A mortgage-backed securities (MBS) is a financial product backed by home loans. Banks and mortgage lenders issue these loans to homebuyers. Instead of keeping the loans, they sell them to financial institutions.  These institutions bundle many loans together and sell

A non-convertible currency is commonly known as a “blocked currency.” It refers to a currency that is not easily exchanged or traded on forex markets.  When a nation’s currency is non-convertible, it tends to limit the country’s participation in international

Nonfarm productivity measures the output per hour worked by employees in the nonfarm business sector. This metric excludes farm workers, private household employees, and non-profit organisation workers. It’s a key indicator of economic health, reflecting how efficiently labour is utilised

An offered market in forex occurs when the supply of an asset or product significantly exceeds the demand.  In simple terms, it’s when there are more sellers than buyers. You see this happen in various financial markets. This is a

An offsetting transaction involves initiating a trade that neutralizes or cancels out the risk of an existing open position. In forex trading, this means taking a new position that counterbalances potential losses from a previous trade. For instance, if a

Over-the-counter (OTC) derivatives are financial contracts traded directly between two parties, bypassing centralized exchanges. These instruments derive their value from underlying assets like currencies, commodities, or interest rates. Therefore, OTC derivatives offer flexibility and customization, allowing parties to tailor agreements

Personal Consumption Expenditures (PCE) is a vital economic indicator that measures the total value of goods and services purchased by U.S. households. Accounting for about two-thirds of domestic spending,  The Bureau of Economic Analysis (BEA), a government agency in the

Political risk refers to the uncertainty and potential financial loss investors face due to political changes or instability in a country. In the forex market, political events can significantly impact currency values, making it crucial for traders to understand and

A forex position refers to the amount of a particular currency pair that a trader owns or owes. It indicates the direction—either buying (long) or selling (short) that the trader anticipates the currency pair will move. Positions can be categorized