On Top of Forex

Category: General

  • Forex Tips That Could Help You Trade

    There are differences between business opportunities, such as their size. Foreign Exchange represents the largest currency trading marketplace in the world. If you want to take advantage of opportunities within Forex, check out a few of these tips.

    You need to know your currency pair well. It can take a long time to learn different pairs, so don’t hold up your trading education by waiting until you learn every single pair. Choose one currency pair and find out as much as you can about that one. Know the pair’s volatility vs. its forecasting. Be sure to keep it simple.

    Watch the news and take special notice of events that could affect the value of the currencies you trade. Much of the price swings in the currency markets have to do with breaking news. Capitalize on major news quickly by getting text or email alerts for markets in which you are interested.

    TIP! Open two separate accounts in your name for trading purposes. You will use one of these accounts for your actual trades, and use the other one as a test account to try out your decisions before you go through with them.

    Using margins properly can help you to hold onto more of your profits. Utilizing margin can exponentially increase your capital. But, if you trade recklessly with it you are bound to end up in an unfavorable position. You should use margin only when you feel you have a stable position and the risks of a shortfall are minimal.

    There are four-hour as well as daily charts that you need to take advantage of when doing any type of trading with the Foreign Exchange market. Because of communication advancements, trades can be tracked in 15-minute intervals. At the same time, remember that small fluctuations are common; you want to identify long-term trends. Cut down on unnecessary tension and inflated expectations by using longer cycles.

    Foreign Exchange traders often use an equity stop order, which allows participants to limit their degree of financial risk. This will limit their risk because there are pre-defined limits where you stop paying out your own money.

    Traders use an equity stop order to limit losses. If you put out a stop, it will halt all activity if you have lost too much.

    Forex Trading

    You need to pick an account type based on how much you know and what you expect to do with the account. Be realistic about what you can accomplish given your current knowledge of Forex trading. There are no traders that became gurus overnight. Keeping your leverage low will help to protect you from the impact of wild swings in the market. For beginners, a small practice account should be used, as it has little or no risk. Know all you can about forex trading.

    The tips offered here come right from successful foreign exchange traders. There is no way to guarantee success in trading, but studying these tips and putting them into practice will definitely give you an edge. Apply these tips to your forex trading to have the best chance of success.

    If you are a beginning forex trader, stick to just a few markets. Beginning with simple markets will help you avoid confusion and frustration. Instead, begin by building your confidence with major currency pairs, where you are more likely to have initial success.

    Before embarking on any journey, you must have the right knowledge. When you wish to do well with the topic of forex training, it’s important to learn all there is to know about them. Apply the ideas found in this piece, and you will be entirely satisfied.

  • Forex Market Hours: Can You Trade Currency 24/7?

    Tons of moneyThe forex market hours stretch from Monday morning in Sydney, Australia to Friday afternoon in New York. During that time the market is open somewhere around the globe at all hours of the day or night.

    However it is not a 24/7 market because it does shut down on weekends. 24/5 would be more accurate.

    If you need to know the exact times that the markets open and close, you have to take time zones into consideration. It is very simple when expressed in UTC. This is Universal Coordinated Time, formerly known as Greenwich Mean Time. This is the standard (winter) time in Greenwich, London which is the point of zero longitude on the globe.

    So, the normal forex market hours are 22.00 Sunday UTC to 22.00 Friday UTC. This is 10 pm in the UK in winter time.

    New York is 5 hours behind the UK so the global forex market opens and closes at 5 pm Sunday/Friday in New York, 2 pm on the US west coast, 11 pm in Germany, 8 am Monday/Saturday in Sydney.

    Things get a little complicated when you start to try to take summer time daylight saving into account. This makes one hour difference in countries that observe it. But daylight saving operates in a different way in the southern hemisphere countries such as Australia which have summer time from September to March instead of March to September.

    The hours of the different major national markets are as follows:

    Sydney: 10 pm to 7 am UTC
    Tokyo: 12 midnight to 9 am UTC
    London: 8 am to 5 pm UTC
    New York: 1 pm to 10 pm UTC

    Or we can express that in EST (Eastern US time):

    Sydney: 5 pm to 2 am EST
    Tokyo: 7 pm to 4 am EST
    London: 3 am to 12 noon EST
    New York: 8 am to 5 pm EST

    You can see that these correspond to 24 hour cover.

    However, this does not necessarily mean that trading will be good at all of these times. Just after a major market opens, the prices can be very volatile and unpredictable. Many traders will stay out of the forex market for up to an hour four times a day when the financial markets are waking up in these major cities.

    The US dollar is the most traded currency by a long way, involved in 2.5 times as many trades as its nearest rival the euro. This means that events in the USA have a greater impact on the financial markets than events in other countries. The New York market tends to slow down around 3 pm local time (8 pm UTC) and if you are involved in a US dollar pair, this can be a good time to stop trading for the day.

    So theoretically you can trade 24 hours a day from Sunday night to Friday night. Automated software in the form of a forex robot can even make this physically possible. However, a cautious trader will choose his times and will not be active during all of the forex market hours. For more information as to how to learn the correct way to learn about Forex Trading go here.

  • Beginner Forex Currency Trading: What Is It All About?

    Free Money Collection in CashFor a beginner forex currency trading may seem to be a whole new world but in fact the basics are quite easy to learn. You just need to understand the buzz words and trading terms and grasp a basic understanding of how the markets work.

    Making big money in a short time is what forex currency trading is all about! It is possible for investors to make a lot of money very fast because the rates of exchange on the foreign market can rise and fall quickly. This means of course that it is risky and there is also a chance of losing a lot, just like most things in life that have the potential of big returns.

    As you will know if you have ever exchanged currency for a vacation, the rates are constantly changing. For example you may change $100 into another currency planning to travel, and then find that you do not need it and change it back. The rate will probably have changed in the meantime and you may even have made a profit.

    Forex traders deal in currencies hoping to make a profit all of the time, but instead of changing money at the bank they use a broker. Most transactions these days are handled online. In many ways it is not so different from stock trading. There is the same potential to trade in margins where a small balance held by your broker can control much larger deals. (more…)