Todas las entradas de: Forexito

SWING TRADING FOREX

C:\Users\ana\Downloads\SWINGGTRADINGG.jpg

What is Swing Trading in Forex and how does it work?

Swing trading is a style, not a strategy, and it operates in relatively short periods of time, both in the short and medium term. This type of trading is characterized by short periods of daily trading and longer trading time frames. To make the picture a little clearer, the swing trading duration is not so short to have to use all your time observing the behavior of the market, but it does have a duration short enough to provide the user with an endless number of trading opportunities within reach.

To perform the Forex swing trading, there is a series of currencies that are considered appropriate for this purpose, such as the EUR / USD pair, CFDs such as the Ibex 35, the cryptocurrencies and, in short, those assets that are volatile.

C:\Users\ana\Downloads\swingtradinggg.jpg A swing transaction leads to the identification of the different opportunities that can generate profits in a short period of time; it is about proceeding to the identification of diverse graphic patterns to later wait for the opportune moment to operate.

A swing trader is that investor that seeks to analyze the graphs to determine the levels, events or circumstances that will cause the change of tendency of a certain currency or the acceleration of its rhythm. This technical analysis is fundamental in the tools used for swing transactions. The key to success lies in the study of a variety of short-term graphs and technical indicators in order to understand the market position.

What should be done when identifying a range?

Generally, in the market there are only two types of movements, which are: inside the ranges and inside a trend. A faltering market will ensure that it is within a certain range until there are an acceptable number of buyers or sellers to force a break in the range or a breakout.

There are two ways in which a swing trader user obtains benefits from a market that has movement within two or more ranges. The first is to access the sale of the currency when it is near the highest value, and buy it when it is at the lowest value in the range. The second is to place a purchase order that is above the maximum value of the range and a sales order below the minimum value. If the latter happens, the trader is implying that the range will go bankrupt.

What should I do when identifying a trend?

If we are in the presence of a market full of trends, the strategy to use is also quite simple. The trader should only know how to identify the parameters of the trend and then acquire the best possible way of entry. There are scenarios in which the user is aware that the values in the market rise, but does not do anything about it and loses the opportunity. Therefore, the incentive that has the same is to go behind the market buying at higher levels. In this case, it is recommended to opt for the search of some other trend that is just beginning.

All this must be taken into account when swinging Forex trading, as the trader seeks to obtain profits and this has been a very effective method for all users who use it in this market.

OANDA FOREX

 

C:\Users\ana\Downloads\oandaaa.png

Oanda: What is it and how does it work?

Oanda is a broker that has its origin in Canada and it has been operating since 1995. It is considered among the best positioned market makers all over the world. It reached this popularity because in this platform a policy of transparency and low spreads is applied, which has earned it the affection and trust of a large amount of Forex traders. Based on this policy, Oanda is one of the reduced groups of brokers who do not have any type of affiliate program and this is the part that most of Forex brokers acclaim for obtaining clients.

This broker is subdivided into five large companies that offer their services to almost every one, among them we have: Oanda Asia Pacific (located in Singapore), Oanda Corporation (located in Canada), Oanda Europe (located in the United Kingdom), Oanda Japan (located in Japan) and finally, Oanda Australia (located in Australia).

C:\Users\ana\Downloads\Oanda_new_CFDs.jpg

 

 

How can I trust that my capital in Oanda is safe?

One of the greatest disadvantages that arise between the different brokers markets makers is the fact of having a lack of capital to face the margins, but according to Oanda, they claim to cover each and every one of the margins that are demanded, and they even go a little beyond the limits set by the regulators. But since you do not always have to fully trust in what the broker tells you, a great reason to do so is that Oanda belongs to the CIPF (Canadian Investor Protection Fund), which is in charge of protecting the funds of all those people who deposit an amount of up to one million Canadian dollars for all the accounts that are open in Canada. For accounts that are open in Europe, they are usually made through Oanda UK and for this case, the program that protects them is the FSCS, which is responsible of the compensation of the entire United Kingdom and the limit of protection of funds reaches 50,000 pounds. Another of the protection measures offered by Oanda to its clients is to keep separate accounts for their funds.

What trading platforms does Oanda handle?

For many people, it is not a secret that all recognized big brokers have at least two trading platforms available to their clients. One of them is MetaTrader (Forex trading platform most recognized worldwide), and the second one is usually created by the same broker. In the case of Oanda, the second platform is about FXtrade, and both of them are fully available to be operated from a computer and even from mobile devices.

How can an account in Oanda be opened?

