The last of our four capital markets is the forex or currency market, which is unique for a number of reasons.

It may come as surprise but once upon a time the British pound, was the currency of first reserve. In fact this was the case for much of the 20th century, and it was only replaced in the latter half due to economic weakness, before being replaced by the US dollar.

For many traders and investors, price and the price chart itself are the beginning and the end of technical analysis, and this perhaps best describes those traders who classify themselves as price action traders, because all they ever consider is the price and nothing else.

In this video podcast I want to start with an analogy, which although not perfect, will I hope explain some of the principles of volume price analysis, and the power the simple logic of this relationship can convey to us as traders.

When we look at the world of futures, we can consider supply and demand through the prism of open interest, and in many ways the futures market also opens up several interesting avenues for forex traders.

In the world of trading, there is probably more argument, debate and discussion about stop loss positioning and management, than any other topic, but in many ways stop loss positioning is where art and science meet, which is why, as always, there is no right or wrong way to approach this subject.

We all borrow money in a variety of different ways, and the bond market is structured in such a way as to allow all sorts of bodies, including countries, governments, municipal authorities and private companies, to borrow money for a variety of reasons. So let me take a simple example to explain how the bond market works.

But why do countries adopt a currency peg and what are the benefits? But perhaps a supplemental question is why is this important even to a scalping forex trader. And the answer is the Euro!

So, how do we interpret what the bond markets are telling us, but before doing so let’s look at some bond market terminology, and in particular what is meant by “yield”.

Of all the economic indicators, GDP or gross domestic product is perhaps one of the most important, as it tries to give a snapshot of the economy in one simple number.