Create a rolling 3–6 month forecast of major currency needs, updating it regularly as new information becomes available. This visibility allows you to time conversions strategically rather than making last-minute exchanges. When you have flexibility around invoice due dates or transfer schedules, adjusting the timing of your FX conversions can lead to better outcomes. Rather […]

Similarly, as the yield increases, the slope of the curve will decrease, as will the duration. Convexity is a measure of the amount of “whip” in the bond’s price yield curve (see above) and is so named because of the convex shape of the curve. Because of the shape of the price yield curve, for […]

However, in practical scenarios, the impact can also be influenced by additional factors such as the bond’s coupon rate, yield, term to maturity, and the overall condition of the bond market. A skillful balancing of higher and lower duration bonds can help you achieve a desirable risk/return profile for your bond portfolio. Bonds with higher […]

A bear trap is a forex trading term that refers to a situation in which there is a temporary pause, or reversal, of a downward trend, making traders believe that it is about to reverse and begin rising. The bear trap is intended to fool traders who are expecting a continuation of a bearish trend.A […]

It is wise for traders to remain cautious when coming across potential bear traps or bull traps and use additional technical and fundamental analysis before making investment decisions. A bear market rally and a bull market rally are two types of positive price movements. A bear market rally is a temporary price surge during an […]