How are currency exchange rate determined

Around the world, currencies are traded for a variety of reasons and by different means. There are several major currencies that are commonly traded around the world, they include the U.S. dollar, the euro, the Japanese yen, and the British pound. The US dollar is known for its dominance over other currencies combined, accounting for over 87% of global transactions.

A complete guide to forex regulation and protection

Think about what it would be like if there were no law and order in the world. The absence of rules, guidelines, restrictions, and control, as well as the freedom of individuals to do as they wish. If the scenario described above were to occur, what would be the inevitable outcome? Nothing but chaos and mayhem! The same can be said for the forex market, an industry worth a market capitalization of over $5 trillion.

What is market cycle in forex trading

All aspects of life (time, business, weather, seasons e.t.c) all revolve around cycles, and there are also cycles that are found in the financial markets often referred to as market cycles. The concept of market cycles refers to the phases of price movement that are usually repetitive, with each having its own set of characteristics. To both long and short-term traders, it is vital to understand the market cycles that revolve around the financial markets.

What is currency pegging

The concept of currency pegging is often referred to as fixed exchange rates. It serves the purpose of providing stability to a currency by linking its value in a predetermined ratio with that of a different and more stable currency. It also plays a significant role in financial markets by artificially reducing volatility

What is floating exchange rate

During the month of July 1944, gold standard for currencies was established by the Bretton Woods Conference of 44 allied countries of world war II. The Conference also established the International Monetary Fund (IMF), the World Bank and a fixed exchange rate system of gold priced at $35 per ounce. Participating countries pegged their currencies to the US dollar, establishing the U.S. dollar as the reserve currency through which other central banks may utilize to stabilize or adjust interest rates on their currencies.

What is an Entry Order in Forex Trading

Opening trade positions in the forex market requires the use of entry orders provided by forex trading platforms. It is possible for traders to perform technical and fundamental analysis on price movement and deduce many trading strategies, but without an entry order to trade potential price movements, all that work becomes unprofitable. The foreign exchange market is open 24 hours a day, typically from Monday through Friday, but can also be open all through the week depending on the asset class. Is it good for a trader to sit through and watch all the price movement for a whole 24hrs?

What is slippage in Forex Trading

Although you may have been trading forex for years, it may be the first time you are reading about 'slippage'. Slippage is a common occurrence in forex trading, often talked about, but fairly misunderstood by many. It doesn't matter the asset class you trade, whether it's stock, forex, indices or futures, slippage occurs everywhere. Forex traders must be aware of slippage in order to minimize the negative effect while potentially maximizing positive effect.

Types of Forex Orders

In Forex Trading, ‘orders’ refers to a trade offer or set of instructions issued through a broker’s trading platform to buy and sell currency pairs. The term ‘order’ also refers to the set of instructions put in place to open and manage trade positions from the point of entry to exit.

What are the Best Forex Technical indicators

All Trading platforms have a variety of tools and indicators provided for traders and technical analysts. There are literally thousands of Forex technical indicators available for use on trading platforms (Mt4, Mt5, tradingview) and many others that can be downloaded from the internet.

Those who are new to Forex trading are very excited when they see the hundreds of technical indicators that can be used to perform technical analysis.

 

What are the most commonly used chart patterns in Forex Trading

In order to gain understanding of the price movement of forex pairs, stocks and other financial assets, careful studies must be carried out on the historical price movements and recurring patterns that can be seen on price charts. Forex price chart is the tool that every forex trader and analyst uses to study the price movement of forex pairs. They are visually represented by three different types of chart and can be set to a specific period of time which could be monthly, weekly, daily, hourly and even seconds.

 

The Best Forex volatility indicator and How to use it

Forex traders need to consider certain concepts when trading foreign currencies. Understanding volatility and how it affects the price movement of forex currencies is one of the key fundamental aspects of forex trading.

The perception of what volatility really means differs from trader to trader. For instance, traders who specialize in short-term trading may measure volatility by the speed at which a trade can turn profitable and reach a profit objective. To others, volatility is a measure of the liquidity of the market and the speed at which price movement changes.

What is the ATR indicator in Forex and How to use it

Among the most prominent technical analysts in the field to have written extensively about volatility was J Welles Wilder. He introduced many technical indicators in his 1978 book titled 'New Concepts in Technical Trading', which are still very relevant in today's modern technical analysis. Some of them include the Parabolic SAR Indicator (PSAR), Average True Range Indicator (or ATR indicator) and the Relative Strength Index (RSI).

The Top 10 Forex Trading Secrets

You have come to the answers to one of the most searched phrases about forex trading on the internet, mostly by novice traders and those struggling to find profitability in trading the forex market.

