Video: How to Read Fundamental Analysis in Forex
Investing in assets such as stocks, bonds, cryptocurrencies, futures, options, and CFDs involves considerable risks. CFDs are especially risky with 74-89% of retail accounts losing money due to high leverage and complexity. Cryptocurrencies and options exhibit extreme volatility, while futures can also lead to significant losses. Even stocks and bonds can depreciate quickly during market downturns, and total loss can ensure if the issuing company fails. Furthermore, the stability of your broker matters; in case of bankruptcy, the presence of an effective investor compensation scheme is crucial for protecting your assets. It's vital to align these investments with your financial goals and if needed, consult with financial professionals to navigate complex financial markets.
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Last updated: 23/07/2020
As, in essence, we are trading FX currency pairs that display the relative strength of one currency against another, we must understand and compare the economic forces behind each currency within the pair. For instance, if a currency is strengthening due to a higher interest rate, we must look at the difference in interest rates, called interest rate differential between the two pairs, not just the interest rate of the one.
Part of our multimedia library, learn in this video what is and how to read fundamental analysis in Forex and how to use it on your trading strategy.