Exchange Dictionary

mr.trader1 hour ago

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Asylum Currency

What is a shelter currency? A sanctuary currency is a slang exchange term that defines a currency as a means of hedging or temporarily preserving assets during crises or increased volatility in the markets. Which currencies qualify as safe haven currencies? A safe haven currency is the currency of the country with the most stable economy and often a low interest rate. Historically this role has been played by the Swiss franc and Japanese yen as well as gold as the most liquid instrument in the market. Other articles on Forex Currency Types: Refuge and Commodity Currencies Forex Fundamental Analysis: Forex Features Worth Watching Hedging: Effective Insurance Against Trading Risks Interest Rates: Risk-free Returns

mr.trader7 days ago

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Equity in the market

What is equity? Equity is one of the trading account indicators representing the amount of free funds on the trader's deposit, i.e. the funds that can be used for trading. Calculation of equity is carried out according to the following formula: Equity = balance + floating profit - floating loss. Positions opened by the client at the moment of calculation of equity are taken into account. For example, the trader has a deposit of $1,000, on which there are 2 open transactions. On one transaction the current loss is $50, on the second transaction the current profit is $75. Equity will be equal to $1000 +75 - 50 = $1,025. Note that equity is...

mr.trader1 week ago

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Temporary trend reversal (correction, pullback)

A temporary trend reversal (correction, pullback) is a temporary reversal of an established trading trend during the so-called moments of overbought and oversold market, when traders and investors decide to fix already profitable positions, since the activity of the initial movement has greatly decreased. Usually such a temporary reversal or correctional movement accounts for half or a third of the main movement. After that, the main trend movement regains its strength, recovers the pullback and strengthens, allowing the trader who caught the movement to make a significant profit. How to trade on a trend reversal and correction? Trading on a temporary trend reversal can be associated with large losses. It is not for nothing that the market says "The trend is a friend". Correction movement can...

mr.trader2 weeks ago

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Monetary policy

What is monetary policy? Monetary policy (MP) is also known as the monetary policy of the state and is a set of measures that are taken by the Central Bank of the country by influencing the state of credit and money circulation. These measures are a way to regulate business activity, create favorable economic conditions for citizens' living and doing business, strengthen the national currency rate, and maintain stability in the country and sustainability of the balance of payments. What are the objectives of monetary policy? The objectives of the state's monetary policy are: Regulating inflation Achieving full employment Regulating the growth rate of the economy Timely response to cyclical fluctuations in the economy Ensuring stability and regulating the balance of payments What are the instruments of monetary policy? The main instruments of monetary policy are...

mr.traderDecember 13, 2024

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National Bank of the Republic of Belarus (NBRB)

The National Bank of the Republic of Belarus (NBRB) is the central bank as well as a state body of the Republic of Belarus. It acts to ensure and develop reliable and efficient functioning of the payment and banking system of Belarus, to ensure and protect the stability of the Belarusian ruble, and acts exclusively in the interests of the country. It is located in Minsk, the capital of the country. History of the NBRB The bank was founded by the Council of People's Commissars in 1922 as the Belarusian Republican Bank. Soon it became subordinated to the State Bank of the USSR. The bank was reorganized in 1959 and 1987, and in its present form it appeared in 1990. Functions of the National Bank of the Republic of Belarus In the process of accomplishing its tasks, the NBRB performs three main...

Yuri ProkudinDecember 4, 2024

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Moody's Rating Agency

When thinking about credit agencies, it is customary to speak first and foremost about the "Big Three," which include Standard & Poor's, Moody's, and Fitch Ratings, the best-known and oldest rating agencies. In some ways, their history is similar, but in some ways it is different. And if in the case of Standard & Poor's the beginning of the path was difficult, but nevertheless serene, the same cannot be said about the agency Moody's ... Moody's Rating Agency: the first appearance of Moody's is a rating agency, the full name of which is Moody's Investors Service. It is a subsidiary of Moody's Corruptions. It is engaged in credit ratings, research and risk analysis. It has had two openings, which may well be called...

mr.traderNovember 30, 2024

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Mobile : how to install and work on mobile MetaTrader ?

