What is Hedging?

forex hedging strategy Hedging can be defined as a risk management strategy, employed with the aim of offsetting probability of loss from fluctuations in the price of an asset. Forex traders, whether small or big, are all seeking an efficient way to limit the risk and increase their returns. Actually, forex hedging strategy is employed by traders to achieve this goal. It is a very widespread strategy used in forex trading and in order to hedge forex traders generally select 2  currency pairs that are correlated positively (for instance, EUR/USD and GBP/USD) and take opposite directions on both. It should be mentioned that this strategy is good at reducing the amount of capital at risk during times of uncertainty and doesn’t reduce the potential rate of return...

A Popular Forex Trading Strategy That Actually Works

day trading Any trader’s major goal is achieving success in forex market and generating large gains, but in order to achieve this goal you should follow an effective forex trading strategy. In fact, it’s not wise to conduct trades without having a forex trading strategy that suits you best and this mistake is usually made by novice traders. It is worth to point out that the absence of a trading strategy is like driving a car without a concrete destination. When it comes to selecting a trading strategy, forex traders can have an access to a wide variety of forex trading strategies that work, in this article you will learn about day trading, which is one of the most popular forex trading strategies.

What is day trading?

Day trading strategy is widespread among experienced and inexperienced traders...

2 Popular Forex Trading Strategies

fx trading strategyForex (Foreign Exchange or FX) refers to global currency markets. Currently the popularity of forex market is increasing worldwide and it has become the largest financial market in the world. Thanks to technological advancements, which made forex market available for any type of trader, you have the unique opportunity of making large gains in forex market.  FX is greatly appealing to traders, as it offers them a plenty of advantages, including high liquidity, leverage, a 24-hour market and low transaction costs. It is worth to mention that the key to success in forex trading is choosing a forex strategy that will increase your chances of making a lot of money. As a matter of fact, there is a countless number of forex trading strategies, in this article you will learn about 2 most common f...

What do you Know about the Advantages of Algorithmic Trading?

automated trading In today’s extremely competitive trading environment algorithmic trading is becoming a necessity, because compared with standard trading it is cheaper and easier to control. Algorithmic trading, which is also known as automated trading can be defined as a trading system that uses complex mathematical formulas and computer programs to make transaction decisions in financial markets. There was a certain period of time, when algorithmic trading was viewed as a playground accessible only to institutional investors, but the situation changed thanks to technological advancements. So, currently average investors as well can have an access to algorithmic trading by simply opening a brokerage account and creating automated strategies.

Advantages of algorithmic trading

 It should be mentioned tha...

3 Profitable Forex Trading Strategies

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Forex market is growing rapidly, as today more people are choosing this market as an effective way of accumulating wealth.  In fact, once only hedge funds, banks and large corporations had an exclusive access to the forex market, but thanks to highly sophisticated technological advancements, online trading platforms emerged and made forex trading available to average traders as well.Everything is very simple. If you have an Internet, you can buy and sell currencies with a click of the mouse. It is worth to mention that traders, who are involved in forex trading and only aim toreap profits, are known as speculative traders. The attractiveness of this market is connected with high volatility available in this market, as traders speculate on the direction of price movements...

Is Currency Hedging Strategy for You?

currency hedging strategyIn order to make appropriate trading decisions and achieve long-term success in Forex market, traders should have an effective and sound trading strategy. Today forex traders can have an access to a wide variety of currency trading strategies, some of them are highly popular, whereas others are utilized by minority of forex traders. This article aims to provide you with sufficient information about currency hedging strategy and can help you understand whether this trading strategy is for you.

What is currency hedging?

Currency hedging strategy can be defined as a transaction that forex traders use in order to protect their positions from unexpected move in exchange rates. If you utilize a forex hedge successfully, you can be protected both from downside risk and upside risk...

5 Things to Know about CFD Trading

trade CFDsCFDs were invented in England and applied to securities in the first instance, but today CFD market is enjoying a huge popularity among traders around the world. The main reason why it   attracts so many traders is that CFDs give them the opportunity of trading on price movements of different financial instruments. A CFD can be defined as a contract between a broker and a client, which enables traders to speculate on different markets, not owning physically the underlying assets. In this article I will refer to 5 essential things each trader should know about CFD trading.

  • CFDs are highly flexible

CFDs are considered to be extremely flexible vehicles. With CFD trading, traders can make large profits in both cases: when markets are falling and when markets are rising, that’s to say, the...

The Ultimate Guide to Algorithmic Trading

automated tradingAlgorithmic trading, which is also known as automated trading refers to the process of using computers that are programmed to follow definite instructions in order  to place a trade and generate profits at a speed and frequency that is not possible for human traders. The defined sets of predetermined criteria include price, timing and quantity. Algorithmic trading not only offers traders profit opportunities, but also makes markets more liquid and trading more systematic through eliminating emotional impacts on trading activities.

Algorithmic trading in the forex market

About 30 years ago forex trading was conducted through telephone and it was characterized by opaque price information and institutional investors...