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You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Demarker Indicator
Tom DeMark created the Demarker Indicator. It’s a technical analysis indicator that assesses how many assets are being bought versus the previous time frame. It is used to spot price exhaustion levels; times when a trend could be losing steam and a potential reversal could be close.
The indicator ranges from 0 to 1. Levels above 0.7 are normally considered overbought, and the asset might be due for a pullback. Readings under 0.3 indicate oversold conditions, indicating a possible bounce.
The Demarker, unlike some other momentum indicators, is based on intraperiod highs and lows rather than closing prices, which its supporters believe provides a better indication of the area where buying and selling pressures are truly occurring. It is best used in conjunction with other tools, rather than in isolation.
Example: A forex trader is observing a currency pair that has been consolidating in a strong upward trend over the past few days. The Demarker Indicator starts to rise above 0.7 and then levels off.
The move higher is not the target for this trader; rather, he waits for price action confirmation to determine whether the trend has further to run or if a reversal is setting up.
Denmark Krone (DKK)
The official currency of Denmark, Greenland and Faroe Islands is the Danish Krone. Krone is a Danish word for crown and the currency has been in use since the late 19th century. One interesting thing about the Danish currency market is that the country has been pegging its currency to the euro for quite a long now.
Denmark is not part of the euro zone but has a fixed exchange rate of the Danish currency against the euro which fluctuates by no more than a few basis points. Denmark’s central bank, Danmarks Nationalbank, closely tracks this peg and intervenes in currency markets and adjusts interest rates as needed to keep the exchange rate constant. That peg has been around for decades and is one of the world’s most respected fixed exchange rate regimes.
Example: The Swiss National Bank ditched its franc peg in 2015 with European currencies soaring up and down, and the Danish Krone staying relatively stable. The Nationalbank took the bull by the horns, cutting interest rates to unprecedented lows in an attempt to help the peg to the euro. This illustrated both the reason and the cost of backing the peg in an era of increased external pressures.
Department of Communities and Local Government (DCLG) UK House Prices
DCLG is the house price index of the UK government, which no longer exists in its original form. But it shaped housing policy debates for years. It was published by the Department of Communities and Local Government.
It drew on mortgage completion data provided by the lenders to track the average residential property prices across England, divided by region, type of property, and type of buyer; first-time buyer versus someone who had previously owned a property.
This was hardwired into its approach: since it only recorded mortgage deals, it was always telling a partial story. Since then, it has been absorbed into the UK House Price Index, a more general index jointly produced by HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland. This covers all residential sales irrespective of how they were financed.
Example: A policy analyst of housing working in 2009 would have turned to data compiled by DCLG to demonstrate the disparity between regional markets; the average price of a first-time buyer in the North East, which is running at approximately half the prices of Greater London. That type of imbalance was the direct source of argument about where stamp duty thresholds should be and who should be eligible to receive early Help to Buy programs.
Deposit rate
Deposit rate is the rate of interest charged on deposited money, but the term does mean something slightly different when you refer to commercial banking as opposed to central banking.
In normal day banking, it is what a bank pays to customers who leave money on deposit. In monetary policy, it is the interest rate a central bank pays commercial banks for reserves they deposit overnight at the central bank.
The latter definition has much more weight in markets. This is an effective case of anchoring short-term rates across the entire eurozone when the European Central Bank sets its deposit facility rate. All other system rates are priced off it.
The drama started when a few central banks forced deposit rates into negative territory; i.e., commercial banks were being charged rather than paid to keep reserves. This was to inject money into the real economy rather than have it lie idle. It is still controversial as to whether it worked.
Example: When the ECB reduced its deposit rate to below zero in 2014, banks holding excess reserves with the ECB had to pay to maintain the privilege of holding them. The policy was to stimulate lending.
In practice, it strained the bank’s margins over the years, and the question of whether the cure was worth the side effects never quite became obsolete.
Depression
A depression is a prolonged, widespread period of low economic activity, much deeper and longer than a recession. The term depression can be applied in many technical senses. Still, it is usually characterized by dramatic declines in GDP, high unemployment, declines in consumer spending and business investment, numerous bank failures, and deflation.
Recessions are a natural occurrence in the economic cycle. Depressions are not. They are indicative of a breakdown in the normal operation of the economy, and they can do long-term harm – businesses that do not reopen, workers who do not return to the labor force, and confidence that takes years to recover.
That name connects with the Great Depression, which was the worst in the history of the United States and had the worst economic outcomes due to a combination of poor monetary, fiscal, and financial regulatory policies.
Example: In the Great Depression, the unemployment rate in the USA was approximately 25%. The banks collapsed in succession, destroying savings. Farmers were driven off their land as agricultural prices fell. Nearly half of industrial production was lost.
The wreckage was so extensive and enduring that the government adopted a financial policy approach that included deposit insurance, financial regulation, and a much more active central bank role in economic management.
Depth of market (DOM)
A trading tool that displays the current bids and offers for a particular security or asset.
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