Forex Trading – Exchange Foreign Currency with the Best Forex Brokers

Forex trading is one of the most dynamic and volatile markets, ideal for investors; our guide to forex trading provides a starting point for beginners; tips, strategies and education for traders. As an experienced investor, we explore forex trading hours, explain how to compare online trading platforms, how to manage risk, and even where to find the best forex trading demo account.

So start your journey to the world of foreign exchange here and join the market where more than $5 billion is traded every day…

Top Forex Brokers in Ukraine

Fundamentals of Forex Binary Options Trading

One of our professional traders and founder of a money management and trading advisory firm shares his thoughts on the basics of forex binary options trading and the system he personally uses.

What secret is the strategy I want to talk about – but it’s not common – and the reason for its success is its simplicity.

The currency pair that I mostly (90%) trade with is the Euro pair, this is simply because it is the most volatile and predictable Euro-Dollar pair. It is the most traded pair and since the opening of the Forex market to retail investors, the daily trading volume has increased dramatically. Customer income from market fluctuations

The main problem I see every day when reading through binary options forums is the sheer number of different strategies, it seems that traders think that the more complex the system is, the better the profit. He blamed the system they were using, in fact, the problem was behind the screen, no system was able to adapt to ever-changing market conditions, it was up to the trader to adapt their approach.

I know some people will argue that this won’t work in this condition or the market. But they forget that the market is binary, the price can only go up or down, what is a ranging market does not exist, besides, all trading systems are based on the same principle – the system’s job is to check entry and exit points. best for traders

For example, an experienced trader will quickly check support and resistance levels, a novice will not. A novice will use strategies using Stochastic, MACD and RSI. But what he doesn’t realize is that these indicators give him a starting point. The same tree used by seasoned traders

For binary options the knowledge of finding the best entry point along with predicting the next price move is key, with binary options every 10th of a pip counts.

Disclaimer: This section represents my personal opinion and the strategies I personally use, please read everything carefully and do not jump to high risk strategies before fully understanding how they work. By using a demo account before publishing, this strategy is the holy grail for me because I’m not too greedy and if I don’t feel the trade I pass and continue to wait.

Fundamentals of Forex

It is important to understand what forex is and what its primary use is: currency exchange governed by the laws of supply and demand.

A simple hypothetical example: Apple sold 1 million iPhones in Europe in September for 500 euros each with the euro as the base currency, they are managed through HSBC which means their invoicing account is under HSBC, but Apple reports in dollars and the governing account is with Boa.

So Apple made 500 million euros which is now in HSBC account in Luxembourg, that money has to be transferred to their BOA account and changed to USD.

Now it’s interesting, the order was transferred on Tuesday at 16:00 GMT, it was not transferred immediately, the bank accumulated all dollar orders during the night, the order could be from yesterday or the month before, the bank will send the word. Direct execution to their partners (like us) and their commission structure and order deadlines.

The Euro-Dollar traded Wednesday, 6 GMT at 1.27000. Apple’s account at BOA will receive 635 million USD at 8:00 AM local time. 1.27000 So what can we do and both banks get the maximum profit from that order?

BOA gets a commission from Apple, but what about HSBC?

At 8:00 GMT open in London, the liquidity is 380 million euros and the price is 1.27010 so 500 million Euro is equivalent to 635 050 000 USD is not good enough and cannot be done because there is not enough money in the market.

Euro outlook remains strong, Asian markets rise overnight and US fiscal cliff is being resolved, millions of retail investors and outlets take buy and stop orders 10 pips under current condition. The pending market liquidity is 300 million euros and the current liquidity is 380 million euros, so the equivalent liquidity in US dollars on the market at this time is (1.27010) 482 638 000 USD and 381 030 000 USD at pending (equal to stop)

The data tells us that the stop was at 1.26910, so at 8:15 GMT an order was made to sell 2,8 times the available liquidity (€840 million sell order). This pushed the price to 1.26905 where we (bank + us) ) The order was triggered and the retail investor made a new order to cover the loss. The price broke 1.27099 and this was when we started to gradually get out of our buy position and as the trend was still strong people bought our order. In your chart this shows that the green candles are getting smaller after a good run up.

