Although interest rates can be a major factor influencing currency value and exchange rates, the final determination of a currency's exchange rate with other currencies is the result of a number of interrelated elements that reflect and impact the overall financial condition of a country in respect to that of other nations. Two other factors that are often of greater importance are political and economic stability and the demand for a country's goods and services. Interest rates play the most important role in moving the prices of...
Forex is a market in which there is a trade in currency units and various stocks. Forex traders buy a cheap currency and sell when the price goes up, or vice versa. Every year, this area is becoming more and more popular. Internet is full of lots of useful information but it is also full of myths. The first and most common lie is that Forex trading is easy. Many suggest that you need just read a couple of books and websites, and you are ready to start earning big. Others say that you can just buy income-generating strategy and not...
When you are trading forex, sometimes you will notice a slight difference between the price you expect and the execution price (the price when the forex trade is completed). When this happens, it is known as slippage. It is a common thing to experience as a forex trader and it can work either positively or negatively. Forex slippage is an example of a pretty normal forex trading occurrence that is usually spoken of as a bad thing. When it goes against you it is, but slippage can also work in your favor. Slippage is good when your...
There are common forex trading mistakes and that give nearly all traders trouble at some point in their trading careers. Traders generally buy and sell securities more frequently and hold positions for much shorter periods than investors. Such frequent trading and shorter holding periods can result in mistakes that can wipe out a new trader's investing capital quickly. Trading forex can be a rewarding and exciting challenge, but it can also be discouraging and risky with lot of ups and downs. Many traders start trading forex in the...
When it comes to forex, scalping generally refers to making a large number of trades that produce small profits individually. Scalping in the forex market involves trading currencies based on a set of real-time analysis. The purpose of scalping is to make a profit by buying or selling currencies and holding the position for a very short time and closing it for a small profit. These types of trades are usually only held onto for a few seconds to a few minutes at the most. The main objective for forex scalpers is to grab...
