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September 12, 2022

Buy the Rumour, Sell the News Explained

Filed under: Forex Trading — jeff @ 8:41 am

buy the rumor sell the news

There are several news platforms that provide quick and easy access to economic news, such as Yahoo Finance, Bloomberg, and Nasdaq. The first step to “buying the rumor” involves discovering it before everyone else. The Motley Fool has positions in and recommends Ethereum.

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What the S&P 500’s new bull market tells us about what’s to come.

Posted: Sat, 10 Jun 2023 13:29:00 GMT [source]

Often, these hype-fueled spikes outweigh the reaction to actual news. By the time the news breaks, seasoned traders are already getting out of the trade. They bought the rumor, then they sold into strength as a wave of newbies bought up shares. Forex signals are used by traders in making trading decisions by determining whether to buy or sell a certain currency pair at any given time. However, navigating the ever-changing landscape of Forex signals can be a…

Why Buy the Rumor and Sell the News?

But I’m not talking about stock rumors proving themselves. They don’t have to amount to anything to move the stock in a meaningful direction. For example, ahead of earnings, these people will use their experience to predict whether companies will publish strong results. If there was strong merger and acquisition during the quarter, they will believe that companies like Goldman Sachs and Morgan Stanley will do well. There are other examples of when rumors led to a frenzy in the financial market.

  • The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
  • Stay on top of upcoming market-moving events with our customisable economic calendar.
  • However, neither IBKR nor its affiliates warrant its completeness, accuracy or adequacy.
  • There are also rumours that spread before big meetings between heads of state, or in anticipation of a government’s response to a geopolitical situation.

In the current market, it’s more difficult to find great stocks to trade and execute your plan… 
Stocks are… But trying to predict the unpredictable isn’t a safe strategy. They’re not about earnings or business developments or stocks going down or up. They want to make sure the stock they’re buying into is real. For example, if a stock is trading at $10 ahead of earnings, you could place a sell-stop at $9 and a take-profit at $6.

Selling the News

Yet, a different approach with Ethereum might be more accurate. Traders who opened a position on the rumour have since been able to reap the benefits as oil’s downward trend reversed at the start of January 2019. Crypto can be highly speculative, and this pattern helps us to understand the ramifications of that. This sort of pattern occurs like clockwork in cryptocurrency.

It was found that the effect on returns generally occurs on the first or second day, but the impact lasts until the fourth day. Meanwhile, on the third day and on the fourth day, there is still a significant impact on the flow of buy and sell orders. Forex trading has gained a lot of attention over the years and is now more accessible than ever before, but many beginners still lose money in the hope of earning big profits.

Buy The Rumor, Sell The News

The trader may decide not to sell if the news is much better than expected, since the better-than-expected news may attract additional buyers and push the price up even further. Despite its popularity, https://forexhero.info/numerical-differentiation-methods-in-python/ this forex trading strategy still falls into the category of speculation, so the risk involved here is high. Developing a tight entry and exit strategy is crucial for beginners in forex trading.

KAVA Price Prediction: Buy the Rumor, Sell the News? – BanklessTimes

KAVA Price Prediction: Buy the Rumor, Sell the News?.

Posted: Thu, 18 May 2023 15:48:01 GMT [source]

When fears of the Covid-19 pandemic began to surface in February 2020, there was a financial shock. Yet, traders still bought the rumour and sold the news. They assumed that the pandemic would be a global problem, so they bought safe-haven currencies like the Japanese yen (JPY) and Swiss franc (CHF). But a lot of things in the stock market don’t make sense until you study, learn, and start to understand how trading really works.

June 27, 2022

Treasury Bills T-Bill Features, Types & Benefits

Filed under: Forex Trading — jeff @ 4:31 pm

treasury bills india

These promissory notes are usually issued to meet the government’s short-term fund requirements. Hence T-bills play a key role in reducing the overall fiscal deficit of the country. For instance, the government may need capital to build developmental infrastructures such as hospitals, bridges and dams.

Liabilities, on the other hand, are debts an organisation owes. The RBI also releases a schedule for holding Treasury Bill auctions. Before each auction, the precise date, the sum to be auctioned, and the maturity dates are announced. It assists the RBI in both raising money and controlling the total amount of money in the economy. Available via annual subscription to one or more of CEIC’s global and premium databases.

