So, it`s time for some math! Don`t be scared, we are not gonna write pages of mathematical formulas or draw triangles and pyramids, but we have to see and understand some Forex formulas, which are used every day by the traders and the brokers. Do you know how to read that? Well, if you don`t, it`s not a big deal, because now you will learn all you have to know about Forex quotes. First of all, let`s explain exactly every component of the formula: EUR, as you know is the euro and USD is the American dollar. The first currency, in this case, EUR, is the base currency, and the second one, the USD is the quote currency. As you already know, currencies are always quoted in pairs, like EUR/USD, or GPY/GBP. So, this is a pair. Why does this happen? Well, because in the Foreign Exchange Market currency trading, each transaction involves two actions: buying one currency and selling another.
Forex Money Changer
When buying, the exchange rate shows you how much do you have to pay in units of the quote currency to buy one unit of the base currency. When you are selling, the exchange rate tells you how much you get in units of the quote currency for selling one unit of the base currency. So, in the example above, we can say that you have to pay 1.3318 U.S. 1 euro, or, if you`re selling, you get 1.3318 U.S.dollars when you sell 1 euro. It is very important for a beginner to know how to read Forex quotes, because that`s how you decide which currency is better to buy or sell. Another thing that you have to determine is if you want to buy or sell. In the first case, you will practically buy the base currency and sell the quote currency. This means that you are predicting that, in a short time after buying, the base currency will increase its value and, when you will sell it, you`ll get profit. In the trader`s language, this is called “going long” or “taking a long position”.
If you want to sell the base currency and buy the quote currency, then you expect the quote currency to rise in value, for the same reason. Your purpose is to earn money. How to make the decision? You have to be sure of your choice, so, before making any big decision, you have to study the market, the currency fluctuations and the report between bid and ask. Generally, the Forex quotes are quoted with 2 prices: the bid and the ask. The bid is almost always lower than the ask price. So, it is recommended to buy the base currency at the bid price in exchange for the quote currency, only if you have the certainty that the bid is the best available price on the market. You should sell the base currency against the quote currency at the ask price, if, as in the previous case, the ask price is the best available price for you. Author's Bio: Andrei Ionescu is a renowned expert in the segment of Forex currency trading and has provided guidance and training to hundreds of new traders. Ionescu writes exclusively for forex currency trading websites and the offered trading tips and strategies are admired by one and all. Please Register or Login to post new comment. GigaFx Review - The Legit Platform For Online Trading? How to make Forex Trading Easier? Spice Up Your Affirmations!
Forex Traders Near Me
Finding the best online broker isn't an easy matter. First of all, you need to know what you expect from an online broker service. Is it going to be a full service? Do you need advice in placing your trade? Do you want recommendations from your broker? Or are you just want someone to place your trade when you are unable to place it yourself? Different needs always mean a different type of online broker services. The best broker services will vary from one investor to another as each person has different needs. There are different types of online trading brokers, and all of them are available at different prices. The more renowned brokerage firms and financial companies will typically charge more money for their online brokering services. People who desire a one-stop shop that offers dependability and reliability may want to spend the extra money for the investing experience of these very reputable companies. Other individuals that are looking for the ability to trade cheaply should know that an inexpensive trade at times means lower levels of investor assistance. A brokerage rate is the amount of money you are charged for buying and selling trades through your broker account.
You should also consider the availability of the tools that can help you do your work better.
The amount and how an investor is charged for trading vary upon the online broker. In many cases, the more trades an investor performs in one transaction, the less money is charged for trading. Depending on an investor's trading style the brokerage rates are very important. If you are an investor that is looking for quick investments where you can buy and sell as often as needed, then you may want to stick with an online brokerage company that offers a more competitive rate for trades. Likewise, some fees are sometimes charged by different online brokerage companies. It is recommended that you thoroughly review the various charges that each prospective online broker will charge. These fees can be charged for practically anything. Make sure that the broker with whom you are dealing is registered with relevant authorities and carry necessary license. You should also consider the availability of the tools that can help you do your work better. This includes the customer service, the research tools, the accessibility to your money, and how they can help you in making a decision.