So the market liquidity increases to 380 + 300 = 680 million euros and we exit at 1.27099 for a profit of 9.9 pips (from 1.27000), not so much you say. But we got 10 leverage from Barclays on our position for 0.1 pip commission, so our 500 million euros has a market capitalization of 5 billion euros or 5 billion / 100 000 = 500. 000 lots X 10 USD = 5 million USD pip value X 9.9 pips = 49.5 million USD or 36.1 million euros. This will be shared between HSBC, us and Barclays.

The numbers above are just examples, the fact is that the volume is very large (4 trillion USD per day) and many players. But this example shows you how FX works and this is essential when analyzing SR levels and trends.

The SR levels are set by big players (Smart Money) and they are still a good holding because retail investors use them too, smart money cycle happens in 3 price cycles then we will see. Short-term channel where the price is stuck for little cumulative strength (GBPUSD last week during the US meeting).

Forex system – Fibonacci

These price cycles do not occur randomly, they have a sequence and in fact every candle or price move has an internal cycle and sequence, this sequence is determined by a set of numbers known as the Fibonacci numbers.

Fibonacci numbers were not developed for trading and they naturally occur everywhere around us, which can explain biological systems in terms of Fibonacci-like sequences.

Big players don’t use indicators like RSI, CCI or MACD, their algos are based on Fibonacci numbers.

And combining Fibonacci algos with extremely accurate price channel calculators and data on other people’s trades, you have the formula to rule all other systems and strategies.

Now, why should you care when trading binary options?Because unlike spot FX, you need to be right every time.You basically need the ability to predict whether the candle will be red or green.

During day trading that doesn’t involve Smart Money orders, I want to enter simple pips, so I need to use something that determines price lap action and reversal, for binary and spot fx day trading, I use 3 indicators. Point with very accurate functions.

Forex correlation

Forex correlations are important trading tools, if you don’t know what they are they can hurt your trade without your knowledge Correlations show us which forex is moving. Together, which one moves in the opposite direction, and which one has little correlation, this information will help us determine which trades we should take to help control risks and potentially provide additional trading opportunities. That is not easily visible on the price chart.

Forex correlations are typically shown in tables with values ranging from -100 to 100. A -100 value (negative numbers are called inverse correlations) means two forex pairs move opposite each other – when one increases. another falls and when One falls, the other rises. The value of 100 means two forex pairs move – when one rises the other rises. It is very difficult to find an asset that has a 100 or -100 correlation with the other, although according to Figure 1. It shows that there are a number of forex pairs that have a very high positive or negative correlation with each other.

Figure 1 Daily Forex Correlation (July 25, 2013)

Consider anything over -/+70 to have a noteworthy correlation, while anything over -/+80 has a strong correlation Use the chart above, find GBP/USD on the left side and find EUR/USD on the side. On top of that, scroll down to the box where the rows and columns converge, showing that the correlation between GBP/USD and EUR/USD is 89.6, which means most of the time they move each other, this is important to note. For reasons that will be discussed in the next section.

Now find USD/CHF on the left and EUR/USD on the top. Find the box where the rows and columns converge and show that the relationship between these two pairs is -95.4 That means they share a very strong inverse correlation. When EUR/USD goes up, USD/CHF goes down and vice versa.

Sometimes there is no correlation involved, if the pair has a correlation (positive or negative) less than 60, the correlation is not very strong and when we approach 0 there is no correlation between the pairs at all, for example NZD/USD and EUR/USD. ; The correlation between these pairs is -1.7, which means that there is no visible day-to-day correlation between these pairs, in other words, the rise or fall of NZD/USD doesn’t tell us exactly what. EUR/USD May Do

Correlation tables are generally offered on hourly, daily and weekly timeframes, all of these timeframes provide valuable information depending on the timeframe you trade, for short-term trading hourly and daily correlations will be. the most important thing

It’s also important to note that relationships change all the time, couples who are in a very good relationship right now may not go down that road, so it’s important to check the relationship often to be aware of the potential ramifications. changes in the relationship between the couple

Why is Forex Correlations important?

