• Welcome to binaryoptiontrading.pw forex forun binary options trade. Please login or sign up.
 
Jan 28, 2020, 06:15 am

News:

SMF - Just Installed!


Currency Trading.

Started by admin, Jan 08, 2020, 07:16 am

Previous topic - Next topic

admin

What is Forex and how does it work?
Forex, also known as foreign exchange or FX trading, is the conversion of one currency into another. It is one of the most actively traded markets in the world, with an average daily trading volume of $5 trillion. Take a closer look at everything you'll need to know about Forex, including what it is, how you trade it and how leverage in Forex works.
Interested in Forex trading with IG?
What is Forex trading?
Forex, or foreign exchange, can be explained as a network of buyers and sellers, who transfer currency between each other at an agreed price. It is the means by which individuals, companies and central banks convert one currency into another - if you have ever travelled abroad, then it is likely you have made a Forex transaction.
While a lot of foreign exchange is done for practical purposes, the vast majority of currency conversion is undertaken with the aim of earning a profit. The amount of currency converted every day can make price movements of some currencies extremely volatile. It is this volatility that can make Forex so attractive to traders: bringing about a greater chance of high profits, while also increasing the risk.

admin

How do currency markets work?
Unlike shares or commodities, Forex trading does not take place on exchanges but directly between two parties, in an over-the-counter (OTC) market. The Forex market is run by a global network of banks, spread across four major Forex trading centres in different time zones: London, New York, Sydney and Tokyo. Because there is no central location, you can trade Forex 24 hours a day.
There are three different types of Forex market:
Spot Forex market : the physical exchange of a currency pair, which takes place at the exact point the trade is settled - ie 'on the spot' - or within a short period of time Forward Forex market : a contract is agreed to buy or sell a set amount of a currency at a specified price, to be settled at a set date in the future or within a range of future dates Future Forex market : a contract is agreed to buy or sell a set amount of a given currency at a set price and date in the future. Unlike forwards, a futures contract is legally binding.
​Most traders speculating on Forex prices will not plan to take delivery of the currency itself; instead they make exchange rate predictions to take advantage of price movements in the market.

admin

What is a base and quote currency?
A base currency is the first currency listed in a Forex pair, while the second currency is called the quote currency. Forex trading always involves selling one currency in order to buy another, which is why it is quoted in pairs - the price of a Forex pair is how much one unit of the base currency is worth in the quote currency.
Each currency in the pair is listed as a three-letter code, which tends to be formed of two letters that stand for the region, and one standing for the currency itself. For example, GBP/USD is a currency pair that involves buying the Great British pound and selling the US dollar.
To keep things ordered, most providers split pairs into the following categories:
Major pairs. Seven currencies that make up 80% of global Forex trading. Includes EUR/USD, USD/JPY, GBP/USD and USD/CHF Minor pairs. Less frequently traded, these often feature major currencies against each other instead of the US dollar. Includes: EUR/GBP, EUR/CHF, GBP/JPY Exotics. A major currency against one from a small or emerging economy. Includes: USD/PLN, GBP/MXN, EUR/CZK Regional pairs . Pairs classified by region - such as Scandinavia or Australasia. Includes: EUR/NOK, AUD/NZD, AUD/SGD.
What moves the Forex market?
The Forex market is made up of currencies from all over the world, which can make exchange rate predictions difficult as there are many factors that could contribute to price movements. However, like most financial markets, Forex is primarily driven by the forces of supply and demand, and it is important to gain an understanding of the influences that drives price fluctuations here.
Central banks.
Supply is controlled by central banks, who can announce measures that will have a significant effect on their currency's price. Quantitative easing, for instance, involves injecting more money into an economy, and can cause its currency's price to drop.
News reports.
Commercial banks and other investors tend to want to put their capital into economies that have a strong outlook. So, if a positive piece of news hits the markets about a certain region, it will encourage investment and increase demand for that region's currency.
Unless there is a parallel increase in supply for the currency, the disparity between supply and demand will cause its price to increase. Similarly, a piece of negative news can cause investment to decrease and lower a currency's price. This is why currencies tend to reflect the reported economic health of the region they represent.
Market sentiment.
Market sentiment, which is often in reaction to the news, can also play a major role in driving currency prices. If traders believe that a currency is headed in a certain direction, they will trade accordingly and may convince others to follow suit, increasing or decreasing demand.



