Forex Trading Accounts: What Account to Choose
For effective and profitable trading, it is important to choose the right type of a trading account. The choice depends on the knowledge level of a trader, the preferred style of trading, the amount of capital and the risk level that the investor is ready to assume.
Trading accounts are...
Exchange Rate on Forex
Exchange rate is one of the key concepts on Forex. Traders sell one currency, buy another and earn on the difference in rates. When a trader buys a certain currency, he or she expects the growth of the exchange rate relative to another currency.
How the rate is formed
The "supply-demand"...
Five Things to Consider When Choosing a Forex Broker
There is so much money being traded daily in the forex markets, making it one of the hottest investment opportunities around.
Because of this, the number of brokers is increasing and so choosing the right one can difficult due to all the advertising claiming they have the best offers etc.
Here...
Trading USD/CAD Currency Pair
The Canadian dollar is a national currency of Canada. It is a free convertible currency and the sixth most traded currency on the Forex market.
The Canadian currency is also known as the commodity currency. That means that it correlates with commodity prices. So, it is necessary to be aware...
Forex Forecasts: Basic Forex Forecasting Techniques
It's not an exaggeration to say that the Forex market is the largest financial market in the world, especially with a daily volume of $1.5 trillion. The FX market has no physical location and no central exchange. Instead the foreign exchange market operates through a huge electronic network of...
FX Currency Pairs: Majors, Minors, Pairs and Crosses
As with any discipline, the world of FX is full of technical terms and jargon, which to the uninitiated can seem a bit daunting and unintelligible.
In this article, we will be demystifying some of that jargon to help you understand what people in the FX market are talking about.
FX...
What Moves FX Markets?
Foreign exchange is one of the most actively traded markets in the world. From its roots in the early 1970s, it has grown to become a five trillion-dollar a day market.
However, there is still an element of mystery about what exactly the drivers of FX prices actually are, and...
Crypto Trading on Forex. How to Have Income Even When the Rate is Falling
The interest in cryptocurrencies is growing day by day and most people recognize them as a popular payment and investment method. Cryptocurrency is used to pay for goods and services, for additional earnings and for trading in the exchange market. More individuals and legal entities start using cryptocurrency.
Cryptocurrency is...
The Trader’s Guide to Eurodollar
What is Eurodollar?
Quite simply, eurodollar (also known as EURUSD), is the exchange rate between the currencies of the world's two largest economies when measured by GDP - USA and the Eurozone.
The Eurozone consists of the economies of 19 EU member states who have adopted the euro as their currency....
GBP/USD. Popular Currency Pair Features
The British pound is one of the most important currencies in the world. The pound takes the 4th place in terms of turnover, as well as the third place as a reserve currency.
British pound on Forex
The pound is one of the most popular currencies in the Forex market. It...
Trading 101: How to Trade Gold & Metals
The great Technical Analyst Martin Pring once said: “The more I work with markets, the more it becomes apparent that prices are determined by one thing and one thing only, and that is people's changing attitudes toward the emerging fundamentals”.
In this article, we shall dig into the fundamentals that...
What Everyone Ought to Know About Trading Oil
In this article we shall explore the fundamental influences that shape market sentiment on Crude Oil. What makes it tick? In order of importance we have: Risk Appetite (Geopolitical dynamics along with classic risk aversion), US Dollar dynamics, the Department of Energy Weekly Statistics, the API statistics, and the...
Institutional FX Positioning: Don’t Fight The Flow
Informational Imbalances
The development of trends in FX markets relies on the aggregation of institutional order flow to drive a currency or currency pair in a particular direction. Many new traders often find themselves on the wrong side of these moves and typically spend a lot of time in a...
Risk-on and Risk-off
First confronted with the somewhat esoteric terms risk-on and risk-off (or RoRo) typically (for those born in the 70s/80s) evokes childhood memories of the movie The Karate Kid – famous for its line ‘wax-on – wax-off’.
Regrettably, though, RoRo is slightly more involved than waxing Mr Miyagi’s car!
What does risk-on...
Currency Pairs: What Pairs Are Better for Trading on Forex
A lot of currency pairs are available for trading in the forex market. Each currency pair has its own characteristics, which should be taken into account when trading. What currency pairs are better for trading on Forex?
