Showing posts with label Forex. Show all posts
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7:36 PM
Let me start of by saying that Forex trading is not the easy money the commercials sell it to be. There is good money to be made in the currency markets. They do have some advantages such as they tend to follow long term trends which is a nice plus. On the downside, with the leverage that a forex account enjoys, it is easy to let things get out of control. Proper forex trading training is a must. This brief forex trading tutorial is intended to start you on that path.

FOREX TRADING TUTORIAL

FOREX TRADING TIPS

I would advise you sign up for some free demo accounts offered by such brokers as FXCM.com . I myself tested market indicators for 6 months before using real money. It gives you a good opportunity to try out the various Forex softwares out there. There are many that will find good consistent trades for you!　

FOREX TRADING SIGNALS

Forex trading signal are not that different from regular stock trading signals. Any tutorial will hit on the basic trading signal such a new highs and new lows as well as the daily volume of the associated move. If a market move takes place with little volume, you should discount it to some degree. Robot 2 movie Collection Prediction.

FOREX TRADING INDICATORS

The main forex trading indicators I use are bollinger bands and stochastics such as RSI and moving averages. What is nice about the forex software available is that you need to only have a basic understanding of these terms to make good money. The software does all the dirty work.

CONCLUSION

I always try to consider the risk/reward ratio when placing a forex trade. I would rather make lots of small to medium profits while minimizing the losses. You will make money if you follow that approach. I hope this mini forex tutorial was helpful in some way!
Have a blessed and profitable day!
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12:41 PM

What is Forex Swap [With Example]

What-is-Forex-Swap

Forex Swap

Forex Swap – Swap operations on Forex market just might be a synchronal gap of 2 opposite positions with completely different settlement dates, one amongst that closes opened position and someone else forthwith opens it. Swap rate and price is ready at a instant of trade execution. This indicates it’s a combination of 2 opposite trades with equal volume of cash and totally different settlement dates. The target of swaps is carrying AN opened position over hour.

Swap

Swaps will often be positive or negative. Maybe or maybe not on distinction in interest rates. corporal punishment a commerce operation, the bought currency of a currency combine is taken as in initial deposit and also the sold-out one as a credit. As nobody is conscious of the level of holding a commerce position, deposit and credit accruals area unit enforced after the position is carried over hour. Swap increase to a commerce account or withdrawal as a result varies according to distinction between deposit and credit percentage of interest. If deposit rate exceeds credit one, swap is risen up to a commerce account. If credit rate exceeds deposit one, swap is subtracted from a commerce account.
We will use interest levels of central banks to illustrate for swap calculation. 

Swap Calculation

To ensure the interest rate associated with ecu financial organization is eighteen, the northern area American country financial institution – 

zero.25%. getting or merchandising of one lot of EUR/USD (in InstaForex – it’s ten thousand units of basic currency, with this case EUR) at a rate of one.2310. 
Swap tends to be: every single year – ((1% – zero.25%) * thousands of * one.2310) / 100 percent = $92.325, every day $92.325/365 = $0.25. 

Once we tend to open a protracted position (buy) with EUR/USD there’s AN opposite situation: borrowing of monetary unit at a hundred and twenty fifth annually and depositing in North American country dollar at zero.25% annually. 

The financing rate exceeds the deposit one, which means commerce account will be charged with $0.25 daily. Carrying over a foothold from Wednesday to Thursday, a triple swap is acrrued/deducted. It happens because of a foothold opened on Wednesday features a settlement date on Friday.

Carrying over a foothold from Wednesday to Thursday the settlement date really needs to be inflated from a single day to 3 days until Mon. that’s the explanation why triple swap is credited/deducted. On the premise of great interest rates’ distinction there’s an alternative appeared commerce strategy Carry trade traders’ community. 

This tactic is predicated on obtaining extra profit with the form of positive swaps. It functions utterly on your currency pairs which have supreme distinction of interest rates: NZD/JPY, AUD/JPY et al.
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12:20 PM

Forex Market and Locations

forex-market-and-locations

Forex Market and Locations

The forex market is a seamless 24 hour market which is open 5 days per week. At 5 pm Sunday, New York time, trading begins as markets open in Sydney and Singapore. At 7 pm the Tokyo market followed, opens by London at 2 am, and finally New York at 8 am. (Time is based on New York time) As a trader, this allows one to respond to favorable/unfavorable news by trading immediately. The trading of forex takes pace around the world and is also not located in any one central location. Deals are finished between a range of traders, from banks to managed funds to individual traders.

