Trend following strategies How to use a Follow the Trend Forex strategy to Become Profitable when trading Forex. One of the easiest strategies for Forex traders to adopt is to follow the trend. A trend defines the general direction in which the price is moving so that the trader can take advantage of it to make a profit. Trends can be upward, downward or flat. Here we will describe a… Read More »
Forex Broker Margin requirements Are you familiar with the different sets of regulations imposed by your broker? Do you know what initial and regular minimum deposits are? In the business of foreign exchange, those are called Forex margin requirements; they address the issues of allowed borrow-able amount, as well as fixed and adjustable interest rates for a security in your trading account. Of many things, they serve as… Read More »
Forex quotes Knowing all about Direct and Indirect Forex Quotes can be handy. One of the basic concepts that all top forex brokers need to understand is how to read Forex quotes. You know that currencies are traded in pairs, with the currency on the right of the slash being the base and the one on the left being the counter or quote. To better understand, let us look… Read More »
Algorithmic trading Algorithmic trading has become increasingly popular among Forex traders who are looking for a more efficient way to trade. These systems allow traders to essentially automate their trading activities based on rules that have been programmed into them. Algorithmic trading has long been popular in other financial markets such as the stock market. Only recently become more commonly used by currency traders. According to a report by… Read More »
There are many things that can prevent a forex trader from becoming successful, but one of the worst is being their own worst enemy in Forex trading. Many traders sabotage themselves by developing bad habits that can cause them to quickly become bankrupt. Let’s take a quick look at some of these habits and how you can take them in order to be a more effective trader. Refusing to admit… Read More »
If you’re new to Forex, chances are you’re still a little confused about all the charting and how to properly choose and invest money in currency pairs. Fact is, this highly fluid market relies on a lot of factors in its movement – which means that indicators become even more crucial if you’re a beginner. But what indicators should you invest on? Following are some of the Forex top… Read More »
Forex is like a whole new world with a very confusing language or Forex jargon. Unless you want to earn big in this new world however, you will have to learn every terminology practiced in the industry. Here are some of the most common terms and what they mean, exactly. Pip This is the smallest possible increment movement of a currency. They can also be called a ‘point’… Read More »
A Forex circus swap, alternatively called currency coupon swap and cross-currency swap, isn’t an unknown term to traders in foreign exchange markets and different financial institutions, as well. Especially if they have to attend to hedging loan transactions here and there, they rely on the technique to get by. According to these groups, since it can be tailored to match certain parameters, you should know that using a circus swap can… Read More »
The Weak US Dollar The term weak is probably something you wouldn’t want to be associated with. However, in the foreign exchange market, it may not have to be the case since the weak US dollar is said to be a sword: a double-edged sword. As Marcus Roberts‘s reports, while it can make currencies’ price way out of your league, it can also cause domestic currencies to be much more… Read More »
Contrary to the claim that it does, the Forex Misery Index does NOT measure misfortunes of traders in the foreign exchange market. Since it identifies unemployment and inflation rates, it’s not difficult to figure out how the rumor originated. However, all it does is point out the truth. If an economy is in good condition, it won’t reveal negative information. Conversely, if an economy isn’t doing well, expecting positive results… Read More »