Browsing all posts in The Market.

Hedging

On occasion, Forex traders might seek something of an “insurance” against an undesirable switch in exchange rates. If so, they will use a method known as hedging.

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 that [...]

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.

What is Arbitrage?

Forex arbitrage is a trading strategy in which traders look to exploit the inefficiency in the pricing of currency pairs to maximise their profits. It’s a strategy that requires huge attention to detail, quick reactions and, more often than not, specialised software.

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 opening [...]

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 US Dollar. The [...]

The Basics of the Forex Market

There are billions of dollars which are traded on the Forex market every single year. This money is traded through the exchange of foreign currency from investors to other investors, in the relationship between buyers and sellers. As the popularity grows of the Forex market, so does the amounts of money which are traded on [...]