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Educational Articles

Knowledge Base

Reading time • 7 minute(s)
Moving averages in trading: definition and calculation
Moving averages are vital for traders who want to improve their performance on the financial markets. A lot of trading platforms integrate these tools into technical charts. Discover the different moving averages in trading, how they are calculated, the best way to determine market trends, strategies based on their crossings and much more. Learn about the moving averages history and usage. Here is the breakdown.
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Reading time • 2 minute(s)
Volatility vs. Risk: Why They're Not the Same And Why That Matters
In the fast-moving world of finance, two words often get thrown around interchangeably: volatility and risk. To many investors and even some professionals they seem like two sides of the same coin. But they are not the same. And confusing them can lead to costly mistakes. Understanding the difference isn't just academic, it's critical for smarter investment decisions, better portfolio management, and clearer thinking in times of market stress. "Volatility is not synonymous with risk. Confusing the two is like mistaking weather for climate." – Howard Marks, Oaktree Capital Management.
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Reading time • 12 minute(s)
How to use trading signals effectively? Practical guide
Trading signals are powerful tools that help traders make informed decisions on financial markets, by providing actionable insights based on technical indicators, market trends, and economic events. Whether you're a novice trader or a seasoned professional, understanding how to use trading signals effectively can significantly enhance your trading strategies and improve profitability. In this practical guide, we’ll explore how to interpret different types of trading signals, integrate them into your trading routine, and leverage them to make timely decisions that align with your risk tolerance and goals. By mastering these techniques, you can take your trading to the next level. It’s a good place to start your financial markets journey.
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Reading time • 9 minute(s)
What are Assets Under Management (AUM)?
AUM is a key financial metric that reflects the total market value of all the investments that a financial institution, such as a mutual fund, hedge fund, or investment firm, manages on behalf of its clients. Think of AUM as the “size” of an investment company’s portfolio—it shows how much money the firm controls and invests to generate returns for its clients. Understanding AUM meaning is important because it gives investors a snapshot of the company’s scale, influence, and ability to attract and retain clients. Generally, firms with higher AUM are perceived as more established and successful, often having access to better resources, talent, and investment opportunities. AUM is not just a number; it’s a reflection of a firm’s trustworthiness, performance, and reputation in the financial world. Whether you’re a beginner looking to invest or simply curious about how financial markets work, knowing about AUM can help you make more informed decisions about where to place your money.
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Reading time • 6 minute(s)
ISA FAQs
We are excited to announce that XTB is now offering Flexible Stocks & Shares ISA accounts, providing you with even more opportunities to manage and grow your investments tax-efficiently!
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Reading time • 2 minute(s)
Understanding ISAs: A Tax-Efficient Way to Save and Invest
For many, saving money can feel like an uphill battle. Between everyday expenses and long-term goals, it's easy to see your hard-earned cash disappear. In the realm of personal finance, the term "ISA" often surfaces in conversations about saving and investing. But what exactly is an ISA, and why is it hailed as a cornerstone of tax-efficient financial planning? What if there was a way to make your savings grow faster, with the government giving you a helping hand? Enter the Individual Savings Account (ISA), a tax-efficient tool designed to help your savings strategy.
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Reading time • 6 minute(s)
Understanding Contango and Backwardation: Key Concepts in Commodity Futures Markets
In the world of commodity trading, the terms "contango" and "backwardation" are of paramount importance. These two market conditions describe the relationship between spot prices and futures prices, and they can have a profound impact on the profitability of trading strategies and investment vehicles tied to commodity futures. Understanding these market conditions is crucial for commodity traders, investors in futures-based products (like exchange-traded funds), and anyone involved in the physical trading or storage of commodities. Contango can erode the returns of long futures positions due to the need to continually roll contracts at higher prices, while backwardation can provide a tailwind for these investments.
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Reading time • 6 minute(s)
Financial Years, Fiscal Quarters & Earnings Reports: What do they mean?
In the world of finance, understanding the concepts of financial years and fiscal quarters is crucial for businesses and  investors. These terms form the backbone of financial reporting, budgeting, and analysis, offering insights into a company's performance and health.  A financial year, also known as a fiscal year, is a period used for accounting and budgeting purposes, while fiscal quarters divide the financial year into smaller segments for reporting and analysis. Let's delve deeper into what these terms mean and why they are important in the realm of finance.
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Reading time • 9 minute(s)
Brent Crude Oil: The mesmerising world of this black gold bonanza!
In the world of commodities, there's one slick superstar that's been quietly dominating the stage for decades. It's not a celebrity you'd recognise on the red carpet, nor does it have a fan club on Instagram. Yet, it's the lifeblood of the modern world, powering our vehicles, heating our homes, and even influencing the price of that delightful avocado toast you had for brunch. Meet Brent Crude Oil - the unsung hero of slippery slopes and the diva of drilling. Brent Crude has a fascinating story that's as wild as an oil-soaked roller coaster. Before we dive into everything there is to know about Brent Crude oil it is important to note that oil prices have gone up by roughly 2% amid Middle East Tension and will continue to fluctuate in the coming weeks.
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Reading time • 2 minute(s)
What Is a CFD?
CFDs allow traders take position on whether the value of a financial market - for example, a share, commodity, currency pair, or stock index - will rise or fall in short, medium or long term.
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Reading time • 2 minute(s)
Day Trading
Day trading is a method of investing in which you open and close positions within the same day. Find out how you can start day trading in this short and comprehensive article.
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Reading time • 5 minute(s)
Scalping
Scalping is a trading strategy that requires the trader to place multiple trades, which seek to close out small profits over extremely short time frames. Find out how to start scalping in this article
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