered. Either the commodity or its cash value is then transferred between trading parties.

• Congress with maximizing employment, stabilizing prices and maintaining long-term interest rates.
• A visual representation of data that usually provides qualitative and quantitative information.
• If you sold the pair with a higher rate of interest, you will pay interest.
• A company with a contracted supplier and an agreement to pay monthly sums in a foreign currency benefits from an FX swap, as their cost remains unchanged regardless of the exchange rate.

Position Trading (Buy & Hold Strategy):

The broker ensures customers have the maximum possible satisfaction with its desktop and mobile trading platform. Their innovative design and user-friendly interface among many other things make trading hassle-free. Note that the content on this site should not be considered investment advice.

Global indices follow large companies, regardless of location, whereas national indices follow the performance of national stock markets, usually selecting the major local companies traded on that market. Other indices follow specific sectors, companies by size, management style or other criteria. A visual representation of data that usually provides qualitative and quantitative information. A broker might have the best assets and trading/non-trading fees, but that doesn’t amount to anything if clients feel like their funds are at risk of being stolen. With 54B+ trading volume and 933K+ positions opened, Alvexo has grown to accommodate an ever-growing 300K+ members.

Usually, the futures contract is a means of hedging the asset’s value and the asset itself is not actually delivered. Financial volatility describes the price fluctuation of a financial instrument from its average price. Historical volatility computes this over a given time period, whereas implied volatility is the momentary measurement of the deviation. A type of investment based on regular and fixed payments by the borrower.

The app is equipped with the latest features and can be downloaded on both Android and Apple devices. As mentioned earlier in the previous section of this review, the type of account you hold is the main factor that determines how high your spread rates will be. It has been observed that Prime and Elite account holders incur the lowest spread charges, whereas the spreads for a Classic account holder are the greatest. If we take a look at the AUD/NZD currency pair, the spread is from 14.9 pips on a Classic account, but that figure is slashed to 6.4 pips on an Elite account. As the trading is carried out in CFD form, so there is no need to hold the actual trading asset or currency pairs.

Though CySEC regulates the company, this is not enough for its regulatory framework. The Alvexo webpage platform has a very user-friendly interface with very straight forward execution. Some of the tools are worth mentioning here, such as setting for “ stop-loss” and taking profit instructions in cash and price terms for trading.

In order to access these wonderfully comprehensive eBooks and webinars, you must have an Alvexo Plus membership. Here at Alvexo, no commission is charged regardless of whether you are a Classic, Gold, Prime, or even Elite account holder. The sum volume of all transactions executed during a specific time period. An order used to secure a profit once the value of the asset moves in the desired direction and the value of the position increases. An order used to minimize losses if the value of a security starts moving in a position opposed to the desired – resulting in the position losing value.

A bearish belt hold refers to a candlestick pattern that characteristically forms towards the end of a ‘bullish’ market, signalling entry into a bearish market. Easy, direct and engaging platforms that work seamlessly across all devices.

A fixed-income security thus provides periodic payments (coupon) and (usually) the return of the principal upon the security’s maturity. Such securities generally offer a lower return on investment (ROI), since income is pledged. The permission given to a broker by an investor to buy or sell beyond the limits of a limit order, based on the broker’s perception of the trading environment. The difference between the market price of a security and its face value, in this case, the price quoted in a company’s officially registered documents. The basic currency transaction is comprised of two currencies involved in a currency change – one being sold, the other being purchased. A currency pair’s value is measured by the base currency (the first one quoted) divided by the quote currency (the second), denoting how much of the latter is valued against a single unit of the former.

Realized gains and losses can be used in accountancy as an offset tool in calculating taxes owed on income. Unrealized (paper) gains and losses are profits and losses not realized, so long as the assets or derivatives are held and not executed, and used to calculate potential exposure to taxation. The second currency quoted in a currency pair, it is the currency for which one unit of base currency can be traded, and equal to the pair’s value.

An exchange that facilitates the purchase and sale of shares issued by companies. The exchange is usually divided into a primary market (where shares are first issued by the company) and a secondary market (where these may be exchanged). The price of one currency as related to another – also the price of a currency pair incorporating those two currencies.

I’ve only been with Alvexo for a few months but so far I’m very happy with them, haven’t had any problems at all. Generally good spreads – certainly for the major pairs anyway; orders usually go right through without requotes; customer service timely and helpful. The stop loss level specified within your trade ensures that the asset in question is sold when it reaches a certain level. This can prevent significant losses in the case of a long downward trend and an otherwise occupied trader, as the position is automatically closed when it arrives at the level specified. Technical analysis is a technique that uses past values and volume of an asset to determine patterns for price activity in the future. This is different from fundamental alvexo forex broker analysis, as the latter tries to find an actual intrinsic value for an asset using inside data like corporate debt, rather than data generated by market activity.