In order to be able trade forex everyone needs to have a trading account with a forex broker otherwise you will not be able to access the forex market online. You do not need to have a forex trading account for old school forex trading where you go to your bank and exchange real cash in one currency for another one. This is the type of forex transaction many holiday goers often do, but it is not trading as they do not speculate on the price movements. Everyone interested in online forex trading needs to find a forex broker they can trust...
Many cite one of the biggest advantages of trading forex the fact that it is decentralized unlike trading equities. The reason this is an advantage is that the forex market does not close for trading during holidays observed in individual countries. For example yesterday the UK observed its Spring Bank Holiday and was closed for trading while the US observed Memorial Day and was also closed for trading, but the forex market was open. The benefit of a decentralized market is that just because one or two countries are closed for trading does...
Most may have never heard of it or have never considered it, but in order to become a truly successful trader you need more than a profitable trading strategy, a stringent risk management approach and a solid forex broker. You will need to have patience and discipline as well as time and capital. The best trading strategy will do you no good if you do not have adequate capital in your trading account. Remember that money makes money and therefore a forex deposit plan is very important. What is a forex deposit plan? It is very simple. A forex...
Many new traders have probably read or heard the term ‘hedging’ before, but in most cases it is gravely misunderstood. Hedging can be a good risk management tool, but if an account is not hedged properly it can have devastating effects. Hedging is a more advanced form of risk management and new traders should be very careful with it. Understand how to hedge properly is very important and plenty of research needs to be conducted. Hedging an account does not automatically mean that the forex traders is protected against trades which move...
Several economic reports were released this week which point towards a global economy much weaker than expected or hoped for. Forex traders need to take not of economic developments around the globe as it will have an impact on currency pairs and can explain erratic movements. This is especially true when a currency pair rallies sharply or sell-off which is made up of two currencies from economies in a downtrend. China started this week by cutting its one-year lending rate from 5.35% to 5.10%. This signals that the PBOC is worried about the...
