What is FIFO?

FIFO Definition. FIFO, or “First In First Out”, is an accounting term that describes the convention for treating items that occur in a queue. In forex trading, a broker will use this convention to determine the order that he closes open positions. All positions opened within a particular currency pair are liquidated in the order in which they were originally opened. The opposite convention is “LIFO”, or Last In First Out. Under this convention, all positions would be handled based on clearing the last item first. FIFO is the more applicable method in most all cases. LIFO tends to be used more in computer programs in sorting operations.

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What is a Bear Market?

Bear Market Definition – A Bear Market is a prolonged period during which investment prices fall, accompanied by widespread pessimism. If the period of falling stock, commodity, or currency prices is short and immediate, followed by a period of rising prices, it is called a correction. Bear markets usually occur when the economy is in a recession and unemployment is high, or when inflation is rising quickly. The most famous bear market in United States history was the Great Depression of the 1930s,

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What are Interbank Rates?

Interbank Rates Definition. Interbank Rates in the Forex world are the foreign exchange rates at which large international banks buy and sell currency. The Interbank Market is the financial system and trading of currencies among banks and financial institutions, excluding retail investors and smaller trading parties.
Most interbank trading takes place from the banks’ own accounts, although some banks perform interbank trading on behalf of their large customers. Unlike the Stock Market, the Forex market does not have a physical central exchange.

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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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