Forex

What is a popular strategy for short-term forex traders?

For many traders, trading key announcements is seen as an opportunity to profit quickly due to the volatility that surrounds these events. One such event that is popular with traders is the US non-farm payrolls. This occurs on the first Friday of every month. The non-farm payroll is the measure of how many new jobs…

What is the carry trade and how can traders profit from it?

Over the past few years, the carry trade has been a major talking point in the financial markets. It is often mentioned in the news because a large number of investors use it as a trading strategy. The strategy is based on the economic theory of supply and demand since funds tend to flow into…

How do you use pivot points to trade forex?

One of the most appealing things about technical analysis is the ability to adapt it to a variety of tradable markets. By definition, technical analysis concentrates on the study of market action in an attempt to predict future movements. As such many of these indicators will perform over a range of markets. Your choice of…

How can you hedge a US portfolio of shares when the US Dollar is going down?

Hedging is a strategy used as a means of removing or at the very least reducing the uncertainty of exchange rate fluctuations on your portfolio returns. The method you employ to hedge your portfolio will depend on a variety of factors. The first step in choosing a hedging strategy is to quantify your exposure. For…

What is the uptick rule, and how does it affect forex trading?

US regulators revoked the “uptick rule” on the 6th July 2007. Previously the uptick rule, which was implemented in the 1930s following the US stock market crash, was designed to ensure it was more difficult to short sell stock. Under the so called uptick rule, a short sale may only take place if the market…

What are the essentials that every forex trading plan should hold?

Do you come out of the shopping mall with bag-loads of things you didn’t expect to buy? Then maybe you have an impulsive nature. That’s one of the aspects to consider when constructing a trading plan – the type of trader that you are. WHY YOU NEED A PLAN A trading plan sets parameters around…

What tactics boost profits trading forex?

Any time can be a good time for foreign currency traders, because they can seek profits in rising and falling markets. In the current market traders are seeing more opportunities than ever before, with big news and stgelopments affecting currencies every day. It’s a great time to make money – but also to lose it…

How do currencies move in relation to each other?

In order to be an effective trader, it is important to understand how different currency pairs move in relation to each other. There are a few reasons why this is significant, but most importantly, it allows traders to understand their exposure. As we have stated time and again, correlations between different currency pairs will inevitably…