Especially those involved in economics and finance must always be kept informed about market trends and the main innovations and changes that take place regularly. The purchase and sale of financial goods and services (equities, bonds, government bonds, etc.) by Internet (a procedure defined as online trading) is also affected by major market changes. It is therefore good to keep up to date and to be familiar with the main economic, accounting and financial instruments such as Fair Value Options.
These options use Fair Value, which is an innovation in the application of international accounting dynamics and serves to understand the right market value of a given product.
It is in fact the basis of various accounting standards such as IFRS 3, which applies to leasing contracts and the various skills linked to the types of business association. As regards IAS 2, on the other hand, which refers to inventories and IAS 18, which relates to revenues, the Fair Value, which is useful for determining the dynamics of this product, is only used in part.
There are several ways to calculate this. The first and most important tool of definition is certainly price, which is determined in cases of free market.
In the absence of the latter, it should be determined by taking into account the active and passive shares of a certain activity, taking into account the valuation of the like products. In some cases, the option equal to the historical cost is used.
Companies therefore use the Reference Options to be able to use the Fair Value for the purposes of determining any type of economic and financial product.
The term Fair Value comes from an international economic tradition, which must be considered as a source of inspiration and which must be adapted to the context in which it was declined over time. There are different interpretations that have led to alternative solutions, but they are equally valid.
The first implication sees the term rendered as "corrected value". However, since a relative concept, which most often deals with various criteria for economic evaluation, sounds strange to interpret it as does the school of thought that follows such a translation.
On the contrary, we have a school of thought that follows the concept of "consistent or congruous value" with respect to legal and accounting principles: this definition excessively relativizes the concept, since it does not determine an evaluation policy that is necessary to use.
The translation in the definition as "not misleading value", underlines an important factor, that is its informative function, but it does not grasp the other fundamental aspects of the problem.
In the sense of "current value", the concept takes a turn for the value that can be deduced from the prices of active and efficient markets: markets with different characteristics are not taken into account, and an incomplete view of the basic concept is created.
Finally, the definition of "neutral or undistorted value" considers Fair Value free from important factors such as budgetary policies, thus becoming difficult to find in reality, since economic reality tends to consider the subjectivity of reference values in this area very important.
Automatic forex trading is defined as all actions typical of online trading performed using specific software. In most cases this software is used by experienced users or not beginners. The software serves primarily to perform several forex activities or other investment areas at the same time.
The market is dominated by two alternating trends: the bullish and bearish trends. For an analyst to be able to understand the market trend, and to be able to predict the next trend is fundamental but complicated. There are many indicators that, if used in the same way, can give concrete predictions about what is going to happen to the market. Predicting as truthful a forecast as possible is very important because it gives the possibility to significantly reduce the risk in investments.
As part of our "study path", after addressing the main basic terms, today we will address a very important topic such as the analysis of trends in Forex market. As we did for the trends at home Trading, today we will deal with issues related to Forex indicators.
In this technique with a 30-minute binary options maturity, the Bollinger Bands are used, an essential tool to understand whether the market is in the lateral phase or not.