The statistic is made clear and open by forex brokers' websites to the public that 80% of retail traders lose their money. Some have published losing rates to be as high as 90% but regardless of the actual numbers and the varying statistics, these figures aren’t far off. For this reason, forex trading beginners seek information on how to rank among the top 5 - 10% of profitable traders and also, traders that struggle with finding profitability do seek information that will help them advance their trading techniques and develop a profitable trading edge.

How To Find The Best Free Forex Trading Signal

Are you new to forex trading? A ‘Yes’ or ‘No’ answer doesn't really matter. Profiting off free forex trading signals is a very smart and clever way to trade the forex market profitably and make a lot of money with ease.

What is a stop out level in Forex

One of the purposes of risk management practices and its place in forex trading is to avoid the unpleasant and dreary events of a stop out.

What exactly is the stop-out in forex? In this article, we will get into the nuts and bolts of stop out level in forex

 

Forex stop-out occurs when a broker automatically closes all or some of a trader's active positions in the foreign exchange market.

What are forex signals

Identifying profitable trade opportunities and executing the right actions at the right time is the most daunting activity that plagues a lot of traders, mostly beginners. Challenges like this led to the provisions of forex trading signals. Forex signals are trade ideas and recommendations from expert financial analysts, professional traders, trading organisations, trading software and indicators. The signal consists of specific entry and exit plans (in terms of numbers or price levels) on a forex pair or trading instruments.

Forex GBP USD trading strategy

One of the largest economies in the world is the UK. Its currency, the Great British Pound (GBP), a very popular currency, makes the list of the major currencies in the world and furthermore one of the most traded forex instruments due to its sufficient liquidity and volatility.

In the forex trading market, every forex pair has its own characteristics. GBPUSD is well known among Forex traders to be the most volatile major currency as well as other GBP pairs.

What is forex swap

A very uncommon topic in finance and the foreign exchange (forex) market is the notion of Swap. What does swap mean in forex?

Swap is a type of agreement typically between two foreign entities designed to obtain loans using the currency of the other party's country and then swapping the interest cost on the loan between both parties.

This process involves the buying and selling of an equal volume of two different foreign currencies simultaneously with an initial swap at an entry or spot price and then a final (exit swap) at a forward price.

 

 

Know all about forex market hours and Trading Sessions

Timing is a very important factor and a key strategic component in every aspect of life. The famous saying “To everything, there is a season” simply mean to do the right thing at the right time.

Everything in the world of finance including the financial market does revolve around time and price. It is common to know that the prices of things, in general, are usually affected by seasons hence the term ‘Time and Price’.

50 Pips a day forex strategy

A well concise trading strategy is very important for profitability in forex trading. A trading strategy is a set of rules that determines the precise time to enter and exit a trade based on certain conditions in price movement. It is commonly believed that failure to plan means a plan to fail, of which forex trading is no exception.

There are a lot of profitable forex trading strategies that can be used inorder to get different trading results. This article details a unique 50 pips a day trading strategy.

1 minute scalping strategy

Scalping involves trading to profit from small price changes within the 1 to 15 minutes timeframe with the aim of accumulating as many small profits as possible into a cumulatively large profit. Some traders prefer to trade forex pairs on the 1 Minutes (60 seconds) timeframe where they can capitalize and profit from relatively small price movements of the 1 Minutes chart. Every day has 1440 minutes and total trading minutes of 1170 to extract enormous amounts of pips each day from the forex market.

What is forex trading and how does it work

Forex trading (In short) simply means the exchange of one foreign currency for another currency with the aim of making profits from their relative price movement.

The understanding of how forex trading works begins with learning the basics and having solid background knowledge of forex.

Comprehensive fundamental tutoring is very crucial in the odyssey to attain a level of consistent profitability.

How to open a forex trading account

The potential for huge financial gains and the excitement of whooping profits have made forex trading a very popular profession. Opening a forex account today is a privilege and an opportunity for anyone with access to the internet, small-capped (retail) traders and investors willing to participate in foreign exchange transactions amongst institutional banks, hedge funds and other big players doing millions of dollars transactions daily in the financial markets

How to start forex trading

Forex is the world's largest and most liquid financial market with an average daily turnover of $6.5B. This gets really exciting and the next question to be asked is how can I get my share of this daily flux of money in the financial markets?

This is where forex trading comes in, a place at the table of institutional banks, hedge funds, commercial hedgers and so on, that provide low barrier entry to small players known as retail traders to participate and profit off financial transactions alongside the big players.

How to place trades on MT4

Now that your MT4 account (demo or real) is set up and connected to your MT4 trading platform. It is important to learn the different methods of opening and placing trades on the MT4 platform.

Of course, it might seem a little complicated at first for beginners but it is exceptionally easy, intuitive and fast.

