spot forex

What is spot forex, and how does it work?

Spot forex is a type of currency trading that involves the exchange of two currencies ‘on the spot’ – immediately. The currencies are traded in pairs, with each pair consisting of a base currency and a quote currency. For example, the EUR/USD pair consists of the Euro as the base currency and the US Dollar as the quote currency. The spot forex market is decentralized, so there is no central exchange where trades take place. Instead, trades are executed over-the-counter (OTC) between two parties. OTC trading is done via electronic networks, phones, or other means of communication. Trading in the spot forex market takes place 24 hours a day, five days a week, since there are currency markets in all time zones around the world. As a result, when one market closes, another one opens, making spot forex a continuous and very liquid market. What is trading on the margin?

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Understanding technical oscillators

Technical analysis is used as a way of predicting future stock price movements by studying past trends. It’s based on the assumption that “history repeats itself”, so prices can be tracked and forecasted using mathematical models and charting techniques. Technical oscillators use the internal dynamics of market activity (prices, trading volume) to measure buying or selling pressure, or overall investor sentiment within a stock, thus identifying key turning points. RSI (Relative Strength Index) and Stochastics are the two most well-known examples. Let’s look at them in more detail: Relative strength index (RSI) As the name suggests, measures relative strength. When it’s near 30%-40%, that means overbought; when it’s near 0%-20%, that means oversold. The grey line represents the oscillator itself, an average percentage change in price from one period to another, so it varies with time. RSI is used mainly on intraday charts but can also be applied to weekly

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What is Forex algorithmic trading?

Forex algorithmic trading, also known as Algo trading or black-box trading, uses algorithms to trade financial instruments automatically. These algorithms are written by traders and programmers and used to identify opportunities in the market and execute trades based on these opportunities. Forex algorithmic trading can be used in several ways, but it is typically used to take advantage of price movements and enter and exit trades quickly. It can also be used to place orders that are not possible manually, such as large or complex orders. Forex algorithmic trading is growing in popularity due to the speed and accuracy that it can provide. Automated systems can offer more opportunities to trade with fewer mistakes. However, this does not mean that robots are replacing human traders – it simply means that they can work together. In general, Forex algorithmic trading is used for three main reasons: to speed up the trading

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Risk management techniques in CFD trading

  Risk management is a critical component of CFD trading. Without proper risk management, traders can quickly lose money on their trades. This article will discuss some of the most crucial risk management techniques for CFD traders. Stop-loss orders One of the most critical risk management techniques is always to stop losses. A stop loss is an order that automatically sells security when it reaches a specific price. It helps limit losses if the security moves against the trader’s position. Limit orders Another critical risk management technique is to use limited orders. Limit orders allow traders to set a maximum price that they are willing to pay or sell a security. It helps protect traders from paying too much for securities or selling them at a loss. Mental stops A technique that CFD traders often overlook is to use mental stops. A mental stop loss occurs when a trader decides

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Options Trading for Beginners

Options Trading for Beginners

Strategies used in options trading have been running the gamut ranging from exotic “multi-legged” beast to more uncomplicated “single-legged” trades. Even so, no matter how complex or simple they are, one thing all strategies have in common is that they are based on the puts and calls fundamentals. Here are options strategies that are built on the basics of puts and calls. These strategies are what are commonly known as being “one-legged.” It is also worth noting that simple isn’t always an indication of a ‘risk-free’ strategy. All it means is that the strategies are not as complicated as the multi-legged option stratagems. Long call Strategy In this strategy, you can “go long” or purchase a call option. It’s a straightforward strategy wagering that an underlying stock will rise higher than the strike price by expiration date. Why it’s used Those who are not worried about losing the premium opt

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