admin

How does Forex trading work?
There are a variety of different ways that you can trade Forex, but they all work the same way: by simultaneously buying one currency while selling another. Traditionally, a lot of Forex transactions have been made via a Forex broker, but with the rise of online trading you can take advantage of Forex price movements using derivatives like CFD trading.
CFDs are leveraged products, which enable you to open a position for a just a fraction of the full value of the trade. Unlike non-leveraged products, you don't take ownership of the asset, but take a position on whether you think the market will rise or fall in value.
Although leveraged products can magnify your profits, they can also magnify losses if the market moves against you.
What is the spread in Forex trading?
The spread is the difference between the buy and sell prices quoted for a Forex pair. Like many financial markets, when you open a Forex position you'll be presented with two prices. If you want to open a long position, you trade at the buy price, which is slightly above the market price. If you want to open a short position, you trade at the sell price - slightly below the market price.
What is a lot in Forex?
Currencies are traded in lots - batches of currency used to standardise Forex trades. As Forex tends to move in small amounts, lots tend to be very large: a standard lot is 100,000 units of the base currency. So, because individual traders won't necessarily have 100,000 pounds (or whichever currency they're trading) to place on every trade, almost all Forex trading is leveraged.
What is leverage in Forex?
Leverage is the means of gaining exposure to large amounts of currency without having to pay the full value of your trade upfront. Instead, you put down a small deposit, known as margin. When you close a leveraged position, your profit or loss is based on the full size of the trade.
While that does magnify your profits, it also brings the risk of amplified losses - including losses that can exceed your margin . Leveraged trading therefore makes it extremely important to learn how to manage your risk.
What is margin in Forex?
Margin is a key part of leveraged trading. It is the term used to describe the initial deposit you put up to open and maintain a leveraged position. When you are trading Forex with margin, remember that your margin requirement will change depending on your broker, and how large your trade size is.
Margin is usually expressed as a percentage of the full position. So, a trade on EUR/GBP, for instance, might only require 3.33% of the total value of the position to be paid in order for it to be opened. So instead of depositing £100,000, you'd only need to deposit £3300.
What is a pip in Forex?
Pips are the units used to measure movement in a Forex pair. A Forex pip is usually equivalent to a one-digit movement in the fourth decimal place of a currency pair. So, if GBP/USD moves from $1.353 6 1 to $1.353 7 1, then it has moved a single pip. The decimal places shown after the pip are called fractional pips, or sometimes pipettes.
The exception to this rule is when the quote currency is listed in much smaller denominations, with the most notable example being the Japanese yen. Here, a movement in the second decimal place constitutes a single pip. So, if EUR/JPY moves from ¥106. 45 2 to ¥106. 46 2, again it has moved a single pip.
How is the Forex market regulated?

admin

Despite the enormous size of the Forex market, there is very little regulation because there is no governing body to police it 24/7. Instead, there are several national trading bodies around the world who supervise domestic Forex trading, as well as other markets, to ensure that all Forex providers adhere to certain standards. For example, in the UK the regulatory body is the Financial Conduct Authority (FCA).
How much money is traded on the Forex market daily?
Approximately $5 trillion worth of Forex transactions take place daily, which is an average of $220 billion per hour. The market is largely made up of institutions, corporations, governments and currency speculators - speculation makes up roughly 90% of trading volume and a large majority of this is concentrated on the US dollar, euro and yen.
What are gaps in Forex trading?
Gaps are points in a market when there is a sharp movement up or down with little or no trading in between, resulting in a 'gap' in the normal price pattern. Gaps do occur in the Forex market, but they are significantly less common than in other markets because it is traded 24 hours a day, five days a week.
However, gapping can occur when economic data is released that comes as a surprise to markets, or when trading resumes after the weekend or a holiday. Although the Forex market is closed to speculative trading over the weekend, the market is still open to central banks and related organisations. So, it is possible that the opening price on a Sunday evening will be different from the closing price on the previous Friday night - resulting in a gap.
Is Forex trading income taxable?
The tax on Forex positions does depend on which financial product you are using to trade the markets.
When you trade via a Forex broker or through CFDs, any gains to your Forex positions are taxed as ordinary income. However, your losses are also considered as ordinary capital losses, which means that you can use them to offset any other tax.
Develop your Forex knowledge with IG.
Find out more about Forex trading and test yourself with IG Academy's range of online courses.
You might be interested in...
Glossary of trading terms.
Take a look at our list of financial terms that can help you understand trading and the markets.
Risk management.
Be aware of the risks associated with Forex trading and understand how IG supports you in managing them.
Trading platforms.
Discover the different platforms that you can trade Forex with IG.
Markets.
CFD trading.
Trading platforms.
IG analysis.
Contact us.
Follow us online:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
IG is a trading name of IG Markets Ltd and IG Markets South Africa Limited. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance.
IG provides execution only services and enters into principal to principal transactions with its clients on IG's prices. Such trades are not on exchange. Whilst IG is a regulated FSP, CFDs issued by IG are not regulated by the FAIS Act as they are undertaken on a principal-to-principal basis.
The information on this site is not directed at residents of the United States or Belgium or any particular country outside South Africa and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Voted SA's top CFD provider in Business Day Investors Monthly Annual Stockbroker Awards in 2012 and 2013, best platform for Active Day Traders in 2013 and 2014 and SA's best Online Broker in 2015 and 2017.

