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
Saturday, 25 May 2019 12:09
Forex trading vs. Cryptocurrency Trading: Pros and cons
Written by AllFXBrokers Support
Forex trading vs. Cryptocurrency Trading: Pros and cons Though the Forex market has existed for a long time now; the cryptocurrencies market is relatively new with the first cryptocurrency; bitcoin, created in 2009 by Satoshi Nakamoto. Currently, there are now over 1300 different cryptocurrencies, the main ones being bitcoin, ethereum, litecoin, dogecoin, steller, cardano, tron, ripple and bitcoin cash. The Forex and cryptocurrency markets have a lot of similarities but there are various traits that separate the two creating a dilemma for traders on which of the two to trade. Below are some of the fundamental differences between the two…
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Forex Blog - Articles
Saturday, 06 April 2019 10:38
How Does Quantitative Easing Affect Currency Value
Written by AllFXBrokers Support
How Does Quantitative Easing Affect Currency Value There has been two schools of thoughts; one that states that quantitative easing affects currency value and the other that denies the later. To better understand how and whether quantitative easing (referred as QE in short) has an effect on currency value, lets look at what QE is; Quantitative easing is a means used by central banks in an effort to increase the amount of money supply in the economy. This is mainly done by purchasing government bonds and other financial products in the open market thus infusing money into the economy. This…
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Forex Blog - Articles
Reactions During Our Trading Traders react differently while trading which is one of the main reasons their are losers and winners in the Forex market. There are three major reasons that lead to different reactions while trading; 1. Probable market setup; this is when the trader is looking forward to open a trading position or has seen a setup based on various strategies that could lead to profit. Reactions during this situation are caused by the following emotions; There is the reluctance of opening a position even when the trading strategy has given a signal in the fear that the…
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Forex Blog - Articles
How Do Market Orders Work? A market order is the most common type of order for executing trades in the Forex market where the trade is executed at the current bid and ask prices. The Ask price is the lowest price the broker is willing to sell the currency pair or trading instrument, hence it becomes the traders buy price. On the other hand, the Bid price is the highest price the broker is willing to buy the currency pair, hence the traders sell price. The main cost of using market orders is the spread which is the difference between…
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Forex Trading In South Africa Various traders in South Africa often showcase their lavish lifestyles on social media platforms; some at a very young age, which has contributed to the increase in retail Forex traders in the country. The Forex market is also very attractive as many young South Africans do not want to be tied down by a 9 - 5 job opting for the freedom that trading offers. Although there is no clear regulatory framework for retail Forex trading in South Africa, below is what you need to know before setting up a Forex trading account; Regulation; The…
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CTrader Vs Metatrader 4 (MT4) There has been a continued discussion among Forex traders on which platform is better between the good old Metatrader 4 and the newcomer; CTrader. Metatrader 4 has been around since 2005 and has been adopted by almost every Forex broker focusing on retail traders. On the other hand, CTrader is only offered by a handful but growing number of Forex brokers including; Pepperstone FxPro IC Markets FXPig OctaFx Kawase Tradeview Forex Fibo Group RoboForex Equiti Capital Both platforms offer demo accounts, hence traders are free to try them out and decide between the dominant MT4…
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Part Time Forex Trading with an 8-5 Job Keeping Your Day Job Most people do not have the luxury of quitting their day job to concentrate on full time Forex trading as they have to support themselves and their families. Though trading offers great opportunities in terms of creating wealth or generating an income; it also requires learning and practice in order to start generating consistent returns. Fortunately, the Forex market is available 24 hours a day during the weekdays enabling both full time and part time traders to seize the available opportunities for profit. Below are ways and habits…
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Sunday, 03 March 2019 11:06
The Top Three Cryptocurrency Exchanges Reviewed;
Written by AllFXBrokers Support
The Top Three Cryptocurrency Exchanges Reviewed; Increased demand to acquire cryptocurrencies for speculative, investment and payment reasons has led to the increase of cryptocurrency exchanges. These exchanges fall into two broad categories; those that facilitate exchange of cryptocurrencies with fiat money and those that only offer exchange between different cryptocurrencies. Beyond these two spectrum, we can also categories the exchanges by type as follows; Peer to Peer/Direct trading; these types of exchanges facilitate trading of cryptocurrencies between individuals from the same or different countries. The involved parties are responsible for setting their own prices/exchange rate. Brokers; they set their own…
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Sunday, 03 March 2019 10:58
How forex brokers compete with each other
Written by AllFXBrokers Support
How forex brokers compete with each other You might know by now that the retail forex industry is literally flooded by numerous brokerage companies. With the competition so tight, brokers are required to look at unique ways in order to create value and attract new customers to raise their market share. Almost all forex brokers offer nearly the same set of trading instruments, which make all of them similar. But this is where the similarities end. In this article, we will look at some of the things that forex brokers use to attract customers. For you, as a trader this…
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Thursday, 07 February 2019 11:28
Why is fundamental analysis important in trading?
