FXCM Research Team

As an exotic currency, the South African rand (ZAR) has been historically sensitive to world events. One of the primary reasons behind the rand's responsiveness is the lack of consistent market depth. When compared to the global majors and minors, the ZAR typically exhibits a much smaller daily traded volume. According to the Bank of International Settlements (BIS) Triennial Survey 2019, the South African rand accounts for 1% of total…

For more than a decade, cryptocurrencies have captivated the world of finance. From the industry standard Bitcoin (BTC) to cutting-edge alternatives such as Polkadot (DOT), virtual currencies have moved from being peripheral to mainstream assets. However, the transition was anything but smooth. Despite periodic scandal, fraud and governmental intervention, cryptocurrencies evolved from the realm of science fiction to being a staple of commerce. The tipping point for cryptocurrencies becoming truly…

According to the Merriam-Webster dictionary, volatility is "a tendency to change quickly and unpredictably." As it pertains to the world of finance, volatility is best described as sudden and significant fluctuations in asset pricing. Periodic volatilities impact the trade of all securities, including forex, futures, debt and equities products. View Live Chart Updates for VOLX To measure the activity in the American equities markets, the Chicago Board Options Exchange (CBOE)…

Achieving one's corporate or personal monetary goals takes strategy, discipline and dedication. In order to craft a robust gameplan designed for the long-haul, many people commission the help of an independent third party for guidance. Of these entities, there are two primary types: financial planners and financial advisors. There is no one-size-fits-all money management service. They come in various forms, each with specific qualifications and specialities. However, through the performance…

What Is Ant Group? Ant Group is a large Chinese financial services and technology company that is closely affiliated with Alibaba, the giant Chinese ecommerce site. Ant was founded in 2004 and then spun off as a separate company in 2014. Alibaba still owns a 33% stake in Ant. Ant is the parent company of Alipay, China's largest mobile payments platform, which was created largely to facilitate spending on Alibaba.…

Over the past several decades, China's international financial influence has expanded multifold. Featuring massive domestic consumption of US$6 trillion for 2020, a renowned export sector and dynamic "dual-circulation" strategy, China has evolved into a prominent global economic force. However, for a majority of the world's investment capital, the Chinese markets remain heavily restricted. With the late-2020 signing of the EU-China Comprehensive Agreement on Investment (CAI), China's isolationist policies are beginning…

Placing price action into a manageable context is an essential part of crafting strong trading decisions. To accomplish this task, many traders rely upon technical analysis. Through the study of past and present price action, technicians can build strategies designed to capitalise on favourable market conditions. Range trading is an exceedingly popular category of such strategies. Market structure comes in two basic forms: trending and range bound. Trending markets are…

What Are Fintechs? "Fintech," which is short for "financial technology," refers to companies that have infiltrated the financial services industry. Typically, they offer electronic banking, investments, payment and budgeting services and products to consumers and businesses through the internet and mobile phones, and not through traditional brick-and-mortar branches. Fintechs that offer banking products such as checking and savings accounts and debit and credit cards are also called "challenger" banks, particularly…

What Is A SPAC? A special purpose acquisition company (SPAC) is a shell company that raises money in an initial public offering (IPO) with the purpose of eventually buying an as-yet-to-be-determined private company. Essentially, investors provide money to the sponsors of the SPAC so that they can quickly acquire a company they believe is a good investment. SPACs are often called "blank check" companies because investors really don't know what…

What Is A Zero Coupon Bond? Zero coupon bonds are bonds that pay no interest at regular intervals like traditional bonds do. Rather, zeros are sold at a deep discount to their maturity or face value. As the bonds get closer to their face value over time, they accumulate interest, and the investor receives the full face amount at maturity. For example, a zero coupon bond with a face value…