The 10 Best Forex Strategies I've found in over 10 years of trading

<div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">When it comes to selecting strategies to trade, you have the choice between buying one off-the-shelf or trawling the Internet for freebies. The trouble with free forex trading strategies is that they are usually worth about as much as you pay for them. They haven’t been tested, and there is little evidence of their reliability.</span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> <br /> <div class="separator" style="clear: both; text-align: center;"> <span style="font-family: inherit;"><img border="0" height="360" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjylSmRfVdrsCzwhd4aVYmRNUNj6Q8r0f2zg5bvvjVsk3d1WMQxf0WBzLLjSVX5viVVVuvlR36goqyK_R6NG0R_oEvtUBzj2GMkkKRki_uqE6C6AIebIVFcta8kCj3fc0Vw6edPzR0olf0/s640/forex-trade-money-1024x576.jpg" width="640" /></span></div> <span style="font-family: inherit;"> <div class="separator" style="clear: both; text-align: center;"> <br /></div> </span></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">The strategies covered here on the other hand, are ones that either I or successful traders I know have used in a consistently profitable fashion…</span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> <div> </div> <span style="color: mediumblue; white-space: pre-wrap; word-wrap: break-word;"><strong><span style="word-wrap: break-word;"><span style="font-family: inherit;">#1: The Bladerunner Trade</span></span></strong></span></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">The Bladerunner is an exceptionally good EMA crossover strategy, suitable across all timeframes and currency pairs. It is a trending strategy that tries to pick breakouts from a continuation and trade the retests. </span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="color: mediumblue; white-space: pre-wrap; word-wrap: break-word;"><strong><span style="word-wrap: break-word;"><span style="font-family: inherit;">#2: Daily Fibonacci Pivot Trade</span></span></strong></span></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">Fibonacci Pivot Trades combine Fibonacci retracements and extensions with daily, weekly, monthly and even yearly pivots. The emphasis here is on using these combinations with daily pivots only, but the idea can easily be extended to longer timeframes incorporating any combination of pivots.</span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="color: mediumblue; white-space: pre-wrap; word-wrap: break-word;"><strong><span style="word-wrap: break-word;"><span style="font-family: inherit;">#3: Bolly Band Bounce Trade</span></span></strong></span></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">The Bolly Band Bounce Trade is perfect in a ranging market. Many traders use it in combination with confirming signals, to great effect. If Bollinger Bands appeal to you, this one is well worth a look.</span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <strong><span style="color: mediumblue; white-space: pre-wrap; word-wrap: break-word;"><span style="word-wrap: break-word;"><span style="font-family: inherit;">#4: Forex Dual Stochastic Trade</span></span></span></strong></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">The Dual Stochastic Trade users two stochastics – one slow and one fast – in combination to pick areas where price is trending but overextended in a short term retracement, and about to snap back into a continuation of the trend.</span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <strong><span style="color: mediumblue; white-space: pre-wrap; word-wrap: break-word;"><span style="word-wrap: break-word;"><span style="font-family: inherit;">#5: Forex Overlapping Fibonacci Trade</span></span></span></strong></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">Overlapping Fibonacci trades are the favourites of some traders I have known. Uesd on their own, their reliability can be a little lower than some of the others strategies, but if you use them in conjunction with appropriate confirming signals, they can be extremely accurate.</span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><strong><span style="font-family: inherit;"><span style="color: mediumblue; word-wrap: break-word;">#6: </span><span style="color: mediumblue; word-wrap: break-word;">London Hammer Trade</span></span></strong></span></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">The extra volatility you get when London opens presents some unique opportunities. The London Hammer Trade is my take on an attempt to capitalise on these opportunities. Especially effective during the London session, it can be used at any time when price is likely to be taking off strongly in one direction, and possibly reversing from an area of support/resistance just as strongly.</span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <strong><span style="color: mediumblue; white-space: pre-wrap; word-wrap: break-word;"><span style="word-wrap: break-word;"><span style="font-family: inherit;">#7: The Bladerunner Reversal</span></span></span></strong></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">As mentioned above, the Bladerunner is a trend following strategy. The Bladerunner reversal just as effectively picks entries from situations where the trend reverses and price begins to trade on the other side of the EMA’s.</span></span></span></div> <script type="text/javascript"> google_ad_client = "ca-pub-9616947633226378"; google_ad_slot = "7631208444"; google_ad_width = 728; google_ad_height = 90; </script> <!-- 728x90 --> <script src="//pagead2.googlesyndication.com/pagead/show_ads.js" type="text/javascript"> </script> <br /> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <strong><span style="color: mediumblue; white-space: pre-wrap; word-wrap: break-word;"><span style="word-wrap: break-word;"><span style="font-family: inherit;">#8: The Pop ‘n’ Stop Trade</span></span></span></strong></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">If you’ve ever tried to chase price when it bounds away to the upside, only to suffer the inevitable loss when it just as quickly reverses, you will want the secret of the pop and stop trade in your trader’s arsenal. There is a simple trick to determining whether or not price will continue in the direction of the breakout, and you must know it in order to profit from these situations. </span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="color: mediumblue; white-space: pre-wrap; word-wrap: break-word;"><strong><span style="word-wrap: break-word;"><span style="font-family: inherit;">#9: The Drop ‘n’ Stop Trade</span></span></strong></span></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">The flip side of the pop and stop, this strategy trades savage breakouts to the downside.</span></span></span></div> <div style="background-color: #fefeff; line-height: 16px;"> </div> <div style="background-color: #fefeff; line-height: 16px;"> <strong><span style="white-space: pre-wrap; word-wrap: break-word;"><span style="color: mediumblue; word-wrap: break-word;"><span style="font-family: inherit;">#10: Trading The Forex Fractal</span></span></span></strong></div> <div style="background-color: #fefeff; line-height: 16px;"> <span style="white-space: pre-wrap; word-wrap: break-word;"><span class="leadstyle-fontsized" style="line-height: normal; word-wrap: break-word;"><span style="font-family: inherit;">The forex fractal is not just a strategy but a concept of market fundamentals that you really need to know in order to understand what price is doing, why it is doing it, and who is making it move. This is the kind of inside info that took me years and many thousands of dollars to learn. It’s yours here for free, so make use of it</span></span></span></div>

The 10 Best Forex Strategies I've found in over 10 years of trading

When it comes to selecting strategies to trade, you have the choice between buying one off-the-shelf or trawling the Internet for freebies....

