Term

Depreciation

A Wealth of Knowledge

Depreciation when a value of a currency pair decreases, it said to be depreciating. It does not always to be a currency pair. It can be a commodity e.g silver, gold. When the value decreases due to either fundamental forces that move the markets such as economic news. Sometimes it is not that the trading instrument is decreasing value, it is that in relation to the currency it is being traded against it is weaker for the reason that the other one gained value or it had gotten stronger. However, should a value of any trading instrument decrease, this process is called "depreciation" .

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