Volatility is a special measure that describes a degree of variation of trading price for a certain asset in a certain period of time that is defined by the standard deviation and logarithmic returns. Volatility can be measured by these standard deviations just as well as by the difference between returns from the same asset.

Sometimes swings of the prices in the different direction are also called volatility.

 

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Spread is the space between buy and sell. It is the margin of profit for a any exchange company online or in your exchange arround the corner. 

Example for spread: 

Eur/usd 

Buy is 1.1516

rate: 1.1514

Sell is 1.1512

Your buying or selling spread is 2 pips

 

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A flat dollar strands for a fixed dollar amount, usually when peaking of fees or commissions paid for certain services. Contracts and trades that fix flat dollar amounts rather than fees which are percentage-based remove the size of transaction from the fee equation. That is the reason why flat dollar fees may offer brokers and traders advantages when transaction sizes change.

 

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We measure dollar ration against a certain currencies basket. But what is a currency basket? It is a list of the major currencies that shape the behavior of the currency that is measured against it. a basket usually plays a role of a benchmark for the national currency exchange rate.

 

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