Forex trading is one of the most dynamic and volatile markets, making it ideal for traders. Forex Trading Guide provides a starting point for beginners. Advice, strategies and training for seasoned investors are also provided. We explore forex trading times, explain how to compare online trading platforms, how to manage risk and where to find the best forex trading demo accounts.
So start your journey into the world of forex and enter a market that trades over $5 billion every day .
Vietnam’s best forex broker
Forex definition
Forex (Forex) is the exchange of one currency for another. Companies, governments, and travelers all over the world have to exchange currencies at different times (although the volume of transactions varies widely). The forex market can do them. The forces of supply and demand will generally affect the movements of these exchange rates – forex trading is the active speculation of these exchange rates.
Forex trading is centered around ‘pairs’. These are two currencies that are exchanged. An exchange rate is expressed as the amount of the second currency required to purchase one of the first. So if the EUR/USD pair is ‘1.1811’, that means you need 1.18 US dollars to buy 1 Euro. Exchange rates are usually quoted to six decimal places. An online forex trading platform that allows retail investors to speculate on the movements of this exchange rate.
How to start Forex trading
Retail investors can start trading forex using the online platforms and software of many forex brokers. One difficulty, however, is choosing which broker to choose. One big problem is that the broker that works best for one trader may not be right for another.
When looking at Forex brokers, there are many different comparison factors. Many will consider available assets such as gold or bitcoin, or available assets such as leverage or margin, gold or bitcoin needed to trade and offer, even if the broker is located in the region. good control like UK or Switzerland Is
We included all of these common factors in our review, but we wanted to include comparison factors that might be overlooked, such as deposit and minimum trade size, spread type ( fixed or variable) and deposit and withdrawal methods. With Paypal or Skrill. Some of these factors are important to some traders, but not to others. This makes it difficult to recommend the best broker out there for everyone, but still gives each broker a rating.
Demo account
In addition to our comparison list, potential new traders can use the demo account to test other brokers and see what they like. Usability or look and feel is important. Opinions about other online trading platforms can often change. The best way to identify a particular platform is to use it. You can also check if new clients regularly trade available assets and whether the spreads are competitive.
To summarize, the following is a list of comparison factors to consider when evaluating other forex brokers.
- Proposal / Viral (Transaction Cost)
- Deposit or flexibility of use
- Minimum Deposit
- Software integration – for example MT4 (MetaTrader4)
- Asset (market you want to trade, such as oil, GBP/JPY or Bitcoin)
- Regulations
- Demo account
- Bonus
- Mobile Trading Application
Also, maybe there are other important considerations, such as does the broker accept traders in a particular country? Some regions, such as Australia and the United States, have other regulatory bodies, and many brokers may not provide services in that region. Our broker table usually only shows relevant brands based on IP.
Advantages of forex market trading
One of the biggest advantages of options trading in the forex market is that brokers can make trades flexible and variable. Also you can predict price changes in currency pairs, achieving 80% more profit in minutes.
Make the most of forex trading
Popular transactions include choosing a currency pair. For example, you choose EUR/USD and decide if it ends up above or below the current price for an hour. If you predict the price will increase, select the ‘currency’ option or if you think the price will be lower than the current price, select the ‘Put’ option. If the closing price is higher than the bid price with the ‘currency’ option, it becomes ‘money’ at expiration. If you choose the ‘Put’ option and the closing price is lower than the one you bought, you will make more than 60-80% of your ‘earn’ trades. Even the smallest part of a pip above or below the strike price can be profitable within an hour. However, in traditional forex trading, you need at least 81 pips in a $1000 x 100 leveraged trade.
Powerful hedging tool
Short expiry times allow you to take advantage of news events that can trigger market volatility without interruption. One of the most interesting uses of Forex Binary Options is that they can be used as a powerful hedging tool. This allows traders to shift risk above and below the buy point. If you have a traditional EUR/USD long position with a stop/loss and buy a binary ‘Put’ option, you will cover the loss or profit from the unsuccessful long position trade. Risk moves up from stop/loss below. If the rally continues in the right direction, it could end in a successful deal. This makes investing in binary options more enjoyable, enjoyable and less stressful for new traders.start. To learn more about hedging, read this great article by Mifune .
Fundamentals of Forex Binary Options Trading
One of our professional traders and the founder of a fund trading and management consulting firm shares his thoughts on the fundamentals of forex binary options trading and the system you personally use.
The strategy I’m talking about is no secret. But it is not rare. The reason for success is simplicity.
The currency pair that I trade mainly (90%) is the Euro dollar pair. This is because it is the most volatile and predictable pair. Euro-Dollar is the most traded pair and daily trading volume has increased significantly since the Forex market was opened to retail investors. Euro-Dollar is also a popular pair that financial firms use to prepare client sales for market fluctuations.
The main problems you see every day when reading through the Binary Options Forum are a lot of different strategies. Traders believe that the more complex the system, the higher the profit. If it fails then it blames the system you are using and the real problem lies behind the screen No system can adapt to changing market conditions. It is up to the trader to adjust the approach.
