Monthly Archives: June 2018

Knowing More about Forex Introducing Broker

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Some people might come across the term Forex Introducing broker but they simply do not have an idea about the role of Forex IB. To simplify, Forex IB is an individual or company that encourages people to participate and invest in foreign currency trading. They act as Forex partner to brokers. They have a direct relationship with their clients and act as a sort of middle man to gauge the gap between clients and brokers. However they do not handle their clients’ finances. They leave this job to the brokers. In exchange for introducing such active trading clients, they get a commission for each live trade. To stimulate their business, they are willing to offer compromises such as giving a part of their commission to any clients who will trade again. This may sound self-sacrificing but this is how they attract more investors into the brokers business. Not all IBs allow their clients to trade CFD or contract for difference. This is actually another service that some brokers offer. If the clients want to participate in such he should ask about this investment opportunity. Some brokers offer this but the client is required to open another account. Some clients have certain expectations of what they look for in a trading platform. Some of them who might have browsed and have done a little researching might inquire about hedging and scalping. Hedging deals with opposing trades that enter simultaneously. The disadvantage is that one of these will suffer from loss while the other will gain profits. Scalping trades in the most liquid markets when the market enjoys high volumes of trade. This will only work towards investors’ advantage if the broker can provide quick price quotes and employs the use of user friendly platforms. Knowing whether the broker provides for such services can help you answer clients’ inquiries better. Retail traders will find that their best option is to trade with the help of the IB. Being identified with such gives your account an edge if you are a client. Regardless of your account size the same amount of volume that most IBs have under his care to be the same as yours even if it’s a small amount. Such extra services are free of charge to attract more clients for the brokers. This is a winning arrangement for all involved; brokers get more clients, IBs get more commissions and clients enjoy the profits.

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Forex Options Trading – How to Make Money with Forex options

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The Foreign Exchange market is currently the most profitable financial market to invest in today. With more than two trillion dollars worth of trade every day, a lot of people have been enticed to trade here due to the possibility of huge returns. The problem however is that most trading stories in the Foreign Exchange market does not end with a happy ending. It is a very complex system and a trader can easily get lost in the jungle of numbers and information. There is an alternative trading method in the Foreign Exchange market, and this is by using forex options to make money.

Most of us relate options only with the stock market; but the fact is that options can also be used in the Foreign Exchange market as an alternative method of trading. Basically, forex options are financial contracts between a buyer and a seller. Purchasing this contract would entitle the buyer the privilege but not the obligation to purchase a certain amount of foreign currency. In other words, it gives the buyer control over the currencies stated in the contract by only paying for the contract and not the goods. When the value of the currency in question goes up, then the buyer could execute the contract and purchase the goods at a predetermined price so that he can make money out of the rise in its value. The disadvantage of this however is that the contract has an expiration date, so the buyer is under time pressure.

Timothy Stevens is a Forex Options Trader who owns – He has helped hundreds of people on Trading Forex with Options.

He’s recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit

Have Profitable Trading With The Aid Of The Best Forex Brokers

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Who are the forex brokers? Well, they are individuals who are basically involved in the distribution of shares of the exchange market to the traders. If you are going to search online, you will find so many brokers, which makes choosing quite a daunting task.

The best forex brokers are not only the ones registered with a particular association, but as well as the ones that take into account your comfort. A broker should pay utmost care while the investors register with a forex broker that provides the necessary facilities to generate optimum profit. The broker should be flexible enough in terms of the needs of the customers.

Who can be a forex broker?

A forex broker can be banks that are nationalized or it can be registered individuals. There are also unregistered people promising to give you high return of investment. Utmost care should be observed so that return of shares can be achieved. Timing of withdrawal also plays a very important role when it comes to choosing a broker. The withdrawal should be based on the wish of the client.

How to place your trade in the foreign exchange market?

Trading in the forex market involves currency transaction of different countries irrespective of time. As a trader, you have the option to place your trade any time you want to because the market is open 24/7. There are various layers of hierarchy and it involves selecting the right currency. You have to focus on a particular set of currency in order to reap greater benefits.

If you wish to enter into the stock exchange market, there are so many methods and ideas available today. The choice basically depends on the individual; such as choosing the right strategy and effectively applying that particular strategy.