There are a few easy to understand variables that you need to look at before deciding on an investment in these two G-Sec instruments. Whenever you and I need money, we go to the bank to avail a loan. Against this loan, we promise to pay the bank periodic interest and also return the money after a certain amount of time. This is common practice, where the interest and principal are repaid to the bank. Thus, the calendar is subject to change, if circumstances so warrant, including for reasons such as intervening holidays. Such changes, if any, will be communicated through Press Releases.

How to invest in US treasury bonds from India

The RBI issues Treasury Bills and Bonds every Wednesday in the market. Investors can purchase directly from the government or through participating banks or authorised primary dealers. Depending upon the bids, you can also trade securities treasury bills india with Treasury Bills. After the redemption of the T-bill, a T+1 settlement process follows. Another unique aspect is that you can purchase treasury bills at a discount, but redeem them at their full face value at the end of the tenure.

treasury bills india

Government bonds are a type of fixed-income security, allowing investors to earn consistent and regular income. Moreover, they can earn this income for a long period since most G-Secs have a maturity period of at least 5 years. Also, Government bonds are safest to invest among all classes of investment options. Treasury Bills are bonds or debt instruments with a one-year maturity. Treasury bills are produced to cover short-term receipts and expenditures discrepancies. The Indian government requires funds to fulfil its obligations.

India Key Series

This allows investors, like you, to make a small profit on your investment, making it a win-win situation for all the stakeholders. Likewise, the Government of India also needs money to build roads, bridges, dams, hospitals, etc. When they run short of money, they approach their bank for a loan, which is the RBI.

These promissory notes are short-term tools that can help you grow your funds without worrying about the risk. If you’re wondering what these are and why you should consider them, look no further. Since the Government of India issues only short term debt instruments, we have aliased the 364-day bill with the long term bond alias IRGTLT.IIND. However, the price you pay for the bonds is still decided by the banks and other major financial institutions. They place bids on RBI’s auction platform, and RBI decides the price of the bonds based on these bids placed on their platform.

Governments need liquid capital to fund various short-term development and welfare projects. Through Treasury bills, they can raise capital from various set of investors like trusts, institutions, banks and retail investors. Treasury bills are also popularly called “Zero-coupon security”. Hence, it is considered to be a secure and guaranteed investment instrument.

What are the types of treasury bills?

So the auction process is basically a process to discover the price you’d pay for the bond, also called the weighted average price of the bond. The concept of ‘Yield to Maturity’ or YTM is a little tricky. The YTM calculation assumes that you reinvest the interest payment back into a similar bond, which further generates interest on interest. Bond traders and institutional investors only look at YTM because this is the true comparable value between two different bonds.

  • In essence, your options are limited to purchasing bonds on the secondary market or through bond exchange-traded funds (ETFs).
  • Treasury bills also do not offer any tax deduction under Section 80C of the Income Tax Act, of 1961.
  • The bank or post office will process your request and then issue a bond certificate in your name.

Using a platform like Interactive Brokers, investors can access the US Treasury market and purchase Treasury Bonds and T-Bills on the secondary market. Furthermore, purchasing a Government Bond ETF allows investors to diversify their portfolio by gaining exposure to various Treasury Bonds with varying durations. The devaluation of bonds due to a sequence of interest rate increases in 2022 has inadvertently benefited investors in 2023. Firstly, bonds are currently providing more appealing interest returns to investors. At the onset of 2022, a half-yearly US Treasury bond yielded 0.22%.

Ready to begin your US investment journey?

If you have purchased bills with a longer tenure, you can sell those government securities in the secondary market in case of a financial emergency and get returns. The government requires money to fulfil its financial commitments like you or me. The funds needed can be raised through a variety of financial products. One such money instrument is the Treasury Bill or the T-Bill.

treasury bills india

As such, the tax rate could go as high as 30% depending on the applicable slab rate, and could further diminish the returns. The government of India and the RBI determines the fixed treasury bills rate. Even before the market opens, the rate is set and doesn’t change. The sales of the treasury bills also do not impact its price. If you are an amateur investor, treasury bills could be one of safest money market instruments you can choose.

