Traders should pay attention to the margin in Forex because this tells them if they have adequate funds to open further positions or not. If you do not go into details, Forex margin is simply the extent of buying power that a broker provides you against your deposit. Finally, there are other ways to limit […]
In portfolio management, annualized returns serve as a foundational metric for evaluating the performance of a collection of investments. By standardizing returns across different time frames, portfolio managers can make more informed decisions about asset allocation and diversification. This metric helps in identifying which assets are contributing positively to the portfolio and which ones may […]
Momentum trading typically includes quick buying and selling of positions, which results in a high turnover rate. This can lead to higher transaction costs, particularly if commissions or larger bid-ask spreads are present. Over time, these costs can greatly diminish potential profits, so it is important for momentum traders to take into account how frequent […]