I would argue that this won’t work in this or that market situation, but they forget that the market itself is binary. Prices may increase or decrease. There is no such thing as a different market. And the heart of every trading system is the same. The task of the system is to detect the best entry and exit points for traders.
For example, seasoned traders quickly spot support and resistance levels on charts. Rookies are not. The rookies will use probability, MACD and RSI to execute the strategy.
For binary options, the knowledge of finding the best entry point along with a prediction for the next price change is very important. In binary options every 10 -th picture-in-picture counts.
Disclaimer: This section represents personal opinions and strategies for personal use. Before you fully understand how your strategy works, read everything carefully and do not use high risk strategies. Trade with demo account before live . This strategy is the Holy Grail because it’s not too greedy. If you don’t feel the deal, I just pass and wait for the next.
Forex Fundamentals
It is important to understand the definition of forex and what its main uses are. Currency exchanges are governed by tender laws.
Simple hypothetical example: In September, Apple sold one million iPhones in Europe in Euros, with a base amount of 500 Euros. Transactions through HSBC. In other words, the billed account belongs to HSBC. But Apple reports in dollars and the managed account is in the BOA.
As a result, Apple has now invested EUR 500 million in a Luxembourg HSBC account. This amount will be transferred to your BOA account and converted into USD.
Now it’s fun. Delivery orders will be available on Tuesday at 4pm GMT. It will not be sent immediately. The bank accumulates all dollar orders overnight. Orders can be placed from yesterday or a month ago. Banks send work orders to partners (like us) and entrust order structures and deadlines.
Euro-Dollar trades at 1.27000 by 6 GMT Wednesday. BOA’s Apple account received $665 million EST (8:00 am). The order is fixed at 1.27000. How do we and the two banks get the most out of that order?
BOA gets a fee from Apple, but what about HSBC?
At 8:00 am London opens, liquidity is €380 million and price is 1.27010. Therefore, 500 million euros corresponds to 635 050 000 USD. There is not enough money in the market yet, it is not enough and cannot run.
The euro outlook is up, Asian markets have rallied into the night and the US financial cliff is being resolved. Millions of traders and retailers take BUY orders and get 10 pips off at current prices. The market liquidity is 300 million euros and the current liquidity is 380 million euros. Thus, the total equivalent liquidity of USD currently in the market is (1.27010) 482 638 000 USD and 381 030 000 USD pending (same as suspension).
According to the data, the stop is 1.26910, so at 8:15 am GMT, the order reached 2.8 times the available liquidity (the sell order sold 840 million euros). This resulted in a price of 1.26905. The order is initiated and the retail investor executes a new order to cover the loss. The price is up to 1.27099, it’s time for us to start gradually exiting the BUY position and people buying orders as the trend is still strong. After running well on the chart, you haveYou can see that the green candle is getting smaller and smaller.
As a result, market liquidity spiked to 380 + 300 = 660 million, up 9.9 pips (from 1.27000) at 1.27099. Not much to say, but we have provided Barclays 10 leverage on our position for 0.1 point commission. Therefore, the leveraged market value of 500 million euros is 5 billion euros, i.e. 5 billion / 100 million = 500 million lots X 10 USD = 5 million pips X 9.9 pips = $49.5 million or 36, 1 million euros. This is shared between HSBC, us and Barclays.
The above figure is just an example. In practice, the volume is huge ($4 trillion per day) and a lot of players, but this example is intended to show how FX works and is essential when analyzing SR levels and trends.
SR levels are determined by the big players (Smart Money) and they are also held by retail investors. The smart money cycle occurs in three price cycles, with short-term channels showing strong consolidation (USDUSD last week in the US session).
Forex – Fibonacci System
These price cycles do not happen randomly, they are ordered, and in fact every candle or price movement has an internal cycle and order. This order is determined by a sequence of numbers called the Fibonacci numbers.
Fibonacci numbers were not developed for trading and appear anywhere in the natural world that can describe many biological systems in the same sequence as Wikipedia.
The big players do not use metrics like RSI, CCI or MACD and the algorithm is based on Fibonacci numbers.
Combining Fibonacci knowledge and information on highly accurate price calculators and other trading methods will give you a recipe for dominating all other systems and strategies.
Now why are you interested in binary options trading? Unlike Spot FX, it should always be right. Basically, you should be able to predict whether a candle is red or green.
In weekly trades that do not include smart money orders, you want easy pip packing, so you should use something that identifies price cycle changes and reversal journals. For intraday binary and spot trading we use 3 indicators with very accurate features.
Forex Correlations
Forex correlation is an important trading tool. If you don’t know what they are, they can hurt your deal without your knowledge. Correlation shows which forex moves together, which forex moves in the opposite direction, and which forex transactions have little to do with each other. This information can determine what trades we should take, control risk and provide additional trading opportunities that are not readily apparent in the price list.
Forex correlation is usually displayed in a table with values from -100 to 100. A value of -100 (negative called correlation inverse ) means that the two forex pairs move in the same direction. opposite directions. One fall and another rise. A value of 100 causes two forex pairs to move simultaneously. One goes up, the other falls, the other falls. Finding one asset that has a 100 or -100 correlation with another is rare. As you can see in Figure 1, there are many forex pairs that have a very high positive or negative correlation with each other.