This article will work you through the basics of how to place trades on MT4. The basics include

How To Download Metatrader4 on PC

MetaTrader 4, abbreviated as MT4, is one of the most popular forex trading platforms in the world today.

MetaTrader became very common and popular among FX traders because it seems to be the easiest and simplest to use forex trading platform with a lot of remarkable advantages that it offers to FX traders.

Hardly can you find a forex trader that does not have or make use of the MetaTrader 4 trading application on his or her devices.

What is the best trend following indicator

The financial markets have a wide variety of trading indicators that serve different purposes. These indicators are helpful for analysing, trading and profiting off the ever-changing condition of price movement.

It is very important to categorise these indicators based on the purpose they serve and the market condition in which they are most useful both for price movement analysis and trading signals.

What are the key factors that influence currencies exchange rates

The financial market as a whole is in a state of constant upward and downward pressure, with price movement fluctuating back and forth due to various economical, environmental and institutional factors that will be explained in great detail in this article.

Among other financial asset classes such as stocks, indexes, commodities, bonds, and cryptocurrencies. Currencies stand out as a major asset class that can be used in every aspect of the global economy as a means of exchange and payment for goods, and services, both on an international and local level.

How to use MetaTrader 5

To be a successful trader, a powerful trading platform with advanced trading functions – mathematical, technical, and analytical is required to determine better entry and exit points and achieve more precise timing.

Reading this article, as a beginner or a professional forex trader, you need the surety that you’re trading in the best trading environment. All you need to do is select a reliable, robust, and fast trading platform, like MetaTrader 5 (MT5).

What leverage should I use for Forex

Learning about how to trade forex can be very exciting and what is most fascinating, especially to new and novice traders is the leverage opportunity, the countless opportunities to catch a handful of pips and the profits that can be gained with their newly acquired knowledge and trading strategies but where most novice traders fall apart or trip off in their early days of trading the forex market is over-leveraging of their trades.

Equity in forex trading

The basics of forex trading are an essential part of any forex trading education. Forex traders of all kinds must understand the basics of forex trading to ensure effective risk management of real live funds when trading. The aspect of these forex trading basics that has more to do with real live funds is the concept of equity.

 

Ichimoku Cloud Trading Strategy

It is no doubt that the Japanese have contributed tremendous impact and innovation to the financial market trading industry with the design of creative tools that make all forms of trading, investing, technical and fundamental analysis of all assets in the financial market easier and better for traders, investors and technical analysts.

Orderblock trading strategy

As a trader who has been in the forex trading industry for a while, the dogma of supply and demand is certainly not a new concept. Of course, there are certain aspects to the price movement in the financial markets that is governed by supply and demand factors but they cannot arrive at the fundamentals of what the institutions are doing in terms of buying and selling.

Apart from the commonly used supply and demand zones, orderblocks are very specific levels of price movement that can be refined to precise price levels (not as a broad range or zone) on lower timeframes.

RSI forex strategy

Among the oscillator grouped indicators that tell a lot about the momentum and condition of price movement is a special leading indicator known as the “RSI indicator”.

RSI is an acronym for Relative Strength Index. An indicator that was developed by a renowned technical analyst known as Jay Wells Wielder for the purpose of identifying temporarily overbought and oversold conditions, momentum trading and identification of value among currency pairs or a traded financial instrument.

EMA forex strategy

Moving average, also known as Moving mean, is a technical analysis tool that statistically measures the average change in price movement over a certain period of time.

Moving averages are the most simple and easy to use forex trading indicator because of its visual simplicity and the insights it provide about price movement when performing technical analysis. For this reason, the moving average is arguably the most common, popular and most used indicator among forex traders.

Keltner channel strategy

This article is centered around a very useful indicator based trading strategy that its signals have proven over time to be very effective and highly probable. The indicator is known as the Keltner channel: A volatility based indicator that envelopes both sides of the price movement on a price chart with a lower and an upper line, forming a channel-like structure around the price movement of the currency pair.

Traders use this indicator as a major part of their technical analysis to determine the direction of price trends and trade alongside the bias.

Bounce forex strategy

The edge that bounce forex trading strategy has over most forex trading strategies is that it helps forex traders to precisely predict the exact tops and bottoms of price moves and then enter very early on the trade in order to capture the bulk of any price move thereby making a lot of profit. This is possible on various financial market asset classes like stock, bonds, indices, options and so on.

Fractals forex strategy

When looking at price chart of various forex pairs, price movement may appear random on any type of chart either line chart, bar chart or candlestick chart but when closely looked into on the candlestick chart, various repeating candlestick patterns can be clearly identified.

One of the candlestick patterns mostly used when charting and performing technical analysis of the financial markets and forex, in particular, is Fractals.