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Learning Currency Trading : USD/CHF

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The symbol USD/CHF stands for U.S. dollar and Swiss franc. It tells us about the number of Swiss Franc needed to buy one US dollar.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">About the Swiss Franc, traders say that it happens to be their safest resort in the forex market during the times of political unrest and economic instability. It is regarded by both the newcomers and the old-timers of the forex market to be one of the most reliable currency pair when the volatility of the market is at its highest.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="296" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjT5BEIF4FguAY9kr0ZewhKVsIF_48GTbvbY3VbEclKKZmLhaoVQDR4FNjtVzSdzCax1bhX-a23s30dKz_1kGusN274d34vrMxVIK5OV8ZmNqAYp9Tm6559I46I1Nte6nwcKhbE-NnXa4Y/s640/USD-CHF_2_309x143.jpg" width="640" /></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><br /></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>General facts and information:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Switzerland is not only one of the safest countries in the world, but is also a wealthy nation with an economy that is completely reliable. The Swiss economy is safer than most other nations because of the relatively more peaceful political environment that presents either very little or no problem at all to the economic standing of the country.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Swiss Banks have always been in the news and are said to be the financial reserves for most of the notable personalities around the world. Furthermore, Switzerland has emerged as a safe haven for investors and those who wish to avail the remarkable private banking services offered by the Swiss. In recent years, Switzerland has proven itself to be extremely important and lucrative for investors and bankers.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Also, Switzerland is home to one of the largest consumer firms such as Nestle and other multinational corporations, which enhances the need for increased trade in terms of the USD/CHF. As US happens to be the world power and economic giant, the trade between Switzerland and US is inevitable that continues to strengthen the importance of the USD/CHF as a currency pair.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">However, it is to be kept in mind that the USD/CHF currency pair is not as liquid as other currency pairs, especially when compared to the GBP and EUR.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Factors affecting the pairs:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Interest rate is the preliminary factor that determines the relative weakness and relative strength of the currencies in the USD/CHF pair. A lower interest rate stands for a weaker currency. Conversely, a high interest rate means a relatively stronger currency.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Volatility of the market considerably affects the Swiss Franc, the worth of which decreases with a decreasing market volatility. However, conditions get most favourable for the Swiss Franc when traders anticipate heavy losses in the forex when the major forex players suffer political and economic discontent. The same trend is also applicable to the USD.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The Swiss Franc is more or less tied to the trends followed by the EUR. The trends followed by euro can easily be taken as heralds for the next move to be taken by the Swiss Franc, allowing traders to make large profits. This might, however, not always be the case.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><b> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">Taking advantage of news trading to make money while trading:</span></b></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Especially for the Swiss Franc that follows the trends followed by the EUR, currency trading news are going to be crucial in helping traders to formulate their next move in the forex world to prevent major losses. Economic indicators and forex exchange broadcasts are important in making sure that traders reap nothing but profits.</span></div> <br /> <a href="https://goo.gl/aPqqmz" target="FBS Broker"><img src="http://i.imgur.com/IMJjR89.jpg" /></a>

Learning Currency Trading : USD/CHF

The symbol USD/CHF stands for U.S. dollar and Swiss franc. It tells us about the number of Swiss Franc needed to buy one US dollar. About...

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Understand Technical Analysis in the Forex Market

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Most people have this perception that forex trading is all about poring over charts and figures. While that may be true to a certain extent, there are a whole bunch of other things involved. For instance, there are a host of different price action strategies that forex traders use in order to find and execute better deals. Analyzing different deals and figures is much easier said than done. In the past several years, technical analysis has been one of the most hotly debated topics among forex traders.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="312" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqcdy0zo2B6RWkNs7beSdCmuF0_IKms9cYWEIjQ-qIxbXYDOX_1m6xGHyTAxDjOa8PVC1j7QN8fBMrUHVfaFIY7hPuf6_k3DRcmcha9XTXkK-uJkiOeeTmgYtw3kxGBL9dJqv9q1-uLsM/s640/understand-technical-analysis-in-the-forex-market-website-large.jpg" width="640" /></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><br /></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Technical analysis is essentially a statistical analysis of price changes in the past. The objective of carrying out a technical analysis is to forecast future price changes in the market. In many financial circles, this area has often been met with severe skepticism. Most traders are generally divided in their opinions: some believe that technical analysis actually works, others believe that it’s an absolutely useless tool for predicting changes in the price action and are those who believe that the tool itself is a self-fulfilling prophecy.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The technical analysis today is certainly not similar to how it used to be before. There are plenty of different algorithms and networks that are used by traders in order to carry out technical analyses today. Most people have this opinion that technical analysis is a grain of secret knowledge that must be studied with utmost care and precision. In truth, it is nothing of the sort.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">In fact, studying a chart requires little to no effort. The chart depicts nothing but a bunch of facts and figures relating to the past prices. There’s nothing else that you can glean off the chart. Simply looking at the chart is unlikely to give you an idea about future price movements. However, looking at the charts is essential if you want to gain some information about the prices.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Price information is crucial because the decisions made by the trader give him predictive power in the market. However, you should know that technical analysis itself does not produce price movements. For instance, what if the Federal Reserve decides to increase the interest rates without any prior announcement? Or, what if the Chinese Government suddenly makes an announcement saying that it will no longer purchase US Treasuries? There is no chart formation at the moment that can be used to depict such changes.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">However, there is no doubt that technical analysis is quite effective in the foreign exchange market. Not only does it allow investors to get an idea about past price performance, but it also makes it easy for investors to figure out their next step. The forex trading market is an incredibly complex financial market. It remains active round the clock, with traders from all over the world participating. Using technical analysis is important for people who want to make careful investments and wish to save money in the long run. It will allow you to get an idea of the market and make it easy to determine which currency pairs you should buy next.</span></div> <a href="https://goo.gl/aPqqmz" target="FBS Broker"><img src="http://i.imgur.com/IMJjR89.jpg" /></a>

Understand Technical Analysis in the Forex Market

Most people have this perception that forex trading is all about poring over charts and figures. While that may be true to a certain extent...

