In this post I will be giving a layman’s explanation of Forex Leverage and Forex Margin to help you understand what they are and the potential risks involved. It is extremely important that you have a clear understanding of both Forex Leverage and Forex Margin before you start trading. I ..Read More
In this post I will be explaining what forex spreads are and why they are an important factor to consider before trading the forex market. Forex spreads can be the difference between a profitable and non-profitable forex trading strategy, especially when using a forex scalping system. Before placing a trade, ..Read More
Forex Basket trading refers to a concept of buying or selling a large number of currency pairs simultaneously. It is a trading strategy that can be commonly used by institutional traders to hold positions in specific sectors and to diversify portfolios. The strategy gets its name “basket” because a trader ..Read More
Candlestick charts are a graphical representation of price patterns. A Japanese man Homa discovered candlesticks in the 1700s while studying the supply and demand of rice prices. Today they are commonly used for trading forex online. A candlestick is composed of three parts; the upper shadow, lower shadow and body. ..Read More
The term “Harmonic” applies in many sectors like physics, music, acoustics, and power. In currency markets, the Harmonic Patterns describe that trends are harmonic in nature, meaning they can be divided into smaller or larger waves to predict the overall trend. Harmonic patterns are chart patterns that form part of ..Read More
What is an ECN forex broker? An ECN forex broker is an expert who uses electronic communications networks (ECNs) to provide its forex trading clients direct access to other participants in the currency markets. Because an ECN forex broker consolidates price quotations from several market participants, it can generally offer ..Read More
Naked forex trading is defined as trading without the help of indicators. It can also be called price action trading. Naked trading can be considered a type of technical analysis because it is the only information a trader has at his/her disposal. In forex, traders commonly use indicators to measure ..Read More
The Forex market is now easier to trade compared to what it used to be in the past before there were so many forex brokers to choose from. In the past, the foreign exchange market was traded mainly by banks and organizations. Currently, anybody with an internet connection, trading platform and brokerage ..Read More
Line Break charts are forms of charts that measure price fluctuations without time intervals. They consist of a series of bars that form lines, showing closing prices. The charts were first discovered in Japan and introduced in the west by Steve Nison. The Line Break chart is a “more subtle ..Read More
The Martingale forex strategy involves doubling the initial amount every time it becomes a losing trade. The idea is to try and cover all previous losses with a winning trade. However, if the positions keep on increasing and that winning trade does not come, this can lead to disaster. I ..Read More