Firms that provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies are called forex brokers. A forex brokerage is an entity that connects retail forex traders with the forex market. A forex broker is a term used to describe the providers of foreign currencies and leverage for trading or speculating in international currency markets. Currency traders use these brokers to access the 24-hour currency market. A forex brokerage offers you a way to get into the mix with the...
Forex trading can encompass a wide range of different trading strategies and techniques. Some of these techniques might seem more suitable for particular traders than others, depending on the particular temperament and character of the individual. Short-term trading the forex market has always been popular for traders that are lacking time but enjoy the excitement of being exposed to the market. Several basic concepts must be understood and mastered for successful short-term trading. These fundamentals can mean the difference between a...
Online forex brokers offer various types of orders designed to protect investors from significant losses. In theory trailing stops provide a way for traders to limit losses and to lock in profits on individual trades. The basic idea of the trailing stop is that as a trade moves into profit, the stop level adjusts upwards in the case of a long (buy) trade or downwards in the case of a short trade. In this way the downside is limited by the stop level but the upside is potentially unlimited. In other words trailing stops are a way to allow...
The biggest influence that drives the foreign-exchange market is interest rate changes made by any of the eight global central banks. These changes are an indirect response to other economic indicators made throughout the month, and they possess the power to move the market immediately and with full force. Because surprise rate changes often make the biggest impact on traders, understanding how to predict and react to these volatile moves can lead to quicker responses and higher profit levels. When trading the world...
In forex trading, when you keep a position open through the end of the trading day, you will either be paid or charged interest on that position, depending on the underlying interest rates of the two currencies in the pair. As the currency markets involve a simultaneous buying or selling of one currency to another, the guiding interest rate difference for the currency pair you are trading determines the outcome. For overnight positions, you are either levied a positive swap (the swap rate is added to your trade) or a negative swap (the swap...
