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“It’s the interest rate banks charge each other.”
The London Interbank Offered Rate is a daily reference rate based on the interest rates at which an institution (ie. a bank) can borrow unsecured funds from other institutions in the London wholesale money (or interbank) market.
It is essentially similar to the US Federal funds rate – the interest rate at which private depository institutions lend balances at the Federal Reserve to other depository institutions.
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ETFs, exchange-traded funds, grew out of the older style, mutual funds or unit trusts.
Since ETFs trade on the market, investors can use the same trading tools as they can with a conventional stock, for example, limit orders, stop-loss orders, margin/leverage, selling short, and no restriction on lot size.
ETFs retain the valuation feature of a unit trust, which can be purchased/redeemed at the end of each day for its net value – but you’re not limited to trading at the close price. An ETF is continually priced through market trading hours and so intra-day trading becomes possible. (Not something that ever went on with unit trusts or mutual funds).
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Gold has always been a safe haven, when times get hard – as of now, the price has pushed ahead to US$950 an ounce. (That’s a troy ounce – precious metals still work in pennyweights etc., from when silver and gold were the currency…) The other precious metals have always tended to be coupled with gold – silver is up around 20% in the last 2 months, platinum and palladium around 15%.
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Tip’d is a social network concentrating on financial news, ideas, and tips – usual stuff, very much the same as Digg, you can bookmark a story, or add a Tip’d button or text link to your blog. I suppose the acid test is when a site creeps on to the default ShareThis, or Sociable for WordPress, list of bookmarking sites. Web 2.0, remember when we used to call it that?
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A consumer price index (CPI) is a measure of the average prices of consumer goods and services – basically it’s the “inflation rate”. It’s one of the most important indicators of confidence in, and the strength of, a national economy.
In the different currency zones, governments or (semi)independent organizations publish CPI figures on a monthly and yearly basis – in the US, it’s the Department of Labor, while in the UK, it’s the Office for National Statistics – where it’s called the Retail Prices Index (RPI).
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At first sight, it’s great – Twitter is absolutely made for the forex market and traders – up-to-the-second tweets about what’s happening on the markets, a global perspective, maybe the odd bit of free advice from people who know… But then the problem comes… too much information.
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Let’s say you’re forex trading more than 1 lot, and it’s a winning trade – the pair price has hit your target for profit, previously calculated – and you exit 50% of your current position. Opinion can vary, 60, 70%, but the main thing is you are locking in profit – scaling, or scaling out, your profitable trades.
Time has passed – the market has moved to reflect new circumstances, what was true then, is now altered… so you change your position and go into a revised risk/reward situation.
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