Articles on Forex Markets

Introduction to Forex Markets

The term “Forex market” is used very frequently in the media as well as in day to day life. It...

History of the Forex Market: The Gold Standard

The word “money” has not always meant what it means today. Today when we use the word “money” we refer...

Bretton Woods Agreement and Smithsonian Agreement

The transition of the world monetary system from gold standard to the modern Forex markets was anything but smooth. Governments...

Advantages and Disadvantages of Currency Pegs

Advantages of Currency Pegs Currency pegs have become extremely popular in the post Bretton Woods monetary world. About one fourth...

Common Terminologies Used in Forex Markets

Financial markets have their own terminologies. The Forex market has a number of terms which it shares with other financial...

Forex Trading vs. Regular Trading

Trading foreign exchange is markedly different from trading other financial assets in the market. There are certain unique features of...

Understanding the Trading Cycles in Forex Market

Trend Is Your Friend Forex trading systems are what we often call “reactive systems”. There are many factors at work,...

How Are Exchange Rates Determined ?

The Foreign exchange market is far more complicated as compared to stock or bond markets. Predicting the foreign exchange rate...

Types of Quotations in Forex Market

Forex quotations can be quite complex for the average person. It takes some training and knowledge to understand that these...

Types of Orders in the Forex Market

Why Orders are Important in Forex Markets ? There is a need for some form of automation in the Forex...

Advantages and Disadvantages of Forex Market

Advantages of Forex Market The biggest financial market in the world is the biggest market because it provides some advantages...

The Importance of Forex Education

Some Forex traders fail because they try to run even before they can walk. You may be passionate about trading...

Major Currency Pairs in Forex Market

The Importance of Major Pairs The Forex market is a place where trading happens in all currencies. However, the volume...

Types of Market Participants in Forex Market

The $4 trillion dollar Forex market witnesses a lot of market participants. However, all of these participants have different motives....

Types of Intervention by Central Banks in Forex Markets

When Do Central Banks Intervene in the Forex Market ? Central Banks do not intervene often in the Forex market....

Dollar Yuan Peg

China has become the largest exporter of goods in the world. This has been a remarkable feat achieved by the...

Forex and Labor Arbitrage

Arbitrage was earlier restricted only to commodities that could be traded easily in the markets. It is a phenomenon born...

Carry Trade and Rollovers

Concept of Carry Trade Carry trade is a kind of trade that is peculiar to the Forex market. In other...

Concept of Special Drawing Rights (SDR’s)

What Are Special Drawing Rights (SDRs)? Special Drawing Rights (SDRs) were a part of the monetary system that was created...

Interest Rates and Forex Market

The exchange rate between two currencies is determined by the interaction of several variables. Some variables have more influence on...

Exorbitant Privilege: US Dollar

The financial community of the world is at a consensus that the current economic system provides the United States government...

Advantages and Disadvantages of Freely Floating Exchange Rates

The freely floating currency system is the predominant system of foreign exchange that is prevalent in the world today. As...

Asian Financial Crisis of 1997

The Asian financial crisis was another major currency crisis that happened during the 1990’s. The crisis assumed epic proportions. This...

Currency Wars: “Beggar Thy Neighbor” Policy

What is a Currency War ? A currency war is a situation wherein devaluation of currency by one country is...

Freely Falling Currencies

The freely floating currency system may have its advantages and disadvantages. However, it has fundamentally changed the way we look...

Black Wednesday of 1992: The Day the Pound Sterling Came Under Attack

The Black Wednesday of 1992 refers to the momentous day when the British Pound was under attack by currency speculators....

The Mexican Currency Crisis (Tequila Crisis) of 1994

The Mexican peso crisis, which is also known as the tequila crisis was one of the first major currency crisis...

The South Sea Bubble

The South Sea Bubble is one of the largest asset bubbles that the world has ever seen. In fact, this...

Tulip Mania of the 17th Century

Asset bubbles have always been a testimony to the bizarre things that humans can accomplish when they abandon their own...

Spanish Property Bubble of 2008

Spain’s economy has been in an unprecedented decline since 2008. The average Spaniard found himself unemployed and had a huge...

Poseidon Bubble in the Australian Stock Market

Nickel Shortage During the 1970’s, nickel was in extremely short supply in the world. This is because Canada was the...

Bernie Madoff Scandal

The Bernie Madoff scandal was a story of a $50 billion embezzlement and Ponzi scheme run by Madoff Securities LLC....

The Dot Com Bubble of 2001

The new age high tech generation may seem to be immune to market inefficiencies of the past. They may seem...

The Harshad Mehta Scam in India (1992)

Harshad Mehta was the son of a peon. He was born in abject poverty and when he migrated to Mumbai,...

The Ketan Parekh Scam

The Ketan Parekh scam was the second most important scam that rocked the Bombay Stock Exchange after the Harshad Mehta...

