Author: rcanessa - Page 37

Bakkt Bitcoin futures platform will start testing in July

- The company will offer different types of future contracts in July.
- A go-ahead from customers and regulators could speed up its launch.

The Intercontinental Exchange (ICE) subsidiary, Bakkt, is still in the process of developing its futures platform aimed at institutional capital. Through a post on Medium, the company announced on Monday May 13 the development of user acceptance tests (UAT, for its acronym in English) for bitcoin futures and crypto custody, which are expected to begin in July of this year.

The Atlanta-based company said it is continuing to work in partnership with the Commodity Futures Trading Commission (CFTC) of United States to build a platform that meets customer requirements in terms of clarity and stability, but that also conforms to all standards of US federal regulations. n this sense, the objective is for the Bakkt bitcoin futures to comply with all regulations and at the same time be a really attractive product for institutional investors.

Hedging in Forex – What is it and how is it applied?

by rcanessa

What is hedging?

Hedging involves making an investment in order to reduce the risk of an adverse movement in an asset in which has been made the main investment. A typical example of hedging in Forex would be, for example, buying EUR/USD as main investment and cover with a buy position in USD/CHF because these two pairs have a high negative correlation and buying USD/CHF reduce the risk of a buy position in EUR/USD as our main investment.

The Hedging is a practice that every trader should know as a possible method of protection and risk management. Throughout this article we will see what the hedging is, how it works and what hedging techniques are most commonly used by traders.

The Gann Fan – Description and Uses

by rcanessa

What is the Gann fan?

In this article, we will explain another market analysis tool developed in the last century by a famous analyst and trader, which was designed to study the price oscillations between market highs and lows. This tool has some popularity and can be found on most trading platforms, although its effectiveness has been questioned. The Gann Fan is a technical analysis tool used to indicate price movements from important highs and lows as well as to identify price breakouts.

William Delbert Gann developed analysis techniques based on geometric patterns and classical angles whose relationship, according to its creator, allows us to correctly predict future market movements in both time and price. This analysis tool is built based on Gann angles.

Gann was a stock market analyst who in the 20th century wrote his foundations to invest in the stock market in his work “The basis of My Forecasting Method”. This work, which consists of just over 30 pages as a manual, was published in 1935.

The Gann fan is formed by lines that start from the same point with different angles. It is similar to the Fibonacci fan, but the angles between the lines that make up this fan are classic angles like the 45 degrees one.

Financial Assets – What is an asset?

by rcanessa

What is a financial asset?

An asset is a resource with economic value that owns or controls an individual or entity, which is interchangeable and from which it is expected to obtain future benefit. The issuance of an asset generates a debt to the issuing party (seller) and a right in the title (buyer).

For asset issuers, these represent a form of financing of their economic activity, since they receive money from the title buyer and generate the obligation of a future payment (generates a debt in the issuer). At the national accounting level, financial assets are not accounted for in the calculations of the Gross Domestic Product and, therefore, it is considered that they do not generate wealth in the country, although they contribute to economic growth by facilitating the movement of resources.

What is liquidity in the market?

by rcanessa

What is liquidity?

In economics, business or investment, liquidity is the ability of an asset to be converted into cash quickly without losing its value.

Thus, market liquidity can be defined as the ability to buy and sell an asset without causing a significant movement of the price. It can also be defined as the facility to exchange an asset for products and services, cash being the most liquid asset since it can be used immediately for any economic transaction. However, there are cases in which money is not the most liquid asset, for example, in countries with high inflation or hyperinflation, the population tends to stop using the currency in favor of a foreign currency or the use of other system of exchange of goods and services such as barter, leaving a hole of liquidity for its national currency. In other cases, they turn to other assets, such as in Venezuela, where people turn to Bitcoin precisely because of hyperinflation.

What is the FOMC (Federal Open Market Committee)?

by rcanessa

What is the Federal Open Market Committee (FOMC)?

The Federal Open Market Committee (FOMC) is a committee within the Federal Reserve responsible for the most important issues of monetary policy in the United States.

The FOMC is responsible for the country’s open market operations (ie, the buy and sale of US Treasury Securities by the FED). It is the Federal Reserve Committee that makes decisions about the interest rates and monetary resources of the United States. The FOMC establishes monetary policy by specifying the short-term objectives for open market operations of the FED, which is itself the target level for the federal funds rate (Federal Funds Rate is the interbank interest rate, which commercial banks charge each other for loans).

The FOMC also directs the operations carried out by the Federal Reserve System in the foreign exchange market (Forex), although any intervention in the foreign exchange market is coordinated with the US Treasury, which has the responsibility of formulating the policies of the United States with respect to the exchange rate of the US dollar.

Inverted Rounding Bottom Chart Pattern

by rcanessa

The Inverted Rounding Bottom is a figure which consists of a chart pattern that is very similar to the regular Rounding Bottom but in opposite sense as it appears in bullish markets as a trend change formation.

Review of ForexTime Broker (FXTM) – Regulated Forex and CFD Broker

by rcanessa

ForexTime Broker Review

ForexTime (FXTM) is a Forex and CFD broker from Europe which allows trading with Forex, precious metals and Contracts For Difference based on indices, stocks and commodities. This company offers a variety of services, including ECN execution, access to many markets, modern trading platforms, solutions of Forex automated trading and more.

It was founded in 2014 and has its headquarters located in Cyprus and customer service centers in several countries, including France, Spain and the United Kingdom among others. It is currently regulated and registered with several financial services regulators such as CySEC, for example.

What is a bullish trend channel?

by rcanessa

An ascending channel is a chart pattern formed by two parallel lines and with ascending inclination that contains the price action. It is also known as a bullish trend channel or simply a bullish channel. Although the price does not always adapt perfectly to the interior of the canal, the lines that form it point to important support and resistance areas.

The price channels show graphically the market trend and are a useful tool for their ability to predict changes in the general market trend. As long as the price remains inside the ascending channel, the bullish trend will continue, much more if there is a maximum above the upper line. On the contrary, the breakout of the lower line is a bearish signal and it can mean a possible change of trend.

HotForex improves the conditions of their trading accounts

by rcanessa

HotForex is a global broker specialized in Forex and CFD which is constantly looking for new ways to enhance their clients’ experience. Recently, the company have just made some great improvements to their trading accounts, including the reduction of the minimum deposit, the increase of the maximum leverage and the reduction of the trading commissions.

New conditions of HotForex accounts

Clients with Premium, Zero and Auto accounts will now be experiencing the following changes:

+ More