FAQ

When is the best time to trade currencies?

When it comes to trading, everyone is trying to look for an “edge” but of course it is not easy to find. An edge can come in any form and is usually a small change that can make a difference. Many people, particularly new traders, do not realize that you can gain an edge in…

How to analyse price charts and use trading tools before you trade the markets

Market trading, like any mental exercise, requires a bit of knowledge and expertise before you really can give it a go. For many traders, that knowledge starts with not only having a sound trading plan, but also in techniques that help analyze a market in question – whether one wants to track and trade commodities,…

How does leverage work in a forex trade?

One of the major advantages of the spot forex market is the ability to use leverage to control a larger position than would otherwise be possible in more traditional markets. Most spot forex dealers offer leverage of 100:1 up to 400:1. Your amount of available leverage is usually determined when you open your account and…

What are the most important fundamental indicators affecting the AUD/USD?

To start with, it’s worth pointing out that the key factors in the Australian economy at the moment are commodity prices, global growth, stgeloping countries, interest rates and consumer debt. The impact of commodities on the economy comes through both demand and price; since 2002 the price of commodities has doubled, bringing a significant income…

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…