Knowledge base
Results: 13
Level of proficiency
Topic
Beginner Macro Basics Unemployment rate explained
The unemployment rate serves as a critical barometer for the health of an economy, indicating the percentage of the labor force that is jobless and actively seeking...
Beginner Macro Basics Consumer Price Index (CPI): Vital indicator
The Consumer Price Index (CPI) is a fundamental gauge for measuring economic inflation. It tracks the change in prices of a basket of goods and services.
Beginner Macro Basics Monetary policy: Understanding its mechanisms and impact
Monetary policy is crucial for central banks to influence economic stability and growth. By adjusting the money supply and interest rates, the Federal Reserve impacts...
Beginner Macro Basics Understanding the International Monetary Fund (IMF)
The International Monetary Fund (IMF) is a global organization established to promote monetary cooperation, secure financial stability, enhance international trade,...
Beginner Macro Basics Inflation rate: Understanding its impact on the economy
Inflation is a key economic indicator that measures the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Beginner Macro Basics U.S. GDP: A key indicator
Gross Domestic Product (GDP) is a key indicator of an economy’s performance. In the U.S., it reflects the total market value of goods and services produced...
Beginner Macro Basics Understanding personal income and outlays
Personal income and outlays are critical aspects of national economic performance. They encompass individuals’ earnings from wages, investments, and other sources, as...
Beginner Macro Basics What is a Producer Price Index?
The Producer Price Index (PPI) is a key economic indicator that tracks the average changes in selling prices received by domestic producers for their output over time.
Beginner Macro Basics Understanding jobless claims
Jobless claims are a crucial economic indicator that tracks the number of people filing for unemployment benefits after losing their jobs.
Beginner Macro Basics Non-Farm Payrolls: NFP explained
Exploring the fundamentals of Non-Farm Payrolls (NFP), a crucial economic indicator that significantly impacts global financial markets by reflecting employment...
Beginner Macro Basics Trading times: Worldwide market
In the bustling world of finance, understanding trading times is crucial for investors aiming to navigate the global marketplace effectively.
Beginner Macro Basics Federal Open Market Committee (FOMC): Introduction
Investors closely follow the decisions of the Federal Open Market Committee (FOMC), the policymaking body of the Federal Reserve System.
Trading terms
- Bitcoin
Bitcoin is a cryptocurrency created in 2009, based mainly on a self-published paper by Satoshi Nakamoto. Bitcoin enables immediate payments (and micropayments) at a very low cost, while avoiding the need for central authorities and issuers.
- Leverage
Leverage allows traders to control a larger market position by using margin, which is only a fraction of the total trade value. For example, with 1:100 leverage, $1,000 in margin can control a $100,000 position. While leverage increases market exposure, it also amplifies both potential gains and potential losses, making risk management essential when trading with leverage on platforms like SimpleFX.
- Spread
The difference between a financial instrument's bid and ask prices is known as the spread. It shows how much it costs to execute a trade and is expressed in points for other markets or pips for FX. Tighter spreads indicate higher liquidity and lower trading costs, making them a key factor when comparing brokers like SimpleFX.
- Margin
Margin is the minimum capital required to open and maintain a leveraged trading position. It is expressed as a percentage of the total trade value and acts as collateral against potential losses. For example, a 1% margin requirement means you need $1,000 to control a $100,000 position. If equity falls below required levels, a margin call may occur.