It is recommended that before proceeding to the opening of a real account with Oanda or with any other existing broker, a test account should be opened in order to have knowledge regarding operation spreads, benefits, disadvantages, among other important things.

 

Once this is done and if you are ready to open a real account, you can use debit or credit cards, make bank transfers, use PayPal or even checks to make income, but this last option is only possible from American banks. There is no minimum figure to proceed to open an account in Oanda; you can open one starting from 1 dollar, 1 pound, 1 euro, among other currencies.

Something important that the entire community, which is managed in Oanda and most brokers, know is that the way that the income is made, is the same way that funds can be withdrawn from our account.

FX TRADING

What is Forex trading?

Forex is the foreign exchange market that registers the highest number of transactions worldwide, moving an amount of money of 5 million dollars. Not only it’s the largest financial market, but it has more liquidity in which more times are exchanged in a different way than other business people, individuals or even organizations that carry out their business activity globally. Forex operates 24 hours a day from Sunday night until Friday night, which is not based on a central stock exchange.

The FX Trading is nothing more than carrying out the buying and selling of currencies, being the largest financial market worldwide, with more active users and a great diversity of currencies operated in pairs. That is, the Forex market simply refers to the simultaneous purchase of one currency and the sale of another.

Performing Forex operations, allows the user to benefit from variations and / or fluctuations in the exchange rates of a wide range of currencies. As mentioned above, the transactions in terms of the parties were carried out in pairs, being the most common example of EUR / USD. With this, you can arrive at a specification with respect to whether the price of this currency is available in its price or failing with respect to the price of the currency of another country and in this way, operate for your own benefit.

The first online Forex trading services were thanks to the company CMC Markets, being the first online trading services in the United Kingdom. For that reason, it’s possible to trade with the main crossed currency pairs, with the exotic pairs, the common ones and even with CFDs on currencies.

How does FX Trading work?

When transactions are made with the different currencies the first thing that the trader does is specific to the behavior of the price of the currency base, if this will rise or fall against the price of the quotation division. For example, with the EUR / USD, if the trader speculates that the value of the EUR will rise with respect to the value of the USD, then this will remain with a long position in the currency pair, that is, it will buy the pair. On the other hand, if the subject believes that the value of the EUR will fall before the value of the USD, it will remain in a short position in the currency pair, which means that it will choose to sell it.

If the trader has and maintains a long position in the EUR / USD pair and the value of the EUR rose against the USD, then the USD will make a profit. But if on the other hand, the operation flowed in the opposite direction, the merchant will get a loss. It is possible that the subject has the possibility of operating with the use of a leverage, which will give him the opportunity to proliferate his potential gain but it must be taken into account that the possibilities of

What is a trading system?

A trading system is nothing more than a series of mathematical accounting rules in which a large number of people wish to invest in investment operations. Great benefits that the creation of a different trading system that operate with computer programs brings, is that it allows buying and selling operations in any of the wide variety of markets that exist today are automatic.

MARKET MAKER FOREX

C:\Users\ana\Downloads\Market_Makers.jpg

In any market there is the existence of companies, institutions and groups, who are the ones who create the market and at the same time the one who buy and sell according to the laws of supply and demand. Now, in the Forex currency market, the term market makers refers to banks, the various Forex trading platforms, among others; and these operate in conjunction with users as independent investors for the creation of the well-known currency trading.

What is meant by Market Maker?

It can be said that the market maker is the opposite of the investor, these market makers, in some way or another have interaction with their clients regardless of the position they occupy in the market and also with banks, where thanks to this, and they create cash flows in both directions. A market maker does not refer to an intermediary or an adviser who charges commissions for providing their services, because it is not usual for FX to have these mentioned commissions. These are rather dedicated to the purchase and sale of foreign currency for all its investor clients.

Where do the profits come from?

The source of origin of the profits lies in the difference of the prices that exists between the purchase of a certain currency and its respective sale, this difference is called «spread». With this, it is meant to imply that the platforms of investments which exist in the Forex market through electronic orders, put investors and banks in contact with each other, in order to efficiently operate the circulation of the capital that provides fluency to the market.

How does a market maker operate?

When an investor client gives an order for Forex trading to be executed, the existence of someone who is able to accept that offer at the same time and at the same price is necessary. The curious thing is that, even knowing it is the largest currency market in the world, this does not always happen, but investors can exercise orders at any time. This is where the market makers make their work.

