Cryptocurrency
Hedge
Hedge
Hedge, in finance, refers to a risk management strategy used to protect or reduce the potential losses from adverse price movements in financial assets. It involves taking offsetting positions in related instruments to minimize the impact of market fluctuations. The primary purpose of hedging is to mitigate the risk of adverse price movements. This […]
Gearing
Gearing, also known as leverage or financial leverage, is a financial ratio that measures the extent to which a company is financed by debt compared to equity. It indicates the proportion of a company’s capital structure that is funded by borrowed funds. Gearing is calculated by dividing a company’s total debt by its equity. […]
Expectancy
Expectancy is a statistical concept used to measure the profitability of a trading strategy. It quantifies how profitable a trade is on average and is used to evaluate the long-term success of a trading strategy. Expectancy is calculated using a simple formula: Expectancy = (Average Gain per Winning Trade * Percentage of Winning […]
Drawdown
Drawdown is a measure used in finance and investing to assess the decline in the value of an investment or portfolio from its peak value to its lowest point. It represents the percentage or dollar amount by which an investment has decreased in value during a specific period. Drawdown is an important metric for […]
Correlation
In forex, correlation refers to the statistical measure of the relationship between two or more currency pairs. It helps traders understand how the price movements of different currency pairs are related to each other. Correlation can be positive, negative, or neutral. Positive correlation means that two currency pairs tend to move in the same […]
Correction
In the forex market, a correction refers to a temporary reversal or counter-trend movement in the price of a financial instrument. It occurs when the price experiences a temporary pullback or retracement against the primary trend before resuming its original direction. Corrections are a natural part of price movements in any financial market, including […]
Beta
In the context of Forex trading, beta refers to the measurement of a currency pair’s sensitivity to changes in the overall market. It is a statistical measure that helps traders understand the relationship between the price movements of a currency pair and the movements of the broader market or a specific benchmark. The beta […]
Alpha
In forex trading, Alpha refers to a measure of a trader’s skill or ability to generate excess returns compared to a benchmark or the overall market. It is a performance indicator that quantifies the value added by a trader or investment strategy. Alpha is calculated by comparing the actual returns of a forex portfolio […]
Allocation of Assets
Allocation of assets in forex refers to the practice of distributing an investor’s capital among different currency pairs or other financial instruments in order to manage risk and optimize returns. It is a key component of portfolio management in forex trading. The goal of asset allocation is to diversify the portfolio and reduce the […]
