Financial Analysis Definition: A Comprehensive Guide to Forex Trading

3 min read

Financial Analysis is the process of evaluating an organization, corporation or asset to provide an overview of its financial condition and performance. It involves investigating the past, present, and future of an entity in order to understand and assess its capabilities and potential performance. Financial Analysis typically involves looking at historical data such as financial statements, balance sheets, income statements, and other financial information such as cash flows and market trends in order to better understand the entity in question. The analysis can also help identify any potential financial risks or opportunities, as well as demonstrate how the organization operates compared to competitors in the same industry. Additionally, financial analysis is important when assessing the performance of an entity in the Forex market, as it can provide key insights into the potential risks and rewards of trading currencies.


Macaulay Duration: Basics of Forex Trading for Beginners

5 min read

Macaulay duration is an important tool used by forex traders to measure the sensitivity of a bond’s overall duration to changes in interest rates. This measure can be used for both individual and country-level duration assessment. Macaulay duration works by calculating the present value of the coupon payments of the bond, when discounted using the current yield on the bond. The value obtained is then divided by the bond’s face value to determine the Macaulay duration. By assessing the Macaulay duration of a bond, forex traders can measure the sensitivity of the bond’s duration to changes in interest rates, as well as its value over time.