C:\Users\ana\Downloads\market-maker-27016517.jpg

Market makers offer steady prices for buying and selling currencies all day, prices that are updated every 30 seconds according to the supply and demand that exists. That said, the investor is able to accept these prices even when there is no existence of an opposing party because that supply is remunerated to the market makers and therefore ensuring the fluency and continuity of the market by participating in it when it is necessary regardless of if this is a benefit or in the worst case a loss.

These market makers cannot operate without prior registration and authorization by different institutions such as the CFTC (Commodity Futures Trading Commission) of the United States or the FSA (Financial Services Authority) of Europe.

FOREX TRADING SOFTWARE

C:\Users\ana\Downloads\TRADING SOFTWARE.jpg

What is Forex Trading Software?

It is important that all those investors who are still inexperienced be clear that the electronic platforms are designed to help and connect with the world of the foreign exchange market. Forex software is a very useful tool that has the ability to make everything easier, but this is not the only thing that has made this currency market gained the popularity it has today. If you do not possess any kind of knowledge about Forex, currency trading software will not help you.

All those investors interested in obtaining capital that generates in them a number of profits, and also to be able to develop their Forex strategies will be able to benefit from the trading software that they have. A large number of platforms for financial purposes today, are also in the ability to open, close and manage the various positions in which the market is located. All platforms have similar capabilities when talking about quotation, technical analysis and graphics. Next, two important points will be touched upon by the merchant when he is searching for the best Forex trading software:

What is the purpose of the Forex Trading Software?

The main purpose of a commercial platform, which is nothing more than an online Forex trading software, is to create a connection between the operator and the market. Regarding the operations made in Forex, it is the trading platform that connects the operator with its respective intermediary.

On the other hand, if the intermediary belongs to ECN or STP, the commercial terminal will proceed to connect the operator with the intermediary and later, this one with the market.

What are ECN and STP?

These abbreviations can be found very often in the pages of intermediaries, but these are not directly dependent on the currency trading software, however, it is important that the merchant has knowledge of what they mean.

The acronym ECN has as concept an electronic communication network. This network makes available to the user a variety of types of financial trade made externally of the classic stock exchanges. The main purpose of ECN networks is to annul the intermediary and connect the merchant and brokers directly with a network that does not have vertical dependency or subordination. What mainly characterizes these networks, is that all orders generated and subsequently sent are attached to a kind of book where they all arrive in a unified way and this works as a database, later, each of the orders can be compensated with the exchanges that are available, totally or partially, all through the order matching system that has this network.

Now, STP means direct processing, in which orders are processed automatically. In other words, these acronyms refer to the fact that brokers have the responsibility of being a supplier that discreetly connects the merchant with the market.

Both ECN and the acronym STP mean that the intermediary will not intervene with the exchanges, but that the intermarket will observe the orders as they are sent. When this is employed this way, Forex currency trading software is merely a connection between the merchant and the market.

FOREX TRADER

What does it mean to be a Forex trader?

In the financial field and currency markets, a trader is the person or entity responsible for the purchase and sale of financial instruments of all kinds. It is called Forex Trader to the agent who can assume the position of intermediary, speculator and even as a hedge operator in this large foreign exchange market.

More generally, they are those who are engaged in the purchase and sale of financial products on a daily basis. Now, entering in the Forex market, a Forex trader is the one that is capable of exercising currency trading, functioning as the broker between the merchant and the market. These people can work independently or work for a financial institution, such as banking institutions or an investment fund, among others. In the finance world, the trader’s role is of paramount importance and this is the reason why we have to give them the value they deserve and learn a little more about the work they do.

These traders usually perform their work in rooms called trading floor, term that we can know more as a trading room, where they are usually given access to about 6 or 8 screens of different computers. In this way these people have the ability to have greater control over the behavior of different financial markets as it is Forex and have the possibility of conducting analyses and forecasts with certainty when making a capital investment on it. Generally, the work they do is in order to generate benefits or in the worst case, losses to the financial institution to which they belong. However, these institutions have a maximum spending limit, so this trader can give you the great benefit of being able to generate great profits and also, let the institution have renown and an impeccable reputation in front of its customers. Traders belonging to these financial institutions are remunerated, and these remunerations are really high when compared to other professions, also knowing that traders at the end of the year charge an extra profit depending on what the entity has managed to gain thanks to its work. Sometimes this extra money goes far beyond the fixed salary they have.

Currently, the boom in technology gives the trader the opportunity to do their job from the comfort of their homes because all they need to do is a computer that has the availability of surfing the Internet. Although it is also necessary to recognize that in trading parquet is still working at a very good pace even though they are becoming obsolete.