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What You Should Know About Leverage in the Forex Market

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Two of the most important concepts that traders need to know are leverage and margin. If you want to become a profitable trader in the market, you need to know about these terms. A margin is the loan given by your broker that allows you to put up your funds and the securities in your account and use them as leverage in order to engage in larger trades.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="312" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWoDTVW5Jndz60woqnBCsV24fx9J4OX61nJ7XzKHqnkDd8R-7onZBrme-cZLDJQoLVW3IkrZxF5OAlGw56xhYqXFU_bw-eC92lyOEfVtwMJlbsTkthorhuFK4YEmwbl3zawrntoFMgwaA/s640/what-you-should-know-about-leverage-in-the-forex-market-website-large.jpg" width="640" /></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><br /></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">However, in order to get approval for using margin, you will need to open a margin account. The collateral for the loan is the securities and cash that you deposit in your margin account but the money you borrow to use as margin doesn’t come for free. You will have to pay an interest on the amount that you borrow. In general, you can expect to pay interest rates of anywhere between 5-10% on the margin.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Just like margin, you should know about leverage as well. You can use the margin in order to create more leverage. Simply put, the additional buying power afforded to margin account holders is known as the leverage. In layman’s terms, you will be able to pay less than the full price of any trade, thus making it easy for you to enter much bigger positions, which would not be possible if you were simply using the funds in your account. If you were to talk to a forex broker, they would generally express the leverage in a ratio.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Most reputable brokers leverage in a ratio of 1:100. However, there are certain brokers that offer leverage as high as 1:400. This means that if you had $1,000 in your account, you will be able to make trades as high as $400,000. While this may seem like an excellent idea, you should know that you will also lose money 400x times faster. Using too high a leverage is generally frowned upon in the forex industry. If you end up losing a single trade, you will have to pay back a very high amount.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Another important thing that you should know about using leverage is over trading. As a forex trader, it is your job to make sure that you set up a proper trading routine. The forex market remains open round the clock and many new traders often get stuck in to the excitement of trading and trying to make more money. The added advantage of round the clock trading, coupled with the additional leverage, means that many people feel often end up over trading.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Over trading is a seriously bad thing, and you will easily end up losing a huge amount of money within a matter of minutes. The reason why so many brokers offer such high leverage is because they know most traders are easily tempted. If you want to avoid losing money in the long run, it is generally advisable that you set up a specific trading routine. This way, you will be able to make more profitable trades in the short term.</span></div> <br /> <a href="https://goo.gl/aPqqmz" target="FBS Broker"><img src="http://i.imgur.com/IMJjR89.jpg" /></a> <script type="text/javascript"> google_ad_client = "ca-pub-9616947633226378"; google_ad_slot = "6108299249"; google_ad_width = 728; google_ad_height = 90; </script> <!-- DOLA4U-FOREX --> <script src="//pagead2.googlesyndication.com/pagead/show_ads.js" type="text/javascript"> </script>

What You Should Know About Leverage in the Forex Market

Two of the most important concepts that traders need to know are leverage and margin. If you want to become a profitable trader in the mark...

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Why Use Stop Loss Orders?

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Before we talk about the reasons why you should consider using stop loss orders, it is important to understand what stop loss orders really are. Stop loss is basically an order that you place with your broker. If you have a security that you want to make a profit on, the stop loss order will give power to the broker to sell the security as soon as it reaches a defined price. Many forex traders use stop loss orders in order to maximize their profits.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="312" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgp_F1XtLvCuuky2wtXW9A9s_qSpJlY6VNh5bXhaTMoUaJRnLn05Sfynorf_4BwbZSDD_lqrj2ui9Ck65SuuwVzf3ttvcOHtiPvLG88FJ3aqYLWqM3lt9JR6OpSwct387FHtd_z__lYQ6I/s640/why-use-stop-loss-orders-website-large.jpg" width="640" /></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><br /></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Basically, the purpose of a stop loss order is to minimize the loss incurred by the investor on a particular security. Even though it is mainly used by investors for long positions, stop loss orders can also be executed in short positions. Most people think that professional forex traders should not use stop loss orders. However, here are a few reasons why you should seriously consider using stop loss orders while dealing with your broker:</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 40px; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Safety</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">When you invest money in any type of business, your main aim is to preserve your capital and generate a profit on top of it, but keeping your investment safe can be difficult due to the volatile nature of the forex market. As the name suggests, stop loss orders are designed to <em style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 40px; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">stop your losses.  </em>In case the value of a currency falls lower than the loss you can stomach, your broker will automatically sell it at the defined prices, thus saving your initial investment.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 40px; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Convenience</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Another reason why you should consider using stop loss orders is because they are relatively more convenient. Most people often trade on the foreign exchange market when they have free time on their hands. Nobody continues to trade all the time. Needless to say, you won’t be monitoring the activity on the market at all times. What if the value of a currency falls considerably in the past few hours? You will suddenly incur a huge loss.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Rather than throwing away money like that, placing a stop loss order will secure your position and make it easy for you to save your initial investment. This is a particularly good option for people who are going on a vacation and wish to stop trading for a while. If you are stuck in a situation that prevents you from watching the market for an extended period of time, you should definitely consider placing stop loss orders.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 20px; outline: none; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">There are plenty of traders who have mixed opinions about stop loss orders. Some believe that this tactic is only used by amateur traders who do not have an understanding of the market. Some traders believe that stop loss orders should only be placed at specific levels. Either way, stop loss orders are a great option for people who want to minimize their losses and wish to generate some serious cash in the market.</span></div>

Why Use Stop Loss Orders?

Before we talk about the reasons why you should consider using stop loss orders, it is important to understand what stop loss orders really...

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News Trading

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit;">One of the most substantial tools in the trading world is news trading, which basically is the technique of trading economic news reports. The news on the economic world helps the traders in many ways as they involve a lot of market updates, mergers, announcements of different financial related events, policy changes etc.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit;">The first vital thing to know is how to use news trading to your advantage. For successful trading in Forex, the trader technically analyses everything about the market and other financial aspects. But the other important thing involves checking the news releases frequently. Most of the traders wait for the visualization of information or financial data releases and then start their trading based on them.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="312" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSQP2erjedvp2PCfyjZCztaFqhaEgTNWaPSHrWNlXfwIMeS3sN1X7Aziiv1UYy9Mh7sDr3b97As9YMqFTMy7Y34BNXDTmWxRl2yBig8t7jBTxo4gh5iq-WFJHOoVUraE31mGDgOcMcBe8/s640/news-trading-website-large.jpg" width="640" /></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit;"><br /></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit;">News trading can be a very useful tool as it gives an overview of the market and the position of different currencies to the trader. But the success of the trade actually depends on how the trader responds after the relevant news is conveyed to him. Traders have to carefully analyze the changes in the market. Once a trader is ready to start his trade based on a financial event, they need to check which pair of currency will fluctuate enormously by this event. Usually any fluctuation in event or data release from a specific area affects the currency of that area the most.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit;">There are basically eight major currencies that a trader can focus if he wants to practice news trading. These are USD, EUR, GBP, JPY, CHF, CAD, AUD and NZD. As we can see the available currencies are spread all over the world and there can be more than 15 derivatives that can emerge from these currencies. There is always some data to share which the traders can make use of. Different countries have different timings of vital news releases because of their varying time-zones.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit;">To trade news, one has to know what is probable in that time period and what is most significant. For example, the inflation, interest rates, trade balance, different financial surveys etc. are important releases for a news trader.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit;">There are different methods for trading news and they can be useful for the traders but there are a couple of risks involved as well. During an important news release, a lot of traders broaden the spread which can make the costs go up but it can hurt as well. One can get locked, meaning that their trade is possible but it won’t show on the board and you cannot make any changes then. Also slippage can occur at this time and it will throw you at a very different price from when you entered.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit;">But before even talking about methods or strategies of trading news releases, one should know which news to base your trade in. Always look for the release which can move the world of Forex the most. Mostly major news releases come for the Unites States as it is the economic giant of the world so the trader should watch out for news releases from US first and try to trade using dollar. </span></div> <br />

