Category: Forex

Algorithmic trading in forex

Forex, Forex For Beginners

Algorithmic trading is a technique of executing a large order using pre-programmed trading instructions accounting for variables such as time, price, and volume to send a small piece of the order out to the market over time. They were developed so that traders do not need to constantly watch a stock and frequently send those slices out manually. The algorithm does this all on its own.   In today’s fast-paced financial markets where volumes are high and volatility can be extreme at times, the manual intervention has its limits. The human brain can only grasp before making mistakes due to information overload or stress. In addition, algorithms provide greater consistency than humans typically hope for when following the rules imposed by an investment strategy or trading plan. Algorithmic trading strategies rely on technical analysis. It is important to remember that algorithmic trading strategies rely heavily on technical analysis. It means

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Are CFDs legal?

Forex, Forex News

CFDs, or contracts for difference, are agreements between two parties that are agreed upon before the trade begins.   There are two types of CFD: long and short. The party that chose which side of the trade they wanted to go with will be known as the buyer, while the other will be called the seller.   When both parties have accepted a deal in a financial transaction, it becomes binding if you decide to invest using CFDs when you buy at the offer price and sell at your desired price, whether it is higher or lower than what you bought for).   It means that you do not own any shares in a company when investing in this fashion. You can then choose to close your investment position whenever you want, provided that the market is still open. Are these contracts even legal? Although there is no single answer

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Understanding technical oscillators

Advanced Forex, Forex, Forex Strategies

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 Leverage in Forex Trading?

Forex

Many financial terms can be somewhat confusing, especially to those newer to the world of finance.   Forex trading is one such activity that has several definitions and meanings, which can make it difficult for someone new to learn about this field to understand what it all means.   Leverage is one of these terms.   What is Leverage? If you use leverage correctly, it is a powerful tool that can benefit your trading career greatly.   Be sure to research how much you can borrow with your broker before investing any money into the market, as this will determine if leverage is proper for you or not.   Leverage is the amount that you borrow when making a trade, while margin is the collateral that you must post to do so. Using more leverage increases your risk, but it also means a higher return on investment (ROI)   For

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The best commodities to trade in forex

Forex

The benefits of trading in commodities are well documented. In a world where many people’s income depends on it, traders and investors look for ways to secure their future by investing money now. It often means putting some into volatile assets like those from countries with large reserves deposits like Canada or Australia, who have been known commodity producers throughout history!   The key here, though, is that these forex pairs offer additional returns and provide diversification because each country has its unique set prices associated with them depending on how much they produce at home. This is opposed to say only owning stocks all over the globe without any geographical considerations whatsoever would leave one exposed to significant risks if something goes wrong anywhere else.   One of the main reasons commodities are so profitable is because there is a relatively low barrier to entry when it comes to

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