Measurements of the Forex Market

Forex trades approximately US$1.85 trillion per day and is the most liquid market in this field. It requires the NY Sock Exchange 3 MONTHS to trade the same USD value when the forex trades each and every day so that it is the most important and most liquid market in the field. This market can absorb trading volume and transaction sizes that dwarf the capacity of the other market. Should you decide compare this towards the US$30 billion per day futures market, it becomes dear about the futures markets provide only limited liquidity. The forex marketplace is always liquid meaning positions can be liquidated and sop orders executed without slippage.

Brokers and Market Makers

Market Maker – the one consistently makes two way prices, providing both an offer and bid. Unlike market, brokers makers trade their capital
Broker – a person who matches purchase and sell orders in return for a commission. The bid and supply prices are those of the business participants and never regarding the broker.
Currency Pairs
 Traders can trade a variety of currency pairs, limited only through which pairs each broker provides.

Major currency pairs are usually the USD pairs for instance EURUSD GBPUSD AUDUSD USDJPY USDCHF

Example 

Cross currency pairs are pairs which normally do not involve the USD like for example :

EURGBP EURJPY GBPJPY EURCHF
EUR= Euro, GBP= Pound, CHF= Swiss Franc, JPY=Yen, AUD= Aussie $

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12:11 PM

Swap-free or Islamic Accounts [Which One]

Swap-free-or-Islamic-Accounts Swap-free or Islamic Accounts

Swap-free aсcоunts are also known as monotheism on account of hоmeowners of these accounts exercіѕe monotheiѕm faіth. in keeping with the princіples in the Mohаmmеdan fаith, any organization trаnsactions, whеrever one in each on the partіes should get or pay AN interest from another partу, area υnit рrohibіtеd. monotheiѕm or Swap-free accounts enablе mercantilism any cυrrenсy aim to if a footing is carried οver time of day, a mоnger doesn’t earn and thеre’s nothing to withdraw frοm trader’s account, notwithstandіng the open pоѕitiоn vоlume. mοnotheism acсounts were сreatеd speciаl fоr Muslimѕ, resulting from crеditing swaps and interеѕtѕ is аgainѕt thеir faith. 

Swap-free or Islamic Accounts??

Aсcounts that don’t seem like affected by swap enable thеir homeоwnerѕ to handle positions so long as since it is critical. with this сase the outcomes οf mercаntilism deрendѕ solely to the currencу rateѕ amendment thrουghοut аn explicit level of your time. attributable to thіs peculіarіtу Swap-free acсoυnts bеcame well-likеd in each monotheism coυntries and worldwide. seνerаl Forex brokers offer swap-free ѕervіce fοr comрlimentary
… Additional Info

Islamic Accounts

Іslamic aсcounts are swap-free accoυnts because ownerѕ of such accounts exerсіse Iѕlamic religіon. In line with the rules regarding the Muslim religion, any organization tranѕасtions, where among the many parties mυst pay or get an interest frοm anоther раrty, arе prohibited.

Іslamic accounts allow trading in every currency рair if in case a posture is carrіed oνernight, an investor dоеѕ not earn and there is absolutely nothing to withdraw from trаder’s аccount, no matter what the οpen position volumе. Іslamiс accounts were created ѕpеcial for Muslіmѕ, because сrеditing swapѕ and interests is against their religion.

Acсounts which are not affected by ѕwap allow theіr оwners to keep рoѕіtions given that it’s necessary. In this instance caused by trading dерends onlу in the currency ratеѕ change durіng a definite period of time.

As a result peculiаrity Islamic aсcounts shot to popularity in both Islamіc countries and worldwide. Many Forex brokers provide swap-free serνiсе 100% free.
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11:53 AM 1

Futures in Forex Trading | Forex Trading Future

Whats Futures in Forex Trading ?

Futures in forex trading is a binding agreement concluded for delivery of a particular commodity in future at a set price. A futures contract buyer assumes responsibility to purchase a commodity within a certain time frame. A futures contract seller takes obligation to promote the commodity around the specified time limits. Both obligations are associated with a standard volume of the specific commodity, they shall be implemented at the specific time in the future at a price fixed throughout the trade execution. This is to tell you, this operation must certainly be implemented till the date set in advance – it is specified in the futures contract specification.

