U.S. New Home Sales Decline Dramatically

New Home Sales in the US dropped dramatically in February to a low not seen in nine months. Severe cold weather in parts of the country contributed to this as it limited foot traffic to an already highly elevated market with restraining momentum.

Purchase of new single-family homes had the sharpest decline since July 2013, decreasing 18.2% to 775,000 annualised pace from a rate of 948,000 in the previous month. The reported pace was much lower than anticipated, as the expected forecast was 870,000 with sales dropping across all regions of the country.

All throughout the pandemic, the real estate industry has managed to maintain its high demand, but analysts believe the major decrease in sales is somewhat due to tightening inventory and rising prices that are keeping buyers away.

Reports also indicated that the number of properties that were sold and had not begun construction also fell to 211,000, which is the lowest it has been since October 2018. The median price for a house has risen 5.3% from a year ago, to $349,400. Sales of previously owned properties have also been affected, as they dropped below the forecast of 6.50 million to 6.22 million.

The US Dollar Index edged modestly higher after this report was released and was last seen gaining 0.52% on the day.

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Leverage

In terms of trading, leverage is borrowed capital that allows you to increase your potential profits or losses. In Forex a common leverage amount offered is 100:1, meaning that for every $1 you have you can control $100 in equity.

Margin

Margin is the collateral you must keep in your account to maintain a leveraged position.

Open A Forex Trading Account

Opening a trading account with an Australian Forex Broker is an easy process that can typically be completed within a matter of minutes. To open an account with a forex broker there are three main steps:

  1. Fill out personal information
  2. Verify account with documents
  3. Client Qualification questionnaire

To open an account, you will need to provide your full name, nationality, email and phone number. Once you’ve completed these and set up a password you will typically be asked to choose the type of account and the trading platform, as well as your base currency. You will also be asked for your country of tax residence and tax details (TFN for Australians). Typically, providing specific tax information such as TFN is not compulsory. Brokers will also ask if you are a politically exposed person. The final personal information you must provide is your contact information, including your full address and how you would prefer to be contacted

The next section is financial information. Here you must provide your employment status information, annual income bracket and liquid net worth. Once you are through this section, the broker will ask your about your trading experience (Years) on securities, options, commodities, futures, CFD’s and OTC Forex Exchange, and if you understand the risk of margined transactions.

The client questionnaire assesses whether your knowledge of CFD’s is suitable for opening an account.

Margin Call

A margin call is a demand from the broker for the client to deposit funds to meet margin requirements for open/closed positions.

Short Position

A short sell is a position where the trader anticipates the price of an instrument to decrease, and sells a borrowed asset to buy it back in the future.

Long Position

A long position is a buy position, where the trader anticipates the price of an instrument to increase.

Test2

This is a test, all systems go!

Indicator

An indicator is something that assists traders finding where to enter and exit trades. An indicator could be calculated like a moving average or RSI or a drawn support/resistance level.