Tag Archives: forex trading

Beginner’s Guide To Options Trading

Christine Evans/ January 1, 2017/ Forex/

Now that you are considering a profitable career in Stock Trading, have you ever wonder what Forex options trading is all about? A Stock Option is a form of a contract which provides rights to trade. Meaning to buy or sell stocks at a given price and a given period. So in the process of trading, you are not selling the shares of stocks but just its rights. This kind of trading is very risky since it offers a profitable business for the trader. As a beginner, it would be best for you to know that there two kinds of Forex Options named Puts and Calls.

What you need to understand about Options trading

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A put is what you call the contract that gives the owner the right but not the obligation to trade a stock at a price before the agreed time expires. A call option, on the other hand, gives the holder or bearer the right to buy stocks.

Another way of calling an Option is Derivative since the value, which is based on an underlying stock or equity, to be traded is derived from something else. There is also an index option, and it works pretty much like stock options only that the derivative is also an index. Since Options are securities like stocks or bonds, it requires a contract that binds a seller with its buyer with defined terms and properties.

Participants of options trading

It would also be advisable for you to know that there are four participants in this kind of options trading namely the buyers or holders for Calls and Puts and the sellers or writers of the Calls and Puts.

Beginners should know the difference between options and stocks. They are both similar in some ways like they both have buyers who bid and sellers who make offers plus they both can undergo the process of buy and sell like any other form of security. The only thing that differentiates them from one another is that options are derivatives that have expiration dates while stocks do not have any limitations.

How to liquidate an option

fgfdgdfgdgdfgfdWondering how you will liquidate an Option? You could do so through closing buy, closing sale or abandonment and exercising. You abandon when the premium that is left costs lesser than the costs of the whole transaction.

Conclusion

Don’t worry if you seem to get lost amidst all the options that appear to be flying towards you. You will surely get the hang of it through proper research and tools that will help you analyze market behavior and judgment calls on what to do should movements happen. The stock market is a very volatile one so you cannot just sit back and relax that the prices of some shares of stocks will remain the same for a long time. Nevertheless, even if the market is in a downturn or an upturn, you still could profit from it when you use Options Trading. You see, in real life, no one goes home the loser. It just depends on how much your principal is when you started.…

Benefits Of Gap Trading You Should Know

Christine Evans/ November 23, 2016/ Forex/

Forex, or foreign exchange, trading is a highly popular way of making money. Due to its unforeseeable nature, many strategies are widely used as a way of determining the best time to invest and therefore the best chances of making money with the system. One method that has been used in investment markets for years is gap trading. It is still hugely popular when it comes to forex. One of the benefits of this system is that it is extremely easy to use. In short, it allows investors to take advantage of the gap in price from one day to the next.

Benefits Of Gap Trading You Should Know

Preset price before closure

For example, the price will be set at a certain level at the time the market closes, and this price may either remain the same or be higher or lower by the time the market opens the next day. Forex gap trading strategies have been used to great success for many. Though there is always a risk when it comes to forex trading, knowing the gaps and knowing to use this information to your advantage really can help you to increase your profits quicker than you normally would.

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Better than traditional trading

However, forex differs from traditional markets because there is no market open and closure – forex effectively trades for 24 hours a day. However, many still insist that there is money to be made with forex gap trading strategy.

“Spread” is the specialty of forex.

This means the transaction cost is incorporated in the price. In other words, Spread is the gap between the buying price and the selling price.
FX gives you high liquidity. It means you can shift a substantial number of dollars in and out of foreign currency with the least price movement.

Zero restrictions

Here are zero restrictions in FX market for directional trading. You can easily buy a currency pair (or go long) if you sense its value will increase and can sell it (or go short) if you sense its value will decrease.

You can use leverage for forex trading.

Leverage means trading more than what is in your account. For example, leverage of 30:1 means you can trade $30 in this market for every $1 present in your account. To be more precise, you can control a trade of $30,000 with just $1000 capital.