admin

Forex Day Trading in Russia 2019 - Tutorial and Brokers.
Forex trading is a huge market. Billions are traded in foreign exchange on a daily basis. Whether you are an experienced trader or an absolute beginner, finding the best Forex broker and a profitable Forex day trading strategy or system is complex. So learn the fundamentals before choosing the best path for you .
With this introduction, you will learn the general Forex trading tips and strategies applicable to currency trading. It will also highlight potential pitfalls and useful indicators to ensure you know the facts. Lastly, use the trusted broker list to compare the best Forex platforms for day trading in Russia 2019.
Read on to discover the A-Z of Forex, how to start trading, and how to judge the best platform...
Top 3 Forex Brokers in Russia.
Why Trade Forex?
The Forex market offers the day trader the ability to speculate on movements in foreign exchange markets and particular economies or regions . Furthermore, with no central market, Forex offers trading opportunities around the clock.
Liquidity - In the Forex market there is an average volume of over $3.2 trillion dollars traded per day. So, there is an abundance of trades and moves you can make. Diversity - Firstly, you have the pairs stemming from the eight major global currencies. On top of that, many regional currency pairings are also available for trade. More options, more opportunities to turn a profit. Accessibility - The Forex market is readily accessible, open twenty-four hours a day, five days a week. As a result, you decide when to trade and how to trade. Leverage - A significant amount of Forex currency pairings are traded on margin. This is because leverage can be used to help you both buy and sell large quantities of currency. The greater the quantity, the greater the potential profit - or loss. Low commissions - Forex offer relatively low costs and fees compared to other markets. In fact, some firms don't charge any commission at all, you pay just the bid/ask spreads. True ECN firms may also offer 0 spread!
Currencies Traded In Forex.
Major.
In the international Forex day trading world, the vast majority of people focus on the seven most liquid currency pairs on earth, which are firstly the four 'majors':
EUR/USD (euro/dollar) USD/JPY (dollar/Japanese yen) GBP/USD (British pound/dollar) USD/CHF (dollar/Swiss franc)
In addition, there are three emerging pairs:
AUD/USD (Australian dollar/dollar) USD/CAD (dollar/Canadian dollar) NZD/USD (New Zealand dollar/dollar)
These currency pairs, in addition to a variety of other combinations, account for over 95% of all speculative trading in the Forex market. However, you will probably have noticed the US dollar is prevalent in the major currency pairings. This is because it's the world's leading reserve currency, playing a part in approximately 88% of currency trades.
Minor.
If a currency pairing doesn't include the US dollar, it's known as a 'minor currency pair' or a 'cross-currency pair'. Hence the most popularly traded minor currency pairs include the British pound, Euro, or Japanese yen, such as:
EUR/GBP (euro/British pound) EUR/AUD (euro/Australian dollar) GBP/JPY (British pound/Japanese yen) CHF/JPY (Swiss franc/Japanese yen)
You can also delve into the trade of exotic currencies such as the Thai Baht and Norwegian or Swedish krone. However, these exotic extras bring with them a greater degree of risk and volatility.
Finding The Best Forex Broker.
The "best" Forex broker will often be a matter of individual preference. It may come down to the pairs you need to trade, the platform, trading using spot markets or per point or simple ease of use requirements.
Below are a list of comparison factors, some will be more important to you than others but all are worth considering. Details on all these elements for each brand can be found in the individual reviews.
Lowest Trading Costs.
Spreads, commission, overnight fees - everything that reduces your profit on a single trade needs to be considered. High frequency trading means these costs can ratchet up quickly, so comparing fees will be a huge part of your broker choice. Inactivity or withdrawal fees are also noteworthy as they can be another drain on your balance.
Trading Platform.
The trading platform needs to suit you. Whether you want a simple cut down interface, or multiple built in features, widgets and tools - your best option may not be the same as someone else's.
Demo accounts are a great way to try out multiple platforms and see which works best for you. Remember also, that many platforms are configurable, so you are not stuck with a default view.

