Explanations Category

This page contains posts filed under the ‘Explanations’ category. That means the posts on this page are explanations and definitions of important terms I’ve used on this website.

Bank for International Settlements

October 7, 2014

SUBSCRIBE: Enter your email address to get notified whenever Stephan Smith posts new content. Thank you. The bank to rule them all; the Bank for International Settlements is the most powerful and oldest global financial institution in the world. Established on May 17th, 1930, the Bank for International Settlements, commonly abbreviated as BIS, acts as […]


Retail Sales

June 4, 2012

Many currency traders and other types of investors are always looking for ways to get clear insight regarding the condition of an economy so that they may better position their investment capital for bigger profits. One way to gain those insights is to monitor the amount of domestic spending and consumption that occurs. Domestic spending […]


Germany IFO Business Climate Index

May 28, 2012

When it comes to assessing the overall economic situation of the German economy, the IFO Business Climate Index is a report you may want to familiarize yourself with. Compiled by the CESifo Group, which consists of organizations like the Center of Economic Studies (CES), CESifo GmbH and the IFO Institute, the Germany IFO Business Climate […]


Safe Haven Currency

February 2, 2012

A safe haven currency is a currency investors denominate their assets in, for the purpose of protecting their investments from uncertainties due to elevated economic, financial, political or natural risks. There are many factors that can have a negative affect on the value of one’s assets. Individuals and organizations who are savvy and are able […]


Unemployment Rate

January 9, 2012

Have you ever wondered what an unemployment rate is? What does it mean? Why is it important and how does it influence Forex traders (also known as currency traders)? Those are all very important questions I will answer on this page. What is an Unemployment Rate? An unemployment rate is a fundamental economic development that […]


Technical Analysis

January 7, 2012

In the realm of Forex trading (also known as currency trading), there are two philosophies currency traders use to justify trades. Those two philosophies are fundamental analysis and technical analysis. I know both terms can seem intimidating, but it isn’t as difficult to understand as you may think. On this page, I will be covering […]


Fundamental Analysis

October 12, 2011

In currency trading, there are two types of philosophies currency traders use to justify trades. Those two philosophies are fundamental analysis and technical analysis. I know both terms can seem intimidating, but it isn’t as difficult to understand as you may think. On this page, I will be covering fundamental analysis. If you are wondering […]

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Currency Trading Price

September 27, 2011

In an effort to not assume you know what I mean when I say currency trading price, I am going to take this time to explain what it means. A currency trading price is simply the cost to exchange one currency for another. So lets say the United States dollar‘s trading price is 1.2487 relative […]



June 15, 2011

If you’re a currency trader, stock trader, a fixed income investor, an investor in the commodities market, the real estate market, or if you just want to keep up to date with the status of your economy and or foreign economies, then it is really important that you have an understanding of what a bond […]

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ISO Currency Codes

June 5, 2011

Forex traders around the world uses ISO currency codes when trading currencies and to create currency pairs. But what are ISO currency codes and why do Forex traders use them. In this post, I will explain what ISO currency codes are and what ISO stands for. I also will list some of the popular currency […]


Central Bank Balance Sheet

June 2, 2011

Keeping an economy prime for growth is definitely a tough balancing act. You have to make sure there is ample cash and credit floating around in the economic system, while making sure that their isn’t too much liquidity out there as well. Too much cash and credit flowing around an economy will give rise to […]


Electronic Currency

May 26, 2011

If you’re reading this right now, you are probably familiar with what a currency is. If you’re not sure, it’s that pretty paper in your wallet that you use to buy goods and services with. I’m not sure if you were aware of this, but that particular form of currency (the paper with the designs […]



May 24, 2011

We all know that one of the most powerful institutions in the world are central banks. Having the ability to create and issue currency, which is the most popular form of money, and having the ability to manipulate the value of the very currency they issue, a central bank definitely has influence over all aspects […]


Bank of England

May 23, 2011

If you ever wanted to know what the Bank of England is, then allow me to enlighten you. The Bank of England is the central bank of the United Kingdom. Founded in 1694, the Bank of England is responsible for ensuring monetary stability primarily by encouraging the price stability of goods and services. The Bank […]