In this article we will discuss the work with the mobile terminal MetaTrader 4 and 5. For example, let's take the installation of the application for android, which will be about the same as the first launch of MT4 on iOS on iPhone or iPad. Our life is becoming more and more remote from home computers, so this instruction will help you navigate the trading process on your mobile device. To install the MT4 mobile terminal on your device, you should first of all go to the Play Store and enter "MetaTrader" in the search box. From the list of applications found, select the one signed by MetaQuotes Software Corp. (as a rule, the first one in the list) and go to...

mr.traderOctober 30, 2024

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Pending Buy Stop order

What is a pending Buy Stop order? A Buy Stop order is a type of pending order, which is a position to buy, opened by the broker when the price rises to the level specified by the trader. How does Buy Stop order work? A Buy Stop order is placed if a trader believes that the price will rise to a certain level, usually a resistance level, after which it will continue to rise. In this case the purchase will always be made at a price higher than the current market price. For example, on a daily chart of the AUD/USD currency pair, we observe a Double Bottom trend reversal pattern. We expect that soon the price will reach the resistance level at 0.7270, will break through it and the pair will start to form an uptrend.

mr.traderOctober 19, 2024

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A test of knowledge of the world's central banks

Here are 5 questions, the answers to which will show your knowledge of how Central Banks work in the world. Central bank decisions always have a strong effect on national currency rates, so this knowledge will be very useful if you plan to trade profitably. At the end of the test, there are the answers. If you have noticed your mistake, do not hesitate to follow this link and close your knowledge gap. 1. The largest foreign exchange reserves in the world are... a) U.S. Federal Reserve System; b) European Central Bank; c) People's Bank of China; d) International Monetary Fund. 2. The slang name "The Old Lady" is... a) The Reserve Bank of Australia; b) The Swiss National Bank; c) The Bank of...

mr.traderSeptember 29, 2024

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National Bank of Ukraine (NBU)

National Bank of Ukraine (NBU, Ukr. National Bank of Ukraine) is the central bank of the country. NBU is a legal entity, state-owned and has a registered capital of 10 million hryvnia. The main function of the NBU is to maintain the stability of the national currency - the Ukrainian hryvnia, as well as price stability and banking system, within the allotted powers. History of the National Bank of Ukraine The starting point for the establishment of the NBU was the law "On Banks and Banking Activity" adopted by the Verkhovna Rada of Ukraine on March 20, 1991. The basis of the NBU was its predecessor - the Ukrainian Republican Bank of the State Bank of the USSR. In the nineties of the last century Ukraine faced a complete inadequacy of the financial system to the market conditions, as well as monstrous inflation, which...

mr.traderSeptember 18, 2024

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People's Bank of China (PBOC)

The People's Bank of China (NBK, Bank of China) (Chinese tr. 中國人民銀行, 中中国人民银行, Pinyin: Zhōngguó Rénmín Yínháng, Pall: Zhongguo Rénmín Yínháng) is the central bank of the PRC. The Bank of China reportedly has the largest foreign exchange reserves in the world, exceeding 3.2 trillion U.S. dollars. History of the People's Bank of China The People's Bank of China was the result of the merger and nationalization of three major commercial banks in 1947: Huabei Bank, Beihai Bank and Xibei Agricultural Bank. Because of the civil war, the headquarters of the NBK was located in Shijiazhuang and was not moved to Beijing until 1949. From 1949 to 1978, the Bank of China was the only bank in the country. To the sphere...

mr.traderJuly 30, 2024

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Economic sanctions

Economic sanctions - economic measures of a restrictive nature, which are applied by a state or a group of states to another country. Sanctions may take the form of a complete or partial ban on exports and imports of products, as well as the introduction of restrictions on financial transactions, including cross-border payments and investments. Currently, a number of multilateral mechanisms for imposing sanctions by the international community against individual states, the basis for which are decisions of the United Nations, have been developed. The purpose of economic sanctions is to force a state government to change its policies. This can have different levels of significance: from changing decisions on individual agreements, to radical changes in the state structure. It can also include accession to a certain international treaty,...