Figure 1. Daily Forex Correlation (July 25, 2013)
Consider a remarkable correlation above-/+70 and a strong correlation on- /+80 . Use the chart above to find GBP/USD on the left, then find EUR/USD at the top, then scroll to the box where the rows and columns meet. The correlation between GBP/USD and EUR/USD is 89.6. That is, in most cases they are synchronized with each other every day. It is important to know why to discuss in the next section.
Now look for USD/CHF on the left and then find EUR/USD at the top. If you find a box where rows and columns meet, the correlation between these two pairs is -95.4. That means they share a strong inverse very strong correlation. If EUR/USD rises, USD/CHF falls and vice versa.
Sometimes it’s not relevant. If a pair has a correlation value less than 60 (positive or negative), the correlation is not very strong and there is no correlation between the pairs when approaching 0. For example, NZD/USD and EUR/USD. The correlation between these pairs was -1.7 and there was no discernible correlation between these pairs per day. In other words, if NZD/USD goes up and down, you don’t know what EUR/USD can do.
Correlation tables are usually provided based on hourly, daily, and weekly time periods. All of these stages provide useful information based on the timing of the transaction. For short-term trading, hourly and daily correlations are most important.
It should be noted that the correlation is always changing. Currently very strongly correlated pairs may not go together. Therefore, it is important to monitor correlations regularly to be aware of the changing relationships between pairs.
Why Forex Correlations Matter
There are many reasons to consider forex correlation. The main reason I follow is risk control. For example, you may think that you are diversifying the electronic system by making many trades at once. But it may not.
If you sell (buy) USD/CHF with EUR/USD, GBP/USD for a long time, you will essentially have three very similar positions. If one person is against you, they will all be against you. Diversification does not reduce risk. You actually triple your risk!
Another reason forex correlation is so important is because it can provide a deal they may not have seen before. For example, I think EUR will appreciate against USD (e.g. EUR/USD will rise) but I don’t see a big trade setup by looking at the chart. I know GBP/USD usually goes with EUR/USD (according to current correlation), so you can check GBP/USD to see if you have a better trade setup. Also, USD/CHF moves in the opposite direction of EUR/USD so you can also check if there is a shorter trade (buy). High correlation (positive to negative) provides alternative trading. Choose one of the best deal settings.
I also want to use forex correlation to confirm trades. If you find a highly correlated forex pair, use one to test the other side of the trade. For example, if EUR/USD goes up and you want to hold the currency long, I would also like to increase GBP/USD. Since these pairs are related, they must move together. If they don’t, I’ll have to take a closer look at my transaction. That does not mean that the correlation will change and the two pairs will not trade because they are not in perfect harmony. It just means you have a reason to trade.
Correlation can be a complex statistical topic, but with this introduction you can also master the concepts and do your own homework. Check out correlation research regularly to find out how relationships between forex pairs can affect trading. Use correlation data to control risk, find opportunities, and filter trades. If you are having trouble seeing how the correlation works, look at the figures in the correlation table and get the price charts of the two forex pairs mentioned. Notice how the couple moves in relation to each other. This helps a general understanding of correlation.
Forex Signals
Forex represents a rich hunting ground for signal and alarm services. Volatility is high because there is no central market and there are many drivers. Forex pairs are traded 24 hours a day, five and a half days a week. The volume of currencies traded is huge. All these factors mean that the opportunities are huge and the signal service provides regular trading recommendations.
As a more established trading vehicle, signal providers for forex are more established than binary platforms. Many of the best services have been doing well for 10 years. So kPotential customers can check the performance of a large amount of past performance to see how good the service is.
Service providers also have high confidence in their systems, due to their long-term performance. For merchants, it means a free trial or membership discount for new customers. The signaling service knows that traders can only be impressed with the results, so they are encouraged to trade without risk.
Best Forex signal provider?
We have seen a lot of forex signal services and related ads. Results are important to us. For this purpose, we recommend Signal Hive provide the best forex signals. The reasons for this are as follows:
Take a look at these monthly performance numbers since 2004 .
The service, called Master T-2000 v2, has provided annual revenue for almost 14 years. Signal Hive is the marketplace for other, but most consistent systems. 14 years of operation cannot be ignored.
Importantly, you don’t have to take our word for it. The system is available for free trials run by the company. Therefore, you can get this signal for free without risk.
Some major brokers allow you to automate your software. With MetaTrader 4 integration and real-time indicators, the software is as good as we have seen. After using the free trial, the full pro service costs $50 per month. However, if you are not satisfied after the trial period, just walk through.
Drill with signal details
In addition to the number of titles, the system is very consistent. Data can be analyzed hourly or by day of the week and in the long run all periods are profitable. So the software and the algorithm just need to pick a solid deal.
Hive Signals, as the name suggests, provides a variety of signals. In addition to Master T-2000 v2, there is a system called Multi-Objective Logical Saving and Investment Algorithm (MELISA). This algorithm works well during turbulent times in more traditional markets. Again, it has benefited every year for the past 14 years. For now, for investors looking for a safer haven, the system can provide an element of diversity.