Forex arbitrage is the strategy of exploiting price disparity in the forex markets. It may be effected in various ways but however it is carried out, the arbitrage seeks to buy currency prices and sell currency prices that are currently divergent but extremely likely to rapidly converge. The expectation is
Leverage is the use of borrowed money (called capital) to invest in a currency, stock, or security. The concept of leverage is very common in forex trading. By borrowing money from a broker, investors can trade larger positions in a currency. As a result, leverage magnifies the returns from favorable movements in a
Pip is an acronym for percentage in point or price interest point. A pip is the smallest price move that an exchange rate can make based on forex market convention. Most currency pairs are priced out to four decimal places and the pip change is the last (fourth) decimal point.
A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. The first listed currency of a currency pair is called the base currency, and the second currency is called the quote currency. Currency pairs compare the value of one
As a trader, another important things to know is, when to trade. The Busiest Forex Market Hours WorldWide In total, there are 15 independent Forex exchanges worldwide, open five days a week, from Monday to Friday. They have four exchanges are considered the busiest and most established exchanges which is
How to Set the SL Markets always have reversal points, and trades do not always take off in the chosen direction when the entry is made. Therefore, the aim of setting a stop loss is not just to put a stop point on negative price movements, but to ensure that
TREND TRADING STRATEGY Trend Trading is a simple forex strategy used by many traders of all experience levels. Trend trading attempts to yield positive returns by exploiting a markets directional momentum. Length of trade: Trend trading generally takes place over the medium to long-term time horizon as trends themselves fluctuate
Trading order types Here are some of the basic trading order types in forex market: 1. Market Order This is the simplest order type. There are market orders to buy and market orders to sell. A market order gives you whatever price is available in the marketplace. 2. Buy Limit
Advantages of trading the Forex Market 1) No commission There will be no clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail brokers are getting paid for their services by bid/ask spread. 2) No middleman Spot currency trading eliminates the middlemen and enable the trade directly