GBP/USD bounced off support yesterday just prior to the BoE, and drove further higher in the wake of the meeting. The rally doesn’t mean much so far, though, as price remains well contained within a developing wedge that is seen as leading a meaningful move soon. A break above 13173 could get the upside going, while a break below 12954 may perhaps be even ...
Traders in the investment management and banking industries have formally called for market trading hours to be reduced by 90-minutes to seven hours.Responding to the London Stock Exchange’s (LSE) consultation on the issue, the Association for Financial Markets in Europe (AFME) and the Investment Association (IA) are continuing their campaign for a ...
That common trait is fear, which creates the 'fight or flight' response in humans. Unfortunately, it is this fight or flight response which can cause the downfall of many traders. We cannot change what we have evolved to feel over millions of years, but we can change how we approach these feelings, by studying the psychology of successful Forex traders and then applying the findings. Today, we will look at how we should behave and respond to trading situations from the correct Forex trading psychology point of view.

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The 2nd method is by performing a carry trade, where you can profit by buying a currency with a higher interest rate, and selling a currency with a lower interest rate. An example of this would be the USD/CHF (Swiss franc). If you buy USD/CHF, you are buying the USD, and their interest rates are higher than Swiss interest rates, so if you hold the position overnight, every day you hold the trade you will make money, and the money will be deposited in your brokerage account.
The 2nd method is by performing a carry trade, where you can profit by buying a currency with a higher interest rate, and selling a currency with a lower interest rate. An example of this would be the USD/CHF (Swiss franc). If you buy USD/CHF, you are buying the USD, and their interest rates are higher than Swiss interest rates, so if you hold the position overnight, every day you hold the trade you will make money, and the money will be deposited in your brokerage account.
A jump in the pound just before the Bank of England's rates decision was announced will be investigated by the markets' watchdog. The Financial Conduct Authority said it is "looking into" claims that some currency buyers might have known the decision before it was made public at midday on Thursday. Before the Bank announced its intention to hold rates at ...
It's easy for traders to feel confident in their ability to remain calm and collected during their trading sessions before the market opens. However, once the clock starts it's a different story. When faced with real financial decisions, it's very easy for emotions to come into play. We can't avoid our emotions, but we can learn to work around them.
Election year historical data is a good base for identifying the range of outcomes for this year as 2020 is an election year. The data below shows the historical data, which may be relevant to how 2020 might shape up. Given the many unknowns in 2020 (impeachment, trade war truce, economy and the outcome of the election itself), this year is especially ...
More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by supply and demand, is a reflection of many things, including current interest rates, economic performance, sentiment towards ongoing political situations (both locally and internationally), as well as the perception of the future performance of one currency against another. When a deal is finalized, this is known as a "spot deal." It is a bilateral transaction by which one party delivers an agreed-upon currency amount to the counter party and receives a specified amount of another currency at the agreed-upon exchange rate value. After a position is closed, the settlement is in cash. Although the spot market is commonly known as one that deals with transactions in the present (rather than the future), these trades actually take two days for settlement.
Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using Admiral Markets UK Ltd, Admiral Markets Cyprus Ltd or Admiral Markets PTY Ltd services, please acknowledge all of the risks associated with trading.

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.
Unlike stock markets, which can trace their roots back centuries, the forex market as we understand it today is a truly new market. Of course, in its most basic sense—that of people converting one currency to another for financial advantage—forex has been around since nations began minting currencies. But the modern forex markets are a modern invention. After the accord at Bretton Woods in 1971, more major currencies were allowed to float freely against one another. The values of individual currencies vary, which has given rise to the need for foreign exchange services and trading.
GBPCAD has gained this week but it managed to still hold within the Ichimoku cloud in the daily timeframe. The price ran to a fresh six-week peak today at 1.7376, climbing above 1.7340, which is the 23.6% Fibonacci retracement level of the upward wave from 1.5875 to 1.7790, following the rebound off the six-month uptrend line. The technical indicators are ...
The blender company could have reduced this risk by shorting the euro and buying the USD when they were at parity. That way, if the dollar rose in value, the profits from the trade would offset the reduced profit from the sale of blenders. If the USD fell in value, the more favorable exchange rate will increase the profit from the sale of blenders, which offsets the losses in the trade.
The first method is speculating on the direction a currency pair is going to trade, and buying or selling this pair. Traders can do this scalping, day trading or swing trading. A traders goal is always to predict the market direction correctly. There will always be losing trades as I explain in forex help tip 6, but if we enter the right trades we give ourselves the best chance of succeeding in forex.
Just like stocks, you can trade currencies based on what you think about its value (or where it goes). But the big difference with forex is that you can trade up or down just as easily. If you think that the currency will grow in value, you can buy it. If you think it will decrease, you can sell it. With such a large market, finding a buyer when you sell and a seller when you buy is much easier than in other markets. You may have heard in the news that China devalues ​​its currency in order to attract more foreign business to its country. If you think that this trend will continue, you can make a deal in the Forex market by selling Chinese currency for another currency, say, the US dollar. The more the Chinese currency depreciates against the US dollar, the higher your profit. If the Chinese currency rises in price when you have a sell position, your losses grow and you want to exit the trade.
Both types of contracts are binding and are typically settled for cash at the exchange in question upon expiry, although contracts can also be bought and sold before they expire. The forwards and futures markets can offer protection against risk when trading currencies. Usually, big international corporations use these markets in order to hedge against future exchange rate fluctuations, but speculators take part in these markets as well.
Since the market is made by each of the participating banks providing offers and bids for a particular currency, the market pricing mechanism is based on supply and demand. Because there are such large trade flows within the system, it is difficult for rogue traders to influence the price of a currency. This system helps create transparency in the market for investors with access to interbank dealing.
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