Categories: Forex Trading

Trading Academy: An Academic Guide to Forex Trading

The Trading Academy of Forex is an academy dedicated to helping individuals become more informed traders. Using cutting edge training methods, the academy teaches you the fundamentals of trading, risk management, and technical analysis so you can start trading with confidence. With an experienced and knowledgeable team of professionals, the Academy offers both online and in-person classes to give you the skills necessary to become a successful Forex trader. Whether you are a beginner or an experienced trader, the Trading Academy offers the perfect program for everyone. With their guidance, you can be sure you are making the right decisions and maximizing your Forex profits.

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Categories: Ratio

acid test ratio”: A Guide to Forex Trading & Management

The Acid Test ratio, also known as the Quick Ratio, is a measure of liquidity used to measure a business’s ability to pay its current obligations without the use of inventory or other current assets. It is used in forex trading to measure the level of risk inherent in a particular currency pair. In essence, the Acid Test Ratio reveals how much capital a trader would need in order to purchase a specific currency in order to cover any losses incurred should the price of that currency move against the trader.

The Acid Test ratio is determined by taking the total of a trader’s liquid assets, such as cash, equivalents, accounts receivable, and short-term investments, and dividing it by the total of the person’s current liabilities. A higher ratio indicates more financial strength, while a lower ratio reveals higher risk. Ultimately, the Acid Test creates a snapshot of a trader’s ability to quickly meet their financial obligations.

. When evaluating a currency pair for trading, it is important to take into account the Acid Test ratio to determine how much risk is being assumed and if entering the trade is worth the effort.

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