Brandon

Hello Kelvin, Authorized Participants (APS) in the Exchange Traded funds world play a crucial role. They ensure that the prices stated for the funds are equitable. APS is essentially responsible for the creation/redemption technique in the ETF market. The creation/ redemption mechanism touches on how funds get exposure to the ETF market. This mechanism ensures that ETFs are more affordable and tax-efficient than other mutual funds. APS, therefore, plays a crucial role in liquidity since they are the ones who provide liquidity and therefore have the might to modify the ETFs shares available in the market. APS categorically are institutions. APS is, however, not like money makes even though both play a crucial role in market liquidity. They trade the underlying asset. They directly impact the underlying liquidity since their central role is to ensure that the value of the funds is fair. To achieve this, they spot a shortage or an excess in the market and act accordingly.

Hello Myles, With the growing usage of cryptocurrencies around the world, the tax authorities are pushing hard to ensure that they impose taxes on these digital currencies. Cryptocurrencies are seen as a money-making venture which will bring in a good amount of profits. This is why the IRS authorities are not giving up on the pursue of the cryptos. The strategies and rules regarding cryptos are dynamic, and therefore, the investors must prepare for firm cryptocurrency directives. Cryptocurrencies are designed to operate with no intervention from the government, the central banks, and no pursuit; however, by the tax authorities. The government and the central banks are nowhere to be seen in pursuit of these currencies; however, the tax authorities never seem to give up on them. Despite this, regulating the cryptos has generally proved to be difficult. One reason why it is challenging to regulate the cryptos is due to hostility among the cryptos users. Most cryptocurrency investors feel that handling them will be seen as if they are dealing in illegal purchases. Cryptocurrencies are not seen as actual money. This makes it hard to regulate them. Cryptocurrencies are treated as property. You should pay taxes for the items you buy with the cryptos. Cryptocurrencies are widely spread. They operate without a central bank, therefore, making it difficult to track its costs and proceeds.

Hello Myles, Also known as a designated broker, a market maker is typically a broker. It is also an investment firm. It plays a crucial role in the trading of ETFs and ensures that the exchanges of bonds between traders are efficient and continuous. They achieve this in several ways, such as ensuring liquidity in the market. While providing liquidity, they sell some aspects to the investors and purchase them when they are selling them. Market makers also ensure that the quoted price of the ETFs is equal to the fundamental securities. Many people are participating in the market with offer prices for the funds. The market participants want the chance to match the buyers and sellers in the market. Due to this competition, they are compelled to state their best prices and bids. Market makers also come up with ETF units by providing underlying security, and in return, they get blocks of units with similar market value.

Hello Kelvin, Bitcoin's worth or any other cryptocurrency can successfully drop from a relatively high value to zero value. When the price of a Bitcoin falls below the cost of mining, people will have no reason for mining, and consequently, its value will drop significantly. Without mining, then there will be no public ledger recording and verifying the Bitcoin transactions on who is now owning the crypto. Then it will become worthless. The cost of mining Bitcoin is not fixed. As its price increases, new investors enter the market with the aim if mining it. By this, the effort needed to mine the Bitcoin will increase since the profits it will yield will be distributed among many people. When the price falls, a good number of minors will exit this field hence decreasing the cost of mining it. A low price for the Bitcoin quickly reduces its value to zero. If its price continues to fall, mining Bitcoins will become absurd. And since people will leave the market, fewer people will be there to verify and record the transactions taking place. Bitcoin will, therefore, become worthless. 189 words

Hello Kelvin, Volatility is the rapid change in the currency exchange rate in a Forex market. Risk is the possibility that a certain loss or an injury will occur. You can never control volatility. However, with risk, you can decide whether you want to take up a certain risk. While taking up a certain risk, for example, you can decide what you want to invest in that market. In volatility, however, you cannot determine the market price of a certain currency. However, there exists a strong relationship between these two. When you decide to trade volatile currencies, you will take up a risk since prices may distinctly move in whatever direction. This movement may result in losses. Investors need to be aware of the risks they are taking up, especially when the market is volatile. Please check out the advantages and disadvantages of that risk to avoid making significant losses.

Hello Myles, Forex, being a 24-hour market, allows you to trade at any day and time of the week. While selling in a forex market, you must time yourself so that you may make significant profits. Though Forex is a 24-hour market, it does not mean that the market is active throughout the day. Meaning you can not make money when the market is stagnant. Forex market consists of four prime trading sessions; the Tokyo session, the London session, the Sydney session, and the New York session. Also referred to as the Asian session, the Tokyo session is called so since Tokyo is the Asian financial capital. The main participants in this session are the central banks and exporters. Liquidity in the Tokyo session may also be less. When the Tokyo session is closing, that’s the time the London session begins to operate. London’s strategic location makes it the center of trades. The London session is the most volatile thanks to the many transactions that take place through it. The New York session is popularly known for markets always keeping their eyes on it. In the morning, the liquidity is usually high, as this session will be overlapping the London session. When the New York session is beginning, that's when there is a release of many economic reports. You must study the market sessions well and know the one that is most convenient for you.

Hello Myles, Both CFD and Futures have become widely used in investment tools. They allow investors to deal with assets much easier and are able to control their risks. Although CFD and futures are homogeneous, they offer a different range of products. Their investing options are also dissimilar. At times you may find it better to invest in futures while other times you prefer CFD. In a contract for differences, you speculate whether the price of an underlying asset will rise or fall without necessarily owning the asset. In futures, the client will agree to purchase the fundamental asset at a given price and at a future date. A contract for differences does not have a future price or date. CFD trading does not have an expiry date, unlike the future whose trade ends at a particular time. In futures, the trading takes place in a central and open market where the buyers and sellers can recognize the exchanges that are taking place. In CFD trading, there is a broker who runs the transactions between the participants. In CFD trading, the spreads are usually high in contract to those in future trading. Fees charged in the future are, however, much more than the ones you will pay in CFD trading. Though both Futures and CFDs are usually leveraged, futures margins are usually high since its transactions will take place, incurring more capital.

Hello Myles, A ranging market is one whose financial instruments moving all around the same place for quite some time. When the market price is revolving around the same place for about three times, this is a perfect definition of a ranging market. A trending market is the opposite of a ranging market. In a trending market, the prices are either rising or falling. A ranging market typically moves sideways. You can Identify a ranging market using the Average Directional Index (ADX). This tool shows whether the market is either moving up and down or moving sideways. Average True Range is another tool that can be used to indicate a ranging market. It unveils the par difference between the latest movements. You can also use the Relative Strength Index, which is a tool that shows how vigorously the price moves either upwards or downwards.