Similarly, check out the trading platform for trading currency pairs that the broker uses.
Obviously, the best online brokers will have top-ranked customer services and a good website to show you what tool is available. You might want to consider those who have nationwide and international branches to visit when you have some problem. When you decide upon a broker, then you should receive a contract that lists all the terms and conditions. Within the terms and conditions, the fees that will be charged for particular services should be listed in detail. Viewing this before deciding upon an online broker can help you make a more informed decision about which online broker you should settle upon. Also, thoroughly reviewing the terms and conditions helps to prevent any unnecessary surprises concerning fee charges. Similarly, check out the trading platform for trading currency pairs that the broker uses. An ideal trading system must feature all necessary things like market news, current price movement of different currency pairs, market indicators. The best online brokers are those who charge low fees, has low spreads, provide better customer support and answer all queries posted by traders quickly in a satisfactory manner. The right choice of a broker can make a major difference between success and failure in trading currency pairs. Therefore, take time to choose the best online broker who has an excellent reputation in the market with years of experience and has a better success rate.
Forex Trading Company
Forex brokers are highly esteemed in the market. Most of the time, we feel way too assured for our own good when we get the services of online forex brokers. Online forex brokers can turn out to be your competitive advantage in the line of foreign currency trading. They are deemed as a valuable asset especially if you wanted to enter into a high stakes game of currency trading. Because of these, forex brokers are highly esteemed in the market and there are some misconceptions that have also been formed around them. With the industry booming, it's about time that some of those misconceptions be straightened out once and for all. Most of the time, we feel way too assured for our own good when we get the services of online forex brokers. We tend to feel that we are in the hands of experts so all we have to do is sit back and relax as they do all the needed work for us.
So when things don't turn out quite the way we expect them to, we tend to put all the blame on the brokers. Sometimes we even feel cheated that we are paying for nothing. But the truth is that we are also to blame for the losses we incur. All forex brokers know that in the trading arena, losses amounting to 95% are but a common thing. This is why most of them choose to abide by the rules of day trading. Exchanging currencies are very dynamic and at the end of the day, all your broker ever really does is to provide you with leads. The hand that still makes all the vital decisions is yours and not your broker. One of the selling points used by most forex brokers is the leverage they offer. Leverage is the profits that you can be promised by relying on just one forex broker alone.
Some even go as far as giving 300:1 and unfortunately some people take the bait. In truth, 20:1 is the maximum that brokers can handle and assure you with. It's easy to believe that they can do it with a spectrum of trading methods but at the end of the day, How to be a forex trader keep in mind that these brokers are human too. They can only do so much to cover that much and also consider the fact that you may not be their only client. One of the great offers that a forex broker can perhaps give you as an extra benefit is their word of advice. You would especially appreciate this if you are new in the game. But the thing is, you should not swallow every piece of advice that your forex broker will give you. Online forex brokers are hired to help you find opportunities but they should never be the ones made to handle the course of your business. At the end of the day, you should still listen to your own gut feel and instincts. Also, you should never buy most of the things that your forex broker tells you out of the context of work. As much as possible, keep your relationship at a professional level.
This time I am proud to show you the longest trade I have on record. It took place on the AUD/USD Forex chart and I opened it on signals from the Forex Alligator. I used the basic signals of the Alligator indicator trading system, which got me into an emerging bearish trend with the Aussie. But first, let’s give some brief details about the basic Alligator indicator strategy. The Alligator indicator forms on Forex moving averages. 1. The first line is usually green and it’s name is the Lips of the Alligator. It is a 5-period Smoothed Moving Average, displaced by three periods to the right. This is the fastest band. 2. The middle line is usually red and it’s name is the Teeth of the Alligator. It is an 8-period Smoothed Moving Average with five period displacement to the right. 3. The last line is usually blue and it’s name is the Jaw of the Alligator. It is a 13-period Smoothed Moving Average with eight period displacement to the right. This is the slowest band.
This means that the Forex pair is trending.
