Browsing all posts in General.

Forex Scalping

Forex scalping, sometimes referred to as quick trading, is a method used by some traders to make a high volume of trades for very small profits. In most cases, a scalper will hold on to a currency for less than one minute in an attempt to make a very small profit. The sheer volume of [...]

Swapping

Aside from the buying and selling currencies on Forex markets, there is a surprising amount of swapping taking place. This isn’t of course, the kind of swapping that you may have taken part in with football cards as a youngster; this is all about swapping currencies and commodities. There are three common forms of swapping [...]

Price Shading

Price shading is a strategy used by forex brokers to try and gain an advantage over traders when they feel that a particular currency is showing an increasing trend. In such examples, a broker may opt to add a ‘pip’ to the real market price in an attempt to increase their profit margin.

Sunspots in Forex

Sunspots in Forex Sunspots, an increasingly reported solar phenomenon are solar storms that can affect the weather, the ozone layer, and some people even think global warming. These sunspots come and go in approximately eleven year cycles, and some analysts have attempted to draw parallels between sunspot cycles and business cycles.

How to read Forex Quotes

When reading a quote of Forex, you need to look for two specific numbers, the base and the quote. Typically, a Forex quote will appear in the following format: USD JPY 1/97.42 The number on the left of the slash is the base number. The base is always “1″ and represents, in this case, the [...]

Fundamental Analysis vs Technical Analysis

Forex traders use different types of analysis to determine which stocks to pick. There are two main analytical models when the objective is to decide which stocks to buy and for how much. Firstly there is fundamental analysis, which looks at various factors to predict current market trends. Fundamental analysts will look at factors such [...]

Forex Trading: Open all Hours

Unlike other equities markets, the foreign exchange markets are a 24 hour trading platform, following the trading hours of each of the world’s major financial centres as the world turns. Whilst each of the major Forex trading floors, in Sydney, Toyko, London and, New York are individually only open for nine hours a day, their [...]

Best Guessing Forex

Making profits on Forex requires a basic understanding of two concepts. These are how to perform a technical assessment of the market, and how to carry out a fundamental analysis. Both are equally important, though some people tend to rely on one rather than the other. When they lead to opposite conclusions, caution is recommended, [...]

The Birth of Forex

Forex is a relatively new market and came about in the 1970s, and it is a direct result of various international agreements concerning world currencies. Specifically these were the Bretton Woods Agreement of 1944, the Smithsonian Agreement of  1971 and the European Joint Float of 1972. Bretton Woods Agreement 44 nations were involved in drafting [...]