News Trading

One of the most substantial tools in the trading world is news trading, which basically is the technique of trading economic news reports. ...

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Very Low Slippage

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Slippage is a term often heard in Forex trading and stock markets. It basically refers to the difference between the expected price of a trade and the actual price that is executed. This slippage usually occurs during times of volatility within markets and during constant fluctuation of stock prices.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Slippage in Forex occurs when there is a limit order or stop loss that presents itself at a rate which is worse than what was set in. For example, a new event or a volatility in the currency markets might make an order at an expected price difficult to be carried out. Hence, the traders will trade at the next best price rather than the expected price of the trade.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="312" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFu2MCgXR5VKd3jv87hD7qGBKNf1UGZ_iFqvxQ2DBr8lQjhp20WSSqk91u2lUEEkhwvrr9rogmBOnLftrcHZlLQWLwv6mXbLR8a93nClH4lALm133yM3635EHNzcXl4Lu9cmcDMN8e5l0/s640/very-low-slippage-website-large.jpg" width="640" /></div> <div class="separator" style="clear: both; text-align: center;"> <br /></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Suppose one wants to purchase EUR/USD at 1.3000 and order at that price, but it actually goes to a price of 1.3001. This means that there has been a slippage of say, 1 pip.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">It is important to note because it happens to be one of the many factors forming the transaction costs of a particular trade. Along with spreads, commissions and swaps, slippage factors in the total transaction costs. The higher the slippage the worst off the trader is. Low slippage actually means that a trader has avoided losses and is good for forex trading.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">High slippage affects the profit potential of a trade very negatively, almost destroying it. When brokers see the slippage going towards negative, they offer what is known as a price improvement. A price improvement is also positive slippage.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Brokers always look for low slippage during trading since it minimizes risks and losses. Due to fluctuations, chances are that a trade will always have sort of slippage, hence it is best for it to be as low as possible. For traders to make a trade with very low slippage, it is important that they look for brokers who have access to an advanced technical and management system.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Typically an ECN broker, one who is a part of an electronic communications network, will be able to have all trades processed by a computer and even broadcast the client’s orders straight to the market. This will ensure that the traders get all the real market’s quotes and prices.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The internet actually has some great places where slippage can be compared and performance can be tracked properly. Zulutrade.com for example, is listed as having very low slippage in the markets. Other than that, traders can also try to maintain low slippage by avoiding a trade during times when high impact news have just surfaced.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Traders can also attain low slippage by setting a market range and having some price improvements strategies in handy. Brokers are usually tasked with making a trade that has low slippage so the client can save up on money and expand their profit potential. Avoiding a trade during ‘dead’ hours can also help maintain a low slippage.</span></div> <span style="color: #4d4d4d;"><span style="font-family: inherit;">- See more at: https://www.hiwayfx.com/forex-articles/very-low-slippage#sthash.a497Naje.dpuf</span></span>

Very Low Slippage

Slippage is a term often heard in Forex trading and stock markets. It basically refers to the difference between the expected price of a tr...

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Swing Trading

<div class="field field--name-body field--type-text-with-summary field--label-hidden" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"> <div class="field__items" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px;"> <div class="field__item even" property="content:encoded" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px;"> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px;"><span style="font-family: inherit; font-size: small;"><b>Definition:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="font-family: inherit; font-size: small;">Swing Trading is a term often employed to refer to a special method of trading in which the aim is to muster gains of a stock within a set time period of one to four days. Traders who employ this method of trading are more interested in the prevailing value patterns and drifts. The main objective is to collect the profits as soon as the market touches a certain high point.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="340" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJ3NHVSwXMB5drYJMbN4UdOQ86hTS-wZgvibHRUT38rhlVpNMaFj4qwrSpQyijJeuHMnFWg4tTy0nQQWKvsAGHGJvEEFE_oJlrv32mC0YYIOXMZIkdZn0jryMSYEvqZIPIpomxEQKmwTE/s400/Swing-Trade-2.jpg" width="400" /></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="font-family: inherit; font-size: small;">A swing trader needs to be adept at the skill of technical analysis to formulate his strategy within a very short period of time.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="font-family: inherit; font-size: small;">The name swing trading is often used to refer to this type of trading because the currency pairs often reach their greatest potential only for a very short period of time and the trader needs to act immediately in order to be able to garner the gains.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Essentials for swing trading:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="font-family: inherit; font-size: small;">Swing trading is not as easy as the name implies. Following are a few things that a trader should know about before deciding to take a shot at being a swing trader:</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>1) Knowing about the points of resistance and support</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="font-family: inherit; font-size: small;">To swing trade successfully, as a forex trader, you should have a profound idea about the point from where the cost of a certain currency pair can change. This might require you to draw lines on the currency pair chart that help join and pin point the areas of highs and lows for that particular pair. This will help you have a better know-how about the times of the year and conditions that made the pair’s price reach an all-time high and an all-time low.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="font-family: inherit; font-size: small;">As you continue to research the points of resistance and support, you will eventually end at a set of conclusions that will articulate the favourable conditions and times for swing trading.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>2) Test your conclusions</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="font-family: inherit; font-size: small;">Draw parallels between a number of different charts for the currency pair you wish to swing trade. The difference in the time period should be constant between each chart you compare. You need to check if the areas you have marked are constant throughout the years you are analysing or not. If the areas are same in different time periods, you can convince yourself of the reliability of the highlighted areas. After that, you need to wait to see if your investments give you your anticipated results. Following these steps, you will be able to identify the time when swing trading will be the most lucrative.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>3) Application</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify;"> <span style="font-family: inherit; font-size: small;">You cannot learn how to swing trade overnight. Also, you cannot just make large profits by swinging for the first time. As this type of trading involves a lot of risk, the first few times might be hard for you as a swing trader, but consistency and the right strategy will make you capable of swing trading like a forex veteran over time.</span></div> </div> </div> </div> <a href="https://goo.gl/aPqqmz" target="FBS Broker"><img src="http://i.imgur.com/IMJjR89.jpg" /></a>

Swing Trading

Definition: Swing Trading is a term often employed to refer to a special method of trading in which the aim is to muster gains of a st...

