Articles

What is the difference between light and heavy crude oil?

Brent Crude is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content. Brent Crude is extracted from the North Sea and comprises Brent Blend, Forties Blend, Oseberg and Ekofisk crudes (also known as the BFOE Quotation). The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum.

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What is FOMC ?

Definition: The Federal Open Market Committee is the monetary policy arm of the Federal Reserve System, the central bank of the United States. It works with the Federal Reserve Board of Governors to control the three tools of monetary policy. The FOMC controls open market operations. The Board sets the discount rate and reserve requirement.

The FOMC uses its tools to attain the ideal economic growth rate of between 2 and 3 percent.

To achieve that, it must fight unemployment and inflation. The natural rate of unemployment is between 4.7 percent to 5.8 percent. Below that, companies can't find enough workers to remain productive. The target inflation rate is 2  percent. That means the FOMC wants prices to increase around 2 percent each year. This sets up expectations of inflation, and it motivates consumers to buy now rather than later. A mild inflation rate spurs demand, and that's good for economic growth.

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Forex Micro Accounts

For new forex traders, there is always the dilemma of when to enter the market, and committing a large sum of money for trading. Forex micro accounts enable new traders to enter the market, and trade the same way as professionals.

Who are they for?

Forex mini accounts carry more risks than micro accounts; therefore micro accounts provide the ideal platform for beginners. Micro accounts can be opened with very little money. Micro accounts can be opened with as little as 1000 units of the forex currency. Compare this with mini accounts which can be opened with a minimum of 10,000 units and standard accounts with 100,000 units.

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What is MACD?

The indicator Moving Average Convergence or Divergence (shortly MACD) was created and worked out by Gerald Appel in 1979. It is widespread when traders deal with commodity and stock markets. MACD belongs to oscillators (technical analysis) and is attractive in its simplicity and the absence of significant “noises” when processing signals. Usually traders use this indicator as one of the components when building the best forex strategy.

It is obvious that the principle of work is in averages and visualizes them for a better perception. There are two ways of programming and analyzing the indicator:

  • linear MACD (used for trend analysis)
  • bar chart MACD (class of oscillators)
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What is inflation?

Inflation is a process of continuous increase in the price of most goods and services in a country. This does not necessarily mean that all prices increase. There are some goods, like computers, which have actually dropped in price. Inflation can therefore be described as persistent general; increase in prices. Inflation is usually given as the percentage increase in overall prices over a year.

Inflation eats away at the value of people’s money. With the same amount of money, fewer goods can be bought than before. Therefore it can be said that one’s money is devaluating as inflation increases. Inflation is considered bad for the economy and for the general public. Some inflation however is considered normal for any country.

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