compare binary
compare forex
anyoption binary options
NYSE
09:30-16:00
17:15
TSE
09:00-15:00
07:15
LSE
08:00-16:30
22:15
HKE
09:30-16:00
06:15
NSE
09:00-15:30
01:15
BM&F BOVESPA
10:00-17:00
19:15
ASX
10:00-16:00
09:15
FWB
09:00-20:00
23:15
RTS
09:30-19:00
02:15
JSE
09:00-17:00
00:15
DIFX
10:00-14:00
02:15
BME
08:30-09:00
23:15

Practice, practice to learn

Economic cycles

Economic cycles are regularly repetitive periods in the development of a market economy. The overall trend of economic growth is accompanied by periodic fluctuations in economic activity: alternation of contraction and expansion of production, investment, decrease and increase in income levels, employment, prices, interest rates, rates of securities. The cycle of economic activity consists of four phases: Expansion, Peak, Recession and Bottom.

Expansion

After reaching the lowest point of the cycle there is a phase of recovery, which is characterized by the growth of employment and production. Many economists believe that this stage has low inflation until the economy begins to operate at full capacity or, in other words, until it reaches a peak.

Peak

A peak, or top of business cycle, is the highest point of economic recovery. At this point, unemployment reaches the lowest level or disappeared entirely and the economy operates with maximum (or close to it) load, that is all of the country's capital and labor resources are engaged in the production. Usually, though not always, during the peak inflationary pressures increase.

Recession

A recession is a period of reducing output and business activity. As a result of contracting market, decline is usually characterized by growing unemployment. Most economists believe that economic downturn or recession is only a drop in business activity, which lasts six months at least.

Bottom

Bottom of economic cycle is the lowest point of production and employment. It is believed that the achievement of the bottom predicts the end of the recession as this phase of the cycle is not long. But history knows and exceptions to this rule. The Great Depression of 1930s lasted for nearly ten years.

Long cycles are economic cycles with duration of more than 10 years. Sometimes they are called by names of their researchers.

  • Investment cycles (7-11 years) are studied by Clement Juglar;
  • Infrastructure investment cycles (15-25 years) are studied by Simon Kuznets;
  • Series of Kondratieff (45-60 years) are described by Russian economist Nikolai Kondratiev;
  • Cycles of Forrester (200 years) are described by American engineer Jay Forrester.

Cycles of economic activity are varied and differ in their duration, duration of individual phases, maximum's heights and minimum's depths. In the current conditions, smoothing of cyclical fluctuations and business activity are noticed and intervals between crises become longer, their depth and destructive power reduce. Most often, a crisis is superseded by milder form -recession.

Although it is considered that changes in business activities are directly or indirectly related to economic cycles, there are other factors affecting the economy. The most important of these are seasonal fluctuations and long-term trends. The influence of seasonal variations is observed at certain times of the year, for example, shortly before Christmas or Easter when business activity increases dramatically, especially in the retail trade. In other industries such as agriculture, car industry and construction there are also seasonal variations. Secular trends determine long-term increase or decrease in economic growth.

The economic cycle is often associated with changes in output volume. Many economists believe that output is usually measured by gross domestic product (GDP) and the most reliable indicator of the economy. It is important to note that an economic cycle in the phase of recovery is evident not in an increase in GDP, but paces of this increase. Negative values of growth rate over a certain period of time, usually six months or more, are considered as a sign of slowdown in the economy. In contrast, the consistently high, from month to month, growth rates show that the economy is booming.

Cycles of economic activity are related to small economic cycles of 10 years. They are developed against a background of a large cycle of economic development of up to 50-60 years. Large cycles are identified by Russian economist Kondratyev. They consist of upward and downward fluctuations in economic conditions, each of which lasts for up to 30 years. Large cycles are based on revolutionary changes in technologies, design and production needs. The transition to post-industrial society in the developed countries coincides with the fifth longest wave of the Kondratyev cycle. The beginning of the upward phase is associated with the restructuring of the economy based on high-profile and science-intensive technologies.

Training

New to forex trading? Start with the basics. Get a clear understanding of the economic forces that move the currency markets. Learn about interest rates, inflation and what the central banks do.

comprar vender

Risk Warning

Disclaimer: We try to keep information accurate and up to date, however we cannot make warranties regarding the accuracy of our information. Please verify FDIC Insurance / NCUA Insurance status, credit card information, and interest rates during the application process. Please note that we have financial relationships with some of the merchants mentioned here. In some cases we may be compensated if consumers choose to utilize the links located throughout the content on this site and generate sales for the said merchant. Remember that this is only for profesional and your Capital is at Risk

Advertiser Disclosure: Many of the credit card offers that appear on this site are from companies from which forex-markets.reviews receives compensation. The results of  reviews are based on objective quantitative and qualitative analysis of card attributes. They are not affected by compensation. Compensation may impact which cards we review and write about and how and where products appear on this site (including, for example, the order in which they appear).

