Capital Academy
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Invest in knowledge with our 60seconds Capital Academy
Capitalco’ Virtual Academy is a step by step guide to the world of financial markets. Build your knowledge and enhance your skills with our 60 seconds video tutorials.
Financial Markets Fundamentals
Join the world of capital markets by learning the basics of investing with our 60 second video tutorials starting with fundamental and technical analysis.
What is Forex ?
✓ The foreign exchange market, “Forex”, or “FX” is a global electronic marketplace for trading international currencies.
✓ Forex is decentralized or over the counter foreign exchange market. It includes all aspects of buying, selling and exchanging global currencies.
✓ The forex market is the biggest and most liquid market in the world with daily turnover of $6.6 trillion.
What is a Pip ?
✓ The price interest point called pip or a percentage in point is a unit of change in an exchange rate of a currency pair in the foreign exchange markets.
✓ A pip is one unit of the fourth decimal place for exchanged currency, where a pip is 1.234′5
What is Bid price and Ask price ?
✓ The bid price refers to the highest price a buyer will pay for a security.
✓ The ask price refers to the lowest price a seller will accept for a security.
What is a Forex Spread ?
✓ The Forex Spread is the difference between the ask price that a forex broker sells a currency, and the bid price at which the broker buys the currency.
What are Base and Quote Currencies ?
✓ In Forex, the currencies are traded in pairs like EUR/USD, GBP/USD, USD/JPY, USD/CHF, and etc.
✓ The first currency in a pair is called a base currency EUR/USD.
✓ The second currency in a pair is called a quote currency EUR/USD.
What are the Major Currency Pairs ?
✓ The most traded currency pairs in Forex are called Major currency pairs.
✓ Major Currency Pairs: EUR/USD, GBP/USD, USD/CHF, USD/JPY, USD/CAD, AUD/USD, NZD/USD
What are Crosses ?
✓ The Crosses are currency pairs that do not involved U.S. dollar.
What are Exotics ?
✓ The currency pairs that involved emerging economy currencies are called Exotics.
What is a Lot in Forex ?
✓ Lots are used to represent the trade volume in units. One standard Lot in Forex is equal to 100,000 units of the base currency of the pair. An example for EUR/USD, 1 lot is equal to 100,000 euros, for USD/JPY, 1 lot is equal to 100,000 U.S. Dollars. Thanks to FxPro, mini and micro-lots are also available to traders.
✓ Standard Lot (1.0) = 100,000 of base currency
✓ Mini Lot (0.1) = 10,000 of base currency
✓ Micro Lot (0.01) = 1,000 of base currency
What is a Pip' worth ?
✓ The price interest point called pip or a percentage in point is a unit of change of a currency pair.
What is Leverage ?
✓ The leverage is a financial strategy to control huge investment value with small amount of capital used as a funding source to multiply returns and significantly increase the buying power.
✓ The goal is to multiply the potential returns from an investment but at the same there is a potential downside risk.
What is Margin ?
✓ The Margin represents the amount of funds required to secure a position.
✓ The required amount depends on the financial instrument, the size of the open position and the used leverage.
What is your Balance ?
✓ The Balance in Forex refers to the amount of money that you have in your trading account.
What is your Equity ?
✓ The Equity in Forex refers to your balance plus any profit or loss from your open positions.
What is Free Margin ?
✓ Free Margin is the amount of money in your account available for trading.
What is Margin Level ?
✓ The Margin Level indicates the health of your account.
✓ The Margin Level is a ratio of your equity to your margin.
What is Margin Call ?
✓ Margin Call indicates a warning that you have to deposit more in your trading account to cover your open positions.
✓ Margin Call indicates a warning that your open positions have to cover the margin requirements.
What is Stop out ?
✓ Stop out is the level at which the broker start closing the least profitable open positions in order to fulfill the margin requirements.
What is a Swap ?
✓ Swap in Forex refers to the interest earned or paid for keeping a trade open overnight.
✓ A currency swap is a foreign exchange transaction of interest in one currency for the same in another currency.
Technical Analysis
Technical analysis is an investment method of analyzing and identifying trading opportunities based on price movements focusing on historical patterns and market trends.
What is Technical Analysis ?
✓ Technical analysis is an investment strategy employed to evaluate investments and identify trading opportunities by analyzing statistical trends of price movements using various technical indicators.
What is a Bar Chart ?
✓ A bar chart represents how the price of an asset or security moved over a specified time period illustrating the open, high, low, and closing prices.
What is a Japanese Candlestick ?
✓ A Japanese candlestick is a technical price chart that shows the opening, closing, high and low prices for a given period. It was invented by Japanese rice merchants to predict price directions centuries ago.
What is a Line Chart ?
✓ A line chart is a graphical representation of an asset’s historical price action that connects a series of data points with a continuous line.
What is Trend ?
✓ A trend is the general direction of the price of a market, asset, or financial metric.
What is Uptrend ?
✓ An uptrend describes the price movement of a financial asset when the overall direction is upward.
✓ Uptrends are characterized by higher peaks and troughs over time and imply bullish sentiment among investors.
What is Downtrend ?
✓ A downtrend is a gradual reduction in the price or value of an asset or the activity of a financial market.
✓ Downtrends are characterized by lower peaks and troughs and mimic changes in the perception of investors.
What is Range ?
✓ Range refers to the difference between the low and high prices for a security or index over a specific time period.
What is Support and Resistance ?
✓ Support and resistance are two foundational concepts in technical analysis.
✓ Support occurs where a downtrend is expected to pause due to a concentration of demand.
✓ Resistance occurs where an uptrend is expected to pause temporarily, due to a concentration of supply.
When Should Traders Buy or Sell ?
✓ When is the right time to buy or sell ? Let us give you some hints.
What is a Trend Reversal ?
✓ A reversal is a change in the price direction of an asset from going up to going down, or vice-versa.
How to Practice Discipline in Trading ?
✓ Market discipline is a major play in the financial industry to conduct business while considering all the risks.
