Leverage is vitally important, yet it remains a misunderstood concept for many traders. The leverage ratio essentially governs the margin required in an account to trade. 1:100 leverage means for every 100 USD traded, 1 USD margin is required (or 1%). 1:200 leverage, therefore, means for every 200 USD traded, 1 USD margin is required … Continue reading Forex Leverage and Margin Defined
Without rules of engagement, you essentially operate on emotion instead of a well-ordered approach. This is what a trading strategy provides. Countless Forex trading strategies are available, therefore choosing a suitable approach can be a challenge. What’s a Trading Strategy? You may have heard maintaining discipline is key to becoming a successful trader. Equally as … Continue reading Forex Trading: An Introduction to Trading Strategies and Trading Styles
Newer traders often enter trading with exaggerated dreams, void of accurate education. To trade the forex market successfully, understanding the dynamics behind how trades are measured is a necessity. Currency Pairs A base currency is the primary currency in a currency pair quotation – the euro in EUR/USD, for example. The quote currency, or counter … Continue reading What Are Lots in the Forex Market?
The only way to do great work is love what you do – Steve Jobs Most have never envisioned becoming traders or demonstrated a connection to the markets. In fact, it’s likely the majority were introduced to trading through friends or colleagues, enticed by the idea of financial freedom. Many, however, fail to acknowledge what … Continue reading Fall in Love with the Process – Not the Results
While many still think of traders dressed in coloured jackets in a crowded trading pit, few people picture a computer server churning away making millions of decisions. It is estimated approximately 75% of all US equity trades are not placed by humans, but by machines, also known as ‘algorithms’. The same algorithmic trend is also … Continue reading Algorithmic Trading Explained: The Basics