NOTE! This site uses cookies and similar technologies.

If you not change browser settings, you agree to it. Learn more

I understand

Collection of personal information

The Company shall request information from the Customer which is necessary for the Customer to open personal account. Providing such information is necessary condition which allows the Company to protect the Customer's interests, and the Customer to execute different transactions using personal account and not being concerned about safety of his/her/its assets. The Company shall be entitled to collect information which may contribute to improvement of appreciation of the Customer's needs and preferences.

 

All the information which is necessary for execution of communication between the Customer and the Company is collected directly from customers.

 

Use of personal information

Use by the Company of personal information of the Customer has for an object to provide the Customer with safe and qualitative service.

 

Personal and contact information which has been received from the Customer, shall be used during checking contact details and ascertainment of identity. The Company shall also use personal information of the Customer during creating an account, opening and adjustment of trading account, issue of codes of activation and passwords of access. Contact information of the Customer helps the Company improve its services and promptly inform the Customer about additional products, opportunities and promotions of the Company.

 

Branches and partners

At the Customer's request the Company may provide the information about services offered by the Company's branches and partners. For the purpose of providing more high-quality services the Company may carry out affiliate relations or conclude marketing agreements with other companies. In order to provide the Customer with full, well-timed and qualitative service the Company may exchange with its partners and branches. The use of personal information of the Customer shall be limited in this case.

 

Disclosure of Customer's information to the third party

The Company shall not be entitled to disclose personal information of the Customer except the cases described below.

 

The Company shall reserve the right to disclose personal information of the Customer to the third party if it is required by law-enforcement agencies and other state authorities. The Company shall be entitled to disclose the Customer's information which is necessary for provision to tax or credit authorities or in the cases when it is necessary for the purpose of protection of rights and property of the Company.

 

If the third party receives personal information of the Customer, thereby it shall take responsibility for protection of given information in order similar to the one described in the Agreement.

 

The Company may use personal information of the Customer only with the purpose of improvement of quality of services.

 

Liability restriction

If the Customer of the Company has decided to use services of other company and provided this company with his/her/its personal information the Customer must understand that safety of his/her/its personal data becomes responsibility of this company too. Before providing other company with personal information the Customer must learn privacy policy of this company. Web-site of the Company shall be in the Internet and that means that it may be connected with other web-site that's why the Customer needs to be careful and keep in mind that the Company shall not be responsible for privacy policy of other web-sites.

 

Use of cookies

In order to ensure effective work of web-site of the Company and trading activity of the Customer, the Company shall use cookies. Cookies shall represent small text files sent from web server of the Company to the Customer's computer. Cookies used by the Company shall not have any personal data, account numbers or passwords of the Customer.

 

The Company may involve other organizations in assistance in administration of web-site, collection and analysis of statistical data. Such organizations may establish and use their own cookies in the name of the Company and these cookies shall not have personal information of the Customer.

 

Communication

During registration the Customer receives a letter via e-mail which confirms his/her/its registration. The Company may send information about changes and new promotions to its customers via e-mail or receive from its customers e-mails with questions and requests, such information shall not be confidential.

 

By accepting the Agreement, the Customer shall allow the Company to use the information received from the Customer via e-mail, including various ideas, methods, marketing products and know-how without any consequent obligations from the Company. An exception shall be identification data of the Customer.

 

The Company shall be entitled to reverse, save or delete correspondence with the Customer at its absolute discretion.

 

The Company shall be entitled to follow up internal messages of customers with the purpose of appreciation of quality of offered services.

 

Changes in the Privacy Agreement

Sometimes the Company may upgrade the Agreement. In case of substantial changes in the Agreement, new Agreement of Privacy shall be placed on the Company's web-page without delay and all the customers shall be informed about changes. The Company recommends its customer read the Agreement from time to time in order to be aware of the way of use of customers' information.

 

Updating or deletion of personal information

We provide all visitors options for reviewing, changing, deleting, and modifying personally identifiable information previously provided. To update your organization's profile, user profiles, or to discontinue the service, please send a request to our Support Team. You can expect to receive a response to any such update request within seven (7) days.

 

Opt-Out policy

If, at any time after registering for information or ordering our services, you change your mind about receiving information from us or about the use of information volunteered by you, please send us a request specifying your new choice. To opt out of promotional emails, please send a request by completing a short contact form.