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Conclusion

When using gap strategies, you will come across ‘gapping up’ – when the opening level is higher than yesterday’s closing level – or ‘gapping down’ when the opening level is lower than the previous day’s closing level. If the price is the same, then there was no gap.…

Forex trading – Choosing the best broker

Christine Evans/ March 18, 2016/ Forex/

Have you ever wondered why a lot of investors and even ordinary people are into Forex trading? It is because this particular trade can really help earn millions of dollars. In fact, many individuals who started from scratch have managed to make it to the top. However, doing so is not an easy thing. You can’t anticipate it to happen overnight. It would require you to have the essential skills and strategies so you would succeed. And with this, a broker plays a vital role. Check plus500 review, and get to know one of the leading brokers in the United Kingdom.

Choosing the best broker

gfasgfhgshgsahgsaEngaging yourself in Forex trading would also require you to find the best broker. It is true that there are many brokers available especially now that Forex trading is picking up more and more people. However, not all of the brokers that you will find can actually help you maximize your earnings. There will be a big difference if you go with the best broker in the industry.

Let us explore the things that you have to look for when choosing the best broker that could help you make more money in Forex trading.

1. Customer Service

A good and reliable broker should have a customer service that you can contact 24/7 either by live chat, email, or phone. With this, you will be provided with the assistance that you need particularly during emergency situations. You have to choose a broker that has competent and reliable customer service so you can be confident while you are trading. Additionally, they should be able to answer any question or clarification that you want to make so you will have a peace of mind.

2. Features

The best brokers have great features to offer to all their clients. A good one should have a personal trading account manager that could guide and help you make more money while you are trading. An account manager should also be able to answer all your queries.

gfasgasgashgasaFurthermore, you should look into mini accounts which would allow you to trade with a small amount of money. As a beginner, this feature would be very useful because you can utilize it to familiarize yourself with all the twists and turns of the trade. Through this, you will also be able to enhance your skills and strategies to prepare yourself for making larger deposits.

3. Software

You should look for a broker that would allow you to utilize an automated software. Keep in mind that the more tools you have, the higher are your chances of making the most money.…

Advantageous Forex Exchange Tips for The Dealer

Christine Evans/ October 11, 2015/ Forex/

Numerous forex tips can help the cause of the dealer. Dealers must remember that it will be to their advantage if they will follow it. The foreign exchange market especially the foreign exchange broker also uses a lot of foreign exchange tools. Bigger foreign exchange brokers feature a different range of dealing tools to their foreign exchange clients.

Most foreign exchange brokers can give prospective forex clients real-time monetary costs aside from different forex tools. It is important to make sure that your foreign exchange broker can give you a lot of tools that you need to succeed in the foreign exchange market.

Forex Tools

Some of the tools that you can use in the market are 1st; real time currency cost charting. Second: technical foreign exchange analysis tools. Third: kmnbe5t36ye7fu82standard foreign exchange analysis commentaries and Fourth: economic calendars. Strong foreign exchange brokers feature 2 or more examples of forex account. For example, the smallest size of the foreign exchange account is the mini-forex account. The mini-foreign exchange account requires interested foreign exchange dealers to give out five hundred dollars.

With that amount, you are already given a massive leverage. The leverage is needed to earn from the minimal amount of dealing capital. Normal foreign exchange account only requires a small capital, between one thousand dollars and two thousand dollars. It is vital to pick a foreign exchange broker that possess the appropriate leverage and the right services that match what you need with the overall amount of capital that you allocated in the foreign exchange market.

The foreign exchange market functions twenty-four hours a day, so a twenty-four-hour customer support is outstanding. You must be able to contact the foreign exchange broker by telephone, live chat, email and others. It is also important that the customer support representative that you are talking about seems familiar on what they are saying.

The overall quality of the customer support of a foreign exchange broker firm can diffekmnb35etdf6yu23ui7r from foreign exchange broker to foreign exchange broker, so you have to be sure in this regard before registering for a foreign exchange account. You can also try to call the customer support. The quickness of them can show the quality of their service. You can also try talking to another foreign exchange dealer to get some tips on the foreign exchange brokers.

There are also numerous foreign exchange forums on the World Wide Web that discussed the different factors of foreign exchange dealing, including the appropriate foreign exchange brokers. But nothing beats on researching first about the foreign exchange market before actually joining it so that you can avoid unnecessary losses…