Understanding the relationship between interest rates and currency movements is an essential aspect of long-term success in forex trading. Locking in an exchange rate helps firms plan ahead, reduce losses, or even increase gains, depending on which currency in a pair is strengthened or weakened. It’s a bilateral transaction in…
The AMM ensures that the pool preserves liquidity by growing the worth of an asset as demand will increase. Constant Product Market Maker (CPMM) is the most common of many variants of Automated Market Makers. There are three key components that make up the liquidity pool — Liquidity Providers (LPs),…
Interest rates, trade, political stability, economic strength, and geopolitical risk all affect the supply and demand for currencies. This creates prospects to profit from any situation that may increase or reduce one currency’s value relative to another. The 24-hour nature of forex markets also makes it physically and mentally demanding.…