Are there any Advantages of Trading Without Leverage?
The leverage is essentially a loan which the brokerage companies provide for traders, which they can use for trading purposes. The actual level of leverage depends on the broker and local government regulations and can vary from 1:1 to as much as 1:1000. Those types of loans can help traders to significantly increase their payouts […]
Can Forex Traders Trade Successfully Without Using Stop-Loss Orders?
Nowadays it seems that nearly every experienced professional Forex trader and financial expert is talking about the importance of using stop-loss or trailing stop orders in Forex trading. Yet at the same time, some traders wonder whether it is even possible to trade successfully without using those types of orders. Any honest and thorough analysis […]
10 Most Common Mistakes Traders Make in Forex
The fact that approximately 90% of Forex traders lose money, might convince some market participants that achieving successful trading is a very difficult task. Some people even might believe that Forex trading is only for the select few. However, the reality of the matter is that traders can significantly improve their chances of success by […]
How to Set Realistic Profit Goals with Forex Trading?
Many professional Forex traders are emphasizing the importance of having both short term and long term goals. This can certainly help traders with money management, as well as with the successful formulation of Forex strategies. The first logical step to achieve this would be to analyze the average level of volatility of different currency pairs […]
How Traders Can Use Moving Average Indicators in Forex Trading?
Moving average indicator is one of the most important and popular technical indicators in Forex trading. It helps traders to filter out all of the daily noise of market movements and observe the latest trends in the currency pairs. The moving average formula is quite simple: this indicator is calculated by the average closing price […]
What is Forex Arbitrage and How to Use It in Trading?
Forex arbitrage is a very low-risk trading method, which aims to exploit the inefficiencies in the market, by buying and selling currency pairs simultaneously. Here it is worth mentioning that there is not just one universally accepted type of arbitrage trading. Instead, there are several arbitrage strategies available to Forex traders. The Forex triangular arbitrage […]
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 […]