Written by AllFXBrokers Support
Why is fundamental analysis important in trading? Fundamental analysis is a type of analysis which looks at the fundamental or the basic building blocks behind the price movement of an asset. The fundamental basis can be a number of things. But most commonly, fundamental analysis focuses on aspects such as cashflows, valuation and future expectations. Fundamental analysis is widely used in all types of financial markets; Whether you want to trade equities, commodities or currencies. The main purpose of fundamental analysis is to answer the question of whether the asset is rightly priced and what is behind the movement…
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Forex Blog - Articles
Thursday, 07 February 2019 08:12
How Do Forex Liquidity Providers Work
Written by AllFXBrokers Support
How Do Forex Liquidity Provider Work A liquid market is very essential especially for Forex traders to make swift trade transactions at low costs. Hence, before looking at how Forex liquidty providers work, it is important to first understand the meaning of liquidity. For any investment, liquidity refers to the speed at which an investor can exchange his/her investment into cash. For instance, real estate investors will typically take five days to complete a transaction while others may take months on end. In the Forex market; it is the ability to exchange one currency with another fast and smoothly…
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Introduction to PAMM Accounts Are you an exemplarily profitable and consistent Forex trader without enough trading capital to rake in enough income? Or are you interested in making passive income in the Forex market but without enough skills to trade yourself? If so, PAMM Accounts are for you. The Percentage Allocation Management Module or Percentage Allocation Money Management; often just referred to as PAMM by players in the Forex industry allows traders to manage multiple client accounts held in the same Forex brokerage firm. To understand PAMM accounts better, let us look at the players involved; The PAMM Account manager;…
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What is an Expert Advisor? An expert advisor is not quite what the name suggests. This is not an expert in the financial markets who will advise you on how to trade. In trading terminology and especially in the forex markets, an expert advisor is an automated trading script. Traders make use of an expert advisor to buy and sell or trade without the need for any human intervention. An expert advisor of course is nothing but a piece of code that runs according to the rules and the logic that is programmed. An expert advisor is considered to be…
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Forex Triangular Arbitrage Strategy Triangular arbitrage also referred to as cross currency arbitrage or a three point arbitrage is one of the Forex strategies that elude the understanding of most Forex traders. To have an understanding of the triangular arbitrage strategy as applied in Forex trading; it is important to first look at the meaning of arbitrage. An arbitrage opportunity arises when one can buy and sell related assets simultaneously usually selling expensive assets and buying cheap assets at the same time to realize a profit. Arbitrage in Forex trading is mainly practiced in an attempt to take advantage of…
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Forex Blog - Articles
Monday, 28 January 2019 21:23
Forex regulatory authorities, the good, the bad and the ugly
Written by AllFXBrokers Support
Forex regulatory authorities, the good, the bad and the ugly Forex regulatory authorities are the watchdogs of the retail forex industry. They are a government enabled body which looks after various aspects starting from issuing licenses to set up a forex brokerage firm to ensuring transparency and fairness in the industry. Most often, a forex regulatory authority also conducts audit checks on the firms licensed under them to ensure that the firms adhere to the norms. Depending on the jurisdiction, you can find a local forex regulatory authority. The primary purpose of the regulatory authority is to ensure that the…
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Forex Blog - Articles
Forex Blog Articles
- Three types of trading principles that you should know
- All you need to know about the U.S. dollar Index
- Beginner's guide to understanding the VIX
- Quality of Trade Execution
- Five things to know before you trade Crude oil
- How do Forex Brokers make money?
- How to day trade when the market panics?
- The interdependency between the financial markets
- What is Forex Stop Hunting?
- Costs Associated With Forex Trading
