Term of the Day: Recession

What is a recession? We hear the word more than a few times a day yet do we know exactly what it means? Here is a concise definition of the term ‘recession’:

A recession is a period in a country’s economy where the GDP, trade, employment(therefore personal income), housing starts, real estate, stock values etc., go into a declining state. In textbook cases, recessions usually last between six to eighteen months. It is looked at as normal, with an expected ‘boom and bust’…”what goes up, must come down”mentality. Interest rates begin to freefall in an effort to jolt economic activity by putting forth lower rates at which  more people can borrow funds.

It might seem a bit out of place for me to be posting this on a pretty Forex-specific blog but like I’ve mentioned in the past, in Forex we are trading countries’ economies.  Foreign exchange trading is the simultaneous buying of one currency and the selling of another. Sounds easy, right? It really isn’t rocket science but to make successful trades, it takes dedication to learning the ins and outs of the business and forming a trading method that works for you.

**Got a question for me on anything I’ve said in this blog or any of my other blogs…please feel free to comment or email me. Looking forward to hearing from you all! 🙂



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