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Learning Currency Trading : USD/JPY

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px;"><span style="font-family: inherit; font-size: small;"><b>Introduction:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">USD/JPY stands for U.S. Dollar/Japanese Yen. The symbol denotes how many Japanese Yen are needed to acquire one US dollar. In the currency pair symbol, the USD is the <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">base currency </span>and the JPY is the <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">counter currency.</span></span><br /> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="426" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg75PS1kjmG_Wms9gQ0gmTRkYf9UC0oqhDUQ5GJwoEiI3pM8BXkLsH1DWkTcyKwNSPUjqzbTbgr9brCr2A4-Dl7OkEFB4TJsotXSQw0YMi5UO5yFE9z9yxC1tCriXbiFiBxorRY_OMstzQ/s640/USD-JPY_2_800x533_L_1417097218.jpg" width="640" /></div> <span style="font-family: inherit; font-size: small;"><span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><br /></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">This pair is made up of an American and an essential Asian currency. The unique aspect of this particular currency pair is that it offers a wider forex market operation time range owing to the large differences between the time zones of US and Asia. The Japanese Yen is largely traded in the forex market during the Asian working hours in the daytime, hence, giving more time to trade for traders elsewhere in the world.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">This pair is favoured not only by the novices in the forex market, but also by the veterans. The reason lies in the value of Yen being a safe resort for traders during times when the volatility in the market is exceptionally low.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>General facts and importance:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">According to a survey conducted in 2013, the USD/JPY currency pair shares 20 per cent of the world’s trading volume. The statistics are further bolstered by the fact that the Japanese economy is one of Asia’s fastest flourishing economies. The US, on the other side, is the key economic player in the global market, hence making the currency pair important and popular.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The Japanese Yen enjoys the status of being the most liquid Asian currency. At times, the Japanese Yen has also served as the proxy for the economic progress of the Asian continent as a whole. As the fourth most traded currency, the Japanese Yen occupies a central position in the forex market. Many pundits have already anticipated the Japanese Yen to become one of the reserve currencies in the near future besides the USD. Japan has emerged as the world’s largest exporter and has rebuilt itself following the devastating Second World War to become the second largest national economy in the globe. Despite the economic setbacks, the economic standing of Japan in Asia and its ties with major players in the forex market like the US, EU etc. cannot be underestimated.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><b><span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">Factors affecting the pair: </span></b>The pair is not only highly volatile, but also presents high liquidity making it a favourable choice for traders. However, the currency pair is very easily affected by factors such as volatility of the market and the economic conditions of Japan. The Yen is favoured particularly during periods of low volatility to help traders make money via carry trade. As soon as the volatility of the market increases, Yen loses its value.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The Bank of Japan is also notorious for meddling in forex matters that further devalue the Yen and punctuate the economic growth of the currency. This in turn, weakens the position of Yen against the USD in the pair.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><b><span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">Taking advantage of news trading to make money while trading: </span></b>To maximise the profits you reap while trading, keeping yourself up to date with the latest currency trading news is going to be mandatory. Knowing about the expected changes in the market and the latest trends will help you in formulating your strategy accordingly.</span></div> <br /> <a href="https://goo.gl/aPqqmz" target="FBS Broker"><img src="http://i.imgur.com/IMJjR89.jpg" /></a>

Learning Currency Trading : USD/JPY

Introduction: USD/JPY stands for U.S. Dollar/Japanese Yen. The symbol denotes how many Japanese Yen are needed to acquire one US dollar. ...

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Learning Currency Trading : GBP/USD

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px;"><span style="font-family: inherit; font-size: small;"><b>Introduction:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The quotation GBP/USD<span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"> </span>stands for British Pound/U.S. Dollar and articulates the number of USD required for obtaining one GBP. In the symbol above, the GBP stands for the base currency while the USD is the counter currency.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="426" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimnFEO2nR6o8THxyX8fd03_Q8KayKkz0Uv-3WIIDB7nEIYXB6-T2CYwF_SawGY7mu5lJLaTv2C6GGJ5RGIYnYyZH2tU_vnMfsx4vIfLVvMcGWj8m2ElFd6hLMwwFa0gJh0R9122KMp8sE/s640/img1.jpg" width="640" /></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><br /></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">GBP/USD currency pair is one of the world’s most heavily traded pairs, which absorbs over 12 per cent of the total market share almost every day. Ranking fourth in the list of the most oft-traded pairs, the GBP/USD is particularly important when trading with Great Britain and other European countries.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Like all other currency pairs, the GBP/USD pair undergoes abrupt and evident changes on a daily basis. However, very similar to the EUR/USD pair, this currency pair is also unpredictable and exhibits extremely high volatility, making it hard for many traders to predict its next trend.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Great Britain and the United States together form one of the biggest giants in the world market, both of them being home to the most of the world’s most important and largest multinational corporations. The two also tend to have exemplary economic stability and progress, thus making the GBP/USD currency pair crucial in the forex market.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>General facts and importance:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">With a daily turnover of the pair being 12 per cent, the GBP/USD duo serves as an important pair when it comes to transactions and reserves. Not only this, the pair is said to have the highest liquidity in the market. Consequently, the pair can be one of the best choices for traders who have just stepped in the world of forex and need to make sure that they get a start that is safe.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The exchange of GBP/USD in the world market is continuous and rarely ever ceases, that further adds to its volatility and liquidity. Besides, there is always a rumour and a potential chance of the United Kingdom amalgamating in the Eurozone. Such possibilities give birth to political debates, which serve to affect the strength of the GBP. If the debates go against the proposal of joining the EU, the value of GBP generally augments. The pound weakens when the arguments favour the merging of UK in the Eurozone.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The rapid changes and increasing volume of trade leaves the traders with a very narrow or no chance of arbitrage at all. Even the bid-ask spreads are bleak. Despite these short comings, the pair is appreciated by the traders for its high volatility and liquidity.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">UK was the world’s largest economy and the pound served as the unofficial currency in which reserves could be made. Even today, the UK is pivotal to the direction of the world trade, thus, making the GBP an important player in the forex market. The US, on the other hand, is the world’s super power and also has a very stable economy. Almost all international reserves are made in dollars and commodities are sold at prices that are fixed in USD. The importance of the pair cannot be undermined.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Factors affecting the pair:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Nothing affects the strength of one currency relative to the other better than the interest rates. The country with the higher interest rate would have the stronger currency. The conditions of the local markets and political situations in either of the two countries will affect the trade and value of the pair in the long-run.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The weakness of the GBP against the USD is often attributed to the strict regulations implemented by the British government. The labour laws in the UK also affect the strength of the GBP against the USD.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Taking advantage of news trading to make money while trading:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Keeping yourself updated with the latest trends in the market and the predictions made by economic pundits is essential if you wish to succeed as a trader in the forex world. Missing the news or the early morning economic indicator can have long-lasting adverse effects. Before the market starts and after it stops operating, filling yourself with information on what’s new is going to prepare you for the best and the worst.</span></div> <br /> <a href="https://goo.gl/aPqqmz" target="FBS Broker"><img src="http://i.imgur.com/IMJjR89.jpg" /></a>