If you are going to search online, you will find various training mechanisms, which enable traders to gain complete knowledge about the exchange market and the transaction that takes place there. A thorough analysis of the available information will enable the reader to actively take part in the foreign exchange trading market.

Conclusion

Forex trading is growing, especially in countries with technological advancements. Today, foreign exchange trading is made available to people thereby bringing the exchange trade right at their doorsteps. To be successful in foreign exchange trading, you need to be optimistic and at the same time be disciplined when placing your trade. That way, huge profit will be gained.

How To Find Forex Trading Signals Based On Central Bank Announcements

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One of the most popular forex trading strategies that is used by major traders today is based on fundamental analysis, where the trader looks for trading signals based on announcements by central banks such as the Federal Reserve. If a central bank makes a key policy decision such as changing the interest rate, this can have a big impact on the value of a currency in the foreign exchange market and can therefore provide the trader with a reliable trading signal.

The central bank that traders pay the most attention to is the Federal Reserve, since the US dollar is the most widely used currency in the world. All of the major currency pairs offered by forex brokers today which have the lowest spreads all have a US dollar component, and so any fundamental announcement by the Federal Reserve can present the trader with multiple trading opportunities across major currency pairs. .

One popular way to find trading signals based on central bank announcements is based on the interest rate and whether the central bank decides to add or subtract basis points from the current interest rate. Since many of the biggest foreign exchange participants are banks and institutions, they will often deal with each other using a trade known as the carry trade which is based on the interest rate differential between two different currencies.

The value of the interest rate of different currencies compared with the US dollar will determine how major banks and institutions value the carry trade that takes advantage of the interest rate differential, and this will help the trader to determine whether they should be long or short the dollar after an announcement from the Federal Reserve. As a rule, it is a bullish signal for the dollar when the interest rate is increased, meaning that the forex trader should sell the EUR/USD and GBP/USD currency pairs based on that signal.

Another important central bank announcement is a policy change announcement, and today there is a major focus on the Federal Reserve’s policy of quantitative easing in the markets. If a central bank makes an announcement that marks a clear change of course in terms of their fiscal policies, this can cause a major move in the markets that forex traders can take advantage of to earn several hundreds pips. By understanding how central bank announcements can impact the foreign exchange market, you can use that data to find trading signals and improve your forex trading performance.

Algorithmic forex trading is one of the opportunites today that can allow retail traders working from home to have access to institutional level trading tools when trading the forex interbank market.

How To Keep Track Of Your Forex Trades

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Successful forex trading requires that you keep a close eye on the various business aspects. It may be overwhelming to keep in mind all these activities and transactions. For this reason, it is essential to have a system of analyzing and evaluating your various actions. The trading log is an important tool in forex trading. It assists you in recording and keeping track of all your important tasks and transactions. It is a very effective and efficient system that will save you the time and energy that goes into all the trading chores when business is booming.

A forex trading log can be a simple tabular grids with entries such as the date, the price, number of lots opened, exit price, initial protective stop level, commodity, quantity and so on. Although most traders have been using personal diaries as the trading log, there are standard logs which have been designed specifically for forex trading. Some logs are in book form while others are digital. Both of them may have the same formats but vary with convenience and flexibility.

With the digitalization of business, book-keeping and accounting practices, more and more business owners are turning to digital trading logs. Spreadsheet programs can make a very good trading log for your business since they come with a host of computing and data management capabilities. Updating figures in the log can be easily automated allowing you a great deal of flexibility. Some of the commonly used spreadsheet programs which can be used to create a simple trading log include the Microsoft Excel and The Lotus 1-2-3.

Forex trading software available in the market may help you to carry out the various forex related tasks one of which is keeping an up-to-date log book. The software that you purchase is likely to have market forecasting and analysis tools and order as well as management capabilities; which makes it a good package to manage your forex transactions.

A good trading log will optimize your trading business by eliminating weaknesses. The entries and exits that are to be recorded on the log book should be determined before hand. Otherwise, it will be hard to know which trades are doing well and which one’s aren’t doing well. There should be an area where remarks and comments can be made after a fixed trading period. These will help you when making key decisions about what strategies to put in place to ensure that your’s profitable trading business remains so.