The forex trading strategy basics

The forex basics

The forex basics

Exchange of a nation’s currency for that of another is Foreign Exchange (FOREX). The foreign exchange market is a largest non-stop financial market in the world where currencies of different nations are traded.

This Forex market is bigger than three times the aggregate amount of the US Equity and Treasury markets combined. This is not the traditional market as there is no physical location or central trading location.

It is operated on a global network of banks, corporations and individuals trading one currency for another. Foreign exchange market conditions can change at any time in response to real-time events.

The purpose of investing in Forex trading is to earn profits from foreign currency movements. Forex trading is always done in currency pairs. Two currencies that make up an exchange rate are called currency pair. Investors who trade currency pairs need very fast buy and sell Forex signals.

Without these Forex trading signals, it is difficult to decide market conditions in terms of entry or exit in the market. These Forex signals and trade alerts will indicate you for going out or coming into the market.

Many Forex companies, who have been involved in this kind of business, have developed forex sms signal services. Several Forex signal providers got a “free test” also that is really beneficial. 

Initial investors don’t go for in details; they often rely upon one or two technical signals to decide when to buy and when to sell a currency pair. When they get a good understanding of Forex market, they start to use Forex signal software to decide when to pick up a forex entry point and forex exit point.

It is not very difficult to find a automatic Forex signal indicating when to buy and when to sell a currency. An investor should compare his investment to alternative options. It is wise to buy currency you expect an increase in value relative to the currency you are selling.

In an open trade, a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

To gain high profits in a Forex trading, you should use a Multi-Target Exit Strategy. This strategy is based on providing the customers with multiple acquiring profit and stopping losses.  This Forex trading strategy allows you to enter multiple Take Profit and Stop Loss levels. 

This Forex strategy also requires that the trader follows the trade in real time. A Forex trading strategy with a high profit percentage rewards you mentally also as it will boost you up for further trade and will make it enjoyable. A string of profits will increase your morale.

In Forex trading system, it’s not obligatory to buy some currency to sell it later. There are situations for buying and selling any currency without actually having it.

Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF).

All of them are traded against the US dollar (USD). A technical analysis is also made that presumes all the information about the market and further fluctuations in prices. They too consider factors, economic, political or psychological

This article was submitted by LegacyFX.

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Forex – Dollar Hovering Near 2-Week Highs, Sterling Edges Up

© Reuters.  © Reuters.

Investing.com – The U.S. dollar was hovering near two-week highs against a currency basket on Monday as U.S. Treasury yields bounced back from recent lows amid hopes that major economies will seek to prop up slowing growth with fresh stimulus.

The , against a basket of six major currencies was at 98.05 by 03:01 AM ET (07:01 GMT), not far from the two-week high of 98.20 reached on Friday.

The stood at 1.57%, having pulled away from a three-year trough of 1.47% marked last week in the wake of global slowdown fears.

Falling yields last week caused the two-year/10-year Treasury curve to invert for the first since 2007, a phenomenon widely regarded as a recession signal that puts the Federal Reserve interest rate deliberations into focus.

“This week’s main event is the Jackson Hole symposium and Fed Chairman (Jerome) Powell’s speech,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

Powell will deliver a speech on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming.

“What Powell has to say is in focus as the discrepancy remains between what he said on interest rates and what the markets have come to expect the Fed will do,” Ishikawa said.

Powell said after the Fed lowered rates in July that the easing was not the start of a series of cuts. But market expectations for the Fed to cut rates by another 25 basis points at the next policy meeting in September have increased.

The was steady at 1.1092 while the edged up 0.15% to 1.2166.

The dollar was little changed against the at 106.37.

The was slightly lower after U.S. President Donald Trump said he was not ready yet to make a trade with China.

Traders were also cautious ahead of the debut of China’s new benchmark lending rate on Tuesday, which was announced at the weekend.

The People’s Bank of China on Saturday unveiled interest rate reforms to help lower borrowing costs for companies and support slowing growth, which has been hit by the trade war with the U.S.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forex – Dollar Steady on Safe-Haven Weakness as Stimulus Dims Economic Fears

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Forex – Dollar Gains vs Franc, Yen as Mood Improves

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Investing.com — Risk sentiment returned to the foreign exchange markets early Friday in Europe, with the Swiss franc and yen retreating against the dollar, and the dollar retreating against the pound as a week of turbulent newsflow drew to a comparatively quiet close.