There are many reasons to take into account forex correlation. The main reason I review them is risk control. For example, you may think that by taking several trades at once you will be “spready,” which may not be the case.

If you go long (buy call) on EUR/USD, GBP/USD and sell (buy call) USD/CHF, you get 3 very similar positions. Against you, you don’t reduce your risk by diversification, you triple your risk!

Another reason they are related to forex is that they can provide you with trades that you may not have seen before, for example, you believe that the EUR will appreciate against the USD (i.e. EUR/USD will rise). up) but you look at the charts and don’t see a good trade setup, since you know that GBP/USD generally moves with EUR/USD (based on current correlation), you can check GBP/USD to see if Are there better trade setups You may want to see if there are trade setups to go short (buy put) on USD/CHF as it tends to go in the opposite direction of EUR/USD correlation is high. (positive to negative) allows you to trade options, choosing the ones with the best trade setups.

I want to use forex correlation to confirm a trade. When searching for a highly correlated forex pair, I would use one to confirm a trade in another. For example, if EUR/USD is rising and I want to go long ( BUY LAY) I would also like to see a rise in GBP/USD as these pairs are highly correlated they should move together, if they are not it reminds me that maybe I should look more closely at my trade. It doesn’t mean I won’t trade – as relationships change and two pairs never move harmoniously – it means I have a very good reason for trading. (as you should do anyway)

Correlation can be a complex statistical topic. But hopefully this guide will help you become familiar with the idea of doing your own homework as well.Review correlation studies often to become aware of how forex pairs can affect your trading. Correlates to Control Risks, Find Opportunities, and Filter Trades If you’re having trouble seeing how correlations work, look at the numbers in the correlation table and pull up the price charts of the two forex pairs in question, observing how the pairs move relative to each other. This will help build a general understanding of correlations.

Forex signals

Forex represents a fertile hunt for signals and alert services.With no central market and multiple driving factors, volatility is high.Forex pairs are traded 24 hours a day for 5 and a half days of the week.The trading volume of the Currency trading is huge, all these factors mean large opportunities and regular trading advisory signal services.

As a more established trading vehicle, forex signal providers have gained more recognition than binary platforms, many of the best services have been running well for over 10 years. It has the potential to review a number of past performance to see how good the service is.

Providers also have more confidence in their system due to its long-term performance, for traders this means free trials or discounted memberships for new clients, signal services know that traders will only be impressed by the results so They therefore encourage investors to be risk free.

The best Forex signal provider?

We have seen many forex signal services and related advertisements, for us results are important, that’s why we recommend Signal. Hive delivers the best forex signals and here’s why:

Take a look at these monthly performance numbers – since 2004:

 

This service, known as Master T-2000 v2, has been generating annual profits for almost 14 years. Signal Hive is a marketplace for different systems. But this one is considered the most consistent. 14 years of performance cannot be ignored.

Absolutely, you don’t need to take our word for it, the free trial system is being run by the company, so you can get these signals for free without any risk.

The software can be automated with some of the leading brokers, with the integration of MetaTrader 4 and real-time indicators, the software is the best we have seen, after the free trial, the full professional service costs $. 50 per month. If you are not satisfied after the trial period, just walk away.

signal details

Beyond the headline numbers, the system is exceptionally consistent, the data can be analyzed per hour or per day of the week, and in the long term, every single moment is profitable, so the software and algorithms pick up stable trades.

Signal Hive provides a range of signals, as the name suggests. In addition to the Master T-2000 v2, there is a system called MELISA (Multistage Investment and Savings Algorithm). A time of more traditional market turmoil, again it has shown year-on-year gains for the past 14 years.