Experienced forex traders know that the largest cost in initiating any trade is the spread between the bid and ask prices. One of the first concepts that a trader new to the forex market will come across is that of the bid ask or dealing spread. Since most retail based forex trades are executed without the broker charging a commission, the bid ask spread represents the most basic cost of doing business in the forex market. When a currency trader executes a forex deal that has been quoted on by a broker or market maker, it typically...
There can be no denying that people who set goals in their personal and professional life are overwhelmingly more successful in both. It is that commitment to a set goal that makes it more achievable. In fact, studies have shown that at least 67% of business people who are successful in their field physically write their goals down. Goal setting help traders to get really focused, and constantly keep moving forward. Goals are important! Not only do they represent expectations and aspirations, goals also serve as a bridge from reality to the...
In forex trading you need a forex broker to facilitate your buying and selling currency orders. When trading currencies you will have to install and use trading platforms and software provided by the broker you choose. Different brokers will provide different trading platforms and software, so it is good to know the basics and what to expect. Forex trading platforms and software are programmed by professional programmers, who also tend to be experienced forex traders. These programs provide a gateway between you and the currency...
In simple terms, price action is a trading technique that allows a trader to read the market and make trading decisions based on the actual price movement on the chart, rather than relying on lagging indicators. This action is encompassed in technical and chart pattern analysis, which attempts to find order in the sometimes seemingly random movement of price. Price action is included in technical and chart pattern analysis that attempt to discover an order in seemingly random price movements. Price action trading is a form of technical...
In the world of finance, arbitrage is the practice of taking advantage of a state of imbalance between two or more markets. A person who engages in arbitrage is called an arbitrageur. The arbitrageur exploits the imbalance that is present in the market by making a couple of matching deals in different markets, with the profit being the difference between the market prices. Essentially, the trader is taking advantage of the same currency being priced differently in two different places. According to economic theory, trading on financial...