Learning Currency Trading : GBP/USD

Introduction: The quotation GBP/USD   stands for British Pound/U.S. Dollar and articulates the number of USD required for obtaining one G...

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Learning Currency Trading : EUR/USD

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px;"><span style="font-family: inherit; font-size: small;"><b>Introduction</b>:</span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><b>EUR/USD</b> is frequently used to denote the approximate value of USD that needs to be exchanged in order to obtain a single EUR. In the quotation EUR/USD, the EUR represents the <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">base currency</span> while the USD is taken as the <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">counter currency</span>.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="296" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQ4vxiPmpRtHX-Jld-pl9vk51fFuG4CpmcfZXbwdtgrztsOYKILnMZXatBxdGfepcGUXtp5g52DfwHlSSPNYXxgWx9kPYrUf8eyANTwKMNcnHK7iiC7cL_V8jYwVMiB1p6hHh0QVRxa7U/s640/eur-usd-2.jpg" width="640" /></div> <span style="font-family: inherit; font-size: small;"><br /></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">EUR/USD is perhaps the world’s most widely used and oft-traded currency pair. The reason for the popularity and excessive use of the pair lies in the fact that each of the two currencies are representatives of the world’s most powerful economies; namely, Europe and the United States respectively. The wave of changes throughout the world market is almost always attributed to the fluctuations in at least one of the two currencies.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><b><span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;">General facts and importance:</span></b>The world’s largest and most successful multinational corporations have their headquarters in either Europe or America, and even both. There is little doubt in the fact that despite tremendous growth of businesses and corporations around the world, the European and American blocs still seem to overshadow the rest in terms of operation and significance. These multinational tycoons, being operational in Europe and America, are actively involved in the trade of these two currencies. With such frequent exchange and trade, all these firms have to make sure that they secure their assets and hedge the risk that is inevitably involved in the exchange rate.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The EUR/USD exchanges rarely every halt. The pair enjoys the status of being the only currency pair that is loved by the traders around the globe even when the currencies offer minimum arbitrage chances. The opportunity to benefit from a currency arbitrage when dealing in EUR/USD is also next to improbable because the exchange is so recurrent that there hardly is space for further exploitation that arise from variances in quotes.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">The most attractive feature of the pair is the perfect balance of volatility and liquidity. Especially for those who are not exceptionally adept at dealing forex or are new to it will find the EUR/USD pair to be the best choice for a beginning.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Around 70 per cent and even more of the world’s transactions are carried out in terms of EUR/USD. Given that the US Dollar is the world’s most oft-traded and most popular currency followed by the Euro, it is no surprise the pair dominates all other currency duos.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Furthermore, since Europe and the US are the world’s biggest economies, the two currencies are important when it comes to investments. The prices for almost all the essential commodities, gold and oil for instance, are set in US dollars. US dollars are the most favourable option when it comes to reserving currency in international banks. Also, the EUR is unique as it serves as the currency for the entire European Union.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Factors affecting the pair:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Primarily, the interest rate governs the strength of one currency against the other in the pair. The higher the interest rate, the stronger is the standing of the currency. However, since EUR represents the entire EU, political disagreements from time to time often impart a negative impact on the EUR, making it weaker against its paired currency.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Since the pair is highly volatile, it presents the opportunities for profit in the forex market. Offering just the right amount of volatility and liquidity, this pair happens to be the most popular currency pair in the world.  </span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Taking advantage of news trading to make money while trading:</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">To make the best out of your trading activities, it is essential that you stay abreast with the latest trends and changes in the market. Trading is all about strategy and right timing. Lagging behind in what’s trending and the news that help you gauge the market’s weather can be potentially damaging.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Earnings releases and economic indicators along with broadcasts on liquidity etc. can help you leave indelible marks of success in the market by shaping your strategies beforehand.</span></div> <br /> <a href="https://goo.gl/aPqqmz" target="FBS Broker"><img src="http://i.imgur.com/IMJjR89.jpg" /></a>

Learning Currency Trading : EUR/USD

Introduction : EUR/USD  is frequently used to denote the approximate value of USD that needs to be exchanged in order to obtain a single ...

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Buying a Forex Robot - What You Should Keep in Mind