Fibonacci Forex Strategy

In forex trading, Fibonacci is arguably the most popular and most widely used tool in the technical analysis of the forex market. It serves forex traders and analysts in many ways such as providing a supportive framework for various trading strategies, identification of accurate and precise price levels where changes in the direction of price movement should occur and many more.

The Fibonacci tool used for technical analysis in the forex market has its building blocks from the Fibonacci sequence which was introduced to the West in the 13th century by Leonardo Pisano Bogollo, an Italian mathematician. The sequence is a string of numbers that have mathematical properties and ratios found in architecture, biology and nature.

Momentum Indicator Strategy

Momentum is a very important concept in the forex market therefore incorporating momentum indicators as an integral part of technical analysis is an ideal way to build a strong trading strategy that minimizes risk and maximizes the overall return or profits of trading portfolios.

Among the other oscillator-grouped indicators used to measure the strength or speed of price movement is the ‘Momentum Indicator’.

Bladerunner Forex Strategy

The term ‘Bladerunner’ is very suggestive of a popular sci-fi movie known as Bladerunner. The name ‘Bladerunner’ comes with a lot of compelling curiosity to the world of forex trading, more so, to forex traders that are fans of the popular sci-fi classic.

A ‘Blade’ is generally known to be a sharp cutting object or the sharp cutting part of a tool or weapon. Therefore, we instinctively know that the term ‘Bladerunner’ conveys the idea of a cutting tool in motion. This perpetuated idea is very much synonymous with the operations of the Bladerunner trading strategy in forex.

What is MACD strategy

The word “MACD” is the acronym for an oscillator-type indicator known as Moving Average Convergence Divergence. It was invented by Gerald Appel in 1979 and ever since it is one of the most potent technical indicators used by traders to identify price momentum and trend opportunities across financial markets.

Bollinger band forex strategy

One of the most acknowledged methodological tools widely used by financial traders as a component of technical analysis, primarily to inform trading decisions, control automated trading systems and various other trading related purposes is the Bollinger band.

It was designed by John Bollinger in the 1980s to predict and trade highly probable opportunities of oversold and overbought market conditions.

What is pin bar trading strategy in forex

 The most compelling candlestick reversal pattern with the highest probable triggers in price action is the pin bar candlestick. In this article, we will go step by step through the entire theory of a pin bar.

Firstly the name “Pin bar” was coined by Martin Print from the word, Pinocchio bar, referring to Pinocchio nose because whenever Pinocchio tells a lie, his nose grows longer, hence the term “pin bar” because it told a lie about the direction of price on a candlestick.

What is hedging strategy in forex

Hedging strategy in forex is a risk management practice synonymous with insurance and the concept of diversification because it requires opening new positions on closely related, correlated pairs (either positive or negative correlation) to reduce risk exposure and also insure a profitable trade from the impact of unwanted, unpredicted market volatility such as the volatility on economic releases, market gaps and so on. This risk management method, by and large, does not require the use of stop loss.

What is overbought and oversold in forex

In the forex market, price swings relative to any timeframe always extend to a point of overbought and oversold extreme regardless of the market patterns (uptrend, downtrend or consolidation) i.e. these extremes of the market or price swings is relative as well as subject to any market profile and any timeframe of the market.

Therefore, knowledge of these market profiles and how to operate the tide at overbought and oversold conditions is a major edge of a trader's skill set.

What is a breakout Strategy in Forex?

A breakout forex strategy involves capitalising on the sudden bullish or bearish price movement a currency pair makes as it breaks out from a holding-ranging trading pattern—a pattern that typically exists between support and resistance levels.

Here we’ll discuss the basics and the mechanics of a breakout strategy and the most straightforward techniques you can assemble to take advantage of the breakout phenomenon. We’ll also provide some suggestions to put the trading theory into practice.

What is the carry trade in forex?

The carry trade in forex is one of the oldest forms of currency trading and investing. It’s a straightforward, longer-term position trading strategy predating online internet trading.

The carry trade in currency trading involves using the difference in central banks’ interest rates to profit from various currency movements. You use the low-interest rate bearing currency to buy a higher interest rate carrying currency.

What is trend trading in forex?

Trend trading is one of the most popular trading methods in the forex market for assorted reasons. In this article, we’ll explain the attraction as we take a deep dive into the subject of trend trading.

We’ll discuss the simplest methods to find trends, such as using trend lines and candlestick price action and show you how to compile robust trend trading strategies.

What is range trading in forex?

Conventional trading wisdom suggests that forex markets range 70-80% of the time. With that figure in mind, you must learn what range trading is and how to trade FX markets experiencing such conditions.

This article will show you how to find ranging markets and what technical analysis tools can help you pinpoint ranges.

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