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Igor
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Everything posted by Igor
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Scalping is often viewed as a risky trading strategy because it involves higher levels of leverage and very quick exits and entries. For this reason, scalping involves a great deal of practice in order to master and successfully implement.
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Common examples of a Safe Haven Currency can be seen in the US Dollar and Swiss Franc. Since these currencies tend to trade in a stable and predictable fashion, they are commonly sought after in times of uncertainty.
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The Rollover Rate for a position can be either positive or negative. When the Rollover Rate is positive, there is a greater incentive to hold the position for a longer period of time.
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Rollover Debits are seen when the currency pair that is purchased in a trade has a lower interest rate than the currency that is sold. For this reason, trades with negative interest rates tend to be held for shorter periods of time.
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Rollover Credit is seen when the currency pair that is purchased in a trade has a greater interest rate than the currency that is sold. This is the basis of the strategy implemented in the carry trade, and allows traders an additional means for accruing gains.
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Risk is a broad market term that refers to the potential loss that can be” seen in any trade. In forex, risk is generally limited by using a stop loss on open positions.
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Forex pricing quotes are designed in a way that allows traders to quickly find the price at which a currency pair can be bought or sold. Additionally, this design will allow traders to determine the spread price, which is the difference between the right and left side of the pair.
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The RICS House Price Balance is not usually as market moving as GDP or employment figures but the report will still typically create volatility in the Pound. The reason for this is that in the UK, real estate prices are viewed as significant because of the limited availability of land space.
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While the Richmond Manufacturing Indexis not generally considered to be a top level economic indicator,the report will influence price action in the forex markets. This influence will usually be seen in the US Dollar, as this is the region most directly affected by the data.
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While many traders look to implement trend following strategies when placing trades, other approaches look to reversal patterns as a primary method. The advantage of these strategies is they they allow traders to “buy low and sell high” in their forex trades.
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Since the forex is a 24 hour market, it can be difficultto determine the best ways for rating a currencies performance during a given period. The Revaluation Rates is used to provide a baseline for these determinations.
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A real world example of a currency revaluation could be seen when China decided to abandon its currency peg to the US Dollar, choosing instead to peg the Yuan to a basket of currencies. A country will choose revaluation for many reasons but this often comes as a means for improving the national terms of trade.
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Retail Foreign Exchange Dealers must register with the National Futures Association (NFA) before any transactions can be facilitated. Retail Dealers are used by the majority of individual, internet-based traders, so proper registration requirements help to ensure fair trades at all levels.
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Overnight Trading involves additional factors that must be considered, as there are changes in the ways that profits and losses are calculated. Intraday positions do not include interest rate costs (for the most part) so traders active in the forex market might choose to close positions before each session completes in order to avoid extra charges.
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E-Mini contracts have several major advantages for traders with small account sizes. Specifically, traders are able to place positions at 1/5th the normal trading size and these trades are placed in markets with high liquidity levels as well.
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SAFE has increasingly become a signifncant player in the foreign exchange markets, coming largely as a result of the large foreign exchange reserves that are held in China. SAFE also studies potential strategies dealing with the advancing flexibility in the exchange rate of the Chinese Yuan. -
Repatriation can be seen for a variety of reasons but this is most commonly the case when a trader or a large financial institution is looking to book monthly or quarterly profits from foreign investments. For this reason, forex markets can see increased volatility as a month or quarter comes to an end.
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The Relative Strength Indicator is one of the most commonly used technical indicators in today's forex trading markets. The RSI offers traders an objective way of determining when a bullish or bearish trend has reached its end and it ready to reverse.
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Redenomination can be used by a country as a method of stabilizing markets and bringing validity back to the value of the currency. This can help contain price swings when economic conditions become extreme.
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An example of a Reciprocal Currency pair can be seen in the EUR/USD or the GBP/USD currency pairs. In these cases, the US Dollar is considered the counter currency as it is not the first pair listed in the quotation.
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Countries that are experiencing recessionary conditions generally show weak manufacturing and productivity growth in economic data. These negatives will usually put selling pressure on a currency, as investors look to buy currencies of more stable nations.
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Realized Profits differ from Unrealized Profits and both of these fields can be viewed on your trading station. Realized Profits refer to closed positions while Unrealized Profits refer to successful positions that have not yet been exited.
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Realized Losses differ from Unrealized Losses and both of these fields can be viewed on your trading station. Realized Losses refer to closed positions while Unrealized Losses refer to unsuccessful positions that have not yet been exited.
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As trading technology improves, more and more traders are using electronic and computer-based methods to execute their intestment strategies. Real Time Forex Trading can allow traders to use technical or fundamental analysis to forecast future price direction.
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The Real Effective Exchange Rate is a way of giving markets an idea of how a currency is peforming when compared to most of its commonly traded counterparts. This information can be helpful for traders when looking to pair weak currencies with strong currencies in trading.