By 3:30 AM ET (0730 GMT) the , which measures the greenback against a basket of developed market currencies, was at 98.078, up 0.1% from late Thursday in the U.S. and on track for a gain of around 0.7% on the week.

The dollar was also a fraction higher against the , which showed little or no reaction to comments on Thursday by U.S. President Donald Trump that he expects a phone call with his opposite number Xi Jinping “quite soon” to iron out some of their differences on trade.

Analysts at Nordea pointed out in a morning note that history suggests the will trend higher against the current background of fears of a global recession, something that could complicate U.S. policy toward China and the euro zone given the Trump administration’s eagerness to weaken the dollar.

Past instances of the U.S. yield curve turning inverted have on average led to a 3% rise in the dollar index over the subsequent three months, they noted, due not least to gains against the and . They noted that also tends to strengthen in such periods.

The euro, meanwhile, remains under pressure after a week of generally poor economic data, which were followed on Thursday by comments from European Central Bank governing council member calling for an “impactful and substantial” package of easing measures at the ECB’s next policy meeting in September. The euro was at was $ 1.1092 and at 0.9152 against the pound, on course for a weekly loss of 1% and 1.7%, respectively.

In emerging markets, the continued to strengthen, as did the in the wake of the central bank’s decision to cut its key interest rate by 25 basis points on Thursday, the latest in a growing list of easing measures by the world’s central banks. Mexico’s move reflects confidence that the troubles of Argentina, whose currency lost a quarter of its value this week on fears about the future direction of economic policy, won’t spread to other countries and currencies.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forex – Dollar Steady, Yen Slips as Market Selloff Pauses

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Investing.com – The dollar was holding steady against a currency basket Thursday and the safe haven yen turned lower as a cautious calm returned to markets which have been roiled by a brutal selloff triggered by fears over the outlook for the global economy.

The , which measures its value against a basket of six major currencies, stood at 97.81 by 03:40 AM ET (07:40 GMT) after a 0.2% gain on Wednesday.

The dollar gained ground against the , rising 0.1% to 106.19. On Wednesday, the yen rallied 0.8% versus the greenback, its biggest daily gain in two weeks.

Spooked investors fled from stocks and sought safe-haven assets after the U.S. Treasury yield curve inverted Wednesday for the first time in 12 years.

The inversion, where yields trade higher than yields, is considered by some analysts to be a sign that the U.S. economy is likely to enter a recession.

Sentiment was already fragile after disappointing economic data from China and Germany revealed the extent of the damage the U.S.-Sino trade war is causing to two of the world’s most important exporters.

U.S. President Donald Trump on Wednesday seemed to tie a U.S. trade deal with China to a humane resolution of the weeks of protests wracking Hong Kong.

But investor sentiment recovered somewhat amid hopes that central banks, particularly the Federal Reserve, would step in to ease monetary policy.

“Hoping for the best on the policy front but positioning for the worst on the economic backdrop seems to be the flavor of the day,” said Stephen Innes, a managing partner at Valour Markets.

“The Fed, now out of necessity alone, will need to adjust policy much more profoundly than they expected.”

The U.S. yield curve was for the second straight trading session on Thursday, indicating that traders remain pessimistic about the growth outlook.

Against the dollar, the eased back to 0.9746, after rising 0.% in the previous session.

The was a touch higher against the greenback at 1.1147.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forex – Yen Gains despite Trade War Reprieve, Euro Steady

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Investing.com – The safe haven yen was higher on Wednesday despite a decision by U.S. President Donald Trump to postpone additional tariffs on some Chinese imports, as investors remained skeptical over prospects for a swift resolution to the trade spat.

The temporary reprieve in the trade war supported risk-off trades on Tuesday, but analysts warn that the optimism is already fading over a resolution to the trade war between the world’s two largest economies, which has threatened global economic growth.

Unrest in Hong Kong, worries about Brexit, and Middle East tensions mean risk aversion could quickly flare up again and roil markets.

“If we think only about the United States and China, there could be more room for dollar gains and yen losses, but this does not mean trade frictions have been resolved,” said Tohru Sasaki, head of Japan markets research at JP Morgan Securities in Tokyo.

“There are still a lot of geopolitical risks, such as Hong Kong, Brexit, and the Iranian situation. I don’t expect significant (risk-on) moves.”

The was down 0.28% to 106.42 yen by 04:00 AM ET (08:00 GMT) .

The also fell 0.6% to 72.15 yen while the fell 0.3% to 68.71 yen.

Against the , the dollar rose 0.33%.

Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

Still, trade negotiations between the U.S. and China have progressed in fits and starts, so many investors and analysts have scaled back expectations for a resolution in the near term.

The , measuring the greenback against a basket of six currencies was little changed at 97.58 after jumping 0.4% on Tuesday.

The was a touch higher against the dollar at 1.1182.

The single currency showed little reaction to data showing that the German economy, the euro zone’s largest, 0.1% in the second quarter, amid fallout from the trade war.

The was little changed against the greenback at 1.2056.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forex – Japanese Yen Rises Despite Positive Trade News; China Data Underperform

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Investing.com – The Japanese yen rose on Wednesday in Asia despite positive trade news. Underperforming Chinese data and a political crisis in Hong Kong supported the safe-haven currency.

The pair fell 0.2% to 106.50 by 1:23 AM ET (05:23 GMT).

Tariffs on Chinese goods are being delayed to Dec. 15, while certain products are being removed due to “health, safety, national security and other factors,” a statement said overnight.

The tariffs were originally scheduled to come into effect in early September.

The news sent stock markets higher. The yen, which usually moves in directions opposite to most risk assets, also surprisingly rose.

The safe haven yen was already trading higher against the U.S. dollar overnight as investor sentiment was shaken by political unrest in Hong Kong.

On Tuesday, protesters managed to close down Hong Kong’s airport for a second day. Overnight, U.S. President Donald Trump tweeted that the Chinese government is moving troops to the border with Hong Kong.

Hong Kong’s leader Carrie Lam said earlier this week that further violence involving protests could push the territory “down a path of no return”.

“If we think only about the United States and China, there could be more room for dollar gains and yen losses, but this does not mean trade frictions have been resolved,” said Tohru Sasaki, head of Japan markets research at JP Morgan Securities in Tokyo, in a Reuters report.

“There are still a lot of geopolitical risks, such as Hong Kong, Brexit, and the Iranian situation. I don’t expect significant (risk-on) moves.”

Meanwhile, weaker-than-expected Chinese data also provided additional boost to the safe-haven yen.

Growth of Industrial production and retail sales both came in lower than expected, official data showed on Tuesday.

The Chinese yuan gained despite the data. The pair last traded at 7.0194, down 0.3%.

The that tracks the greenback against a basket of other currencies inched up 0.1% to 97.678.

The pair and the pair were down 0.2% and 0.1% respectively.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forex – Argentinian Peso Collapse Sends Shockwaves Through Markets

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Investing.com – The dollar surged against higher-yielding currencies on Monday as a plummeting sent shockwaves through emerging markets.

The dollar rose by more than one-third against the peso after a weekend primary for presidential elections in the G20 member later this year showed incumbent Mauricio Macri far behind his biggest rival, the populist Alberto Fernandez.

Fernandez’ running mate is former president Cristina Fernandez de Kirchner, from whom Macri took over as President in 2015. Fernandez is viewed with suspicion by many investors, who remember the capital controls, high inflation and chronic economic problems of de Kirchner’s last administration.

The shock also weakened of other emerging currencies perceived as vulnerable, especially at a time of slowing global growth. The dollar rose by 1.3% against the and by 1.0% against the . Further afield, it also rose by 1.2% against the {{|Turkish lira}} and by 0.5% each against the and .

By 11:20 AM ET (1520 GMT), the peso had recouped some of its losses to trade at 53.50 to the dollar, compared to a rate of 45.25 before the poll.

Macri now faces little choice but to reinstate capital controls, abandoning one of the biggest achievements of his presidency, analysts said.

The peso’s collapse “makes things worse for Macri, as peso stability (was) supposed to arrest political costs of his IMF-supported austerity,” Daniela Gabor, a professor of economics at the University of the West of England, said via Twitter. “Difficult to see how Macri can hold onto power while inflicting such high social costs.”

ARG peso collapse makes things worse for Macri, as peso stability supposed to arrest political costs of his IMF-supported austerity.

ARG peso collapse makes things worse for Macri, as peso stability supposed to arrest political costs of his IMF-supported austerity.

makes things worse for Macri, as peso stability supposed to arrest political costs of his IMF-supported austerity.

Emerging market currencies have been caught this year between slowing global demand for the commodities they export, which puts downward pressure on them, and the promise of lower dollar interest rates, which relieves that pressure. While they have mostly held their own against the dollar so far this year, the Argentinian peso, ruble and lira have all been pulled lower in recent weeks by a weakening .

The yuan was fixed at a new 11-year low against the dollar by the Chinese central bank on Monday, allowing the mainland and offshore rates to weaken a little more.