Savings and Loan Crisis in the United States (1980’s)

The United States banking industry and the economy in general was rocked by the Savings and Loans crisis in the...

The Failure of Long Term Capital Management (LTCM)

For centuries, men have held the ambition to be able to beat the market consistently. Year after year many traders...

Puerto Rico: The Greece within America

The high indebtedness of the United States of America is well known. However, USA is still considered to be an...

Israel Economic Crisis: 1983

The Israeli bank crisis of 1983 rocked the Middle Eastern financial world. The Israeli economy was believed to be strong...

The Nordic Crisis of 1992

The Nordic crisis of 1992 refers to the series of bank runs and currency crisis that shook Finland, Sweden as...

The Latvian Crisis: A Short History

Latvia is a small country nestles in Eastern Europe. Nothing from this country seemed remarkable to the global financial world...

John Law and the Mississippi Bubble

The Mississippi bubble is one of the biggest asset bubbles known to the modern world. This bubble first led France...

The End of the Dollar Hegemony

The dollar today is the uncrowned king of the financial world. This means that the dollar does not face much...

Why Devaluing the Currency is a Bad Idea?

The European economy is facing a significant downturn. There is a looming financial crisis in Europe which has been caused...

What is Causing the Bitcoin Boom?

It is true that cryptocurrencies have been gaining more acceptances all over the world. As a result, the rise of...

The Big Fat Bitcoin Bubble

If you are an investor who is even remotely connected to financial markets, the odds are that you have heard...

Gold vs. Bitcoin

Gold has always been the alternative asset class. Whenever people lose faith in the value of the stocks that they...

The Problem with Having Bitcoin Futures

Bitcoin futures have been introduced on the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) from December 10,...

Traditional Bonds vs. Islamic Bonds Called “Sukuk”

The word Sukuk is an Arabic word which means certificate. These are certificates which are offered by corporations and governments...

How Decisions Made By Central Banks Affect the Stock Market?

In the past month, the Dow Jones Industrial Average had seen a spectacular fall. The market had crashed more than...

Are We In A Stock Market Bubble?

2017 has been an exceptional year for stock markets across the world. The start of 2018 has been no different...

Why Does the Stock Market Crash?

February 2018 has been a bad month for the United States stock market. In just two consecutive trading days, the...

Hard Brexit vs. Soft Brexit

The British government has held a referendum wherein the majority of British citizens voted to leave the European Union. This...

What is Blockchain, Why is it so Popular, and Benefits and Challenges of Using it

What is Blockchain and what is a Distributed Ledger? Not a day goes by without a media report on how...

Cryptocurrencies and Taxation

Taxation has a major impact on the return that any investment generates. This is the reason why it is important...

Is this the Longest Bull Market in History?

The news media has been full of claims that the present market is the longest bull market in history. Media...

Investing in Unlisted Companies

There are many asset classes that are available to the common man. The average investor can put their money in...

Why is Short Selling a Dangerous Financial Strategy?

The term short selling is often seen in the news. This tactic is regularly used by well-known investors. They are...

What are Development Impact Bonds and How are they Evaluated

Development impact bonds are a revolutionary new type of bonds which are being introduced in the market. These bonds have...

How Credit Enhancement Works?

Credit enhancement refers to the artificial restructuring of credit products which results in the improvement of its credit rating. In...

How Ultra Long Term Bonds Work?

In September 2018, Austria became the latest developed country to issue ultra-long-term bonds. As per the deal, Austria raised a...

How to Identify an Overvalued Market?

All stock market investors know that markets go through periods of euphoria and panic. During periods of euphoria, investors keep...

How do Companies Choose which Exchange to List on?

Uber and Pinterest are amongst the hottest tech start-ups in the world right now. This is why the fact that...

The FAANG Sell-off

Facebook, Amazon, Apple, Netflix, and Google are together known as the FAANG stocks in the stock market. These stocks have...

Why are Investors Getting Spooked by an Inverted Yield Curve?

In the past week, the American investors witnessed an inverted yield curve for the first time since the year 2007....

Catastrophe Bonds

Catastrophe bonds are one of the most sophisticated tools used by the insurance company in order to protect itself from...

The NSE Co-Location Fraud

The National Stock Exchange (NSE) is one of the two leading stock exchanges in India. Ironically, the National Stock Exchange...

The Economics of Blue Bonds

Oceans account for over 70% of the surface area of the earth. This makes them important for life as well...

How the GameStop Saga Proves That Shoe is on the Other Foot for the Investors

How the GameStop Saga is Small Investors Paying the Biggies in the Same Coin The past few weeks have seen...

5 Principles of Forex Trading Systems

Forex trading is a complicated affair. The complication largely arises because of the innumerable factors that are at play in...

5 Reasons Why Fundamental Analysis Does Not Work In Forex?

Fundamental analysis is considered to be the holy grail of stock investors. Warren Buffet claims to have amassed his fortune...

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Articles on Forex Markets