<div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Selecting the right Forex robot can be difficult if you do not have a firm idea of what you are looking for. Forex robots, or automated trading systems as they are commonly known, are software programs that are used in order to make automated trades. The forex trading market remains active round the clock, with traders from all over the world buying and selling currency pairs. Due to the fact that it remains active all the time, most traders often want to generate as much money as possible. However, that’s difficult because a large number of investors who trade in the foreign exchange market often consider it as a side business.</span></div> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="312" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQL-I8I96hYiekznD0oYpJUynVxEQ7kgPXB1NQmeGaiU5ARmWtWy8irRjTMoQ48RNqprKhNbrJQPka3K7woZiHxCx1kYRD9pzUOHtYbLgfWBoVzvkY6BXj1bkjFWQhyphenhyphentFqvbOCy1ZnPFk/s640/buying-a-forex-robot-what-you-should-keep-in-mind-large.jpg" width="640" /></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;"><br /></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">They don’t invest all of their time and energy in the foreign exchange market. To take advantage of this, many companies have released forex robots, or automated trading systems. These systems generally work in the background and use complex algorithms in order to make trades in the forex market. There are hundreds of different software programs and forex robots that you can choose from. Needless to say, not all of these deliver top notch performance. In fact, many people who end up buying forex trading systems often feel that they were swindled out of their money. The program just doesn’t deliver upon the exaggerating promises that it makes. Therefore, in order to give you a better idea of which forex robot you should choose, here are a few tips:</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Reviews</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">Reading customer reviews is the best way to figure out whether a forex robot is worth your money or not. There are plenty of different robots available in the market, but finding the right one is difficult. However, there are several websites that record reviews from customers who have used certain software programs. Read testimonials and reviews in order to get a better idea about a software program and its features.  Reading reviews about a particular program is a great way to save money in the long run. For instance, if a program is highly touted on its official website but has poor reviews from actual customers, you should avoid buying it.</span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; margin: 0px; padding: 0px; transition: all 0.2s ease-in-out;"><span style="font-family: inherit; font-size: small;"><b>Trial Versions</b></span></span></div> <div class="rtejustify" style="-webkit-appearance: none; border-radius: 0px; border: 0px; box-sizing: border-box; color: #4d4d4d; line-height: 20px; margin-bottom: 15px; padding: 0px; text-align: justify; transition: all 0.2s ease-in-out;"> <span style="font-family: inherit; font-size: small;">There are plenty of forex robots that come with free trial versions. You should not buy a <b><a href="https://goo.gl/aPqqmz" target="_blank">forex </a></b>robot without properly checking it out first. Using the program for yourself will give you an idea about its features, its user interface and whether the program is worth the money or not. One thing that you should know about forex trading programs is that virtually none of them can deliver endless streams of profits to your account. While they may be able to find information and integrate it in to their algorithms, you will need to supervise the deals made by the program if you want to save money. Many people often end up losing large amounts from their trading accounts just because they give full permission to the forex robot. Avoid making these mistakes when buying a forex robot.</span></div> <br />

Buying a Forex Robot - What You Should Keep in Mind

Selecting the right Forex robot can be difficult if you do not have a firm idea of what you are looking for. Forex robots, or automated tra...

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When to Buy or Sell a Currency Pair