What is the difference between a trader and a broker? 

Numerous times it has occurred that people fail to differentiate the work that a trader does against the broker’s work and is usually a confusing issue, putting these two in the same group. But here we explain the clear difference between these:

The trader is the person who is specialized in buying and selling products, such as currencies. While on the other hand, brokers are the people or entities responsible for playing the role of intermediary between the financial markets and the traders.

FOREX TRADER PRO

C:\Users\ana\Downloads\FOREXTRADERPRO.jpg

What is Forex Trader Pro?

Forex Trader Pro is considered one of the most important platforms for users belonging to the Forex market when negotiating. It is based on the web and it is open to modifications made by the merchant according to their needs and requirements. Due to its high performance and efficiency, operators are currently looking to download Forex Trader Pro for the execution of all their currency transactions. The software that has this platform is so simple that its use is suitable for beginners in the area of finance as well as for the most professional and expert users.

Within the tools which Forex Trader Pro has, there is a variety of the most successful and sophisticated graphics, a software capable of recognizing patterns by Autochartist, a broad strategy center, eSignal and more. The platform also offers analysis with updates 24 hours a day, the most relevant news in real time and, as if that is not enough, Forex Trader Pro offers its users the ability to operate with more than 45 currency markets, and in those that not only include the main currency pairs but also the most exotic of the whole world. Currency pairs as well as gold and silver can be operated through this platform with a leverage of up to 400: 1.

Forex Trader Pro is also capable of operating more than 30 CFDs through the use of metals, index, agricultural commodities and energy with a leverage of up to 200: 1.

In short terms, this great platform offers its users a wide variety of possibilities in terms of negotiation and a wide range of professional tools for operators to develop in the creation of graphics and analysis. Whatever the conditions to which the market is subjected, it offers unquestionable quality when executing orders. The interface of this program stands out for having a high graphic quality in terms of its functions, and that the merchant can have control of the account in its entirety, and the best part of the case is that all operations can be made comfortably from a single window.

Is there any way to use this platform on mobile devices?

C:\Users\ana\Downloads\DEVICESSS.png

Yes, this is indeed possible. The user has the opportunity to access the different markets thanks to the version for mobile devices offered by ForexTrader PRO. The merchant has the opportunity to operate, follow the markets, manage your account and have countless interactive graphics tools at your disposal, all at the palm of your hand and with your mobile device. You can also be aware of each and every one of them, the most relevant news of the markets, the comments and be able to follow the economic calendar offered by this version from any device, such as Android, Apple, Blackberry and other devices that have access to the Internet.

FOREX SPREAD

C:\Users\ana\Downloads\FOREXSPREAD.jpg

What is Forex Spread?

The meaning that has the term spread in the Forex market is just the difference that exists, expressed in pips, between the bid price which refers to the purchase price, and the ask price that refers to the sale price for a pair of currency determined, as for example EUR/USD. Many Forex brokers use the Forex in order to obtain benefits from each transaction made by their clients (named traders) and this happens through their trading network in the market.

As it is mentioned before, the price for the quotation of any currency pair will be expressed through combining the symbols of both currencies that make up the pair and the bid and ask prices respectively as will be seen next:

Base Currency / Quote Currency | Bid Price / Ask Price

The bid makes reference to the highest price that the market is in the willingness to buy, so this term can also be found as purchase price or demand price. Hence, we are talking about the price by which the trader will enter the market if the currency pair is for sale.

Now, the lowest price at which the market is in the willingness to sell is known as Ask and can also be found as sale or offer price. As consequence, we refer to the price by which the trader will enter the market if he is buying the currency pair.

C:\Users\ana\Downloads\FOREXspreaddd.jpg Understood this, the spread is the existent difference between the Bid and the Ask price; this is expressed in points, but in the case of the Forex market, it comes expressed in pips. As an example for this, we have the previous case of the currency pair EUR/USD in which the spread is 2 points or pips.

In a few words and for a better comprehension of the reader, we can define spread as the cost of each of the transactions or operations made by the trader in the Forex market and all of this without taking into count the direct commissions that some brokers might charge. Depending on the broker that the trader is using, the cost of each transaction may vary, as a result of being variable costs; there is no measure that can be applicable to all companies.

Having this into count, we can affirm that the spreads are the money that intermediaries as the brokers charge for making the different operations the client requests in his name. All those people who have their own funds and handle them use the Forex market to make their investments because it allows them to gain profits thanks to the spread, as a payment method for the services they offer. The spreads form the profits that these people or even companies make by giving others the ways of negotiate in the currency market.

