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Forex Blog & Articles

Forex Blog & Articles

This blog provides Informational & Educational material to help you grow your Forex Skills


BLOG FOREX INFORMATION & EDUCATIONAL ARTICLES - Ordered by Date Published
The interdependency between the financial markets If you think that trading forex is all about focusing on just one currency pair or an instrument, then wait until you learn about inter market dependency. In the financial markets, no asset trades in isolation. Almost all the times, you will be able to find a relation between the behavior of one asset or instrument to another. This is the fundamental basis of trading in the financial markets, regardless of whether you are trading forex, or equities or derivatives. Understanding how market sentiment works The reason behind this is because the market sentiment,…
Friday, 07 February 2020 06:55

What is an order book in trading?

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What is an order book in trading? When it comes to trading, for many traders their job almost ends after they have placed an order. But behind the scenes, there is a lot more going on than what meets the eye. Among the many processes, order book is one of the critical operational aspects for an electronic trading business. Within itself, understanding order book can be of some value for traders. Most importantly, there is a field in analysis known as order book analysis. This is where traders look at the order to identify trading opportunities. While order book trading…
How to use seasonal trends to trade Commodity CFDs? Professional traders make use of every bit of intelligence that they can get in order to gain an edge in the markets. There are a number of ways to do this. The trick is in applying the right kind of data. Among the many such available data, seasonal trends or seasonality is one such facet that can greatly improve your trading performance. Many traders tend to apply the information incorrectly. For example, the seasonality trends can be applied to Forex as well. But given the fact that there are a number…
Different ways you can trade the S&P500 index The S&P500 index, also known as the Standard and Poors’ 500 Index is one of the three major equity indexes in the United States. As the world’s largest economy, the index is closely watched, not just in the U.S. but by investors all across the world. If you want to know the health of the U.S. economy and thus by extension, the health of the global economy, look no further than the U.S. equity indexes. As traders, you have the flexibility to trade the S&P500 index in different ways. But before we…
Why you should follow a forex trading plan? A forex trading plan might seem a bit of a let down when it comes to trading. After all, it takes a lot of time and is a bit boring comparing to actual trading. Interestingly though, many new traders tend to not have a trading plan at all. Some mistake this as having a trading strategy. But there is quite a bit of a difference between a trading plan and a trading strategy. A trading strategy is a means of helping you to trade in the markets. On the other hand, a…
5 Differences between FX futures and FX Spot When it comes to trading currencies online, there are many different markets that one could trade. With currencies, the obvious choice of course is the FX spot markets. But did you know that you can also trade currencies in the futures market? In this article, we outline five differences between trading FX futures and FX spot. Although both these markets operate on the foreign exchange or forex markets, the approach is quite different. Also depending on your requirements, you can choose between either of these two. 1. FX Futures are exchange traded…
All you need to know about the U.S. dollar Index The U.S. dollar index or USDX (also known as DXY) for short is an instrument that is widely used across all asset classes. As a forex trader, you should have an understanding of what the USDX is all about. It can be beneficial for your trading as it gives additional information about the markets. The U.S. dollar index is an index which measures the value of the U.S. dollar, relative to a basket of currencies. There are six currencies that make up the basket. These include in order of weightage:…
Does using an expert advisor help you make money in forex? For many traders, it can take years if not more to see real results in trading forex. While everyone can make a profitable trade every now and then, it takes a lot more to make this consistent. Many traders strive to make money in forex in a consistent way. But this requires a lot of dedication and practice and of course patience. But when there are automated solutions available, sometimes traders can get tempted to take the short cut. Some traders swear by trading only with an expert advisor.…
Why are interest rates so important for FX traders? When it comes to the forex markets, there is one aspect that trumps just about anything else. Many people might think that economic indicators may move the markets a lot. Of course, you will often see reports such as employment, inflation and so on making a major impact. However, it is interest rates which plays a major role behind these market moves. If you look at it, a jobs report might have a big impact on the FX currency pairs. But the reason why it has such an impact is because…
Five things to know before you trade Crude oil Crude oil, as a commodity is one of the volatile instruments. When you get your trades right, you can make quite some big profits. Due to the volatility in the oil markets, there are ample opportunities for traders. Crude oil is also known as fossil fuel, because the oil is derived from fossils buried deep under the earth. Oil is often called the Black gold. It is one of the most important commodities that powers global economies. Therefore, one can get a pretty good understanding of the economy based on the…
Saturday, 15 June 2019 11:20

Using a Money Manager to trade for me

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Using a Money Manager to trade for me   A money manager, also known as a fund manager is a trader/investor who trades on behalf of their client funds. There are both risks and benefits of using a money or a fund manager. For the most part, a fund manager is expected to be a successful trader. The primary goal of the fund manager is to use the collective pool of funds in order to make bets in the market. A money manager is often used as a term as someone who trades most currencies. The way a fund manager…
Thursday, 13 June 2019 11:31

A Day In The Life Of A Forex Trader

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A Day In The Life Of A Forex Trader The Forex trading lifestyle is usually depicted as one full of glamour with traders showcasing their new sport cars and yachts on YouTube channels and other documentaries. A more serious depiction of the trading lifestyle is related by many from the Million Dollar Trader documentary by Lex Van Dam that sort to make ordinally people traders. Hence, before you quit your day job for the pyjama lifestyle and overnight riches, let us have a look at how the Forex trading lifestyle really is by looking at a day in the life…
Saturday, 08 June 2019 08:34

Costs Associated With Forex Trading

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Costs Associated With Forex Trading Money management is very important while trading Forex, hence, it is important to factor in trading costs in one’s trading. Higher costs of trading could alter traders’ trading results leading to reduced profits or overall losses. It is particularly important to check Forex trading costs while choosing a broker since various brokers have varying costs depending on account types offered. Below are the various costs associated with Forex trading; Spread; This is the most common type of cost in Forex and is usually the difference between the bid and ask price provided by your broker.…
Sunday, 26 May 2019 15:36

The Different Trading Sessions

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The Different Trading Sessions Forex trading sessions refer to the open times to buy and sell or trade in the global Forex market. Though the market may be open 24 hours a day, different times of the day are not similarly active; some are characterized by high volatility while others low volatility. For this reason, understanding trading sessions is important so as to determine the best times of the day to trade. The Forex market is open 24 hours for five days (Monday to Friday) as various players around the globe such as; banks, commercial companies, investment banks, brokers, hedge…
Sunday, 26 May 2019 14:56

Quality of Trade Execution

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Quality Of Trade Execution Traders often do not understand that placing a trade on the trading platform provided by their broker is different from trade execution. So what is trade execution? This is simply when the placed order from the trading terminal is filled. Due to the growth of online Forex trading and pressure from various regulatory authorities; most brokers and financial trading firms have improved their quality of trade execution. Regulatory authorities require Forex brokers by law to offer their clients the best quality of trade execution. Since high quality of trade execution leads to low transaction costs; this…

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