Forex Trading Strategies and Systems
Foreign Currency Exchange Risk Management
The foreign exchange market is characterized as carrying a significant degree of risk. There are several types of forex risks that participants should examine when considering the option of trading there.
Directional Movement Index (DMI) Technical Indicator
One of the tools forex technical traders use in order to determine their trend trading strategies, is the Directional Movement Index (DMI).
Relative Strength Index (RSI) Technical Indicator
The Relative Strength Index (RSI) is a technical momentum indicator used to measure the relative changes between the lowest and the highest close prices of a currency.
Momentum Oscillators
Momentum measures the rate at which a currency price changes. In terms of trending, it is a very useful technical indicator of the strength of a currency price.
Stochastic Oscillators
Stochastic oscillators are technical momentum indicators that compare the closing price of a currency to its price range over a certain period of time.
Forex Technical Indicators: Oscillators
In this article we will examine the basics of another major group of forex technical analysis indicators - the oscillators.
Forex Technical Analysis Indicators Based on Moving Averages
In this article we will examine some of the mathematical tools based on moving average applied in technical analysis.
Forex Technical Indicators: Moving Averages
The term technical indicators refers to the mathematical tools that are applied when using technical analysis. Generally, there are two basic groups of technical indicators: moving averages and oscillators.
Dow Theory Application on the Forex Market
The Dow Theory serves as the basis for the fundamental principles that guide the technical analysis.
How to Apply the Stochastic Oscillator on the Forex
If you are interested in comparing the current price of a currency on the forex to that of a given time period in the past, you should apply the stochastic oscillator.
When to Expect a Reversal of the Forex Market Trend
It is important for forex traders to closely examine the potential reversals at particular points in the charts available.
Types of Charts in Technical Analysis
Charts represent one of the major tools of technical analysis. Forex traders use several types of charts when doing technical analysis.
What is MACD?
The moving average convergence/divergence (also known as MACD) is a widely used indicator in the forex market.
What are Bollinger Bands?
Bollinger Bands are used for detection of unsustainable movements in prices, overbought or oversold currency pairs, and identifying support or resistance levels.
Forex Trading with Matching Systems
If you have smaller amounts allocated for execution of trades, then it is recommended that you select matching systems.
Forex Trading with Direct Dealing
A king of a forex trade system, direct dealing represents a trading reciprocity-based system.
Forex Trading with Brokers
Forex brokers have different responsibilities than their counterparts in the equity markets.
Chasing Returns and Impulse Trading on the Forex Market
Many investors commit the common mistake of chasing profits and giving way to their impulses. You should learn to shun impulses and always know why you have placed a particular trade.
Forex Trends and Market Expectations
If you are making your first steps on the forex market you should make the effort of understanding the discount mechanism of the markets and the forex market trends.
Managing Forex Accounts
When you open an account you should make sure that you have enough funds for it. As obvious as it may seem, this advice and its importance for successful forex trades are often overlooked.
Forex Trading Risk vs Reward
Most people believe that in order to be successful on the forex market you should risk a lot. However, the key to successful currency trades is not risking everything that you have.
Applying the Carry Trade Strategy on the Forex
There are many strategies that can be applied when trading on the forex market. One of them is the so called carry trade strategy.
Forex Technical Analysis vs Forex Fundamental Analysis
Forex market can be studied by either applying a fundamental analysis or a technical analysis. The first one uses basic economic conditions in order to make predictions, whereas the second one uses past currency prices.
Forex Market Order Types
There are several types of orders you can use in your currency transactions: market order, entry order, limit order, and stop-loss order.
Interest Rollover Basics
Forex transactions involve the purchasing and selling of currencies through the borrowing of one currency for the financing the buying of another. A major role in such transactions is allocated to interest rates and interest rollover fees.
How to Profit from Currency Exchange Trading
You can get real time information on the profits and losses from currency trades. However, in order to get the best of this information, you should gain knowledge on how the actual calculations are done.
Forex Trade Terms
Learn some of the basic forex terms used in the process of trading one currency for another.
Fundamentals of Futures and Options Currency Exchange Markets
The forex futures trading is very popular for a number of reasons. Currency options are also gaining more popularity, which is shown by the increase in the size of the segment that options occupy on the foreign exchange market.
Types of Currency Exchange Markets: Spot and Forward Market Explained
There are several types of currency exchange markets. Two of them are the so called Spot Market and Forward Market.
Central Bank Activities and Interventions in the Foreign Exchange Market
The movements on the forex market are influenced by the discount rates and monetary operations of the US Federal Reserve System (also known as FRS) and the central banks of the other countries.
Introduction of Electronic Trading in the Forex Market
Through the introduction and development of technology the operations in the forex market have been greatly facilitated.
Transaction Cost Benefits of Forex Trading
Transaction costs can greatly reduce your profits. Moreover, they can increase your losses in case you have made an unsuccessful trade. However, traders on the forex market enjoy extremely low or no exchange or clearing fees.
Advantages of the Forex Spot Market
There are many foreign exchange (Forex, FX) tools that can be applied. One of them, which enjoys the highest popularity among investors, is the spot currency trading.
FXClub Trading Platform Review
FXClub, established on 1995, is a foreign exchange and futures broker firm that offers a very small minimum account requirement (only $10), a trading platform that features zero spreads, comprehensive educational courses, a free unlimited-use $100,000 practice account.