FOREX PRO

C:\Users\ana\Downloads\FXPRO.jpg

What is it?

Forex Pro is a platform founded in England in 2006 that offers different services to companies that want to enter the stock market. Forex pro has as benefits a line of specialized brokerage to do business, automated systems of commerce, and processing of data centers 24 hours a day. It is a full time service that seeks to guarantee companies an optimal platform for buying and selling shares through the tools it offers, as well as having a platform for contracts for difference (CFDs) in 6 different asset classes such as, stocks, spot, futures, spot metals, spot and Forex.

What does it consist of?

Forex Pro aims to continue being one of the best brokers in the network using the development of new technologies, adopting positions based on the interest of customers to make accessible trading offering support and educational resources, a continuous update of their services to satisfy the demand of its traders and based on the ethics of the trading industry, to maintain a path of transparency. In order to achieve these objectives, Forex Pro offers different strategies such as the execution of ultra-fast trades with a model without any negotiation intervention, aggregation of multiple PL prices and access to ample liquidity pool and recurrent investment in technology and research.

What are its benefits?

Forex Pro offers a number of advantages when it comes to trading. One of these benefits is the ability to execute transactions without dealing desk that allows users:

a) Deep liquidity: Access to a broad pool of liquidity with a wide range of different prices and great availability for each operation made by a user.

b) Anonymous trading: The suppliers do not have access to your registered information.

c) Execution of Ultra-Fast orders: This was already mentioned, it consists of an optimal speed of elaboration of clients’ trading activities in less than 13 milliseconds.

The execution of the trades inside the Forex pro platform is totally transparent, based on the ethics of online trading. Due to the volume of the different operations of the users, the team that manages the operations within the platform has the capacity to internally matching a substantial part of the flow of orders from its clients. This measure is used to minimize any type of risk without the need to interfere in the orders made by users.

C:\Users\ana\Downloads\FOREXPROOO.png Nowadays, Forex pro conducts transactions in real time without any intervention in its operations, it is continuously in operation and it has headquarters in more than 150 countries including the United Kingdom, Dubai, The Bahamas, among others. Since its recognition by the Financial Conduct Authority (FCA), it has obtained more than 50 awards for its extensive management and professionalism, where more than one million traders are made daily and it is one of the most preferred worldwide.

FOREX ONLINE

C:\Users\ana\Downloads\trading-forex-with-europefx.jpg

What is it?

Forex Online is a network platform that allows the currency transactions that are handled by the exchange market. At the beginning of its creation it was only used by the big banks, but thanks to the technology and the use of the Internet any individual around the world can make operations in the currency market through this platform in real time, this can be managed by devices such as cell phones, tables, laptops, among others.

What does it consist of?

C:\Users\ana\Downloads\forexONNNline.jpg Forex Online consists of a way of communication that allows you to raise the cost scenario of currencies based on others through a virtual platform that allows exchanging between sellers and buyers. This means that it proposes a real-time model that reflects the change in prices of currencies whose value fluctuates due to the interaction of supply and demand. This allows users within the system to interact with other beneficiaries from any side of the planet. From your electronic device you can make exchanges through intermediaries (known as brokers within the Forex system) and in this way realize business.

Forex Online allows you to enter with an account that starts with 100 US dollars (USD) from your mobile device using the MetaTrader 4 platform (a dedicated platform to Forex that is responsible of the analysis of financial markets). Once deposited the one hundred (100) dollars, you will be assigned a broker that for each dollar deposited by you adds 100 dollars more, in this way you will have a greater purchasing power in order to be able to exchange your currencies or close any movement within the market.

The MetaTrader 4 platforms allow users to visualize the costs of each currency at their change, the graphs that explain the behavior of currencies with respect to the value within the stock market, among other tools. It is one of the most important tools in the market because users need it in order to work in the market that Forex offers within its online platform.

Forex in its online platform also has within its instruments a guide the user can check to facilitate the use of the platform, the ability to interact with your broker, visualizing the statistics of the different stock markets, seeing the cost of one currency versus another. In addition to being able to buy and sell, it has a system that allows to clarify the user’s questions as well as having files where the necessary guides are to start as a Forex trader. It is a very useful tool because it facilitates transactions within the market, allows the purchase and sale of shares of companies without any land limit, it maintains the intercommunicated community being in operation for 24 hours a day, therefore work in the platform is continuous, avoiding limitations in the process of buying and selling currencies.