You can also purchase more treasury bills in multiples of INR 10,000. For example, if you buy a 91-day tenure treasury bill at INR 97, and the face value is INR 100. Your return is the difference between the maturity value or the face value  (INR 100) and the issue price (INR 97), i.e.

Treasury bills’ face value and coupon payments are subject to cyclical adjustments. This depends on the RBI’s monetary policy, financial needs, and the overall amount of contributions received. The holding time of these treasury bills serves as the main point of differentiation.

treasury bills india

Unlike government bonds, the tenure for treasury bills or T-Bills is relatively short and are presently issued in three tenors namely 91 days, 182 days and 364 days. The government uses them for short-term liquidity requirements. Only the central government can issue treasury bills; the state governments cannot issue them. Treasury bills are basically issued in three different maturities, namely, 91 days, 182 days, and 364 days. Treasury bills are issued at a discounted rate to their face value and provide a guaranteed return to the investor at maturity.

The amount you have invested and will get as a return is clearly mentioned on your bill; you will get returns accordingly. So, the face value may change for later investors, but it will remain constant for you after the purchase. No, after the maturity period, you must give it back to the government to get the investment returns.

The bank or post office will process your request and then issue a bond certificate in your name. While Americans can easily buy Treasury Bonds through TreasuryDirect.gov, it’s not as straightforward for Indian investors. The good news is that it is still possible to invest in US Treasury Bonds from India through different products. Facing an issue with your studies on public services in India. This blog is surely going to clear all your doubts and give you a clear understanding of every service. A formal order given by a judicial power with the power to do so is known as Writs in India.

These are auction rates and we data-bank the implicit yield at cut-off price. This is the yield on an instrument if it is held to maturity. To meet the budgetary requirements, State Governments also raise loans from the market, and these loans are called State Development Loans (SDLs). These loans are similar to the dated securities issued by the Central Government, the interest is credited half-yearly, and the principal amount is repaid at the time of maturity. Here is the link of all the bonds that have been issued by RBI. Do pay particular attention to the nomenclature, coupon rate, and year of maturity.

July 17, 2020

LimeFX Opens Bitcoin Trading Opportunities In ECN Accounts

Filed under: Forex Trading — jeff @ 1:07 pm

LimeFX ecn

Whether you’re new to the forex market, or have built up a wealth of trading experience, our account selection provides you with the opportunity to explore the forex market in the most suitable way. LimeFX doesn’t have minimum deposit requirements meaning that traders are free to deposit whatever amount they want. Depending on the transfer method, deposit processing time ranges from instantly, several hours to 3 business days and traders aren’t charged any deposit fees. LimeFX pricing greatly depends on the platform in question as well as the type of account.

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FBS Review 2023: Is FBS Broker Legit or Scam?.

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This means that clients can conveniently trade through their mobile devices. Last year, the company introduced LimeFX Mobile Application in an effort to provide traders with unbeatable financial markets’ information. Founded in 1998 in Russia, LimeFX Limited is a trusted FX dealer with vast experience in the field of retail forex trading. LimeFX is dedicated to providing a broad range of trading services, such as Spot metal, CFD brokerage, stocks, and online Forex to traders worldwide. Besides its focus on PAMM accounts, it also advances social trading via its LimeFX CopyTrade platform. LimeFX does feature webinars for new traders to learn more about trading, and an acceptable assortment of written articles is additionally available.

LimeFX Leverage

75.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. You can learn how to trade forex at LimeFX’s Forex School, which includes a glossary, training videos, high-quality forex articles, and eBooks on Forex. The Forex School offers webinars in five languages and enables traders to get in touch with tutors through live chat. Moreover, traders can learn trading strategies online from any part of the world. Traders can make informed and independent decisions because LimeFX offers a variety of trading instruments, user friendly services, several types of accounts, cashback, and hassle-free banking methods.

LimeFX ecn

Like most brokers, LimeFX offers a demo account where you can try trading without risk. LimeFX makes 4 life trading account types available, Standard, Micro, ECN, and Pro. LimeFX presents an excellent educational platform and dedicates an entire section on trading psychology. Video tutorials and trading tests complement the well-designed educational course. LimeFX creates in-house market news, and traders have access to a comprehensive analytical suite through a partnership with Trading Central.

