A method of market analysis that concentrates on external factors such as the economic, geopolitical and social climates that affect or could affect the price of an asset. Fundamental analysis is largely based on the belief that assets are always either overpriced or under-priced, and constantly in effort to reach their true value.
Did you know?
If overwhelmed by pessimism and falling prices, the FX market is defined as “bearish”, while if characterised by optimism and rising prices, it is called “bullish”. These two terms derive from the way in which bears and bulls attack their opponents, with the former swiping its paws downwards and the latter thrusting its horns upwards.
Word of the day
"Swing Trader" - A currency trader who places short-term trades in order to benefit from short-lived trends.
Most market activity occurs when at least two market centres are open at the same time.