The name of this tool is Alligator indicator because it looks like an Alligator’s mouth that is eating when Forex pairs are trending. Conversely, the mouth is closed when Forex pairs are ranging. So, we say that the Alligator is eating when the bands are wide open. This means that the Forex pair is trending. When the bands are tight and constantly interrupt each other, we say that the Forex Alligator is sleeping. This is when we have a range on the chart rather than a trend. In this relation, you need to trade when the Alligator is eating, because it signalizes about an eventual trend on the chart. You need to stay out of the market when the Alligator is sleeping, because you are most likely looking at a range. The alligator will be likely to start eating after the respective consolidation breakout. I also used the well-known Volume indicator to support my Alligator signals.
At the same time, I was constantly relying on price action rules. 1. I saw that the bands of the Forex Alligator are expanding. 2. At the same time, OANDA a bearish move was emerging on the chart. 3. This all happens during increasing trading volume, which confirms the authenticity of the signal. 4. At the same time, the AUD/USD reaches a 2-day low. 5. Meanwhile, a bearish trend emerged and the price bounced from it for third time. These signals were sufficient to position a short trade with the Aussie on the assumption that the price is starting a decrease. The idea of the trade was to use only eventual price breakout through the green Alligator line, or cross of the green and the to close the trade. It doesn’t matter if it is losing or profitable. Nevertheless, I placed a Stop Loss order on a relative distance do protect the trade from big volatile price moves.
There wasn’t a certain target. The plan was to stay in the trade until we get some signals from the Alligator indicator. I entered on the assumption that I will be hopping into a few hours trade. However, the whole position took more than 30 hours to complete. Notice that the price broke the few times the green line in bullish direction. However, since I saw that the trend is bigger than usual, I decided to wait for a bigger signal - like a cross between the green and the red line. 16 hours after the beginning of the trade I realized that the trend is big and the price is still moving in my favor. Therefore I adjusted the Stop Loss order tight and I left the trade for the next morning. When I got up I realized that the trend continues in my favor. Notice that a cross between the red and the green lines occurred.
However, the Stop remained untouched and when I got back to the PC, the price was even lower. Then I noticed another cross between the green and the red Alligator indicator lines. However, I also noticed a bearish trend line formed through the last two tops on the chart. Therefore, I adjusted my Stop above that line with the idea that if the price bounces from the trend, I will catch another bearish impulse. This is what happened. The price bounced from the pink bearish line and created another low on the chart. Then I spot that this is not just a bearish trend line (pink), but something like a bearish channel or an Expanding Triangle with bearish indication. Since the price was reaching the lower level of the figure, I assumed that a pullback is coming. At the same time, the D1 chart was showing that the price is interacting with the 61.8% Fibonacci level of the previous big bullish trend. Furthermore, on the H4 chart there was another channel, which lower level the price was interacting with. Bottom line, I collected 88 pips, which brought profit of 1.18%. Sweet! CHOOSE YOUR COURSE NOW AND START LEARNING FOREX TODAY! Damyan is a fresh MSc International Management from the International University of Monaco. During his bachelor and master programs, Damyan has been working in the area of financial markets as a Market Analyst and Forex Writer. He is the author of thousands of educational and analytical articles for traders. When being in bachelor school, he represented his university in the National Forex Trading Competition for students in Bulgaria and got the first place among 500 other traders. He was awarded a cup and a certificate at an official ceremony in his university.
I believe that proper training is essential if you are going to achieve success when forex trading. Without the appropriate training and expertise, your (a trader's) odds of succeeding are reduced dramatically. That is why I created this article to get you started on the right foot in training for success in forex trading. This article will cover the most important points you will need to understand before trading forex. Each and every day there are hundreds of thousands of online investors that do their trading on the forex market. Most of them are making money, while some are not. Some of the investors that are making money are making a huge incomes by day trading. These people have studied the forex market and figured out a Trading System that they can use to generate a large amount of money in a short amount of time by doing forex trading. If you take the time to learn about this market, and study a few forex-trading tips, then you can find yourself making a lot of money as well.
Forex Forex Trading
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Topic title: Reading The Currency Trading Quotes
Topic covered: forex exchange bank, forex market explained, forex official website, fx forex trading, what's forex trading