Top 5 Forex Brokers Accepting Crypto Payments (Jan

LimeFX provides traders with investment ideas, trading tips, and market analysis every day. Thanks to the FXStreet event calendar and insightful commentary offered by Dow Jones, traders have access to up-to-date and trending economic information. LimeFX also offers seminars and webinars to traders to ensure that they have all the necessary trading information. LimeFX represents a sound brokerage with a focus limefx reviews on PAMM accounts and is home to over 2,000,000 traders, including 56,000 PAMM accounts with over 550,000 participating traders. It offers a highly competitive trading environment in its ECN account but fails to mention which MT4 ECN bridge it uses. The turbulent past at LimeFX should be considered, but broadly speaking, this broker offers a safe trading environment, excellent for retail account management.

  • Overall, The minimum deposit required to open an LimeFX Account is $100 USD.
  • For example, a fee of 1.2% + 2.9 EUR  is charged for withdrawals via debit cards/credit cards.
  • In addition to their unbeatable products and services, they also provide research and education resources to help traders make informed decisions online.
  • Evaluating the «LimeFX» broker in general, it should be noted that the company is one of the oldest, largest and most reliable.

Premium accounts come with personal managers and are ideal for experienced traders. Swap rates on overnight positions are applicable at both brokers, and so are third-party charges on deposits as well as withdrawals. The LimeFX Micro account starts from a spread of 1.7 pips, this is lowered to 1.2 pips in the Standard account. The LimeFX ECN account carries spreads from 0.4 pips with a commission of $3 per round lot, which outlines a very competitive trading environment. LimeFX offers 1.4 pips spread in its MT4 account, and ECN traders can receive raw spreads, as low as 0.0 pips, but for a commission of $45 per $1,000,000. LimeFX is home to over 2,000,000 clients and heavily focused on PAMM accounts, while LimeFX caters to over 1,300,000 traders and remains the market leader in ECN trading.

Live Webinars

For the purposes of this review, we found the customer service responsive and well-informed. This holds true for its stock CFD offering, in addition to the number of commodities on offer. LimeFX also charges an inactivity fee of 5 USD per month after six months of account dormancy, which is well below that of its competitors that charge at least twice that much after only half the time. When making this calculation, we used one lot of EUR/USD as a benchmark as it is the most commonly traded currency pair and it usually has the tightest spread. Apart from the tools, this LimeFX review just mentioned, there are excellent specialized tools too for technical analysis.

LimeFX ecn

All the payments at LimeFX are handled by a reliable payment provider that makes sure that the personal details are completely secure. On the other hand, card transactions are safely processed via FR Global Services Ltd and AI Accept Solutions Ltd. LimeFX Autochartist is still one of the best and most efficient technical analytical tools of the MT5 plugins and web applications.

Multi-Currency accounts

The web application automatically scans and observes the market and it consists of all the essential levels. This tool is useful in predicting probable events and can be utilized as an important advantage https://limefx.group/ to improve the new set of Forex trading strategies. The Forex market reviews are research works that are published regularly. They contain written reviews and videos on the market that are explanatory.

  • Trader Central offers forecasts as well as the latest technical analysis.
  • As a result, traders can visit Apple App Store or Google Play Store to download trading applications.
  • As we can see, for Latin American clients, no fees are charged for withdrawals via skrill, which usually take 1-2 business days to arrive.
  • Their website is perhaps one of the most informative and convenient resources on the brokers’ market; any trader will find it quite comfortable to work here.
  • Creating an account is straightforward, the process is fully digital, and accounts are usually ready within one to two business days.

Forex trading widely relies on MetaTrader 4 platform because it is more user-friendly and offers a broad range of useful tools. More importantly, MetaTrader 4 has an all-inclusive charting package designed to help traders analyze various market trends. Traders tend to be more comfortable working with regulated brokers than with the unregulated ones. Regulated brokers strive to maintain high standards of transparency and can offer viable recourses to traders in the event they become insolvent. Most recently, LimeFX modernized the configuration it uses on its various trading accounts. The new, improved, and up-to-date technological solutions have considerably improved execution speeds.

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