What is the currency pair? Currency pair is a financial instrument formed by...
8 Forex Terms: How Professional Forex Traders Speak
Very often, traders and professional Forex investors simplify currency pair names by referring to them using nicknames. The most used jargon in FX is about the major currency pairs. This language is not only used in forums or social media but also in official communications, news, and formal events.
If...
Five Tips for Forex Trading With a Full Time Job
"My kids think all fathers work from home" – Marty Schwartz, Market Wizard
If your aim is to create a second income through Forex trading, then you'll know the difficulty of fitting trading around a full time job.
We're all on the verge of a time management crisis.
Luckily, with the right approach,...
ECN Forex Trading Explained
Trade execution usually doesn’t rank that high for most traders, especially in the retail forex business. That being said, the past few years has brought about some market volatility which has no doubt increased trader’s curiosity about how their trades are executed by their forex broker.
The most notable event...
Fundamental Analysis in Forex Trading
In terms of Forex trading, Fundamental analysis aims at analyzing group of countries’ economic data and performance in order to compare them. The use and study of this data helps traders forecast future price movements of currencies. Fundamental analysis tends to focus on how macroeconomic elements affect the exchange...
A Beginner’s Guide to the Japanese Yen
Did you know that over 80% of the trading volume in the FX market is dominated by only a handful of currencies?
According to the Bank for International settlements, the Japanese yen is the third largest currency in motion, behind the US dollar and the euro.
Japan is also a highly...
Practical Tips for Those Who Want to Trade Safe on Forex
We can’t really speak of earning money on FOREX without understanding the risks. Foreign exchange market isn’t a safe battleground for beginners. Huge money is at stake, and any small mistake may cost you a big loss. At the same time, nobody can be assured of success drawing on...
The Trader’s Guide to Commodity Pairs
FX markets are famous for attaching or conjoining values and metrics to individual currencies, their pairs and crosses.
They believe that these “factors” have an influence on and are reflected in the price of those currencies. For example, the Japanese Yen is seen as the barometer for risk-off flows, while...
Why Do Central Banks Target Inflation?
When it comes to determining monetary policy, among a number of economic indicators that policymakers look at, one particular indicator stands out. Inflation or consumer price index has been one of the key factors when it comes to central bank policy responses.
If one looks back to the time since...
Is it Real to Earn on Forex Without Investments?
A currency speculation is the basis of earnings on Forex. That is traders trade according to a simple principle "buy cheap, sell expensive". The positive difference between buy and sell prices is the desired profit of a trader.
You can earn in the Forex market without investments. Clearly, on your...
The Trader’s Guide to Trading the New Zealand Dollar
The country, economy and the currency.
New Zealand could be considered to be the smaller and often overlooked cousin of Australia. But in truth, the country is fiercely independent of and separate from its larger neighbour. The country thrives on international trade which makes up a significant proportion of its...
Five Factors that Drive FX Prices
1) Perceptions about the Future Path of Interest Rates
These are perhaps the most classical of all the drivers of Forex rates. Long-standing economic doctrines tell us that money flows to wherever it can receive the best return regardless of whether that flow of funds is between bank deposits and...
Why Trade FX: 7 Key Differences Between FX and Other Instruments
In the first part of this article, we looked at the relationships and investment themes that traders can access using FX. In the second part, we will look at the factors that differentiate FX from other asset classes and instruments and therefore, making FX a truly global product.
Market Scale
The...
What is the US Nonfarm Payrolls or NFP?
The United States nonfarm payrolls report is probably one of the most important economic releases every month. The nonfarm payrolls or NFP for short has a strong influence on the markets, even if it's just short-term.
What Is the GDP Report and How It Impacts Forex Markets
GDP or Gross Domestic Product represents the total monetary value of goods and services produced over a specified period of time in a country. In other words, GDP measures the overall productivity of a country's economy and is used to measure the level of growth and the economy's health in general.
What CPI Is and How to Trade Inflation Data
Consumer Price Index, CPI for short is a measure of the change in the weighted average of prices from a basket of consumer goods and services considered essential. CPI is calculated by tracking the price changes for each of the items in the basket of goods and weighted in importance.