Mark to Market (Daily settlement of profit and loss)

Mark to Market is a financial term referring to the daily profit and loss settlement as a way of accounting for profit and loss in an investment portfolio transaction consisting of financial assets, valuing the accounting record of all open positions based on current market prices.

These new prices are what will determine the new guarantees that the investor will have to put in his portfolio and will mitigate an erroneous control of the positions of clients of financial institutions.

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Bears Power indicator – How to use it?

What is the Bears Power indicator?

The trading participants in the market are the buyers, struggling to rise prices, and the sellers, struggling to lower prices. In this case, depending on which side scores off, at the end of the market session the price will end higher of lower than the price of the previous session. Intermediate results, related to the highest and lowest prices in any moment at the day, allows to establish about how the battle between buyers and sellers was developing.

For this reason, is important to be able to estimate the Bears (sellers) balance, as a change in this balance could mean a possible change in market trend, which offer important opportunities to trade. This task can be solved using a technical analysis indicator known as Bears Power which is basically an oscillator. This tool allows to identify if the sellers in the market are weaker than buyers, and if so, then look for long positions to caught a trend change. The creator of this indicator was the Dr. Alexander Elder, a famous stock trader who is living in New York.  Basically, the Bears Power indicator is the difference between the close price and the exponential moving average. It is used as a reflection of the selling power in the market at any given time.

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Indirect quotation and direct quotation in Forex

Indirect quotes and direct quotes in Forex

What is an indirect quote?

Is the price of a currency pair expressed as amount of foreign currency per unit of domestic currency.

In other words, when an indirect quote is given, the exchange rate is expressed relative to a fixed  amount of the national currency (1 unit),  while the amount of foreign currency is variable.

For example, if we are in the United States, the indirect quote for the Canadian dollar would be 1.17 CAD = 1 USD, so the exchange rate of the indirect quotation is expressed as USD/CAD 1.17 because it is the expression that reports the amount of CAD per unit of USD which is the national currency (for 1 USD we can obtain 1.17 CAD). If we were in Canada the indirect quotation of the US dollar would be 0.85 USD = 1 CAD (CAD/USD 0.85 indicates that for 1 CAD, which is the national currency, we get 0.85 USD). As we can see, in an indirect quote the base currency of the currency pair is the national currency.

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CWOption – Binary Options Broker

 

Update on the broker CWOption

Like many other binary options brokers, the company CWOption closed its operations in mid-2018 due to the ban on these trading instruments in Europe and other jurisdictions. To this, we must also add the bad reputation that binary options have acquired among retail traders.

However, if you are interested in trading binary options and other instruments such as Forex and CFD through a recognized and regulated broker, you can try IQOption.

You can get more information about this company in the following guide: IQOption broker review

Review of the Binary Options Broker CWOption

CWOption is a binary options broker founded in 2014 which belongs to NYT Consultants LTD and allows to trade with options based on many underlying assets including currency pairs (Forex), stocks of various markets, commodities and indices. This brokers also offers many services for its clients as several promotions, including welcome and trading bonuses. 
 
Currently, CWOption is one of the leading brokers in the sector. For traders interested in other instruments this brokers also offers CFD trading on Forex in the same trading platform (SpotOption 2).