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For this reason the Exponential Moving Average is also know as the 'exponentially weighted moving average'. This allows this type of moving average to react to recent price changes much faster than a simple moving average. How To Add The Rainbow EMA. The Rainbow EMA.
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This risk is known as counterparty risk. In a futures contract, the exchange clearing house itself acts as the counterparty to both parties in the contract. To further reduce credit risk, all futures positions are marked-to-market daily, with margins required to be posted and maintained.
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