Work on the foreign exchange market embraces purchase of one currency and sale of another. Forex market is the largest financial market worldwide; its daily turnover exceeds one of the stock market by many times. People trade on Forex 24 hours a day 5 days a week.
In this article we will cover such an important factor as news and their influence on the currency market. We will also get acquainted with the calendar of the main expected events relevant when analyzing the current market situation.
The bi-currency basket was introduced by the Central Bank of Russia in 2005 with the aim to outline the operational benchmark of the bank’s exchange policy. At the moment the bi-currency basket was put into action, it consisted of 0.1 Euros and 0.9 US dollars. Starting from February 2007 the figures have been changed, and presently the bi-currency basket contains 0.45 Euros and 0.55 US dollars.
As soon as you decide to work on the currency market you should realize that being a successful trader requires an effective system of controlling your funds. Steady and smooth money management ensures safe margin trading. The balance between average profit and loss should be kept strictly. Only in this case playing turns into working on the market. The main criteria of money management on the market are given below.
While a trading novice on Forex market starts facing some hurdles in trading, the first thing coming to mind is that for having a complete success on the market it is required to learn forecasting the price movement. Having investigated the market fundamentals he will understand that a fundamental analysis should be used for long term suppositions and the technical one – for short term outlooks. Puzzling out the market history where the trader works he will notice that there are repeated time periods. During a long period of time the markets have been moving up and down in long cyclic periods.
If you strive to become a successful Forex trader, you need to create your personal trading strategy. In the trading practice there is no trading strategy, which could be equally suitable for all traders. Every trader should create a trading strategy by himself, which would be suitable for the trading conditions by all parameters.
Fractal analysis applied in trading on the financial market, can make the traders’ work much easier. In spite of its difficulty, fractal analysis can help trader to predict the growth or downfall of the price rates and, consequently, pricing and market behavior will become foreseeable.
MetaTrader 4 and MetaTrader 5 platforms apart from their principal function of sending orders to a broker have a multitude of other features. In particular, the platforms support Trading Signals service which promotes trades’ copying in real time.
Let us start with the definition of scalping and pipsing. These trading strategies are employed by forex traders for taking profit from intraday price oscillations occurring on the currency market. As a rule, deals remain opened during only several minutes. One position will not bring much profit but these strategies require a huge number of deals.
VPS (Virtual Private Server) is the best decision on the use of server’s place for arranging trading on the Forex market. VPS is a service within the framework of which a trader is provided with the Virtual Private Server.
Both professional traders and novices who work on the financial market have to develop the most convenient and profitable for them trading system in order to be able to trade on Forex successfully. Working out the trading system one should select the most appropriate trading regime. There are various types of forex trading regimes but it does not mean that every trader can work with any conditions. Trader needs to choose the style which will save the time and fit the personality and financial capacity.