By far the most wide spread commodities are the ones often found in everyday routine. Here they can indeed be:
• Gas
• Oil
• Gasoline
• Gold
• Corn
• Currency
• Steel
• Cotton
• Wood

The futures companies

The futures companies are more liquid in contrast to commodity one where futures are traded. Futures of these commodities are traded by several thousand traders daily. All are usually wanting to earn profit speculating on futures – buying commodities cheaper and selling at a greater price. The futures trading takes place about the futures stock market, one particular famous commodity and futures stock markets are:
• NYMEX (New York Merchantile Exchange)
• CBOT (Chicago Board of Trade)
• CME (Chicago Mercantile Exchange)
• IPE (International Petroleum Exchange)
• LIFFE (London International Financial Futures Exchange)
• LME (London Metals Exchange)
The entire process of futures trading is much like the process of trading on Forex. From the futures markets there exists similar principles of fundamental and technical analysis, exactly the same charts and indicators as well as the means of setting orders. Moreover, firstly, almost the entire package system was worked out special for its futures trading, the way it emerged much earlier than currency trading market. But worth noticing that futures trading has several significant distinctions: – A currency pair on Forex might end up being opened forever, i.e. once having bought pounds for dollars you could potentially hold this position for a rather long time – for months or maybe years. But it’s different with futures. A futures contract has an expiration date. If you don’t close position all by yourself it would be closed involuntary at a closing cost of the time and hour of futures contract maturity. It is important to stick to the validity time period of a futures contract and switch to a later contract on time. – The futures code is made from several parts. The primary symbols within the designation point to a commodity type (gold, cotton, oil etc.), the subsequent symbols show the year and month of futures delivery. For instance, NGQ0 means gas futures (NG – Natural Gas), Q – August, 0 – 2010 year. Here you will find the designations of months when futures are traded:
• January – F
• February – G
• March – H
• April – J
• May – K
• June – M
• July – N
• August – Q
• September – U
• October – V
• November – X
• December – Z -
The nearest expiration date of a futures contract is among the most liquid. This means that the cost of this asset is maximally near the real one and there’s a smallish chance of sharp price surge. – As things are known, Forex is a non-exchange market, the quotes are offered by a major wide range of banks and dealers. So its possible to trade at prices substantially distinctive from prices of other brokers/dealers. 

It really is impossible with futures. – The futures trading is run only for the stock markets in support of a specific seller or buyer determines the rates. Each quote does have its volume and price – it has a specific buyer and seller. The stock exchanges submit quotes for their websites for the previous trading session (trading day) accurately to each tick. – The length of futures contracts is strictly standardized of the stock exchange which sets the quantity and quality of an investment specified in it. Case in point, 1 futures contract for pig bulks (PB) stipulates a delivery of 40000 pounds of certain sized pig bulks; Gold future (GC) stipulates a 100 ounce delivery of gold for at least 995 countermark; a crude oil futures contract stipulates a 1000 barrel delivery of crude oil meeting a certain quality requirement. Price quotes of futures contracts are globally universal.
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1:29 PM

IBFX Review – IBFX Forex Broker

IBFX-Review-IBFX-Forex-Broker
IBFX Review – IBFX Forex Broker :- IBFX Forex Broker has built an international network of banks, makes it possible for us to aggregate these prices and give the best available price to you. This multi-bank liquidity allows us to consistently give you low spreads.But low spreads isn’t the sole advantage of our multi-bank liquidity. Our network of global banks and financial institutions allows for fast and reliable trade execution.While we are derived from award-winning heritage, we feel we’ve been more a technology company. We feel a factor that helps make us an award-winning broker is our proprietary back-end systems that connect that you simply a universal network of banks and financial institutions. Whenever you place a trade, our system helps connect that trade to the best financial institution at the earliest opportunity. In the end, what good is it if you should can’t quickly get into a trade?

IBFX Forex Broker




Entering into a trade quickly is really important in an instant paced market like forex. If an order is rejected, more often than not it is because the cost changed as the order was being executed. Reducing the latency often helps trades get executed at a higher rate.

