// TRADING TERMINOLOGY

What is Interest Rate?

The amount charged by a lender to a borrower for the use of assets.

In-Depth Explanation

Central bank interest rates are the single most important factor in the Forex market, as they determine the "yield" of a currency.

"The BOE raises interest rates to 5.25%, making the British Pound more attractive to international investors."

A national bank that provides financial and banking services for its country's government and commercial banking system.

The earnings generated and realized on an investment over a particular period of time.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

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Knowing the terms is just the start. Learning how to apply them is where the edge is found.