The online trading industry has options for those interested in automated systems, or managed accounts to trade on their behalf under what is known as ‘Power of Attorney’. The concept of delegating a trading activity to a third party is not new, but the forex trading arena has developed a specific range of automated/managed accounts, with specific terminology that forex traders have typically used, and continue to use today. Forex PAMM account is beneficial for followers because they can benefit from forex trading without having...
The greatest volume of currency is traded in the interbank market. This is where banks of all sizes trade currency with each other and through electronic networks. Big banks account for a large percentage of total currency volume trades. Banks facilitate forex transactions for clients and conduct speculative trades from their own trading desks. When banks act as dealers for clients, the bid-ask spread represents the bank's profit. Speculative currency trades are executed to profit from currency fluctuations. There are hundreds of banks...
When you are simultaneously trading multiple currency pairs in your trading account, the most important thing is to make sure you are aware of your risk exposure. You might believe that you are spreading or diversifying your risk by trading in different pairs, but you should know that many of them tend to move in the same or opposite direction. By trading pairs that are highly correlated, you are just magnifying your risk! Currency correlations strongly influence the overall volatility of — and hence the risk involved in holding...
When the Bank of England (BOE) had their last Monetary Policy Committee (MPC) meeting on February 8th, market watchers priced in a 51% chance of an interest rate increase in May. Fast forward two weeks and the odds have now jumped to 83%. Central banks in developed markets have been reluctant to increase interest rates since they were slashed to all-time record lows as a result to the global financial crisis from a decade ago. Many have called for the normalization of monetary policy amid fear that low interest rates are already fueling the...
With so many ways to trade currencies, picking common methods can save time, money and effort. By fine-tuning common and simple methods a trader can develop a complete trading plan using patterns that regularly occur, and can be easily spotted with a bit of practice. Chart price patterns help traders recognize trends, movements and the patterns developed from the price fluctuations of currency pairs. Forex chart patterns can help you enter a trade on a low and exit high or as metaphorically known "ride the wave" of a pair's...
