Forex encyclopedia

Real average weekly earnings is the market indicator used in fundamental analysis. It is expressed in absolute terms and represents an index in relation to the previous period. The index slightly influences movement of prices, therefore, it is considered supplementary and can act as supportive to such indicators of fundamental analysis as major interest rates or non-farm. Real average weekly earnings accounts for inflation and is calculated in relation to 1982, which was conditionally taken for benchmark. Thus, this fundamental indicator can be considered as the inflation figure, which is caused by increase in earnings. Also it can perform as the indicator of rate consolidation: if increment of major interest rates of Central Bank is expected, then increase of earnings can tell about growth of national currency rate. Publication of data is made simultaneously with publication of Consumer Price Index at 8:30 a.m of New York time, regularly in the middle of every month.
Margin trading is a trading with borrowed funds. The idea of such a trading is to borrow money from a broker and trade with funds greatly exceeding trader’s own. This pledge is called margin. Margin funds are measured by the currency of deposit (for instance, US dollar). Margin depends on liquidity of a trading instrument (products). The essential part of the margin trading mechanism is to provide a leverage. To calculate margin-based leverage, divide the margin amount by the total value of a transaction. For example, the ratio 1:100 shows that in order you can trade, the balance of your trading account have to be 100 times less than the value of a transaction.
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