<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">In the following examples, we are going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you always fell asleep during your economics class or just flat out skipped economics class, don’t worry! We will cover fundamental analysis in a later lesson.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">But right now, try to pretend you know what’s going on…</span><br /> <span style="font-family: inherit;"><br /></span> <br /> <div class="separator" style="clear: both; text-align: center;"> <img border="0" height="504" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimNGIfET06QPaz9FDuMngGMvtQNeY1RP5Zb2z_bn1TpdbNCx44ZmEG1PrhXC6dgOBoAAPU_4jJ2cYQBNivKpG5B7wt0481PBUga1QqC84-HwzwBxWBC0x0PXPFIEujGgmFhoTON23evFc/s640/buy-or-sell.jpg" width="640" /></div> <span style="font-family: inherit;"><br /></span></div> <h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; clear: both; font-stretch: normal; margin: 0px 0px 0.8em; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit; font-size: small;">EUR/USD</span></h2> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">In this example, the euro is the base currency and thus the “basis” for the buy/sell.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you believe that the U.S. economy will continue to weaken, which is bad for the U.S. dollar, you would execute a <b><span style="color: blue;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">BUY</span> </span></b>EUR/USD order. By doing so, you have bought euros in the expectation that they will rise versus the U.S. dollar.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you believe that the U.S. economy is strong and the euro will weaken against the U.S. dollar you would execute a <b><span style="color: red;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">SELL</span> </span></b>EUR/USD order. By doing so you have sold euros in the expectation that they will fall versus the US dollar.</span></div> <h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; clear: both; font-stretch: normal; margin: 0px 0px 0.8em; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit; font-size: small;">USD/JPY</span></h2> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">In this example, the U.S. dollar is the base currency and thus the “basis” for the buy/sell.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a <span style="color: blue;"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">BUY</span> </b></span>USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you believe that Japanese investors are pulling money out of U.S. financial markets and converting all their U.S. dollars back to yen, and this will hurt the U.S. dollar, you would execute a <span style="color: red;"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">SELL</span> </b></span>USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.</span></div> <h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; clear: both; font-stretch: normal; margin: 0px 0px 0.8em; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit; font-size: small;">GBP/USD</span></h2> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">In this example, the pound is the base currency and thus the “basis” for the buy/sell.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you think the British economy will continue to do better than the U.S. in terms of economic growth, you would execute a <b><span style="color: blue;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">BUY</span> </span></b>GBP/USD order. By doing so you have bought pounds in the expectation that they will rise versus the U.S. dollar.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you believe the British’s economy is slowing while the United States’ economy remains strong like Jack Bauer, you would execute a <b><span style="color: red;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">SELL</span> </span></b>GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the U.S. dollar.</span></div> <h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; clear: both; font-stretch: normal; margin: 0px 0px 0.8em; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit; font-size: small;">USD/CHF</span></h2> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">In this example, the U.S. dollar is the base currency and thus the “basis” for the buy/sell.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you think the Swiss franc is overvalued, you would execute a <b><span style="color: blue;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">BUY</span> </span></b>USD/CHF order. By doing so you have bought U.S. dollars in the expectation that they will appreciate versus the Swiss Franc.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you believe that the U.S. housing market weakness will hurt future economic growth, which will weaken the dollar, you would execute a <b><span style="color: red;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">SELL</span> </span></b>USD/CHF order. By doing so you have sold U.S. dollars in the expectation that they will depreciate against the Swiss franc.</span></div> <h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; clear: both; font-stretch: normal; margin: 0px 0px 0.8em; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit; font-size: small;">Margin Trading</span></h2> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">When you go to the grocery store and want to buy an egg, you can’t just buy a single egg; they come in dozens or “lots” of 12.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">In forex, it would be just as foolish to buy or sell 1 euro, so they usually come in “lots” of 1,000 units of currency (Micro), 10,000 units (Mini), or 100,000 units (Standard) depending on your broker and the type of account you have (more on “lots” later).</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">“But I don’t have enough money to buy 10,000 euros! Can I still trade?”</span></span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;"><b>You can with margin trading!</b></span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <div class="separator" style="clear: both; text-align: center;"> <object align="middle" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" height="60" id="fbs_banner5726" width="468"><param name="movie" value="https://fbs.com/upload/promo/banner/f39b3828bbedf908864c3e873ffe9bda.swf"/><param name="quality" value="high" /><param name="bgcolor" value="#ffffff" /><param name="flashvars" value="clickTag=http://fbs.com/promo/5UsdBonus?ppu=396575" /><param name="wmode" value="transparent" /><!--[if !IE]>--><object data="https://fbs.com/upload/promo/banner/f39b3828bbedf908864c3e873ffe9bda.swf" height="60" type="application/x-shockwave-flash" width="468"><param name="wmode" value="transparent" /><param name="movie" value="https://fbs.com/upload/promo/banner/f39b3828bbedf908864c3e873ffe9bda.swf"/><param name="flashvars" value="clickTag=http://fbs.com/promo/5UsdBonus?ppu=396575" /><!--<![endif]--><a href="http://fbs.com/promo/5UsdBonus?ppu=396575" target="_blank"><img alt="Get Adobe Flash player" src="https://fbs.com/upload/promo/banner/a6fa4ab377b38eb8b96de17c702ee2a6.jpg"/></a><!--[if !IE]>--></object><!--<![endif]--></object></div> <div class="separator" style="clear: both; text-align: center;"> <br /></div> <span style="font-family: inherit;">Margin trading is simply the term used for trading with borrowed capital. This is how you’re able to open $1,250 or $50,000 positions with as little as $25 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;"><b>Let us explain.</b></span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;"><b>Listen carefully because this is very important!</b></span></div> <ol style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin: 0px 0px 18px 1.5em; padding: 0px; vertical-align: baseline;"> <li style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">You believe that signals in the market are indicating that the British pound will go up against the U.S. dollar.</span></li> <li style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">You open one standard lot (100,000 units GBP/USD), buying with the British pound at 2% margin and wait for the exchange rate to climb. When you buy one lot (100,000 units) of GBP/USD at a price of 1.50000, you are buying 100,000 pounds, which is worth US$150,000 (100,000 units of GBP * 1.50000).<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">If the margin requirement was 2%, then US$3,000 would be set aside in your account to open up the trade (US$150,000 * 2%). You now control 100,000 pounds with just US$3,000.</span>We will be discussing margin more in-depth later, but hopefully you’re able to get a basic idea of how it works.</span></li> <li style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">Your predictions come true and you decide to sell. You close the position at 1.50500. You earn about $500.</span></li> </ol> <table border="0" style="border-collapse: collapse; border-spacing: 0px; border: 0px; line-height: 18px; margin: 0px; padding: 0px; text-align: left; vertical-align: baseline; width: 525px;"><tbody style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"> <tr style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><td style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">Your Actions</span></span></td><td align="center" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;"> GBP</span></span></td><td align="center" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">  USD</span></span></td></tr> <tr style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><td style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">You buy 100,000 pounds at the exchange rate of <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">1.5000</span></span></td><td align="center" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">+100,000</span></td><td align="center" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;"> -150,000</span></td></tr> <tr style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><td style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">You blink for two seconds and the GBP/USD exchange rates rises to <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">1.5050</span> and you sell.</span></td><td align="center" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">-100,000</span></td><td align="center" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">+150,500</span></td></tr> <tr style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><td style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">You have earned a <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">profit of $500</span>.</span></td><td align="center" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">0</span></td><td align="center" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;">+500</span></td></tr> </tbody></table> <br /> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">When you decide to close a position, the deposit that you originally made is returned to you and a calculation of your profits or losses is done.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">This profit or loss is then credited to your account.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">What’s even better is that, with the development of retail forex trading, there are some brokers who allow traders to have custom lots. This means that you don’t need to trade in micro, mini or standard lots! If 1,542 is your favorite number and that’s how many units you want trade, then you can!</span></div> <h2 style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; clear: both; font-stretch: normal; margin: 0px 0px 0.8em; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit; font-size: small;">Rollover</span></h2> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">No, this is not the same as rollover minutes from your cell phone carrier! For positions open at your broker’s “cut-off time” (usually 5:00 pm EST), there is a daily rollover interest rate that a trader either pays or earns, depending on your established margin and position in the market.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <div class="separator" style="clear: both; text-align: center;"> <object align="middle" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" height="60" id="fbs_banner5726" width="468"><param name="movie" value="https://fbs.com/upload/promo/banner/f39b3828bbedf908864c3e873ffe9bda.swf"/><param name="quality" value="high" /><param name="bgcolor" value="#ffffff" /><param name="flashvars" value="clickTag=http://fbs.com/promo/5UsdBonus?ppu=396575" /><param name="wmode" value="transparent" /><!--[if !IE]>--><object data="https://fbs.com/upload/promo/banner/f39b3828bbedf908864c3e873ffe9bda.swf" height="60" type="application/x-shockwave-flash" width="468"><param name="wmode" value="transparent" /><param name="movie" value="https://fbs.com/upload/promo/banner/f39b3828bbedf908864c3e873ffe9bda.swf"/><param name="flashvars" value="clickTag=http://fbs.com/promo/5UsdBonus?ppu=396575" /><!--<![endif]--><a href="http://fbs.com/promo/5UsdBonus?ppu=396575" target="_blank"><img alt="Get Adobe Flash player" src="https://fbs.com/upload/promo/banner/a6fa4ab377b38eb8b96de17c702ee2a6.jpg"/></a><!--[if !IE]>--></object><!--<![endif]--></object></div> <div class="separator" style="clear: both; text-align: center;"> <br /></div> <span style="font-family: inherit;">If you do not want to earn or pay interest on your positions, simply make sure they are all closed before 5:00 pm EST, the established end of the market day.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">Since every currency trade involves borrowing one currency to buy another, interest rollover charges are part of forex trading. Interest is paid on the currency that is borrowed, and earned on the one that is bought.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;">If you are buying a currency with a higher interest rate than the one you are borrowing, then the net interest rate differential will be positive (i.e. USD/JPY) and you will earn funds as a result.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;"><b>Conversely, if the interest rate differential is negative then you will have to pay.</b></span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="font-family: inherit;"><b>Note </b>that many retail brokers do adjust their rollover rates based on different factors (e.g., account leverage, interbank lending rates). Please check with your broker for more information on rollover rates and crediting/debiting procedures.</span></div> <div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; line-height: 18px; margin-bottom: 18px; padding: 0px; vertical-align: baseline;"> <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: inherit;"><br /></span></span></div>

When to Buy or Sell a Currency Pair

In the following examples, we are going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If...

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