admin

Mobile Trading.
Trading Forex on the move will be crucial to some people, less so for others. Most brands offer a mobile app, normally compatible across iOS, Android and Windows.
If this is key for you, then check the app is a full version of the website and does not miss out any important features. The download of these apps is generally quick and easy - brokers want you trading.
Customer Service.
Is customer service available in the language you prefer? Is there live chat, email and telephone support? When are they available? How high a priority this is, only you can know, but it is worth checking out.
Asset List.
Does the broker offer the markets or currency pairs you want to trade? A pretty fundamental check, this one. If you are trading major pairs, then all brokers will cater for you. If you want to trade Thai Bahts or Swedish Krone you will need to double check the asset lists and tradable currencies.
Regulation.
Do you want a broker regulated by a particular body - the FCA, SEC or ASIC perhaps? Remember European regulation might impact some of your leverage options, so this may impact more than just your peace of mind. We cover regulation in more detail below.
Spreads Or Commission.
Partly covered in trading costs, but the spreads are often a comparison factor on their own.
This is because you are not tied down to one broker. If you trade 3 or 4 different currency pairs, and no single broker has the tightest spread for all of them, then shop around. There is nothing wrong with having multiple accounts to take advantage of the best spreads on each trade. Beware of slippage 'hiding' wider spreads too often.

admin

Payment Methods.
Deposit method options at a certain Forex broker might interest you. Do you want to use Paypal, Skrill or Neteller? Are you happy using credit or debit cards knowing this is where withdrawals will be paid too?
Some Forex brokers now accept deposits in Bitcoin or a range of other crypto's too.
Security.
Most brands will follow regulatory demands to separate client and company funds, and offer certain levels of user data security. Some brands might give you more confidence than others, and this is often linked to the regulator or where the brand is licensed. A worthy consideration.
Demo Accounts.
Try before you buy. Most credible brokers are willing to let you see their platforms risk free. Trading on a demo account or simulator is a great way to test strategy, back test or learn a platforms nuances. Try as many as you need to before making a choice - and remember having multiple accounts is fine (even recommended).
Account Types.
From cash, margin or PAMM accounts, to Bronze, Silver, Gold and VIP levels, account types can vary. The differences can be reflected in costs, reduced spreads, access to Level II data, settlement or different leverage. Micro accounts might provide lower trade size limits for example.
Retail and professional accounts will be treated very differently by both brokers and regulators for example. An ECN account will give you direct access to the Forex contracts markets. So research what you need, and what you are getting.
Leverage.
For European Forex traders this can have a big impact. Forex leverage is capped at 1:30 by the majority of brokers regulated in Europe. Assets such as Gold, Oil or stocks are capped separately.
In Australia however, traders can utilise leverage of 1:500. That makes a huge difference to deposit and margin requirements. Australian brands are open to traders from across the globe, so some users will have a choice between regulatory protection or more freedom to trade as they wish.
Just note that higher leverage increases potential losses, just as it does potential profits.
Tools Or Features.
From charting to futures pricing or bespoke trading robots, brokers offer a range of tools to enhance the trading experience. Again, the availability of these as a deciding factor on opening account will be down to the individual. Level 2 data is one such tool, where preference might be given to a brand delivering it.
Education.
Forex trading beginners in particular, may be interested in the tutorials offered by a brand. These can be in the form of e-books, pdf documents, live webinars, expert advisors (ea), courses or a full academy program - whatever the source, it is worth judging the quality before opening an account. Bear in mind Forex companies want you to trade, so will encourage trading frequently.
MetaTrader 4 or 5.
Integration with popular software packages like Metatrader 4 or 5 (MT4 or MT5) might be crucial for some traders. Many brands offer automated trading or integration into related software, but if you are going to rely on it, you need to make sure.

