Forex Trading

For forex traders, the term forex factory is certainly familiar, namely a leading forex portal website among traders in online forex trading activities, with the website address: www.forexfactory.com . If some traders only use the fundamental news features, some other traders use other additional features to obtain important information about forex trading. What are these interesting features? Forex Factory and its features Economic calendar The economic calendar feature is the most widely used on this forex portal website because it is easy to use. Traders can view the schedule for airing the following economic news with explanations and predictions made by the website team concerned. In the online economic calendar feature, traders can do various things such as, set the displayed currency, set the type of news in the form of economic speech, inflation or central bank, and set the type of high impact or medium news. All that convenience you can do by changing the settings colum...

In today’s interconnected world, the foreign exchange market plays an important role in daily business. It’s a global, decentralized environment where financial institutions and businesses can trade currencies. According to research from the Bank for International Settlements, foreign exchange trading generates an estimated $5.3 trillion daily - making it larger than other financial markets. Often, it’s dominated by large international banks and corporations, which work around the clock to trade and convert international currencies.   Forex trading also underpins international trade and investments. For instance, if American companies want to import goods from a country in Europe, they’ll most likely need to complete transactions in euros. Through forex, these firms can exchange dollars for euros quickly and easily. As well as enabling trade between countries, forex trading is a lucrative investment opportunity. Every day, companies and investors make billions...

What Is Forex Scalping?    Forex scalping is a trading style used by forex traders to buy or sell a currency pair and then hold it for a short period of time in an attempt to make a profit. A forex scalper looks to make a large number of trades, taking advantage of the small price movements which are common throughout the day. While scalping attempts to capture small gains, such as 5 to 20 pips per trade, the profit on these trades can be magnified by increasing the position size. Forex scalpers will typically hold trades for seconds to minutes, and open and close multiple positions within a single day.   Understanding Forex Scalping Forex scalpers typically utilize leverage, which allows for larger position sizes, so that a small change in price equals a respectable profit. For example, a five pip profit in the EUR/USD on a $10,000 position (mini lot) is $5, while on a $100,000 position (standard lot) that five pip movem...

What Is Forex System Trading?    A forex trading system is a method of trading forex that is based on a series of analyses to determine whether to buy or sell a currency pair and set procedures to determine the entry and exit strategy as well as the risk management. Forex system trading can be based on a set of signals derived from technical analysis charting tools or fundamental news-based events. Understanding Forex System Trading Forex system trading is a strictly rules based approach to trading. First a trader picks an overall strategy or style to follow and then identifies the signals and inputs that should prompt a trade. Once the trade is identified, everything that follows is set out by the forex trading system. Depending on how developed the system is, this may simply mean where to set the stops and when to realize profits or it can be more complex and include follow-up actions in separate asset classes like options to incr...

What is a Forex Trading Robot?    A forex trading robot is a computer program based on a set of forex trading signals that helps determine whether to buy or sell a currency pair at a given point in time. Forex​ robots are designed to remove the psychological element of trading, which can be detrimental. While trading systems can be purchased online, traders should exercise caution when buying them this way.   Understanding Forex Trading Robots Forex trading robots are automated software programs that generate trading signals. Most of these robots are built with MetaTrader, using the MQL scripting language, which lets traders generate trading signals or place orders and manage trades. Automated forex trading robots are available for purchase over the Internet, but traders should exercise caution when buying any such trading system. Often times, companies will spring up overnight to sell trading systems with a money-back gua...

What is Real-Time Forex Trading?    Real-time forex trading is a form of speculation in which a trader bets on the movement in the exchange rates of foreign currency pairs. This type of trading involves placing an order to buy or sell a specific currency pair at the current exchange rate. Stop or limit orders may also be used, but typically in close proximity to the current exchange rate. Real-time forex trading requires the use of real-time forex charting software. This style of trading is typically associated with short-term traders using technical trading methods.     Understanding Real-Time Forex Trading Forex currency traders perform real-time forex trading on the foreign exchange market. To do this, they use analysis based on technical and fundamental indicators, which help them forecast the movement of the currency pair traded. Because real-time currency trading is wholly electronic, execution speeds are extremely fast, allowing...

What Is Automatic Execution?    Automatic execution is a method for executing trades without imputing them manually. Automated systems allow traders to take advantage of trading signals to buy or sell an asset whenever a signal is generated, so the trader doesn't need to manually input the order. Orders can be created automatically based on a wide variety of technical indicators and trading systems. Understanding Automatic Execution ​​​​​​​Automatic execution has become commonplace as trading systems continue to grow more sophisticated and complex, and with advances in technology. Automated trading strategies are often used by professional traders and market makers, and some retail traders. One exception is the foreign exchange (forex) market, where most retail traders have access to automated trading strategies and programs. Because the forex market trades 24 hours a day, five days a week, these automated algorithms may...

What Is Automated Forex Trading?    Automated forex trading is a system of trading foreign currencies with a computer program based on a set of analyses that help determine whether to buy or sell a currency pair at a given time. Automated forex trading uses a computer program that the trader “teaches” to make decisions based on a set of technical rules. The signal generates an actual buy or sell order that is executed. How Automated Forex Trading Works Foreign exchange (forex) trading has become incredibly popular in recent years thanks to the ubiquity of online trading platforms and the 24-hour nature of the market. While many institutional investors rely on algorithmic trading, retail traders have only recently been able to harness the power of automated forex trading systems. MetaTrader, TradeStation, and other applications have made it easy to write simple computer programs based on technical analysis rules. Advanced ...

What is a Forex Trading Strategy?    A forex trading strategy is a technique used by a forex trader to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis, or fundamental, news-based events. The trader’s currency trading strategy is usually made up of trading signals that trigger buy or sell decisions. Forex trading strategies are available on the internet or may be developed by traders themselves. Basics of a Forex Trading Strategy Forex trading strategies can be either manual or automated methods for generating trading signals. Manual systems involve a trader sitting in front of a computer screen, looking for trading signals and interpreting whether to buy or sell. Automated systems involve a trader developing an algorithm that finds trading signals and executes trades on its own. The latter systems take human emotion out of the equation and may imp...