mr.traderJuly 13, 2024

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Repurchase agreement rate (repo rate)

Repurchase agreement rate (repo rate) - interest rate, which is used when carrying out repo transactions. Repo operations mean operations with securities with the obligatory obligation of the seller to repurchase the security from the buyer after a certain period of time and at a certain price. Actually, a repo transaction is a short-term loan against securities, although it is formalized as a purchase and sale transaction. It is expressed as a percentage per annum. High repo rates have a negative effect on consumer credit growth and a positive effect on savings growth, which in turn leads to slower economic growth. As a rule, an increase in repo rates causes an inflow of capital into...

mr.traderJuly 9, 2024

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Swiss National Bank (SNB)

The Swiss National Bank (SNB) began its work by opening representative offices in the five cities of Basel, Bern, Geneva, St. Gallen and Zurich. In 1903 the government's national advisor, Scherrer-Fuller, proposed a bill to establish a central bank of its own in Switzerland. A federal law on the National Bank was passed on October 6, 1905, and took effect on January 16, 1906. June 20, 1907. It is now also active in Lausanne, Lugano and Lucerne. According to the Swiss Federal Banking Act, the Swiss central bank is a joint-stock company with a special constitution and its functions are regulated by special...

mr.traderJune 14, 2024

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Bank of Canada (BoC)

The Bank of Canada is probably the only central bank in the world whose monetary policy is as open and understandable to all market participants as possible, and has a number of other features that make it fundamentally different from its global "counterparts". History of the Bank of Canada The Bank of Canada was founded in 1934 as a private corporation, but within four years it became a Crown corporation and was transferred to the government. Unlike other government agencies, the governor of the bank and a senior manager are directly appointed by the bank. Although the Bank of Canada is run through the government, it is ultimately owned by the people. Because of the advanced economic relationship between Canada...

mr.traderApril 17, 2024

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Bank of Japan (BoJ)

The Bank of Japan (BoJ) is the central bank of Japan established to regulate the yen exchange rate and to conduct and oversee the country's monetary and financial policies. The Japanese banking system was established in 1873 under the National Bank Act, similar to a similar law that had been passed in the United States in 1863. By 1870 the Japanese banking system included more than 150 banks. The rapid growth of the banks and the lack of emission controls caused a high rate of inflation. In order to avoid a crisis in the economy, the Bank of Japan was established in 1882. The structure and tasks of the Bank of Japan The functions of the supreme body...

mr.traderApril 7, 2024

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Central Bank of Russia (Central Bank, CBRF)

The Central Bank of Russia (Central Bank of Russia, Bank of Russia, CBR) is the most powerful center of Russia's credit system. It plays a key role in the national economy. At the moment, the actions of the Bank of Russia are becoming increasingly important. Stability and further growth of economy, as well as strengthening of national positions on the international level depend on the effectiveness of its functions and correctness of chosen methods. History of the emergence of the Central Bank of Russia The banking and credit system in Russia dates back to 1733, when the Monetary Office, opened by decree of Peter the Great, was reorganized into the Monetary Chancery, whose functions included granting loans at 81,200 euros per annum and secured by gold...

mr.traderApril 3, 2024

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Who is a market maker?

Маркетмейкер — кто это? Маркетмейкер (market maker) – это понятие имеет несколько значений. Наиболее распространенное определяет маркетмейкера как фирму-брокера, которая приобретает и хранит ценные бумаги, валюту и другие активы для последующей организации их продажи. В этом качестве маркетмейкеры действуют как самостоятельные участники внебиржевых торгов, поддерживая ликвидность. Как правило, маркетмейкер берет на себя обязательства по продаже какого-либо минимума акций для клиентов. Другое значение, которое принимает понятие маркетмейкер, – это менеджер на фондовой бирже, в обязанности которого входит отслеживание хода торговой сессии и информирование участников об изменениях в цене, курсах и т.д. На бирже маркетмейкер обычно имеет договор, согласно которому берет на…