Economic Indicators part one

tags: The Gross Domestic Product (GDP),Factory Orders,Inflation Indicators,Construction Indicators,Business Inventories,Durable Goods Orders,Consumption Spending,Investment Spending,Government Spending,Net Trade,Industrial Production,Capacity Utilization Economic indicators occur in a steady stream, at certain times, and a little more often than changes in interest rates, governments, or natural activity such as earthquakes etc. Economic data is...

Economic Fundamentals

Theories of Exchange Rate Determination Fundamentals may be classified into economic factors, financial factors, political factors, and crises. Economic factors differ from the other three factors in terms of the certainty of their release. The dates and times of economic data release are known well in advance, at least among the industrialized nations. Below are given briefly several known theories of exchange rate determination. Purchasing Power Parity Purchasing power parity states that the price of a good in one country should equal the price of the same good in another country, exchanged at the current rate—the law of one price. There are...

Currency Options Theta,Vega,Gamma,Delta

A currency option is a contract between a buyer and a seller that gives the buyer the right, but not the obligation, to trade a specific amount of currency at a predetermined price and within a predetermined period of time, regardless of the market price of the currency; and gives the seller, or writer, the obligation to deliver the currency under the predetermined terms, if and when the buyer wants to exercise the option. Currency options are unique trading instruments, equally fit for speculation and hedging. Options allow for a comprehensive customization of each individual strategy, a quality of vital importance for the sophisticated investor....