Collection of Essential Guides for Forex and Stock Trading
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What are Commodity Currencies and How to Trade them?
Forex commodity currencies are the currencies issued by countries, which have large amounts of commodity reserves. When it comes to those nations, they are one of the largest producers of one or several types of commodities and therefore, the price of those tend to have a major impact on their economy. Commodity currencies list in […]
3 Most Essential Hedging Strategies in Forex Trading
In Forex trading, market participants always try to reduce the percentage of losing trade, as well as the total volume of losses in general. There are dozens of methods and techniques to use in order to achieve this aim. One of the most popular ways professional experienced traders utilize is the use of hedging strategies. […]
3 Methods to Identify Undervalued Currencies in Forex Trading
The basic idea of successful Forex trading is to identify trading opportunities and capitalize on them. One of the logical ways to achieve this is to identify undervalued currencies and open long positions with those in order to profit from its potential appreciation. Undervalued currency meaning is that it involves currencies that trade below their […]
How to Identify and Follow Long Term Trends in Forex Market?
When it comes to the long-term currency trading strategies, they differ from other short term methods like scalping or day trading in the sense that they focus on identifying and then capitalizing on the Forex trends. It goes without saying that there is no one long term trend trading Forex approach which can always guarantee […]
How to Trade Currencies with Negative Interest Rates?
Negative nominal interest rates are a relatively new phenomenon in the world economy. The first central bank to resort to those policies was the Swiss National Bank when it introduced the -0.25% rate all the way back in December 2014. In response to the collapse of the 1.20 floor for EUR/CHF, the SNB went even […]
What are Funding Currencies in Forex and How they Differ from their Peers?
Many financial commentators and experienced professional Forex trades very often mentioned the term ‘funding currencies’ in the analysis. Therefore, many market participants, especially beginners, might wonder which currencies are covered by this term and what are the main characteristics. The funding currencies’ meaning is very simple: those currencies are the ones that typically have very […]
What are Safe Haven Currencies in Forex Market?
To be precise about this term, there are two types of safe havens. Firstly, we have the US dollar, the most liquid currency in the world. Because it is the world’s reserve currency, it is a universally accepted medium of exchange across the globe. Therefore, in times of economic downturn, investors flee to the US […]
Are there any No Loss Strategies in Forex Trading?
Some market participants, especially beginners are always looking for a no-loss strategy in Forex. After all, if it is achievable, then it is much better to avoid any losses altogether, rather than focusing on increasing the percentage of winning trades. However, even those traders with limited experience can recognize that there is no zero-loss Forex […]
How Traders Can Reduce or Avoid Rollover Charges?
The essential rollover rate definition is that it represents the differential between the yield of a purchased currency and the interest rate of sold currency, minus broker commissions. This is also known as interest swap since what happens here is that the trader swaps interest payments of one currency to another. For example, by June […]
How to Build Growth Portfolio with Forex Currency Pairs
One of the common fundamental rules of investing and trading is the principle of diversification. There is even a common expression about this: ‘Do not put all of your eggs in the same basket’. The reasoning behind this is that if one trader or investment goes wrong, market participants will not face very high losses […]