In trading financial markets there is such a notion as risk hedging. It appeared long ago and was initially used by companies carrying out the trading activity. It turns out that mastery of this technique can help reduce the risk of this or that trade. Since currency risk hedging is defined as holding two or more positions simultaneously. Its purpose is to compensate for losses on one currency position by the profit gained from trading another position.
When planning the upcoming trades, Forex market participants tend to focus on the entry point. In other words they are looking for the perfect timing to enter the market to gain the most profits. But the right timing is also important when it comes to exiting the trade - finding a moment to stop. Exiting at the right time can serve multiple purposes, including: optimizing the profit, minimizing the losses and managing the time spent trading. Today we will take a look at some basics of Forex exit strategies and learn how to pick the right...
The mechanism of market analysis and forecasting is closely associated with the dynamics of the largest economic indicators. These are the indicators that can put considerable pressure on the Forex market and have a serious impact on future developments. Economic indicators are usually made public by government agencies or private organizations. These indicators often play an important role in the foreign exchange market. Such data can be used effectively for region-specific analysis. For example, economic reports on measures taken in...
On-line trading is huge and has become a source of income for many traders across the globe. But while thousands of profitable market participants swear by the benefits of modern currency trading, many are still hesitant to start exploring the world of financial exchange. Of course, the idea of starting something new from scratch can be overwhelming, but with the growing volume of traders and new supporting instruments coming out nearly each week, it is simply unwise to ignore the matter completely. Here we have gathered 4 main reasons why...
Such variant of trading as trading forex on news is very popular among most Forex traders. This strategy owes its popularity to such properties as simplicity and high level of predictability. The essence of it lies in the fact that after the release of important news, with almost 90% confidence you can predict in which direction the rate of a particular currency will move. To trade on news on Forex you do not need to have a lot of knowledge. Most effective trading strategies recommend a market participant to enter the market before or at...
