While there are multiple factors that affect the direction of the movement of money on the forex market, the political conditions in a country can help people understand some of the movement on the forex market. The fact that foreign exchange trading has become such a globalized activity means that macroeconomic events play an even greater role in forex than ever before. Not only economic data have an effect on the interbank currency market. Each news headline may bear the potential to negatively or positively affect a particular...
While many traders are attracted to the forex market’s 24-hour trading and fast moves, others choose the forex market for its long trends and responsiveness to key support and resistance areas. Position trading is the longest term trading and can have trades that last for several months to several years. This kind of forex trading is reserved for the ultra-patient traders, and requires a good understanding of the fundamentals. Falling somewhere on the spectrum between swing trading and long-term investment is the...
Once a new traders makes the decision to enter the forex market, the first step is to find a forex broker through which an account can be managed. Without one, the traders has no access to the largest financial market available. A lot of new traders tend to focus more on their investment or trading strategy and ignore the importance a good broker will have on their overall performance. Selecting the right place for your portfolio will greatly improve the effectiveness of any strategy and result in a good partnership while the wrong selection...
Back in the ancient days, if someone wanted to change currencies, they would first have to convert their currencies into U.S. dollars, and only then could they convert their dollars into the currency they desired. With the invention of currency crosses, individuals can now bypass the process of converting their currencies into US dollars and simply convert it directly into their desired currency. While the U.S. dollar is the most liquid currency, making up the majority of the volume traded throughout the globe, there are additional...
The explosive growth of forex trading over the past decade continues to attract new traders every single day. There are several good reasons for this trend as the capital requirements are the lowest in the global financial world which means that even small deposits have a chance to grow over time and the decentralization of the market in general together with the availability to trade essentially 24 hours per day for five days a week are two of the key drivers of growth. Traders usually trade with leverage which is another great benefit once...