admin

Bonus.
From cashback, to a no deposit bonus, free trades or deposit matches, brokers used to offer loads of promotions. Regulatory pressure has changed all that. Bonuses are now few and far between. Our directory will list them where offered, but they should rarely be a deciding factor in your Forex trading choice. Also always check the terms and conditions and make sure they will not cause you to over-trade.
Execution Speed.
Desktop platforms will normally deliver excellent speed of execution for trades. But mobile apps may not. While this will not always be the fault of the broker or application itself, it is worth testing.
Scams.
Our reviews have already filtered out the scams, but if you are considering a different brand, avoid getting caught out with these checks;
Were you 'cold called'? Reputable firms will not call you out of the blue (This includes emails, or facebook or Instagram channels) Are they offering unrealistic profits? Just stop and consider for a minute - if they could make the money they are claiming, why are they cold calling or advertising on social media? Are they offering to trade on your behalf or use their own managed or automated trades? Do not give anyone else control of your money.
If you have any doubts, simply move on. There are plenty of legitimate, legal brokers.
With all these comparison factors covered in our reviews, you can now shortlist your top Forex brokers, take each for a test drive with a demo account, and select the best one for you. We have ranked brokers based on our own opinion and offered ratings in our tables, but only you can award '5 stars' to your favourite!
Read who won the DayTrading.com 'Best Forex Broker 2019' on the Awards page.
Forex Broker Reviews.
Use this table with reviews of the top Forex brokers to compare all the FX brokers we have ever reviewed. Note that some of these Forex brokers might not accept trading accounts being opened from your country. If we can determine that a broker would not accept your location, it is marked in grey in the table.
Forex Broker Reviews Broker Demo Min Dep. MT4 Bonus 24Option Yes $250 Yes No Avatrade Yes $100 Yes Yes AxiTrader Yes 0 $/€/£ Yes No Ayondo Yes £1 Yes No BDSwiss Yes 100 $/€/£ No No Binary.com Yes $5 Yes No Capital.com Yes £/$/€100 No No CityIndex Yes £/$100 Yes Yes CMC Markets Yes £ 0 Yes No eToro Yes $200 Yes No ETX Capital Yes £250 Yes No Finq.com Yes $100 Yes Yes Forex.com Yes $50 Yes No Fusion Markets Yes No Minimum Yes No FXCM Yes £300 Yes No FXPro Yes $100 Yes No IC Markets Yes $200 Yes No IG Group Yes £250 Yes No Interactive Brokers Yes $10000 No No Invest.com Yes £0 Yes Yes Investous Yes $250 Yes No IQ Option Yes $10 No No Just2Trade Yes £2500 Yes No LCG Yes 0 $/€/£ Yes No Markets.com Yes $100 Yes No Nadex Yes $250 No No NinjaTrader Yes $50 Yes No NordFX Yes $10 Yes No Oanda Yes $0 Yes No Pepperstone Yes £100 / $200 Yes No Plus500 Yes $100 No Yes Saxo Bank Yes 0 $/€/£ Yes No Skilling.com Yes 100 £/€/$ or 1000 NOK, SEK No No Spreadex No $1 No No TD Ameritrade Yes None No Yes Trading212 Yes €/£/$100 No No UFX Yes $100 Yes No VantageFX Yes $200 Yes Yes Videforex Yes $250 No Yes XM Yes 5 $/€/£ Yes Yes XTB Yes $250 Yes No ZuluTrade Yes $1 to $300 (Broker choice dependent) Yes No.
Forex Regulation.
Regulation should be an important consideration. Whether the regulator is inside, or outside, of Europe is going to have serious consequences on your trading. ESMA (the European Securities and Markets Authority) have imposed strict rules on Forex firms regulated in Europe. This includes the following regulators:
CySec (Cyprus Securities and Exchange Commission) FCA (Financial Conduct Authority) BaFin - (Bundesanstalt für Finanzdienstleistungsaufsicht) Swiss Financial Market Supervisory Authority (Switzerland)
ESMA have jurisdiction over all regulators within the EEA.
The rules include caps or limits on leverage, and varies on financial products. Forex leverage is capped at 1:30 (Or x30). Outside of Europe, leverage can reach 1:500 (x500).
Traders in Europe can apply for Professional status. This removes their regulatory protection, and allows brokers to offer higher levels of leverage (among other things).
Outside of Europe, the largest regulators are:
SEC - Securities and Exchange Commission (US) CFTC - Commodity Futures Trading Commission (US) CSA - Canadian Securities Administration ASIC - Australian Securities and Investments Commission.
These cover the bulk of countries outside Europe. Forex brokers catering for India, Hong Kong, Qatar etc are likely to have regulation in one of the above, rather than every country they support. Some brands are regulated across the globe (one is even regulated in 5 continents). Some bodies issue licenses, and others have a register of legal firms.
So to reiterate, an ASIC Forex broker can offer higher leverage to a trader in Europe.