One of our proudest achievements is the technology that connects you to our global network of banks. This multi-bank liquidity allows us to acquire competing prices from global finance institutions, and offer the most effective price to you; then, once you place a trade our smart routing directs your trade off to the right liquidity partner. This multi-bank liquidity helps provide us with a competitive edge:

Low spreads on major currency pairs**
Fast execution – under 0.05 seconds**
Low rejection rates – even on 5-50 lot trades


Automated order execution means there is not any dealer intervention or price manipulation. With our multi-bank model your trades are executed automatically.
Entering into a trade quickly in a fast paced market like forex should always be necessary to you as a trader. After all, what good will it be in the event you can’t enter into a trade? To assist you achieve our fast execution, we remove an element that slows execution down: the human element. Without any dealer intervention, we are able to execute and process your trades faster – and faster execution also helps prevent orders from being rejected.
We created a performance page that shows our recent – and actual – execution rate and average execution speed.

IBFX Forex Broker Tutorial

Flexible contract sizes is an activity which is able to benefit traders with small or large accounts. We created a system which allows traders to execute trades in increments of 0.01 lots. This might bring a few benefits:
Zero in throughout the perfect volume of risk that is definitely right for you
Trade an innovative new strategy by trading pennies
Transition from a demo to reside in account by trading cents
Both standard and mini accounts have this functionality. For standard accounts, our flexible contract sizes means trading in increments of $10 in margin; and then for mini accounts, in increments of $1 in margin.

Your success as an investor is very important to us – we believe the long-term sustainability of a consumer makes once and for all business. That’s why we provide free trading tools to help you make better trades. 

Like for example:

Our Pattern Recognition Scanner scans for price consolidation patterns, and alerts traders to potential and completed market breakouts. And best of all of the, the PRS is 70%+ accurate for quite a few on the chart patterns it automatically spots.

Our “basics compilation” download is a series of widely used forex technical trading and indicators systems. Included on this collection of indicators and expert advisors include classics including the CCI, MACD, CMO, Stochastic, RSI plus much more!

The Daily Trading Edge gives up-to-date and actionable foreign exchange trading ideas for your upcoming trading session from IBFX Chief Currency Analyst Raghee Horner.

See our collection of fx trading tools for additional details on these as well as other trading tools!

We at IBFX have numerous means of providing assistance and help to our traders – all 100% free!

Award-Winning Customer Service

How to create an account in IBFX ?

Signup

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1:16 PM

What is Exactly Margin in Forex [With Example]

What-is-Margin-in-Forex
IMAGE FROM FOREX.COM

What is Margin in Forex

The margin in forex is a performance bond, or good faith deposit, to make certain of resistant to the total lack of your account. Trade stations have margin management capabilities. In the event that funds within the account fall below margin requirements the broker’s dealing desk will dose al open positions. This prevents cents’ accounts from falling into an adverse balance, even in an incredibly volatile, fast moving market.
The newest NFA rule requires at least 1% margin at al time to keep an open trade. (Noe this might change from time to time so although we use 1% when the example at some sage in the future the margin maybe different. However using similar calculations one can easily calculate brand new margins) Some deal stations automatically calculate this according to the formula and therefore the margin requirements are continually varying.

How to Calculate a Margin Closeout?

According to a 1% margin requirement
Example 1
GBP/USD
rate: 1.7442/1.7447
account type: 100 000/lot account
1% leverage: 100 000×0.01 (1%) =1000units
If you are long (buy) GBP/USD, the forex margin required is:
1.7447 (GBP/USD) x1000 (units of base currency GBP) = USD1744 for each lot.
Some brokers require $1,800 margin for GBP pairs.

Example 2
EUR/USD
rate: 1.2326/1.2331
account type: 100 000/lot account
1% leverage: 100 000×0.01 (1%) =1000units
When you are long (buy) EUR/USD, ,he margin required is:
1.2331 (EUR/USD) x1000 (units of base currency EUR) = USD 1233 for each and every lot.
Some brokers require $1,300 per lot in margin for EUR based pairs. As a general rule, a margin of $1,300 lets you control a $100,000 spot currency position. This is certainly an efficient use of trading capital as the leverage in futures and sock markets is quite a bit less.


Example 3
when the USD is the BASE currency, ,he margin requirement is USD1000 (ie 1% of 100 000)
If you find yourself long (buy) USD/CHF, USD/CAD etc the margin required is: = USD1000 for every lot.

 Read : What is Leverage in Forex Trading [Full Tutorial]

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