The , which is seen as a safe haven in times of market turmoil, rose to a new 15-month high of 105.05 before retreating a little to 105.31, a gain of 0.3% on the day.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.1% to 97.192.

The euro, meanwhile, rose a little as Italy’s political parties tried to stop a push for snap elections that opinion polls suggest would hand power to the populist right-wing Lega party of Matteo Salvini. rose 0.2% to 1.1218. rebounded 0.5% to 1.2092.

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Forex – Yen Rises Amid Trade Concerns; Yuan Remains in Spotlight

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Investing.com – The safe-haven yen gained on Monday in Asia amid concerns surrounding the Sino-U.S. trade war.

The pair dropped 0.2% to 105.42 by 1:39 PM ET (05:39 GMT).

On Friday, U.S. President Donald Trump said he was not ready to make a deal with China and even called the scheduled trade talks in September into question.

Meanwhile, the remained in the spotlight after the People’s Bank of China (PBOC) set the official midpoint reference at 7.0211 per dollar on Monday, which was stronger than what analysts expected but was still the third consecutive session weaker than the key 7-yuan-per-dollar level.

The pair last traded at 7.0628, up 0.03%.

Last week, the U.S. Treasury announced that it officially labelled China as a currency manipulator after Beijing allowed the yuan to fall past 7 per dollar for the first time since 2008. White House trade advisor Peter Navarro warned that Washington will respond forcefully if China continues to weaken its currency to counter the effects of tariffs placed by the U.S.

The PBOC later denied it is deliberately devaluing the Chinese currency.

China’s moves “stoked fears of a competitive devaluation policy, putting pressure on other Asian currencies,” analysts at risk consultancy Eurasia Group wrote in a note that was cited by CNBC.

The article noted that China is not likely to allow any further rapid depreciation of the Chinese currency since “substantial devaluation would drive capital outflows and create one-way bets in the market on further depreciation, as seen in 2015 and 2016.”

China would want to keep the pace of depreciation against the dollar gradual, the analysts added. “The bank will also be careful not to allow the (yuan) to depreciate on a sustained basis against a broader basket of currencies.”

The pair and the pair were both largely unchanged at 0.6788 and 0.6470 respectively.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forex – Yen Gains as Trade War, Global Growth Fears Weigh

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Investing.com – The safe haven yen was broadly higher on Monday as uncertainty over the next stage in the U.S.-China trade war and growing fears over a slowdown in global growth hit market sentiment.

Uncertainty over the U.S.-China trade dispute persisted after U.S. President Donald Trump on Friday said he was not ready to make a deal with China and even cast doubt over a round of trade talks due to take place in September.

Goldman Sachs over the weekend cut its forecast for U.S. economic growth, warning that a trade deal was unlikely before the 2020 presidential election and that the risks of a recession were increasing.

“Overall, we have increased our estimate of the growth impact of the trade war,” the bank said in a note.

National Australia Bank downgraded its estimates for a range of major currencies as it now expects “nothing positive will happen” on the trade front at least through early 2020.

It expects the greenback to broadly hold firm in the face of policy easings by other major central banks while , and euro are seen on a slippery slope.

The greenback was down 0.18% against the to 105.46 by 0:27 AM ET (07:27 GMT), not far from a seven-month low of 105.25 hit on Friday.

The was also weaker against the Japanese currency at 118.04 yen and close to its lowest since April 2017. The was at lows not seen since 2016, trading at 127.27 yen.

The dollar was a touch lower against the after the Chinese central bank’s daily fixing came in firmer than market expectations. That helped eased some fears that Beijing would use its currency as a weapon in its trade war with Washington.

A week ago, China let its currency slip to weaker than 7 to the dollar for the first time since 2008, which some saw as an offset to U.S. tariffs. The change pressured emerging market currencies across Asia and boosted the yen.

All eyes will be on Chinese figures on July retail sales and industrial output due Wednesday to gauge the impact of the long-running tussle with the United States on domestic activity.

Market attention will also be on the U.S. Federal Reserve annual symposium at Jackson Hole later in the week, where investors hope to get some clarity on the future path of interest rates. Markets are expecting nearly 100 basis points of cut from the Fed by next year.

Sterling edged higher against the , rising 0.15% to 1.2050.

The pound reached two-year lows against the dollar on Friday after data showed the U.K. economy unexpectedly contracted in the second quarter, only adding to the bearishness over Brexit and the chance of a no-deal exit.

The was a touch lower against the dollar at 1.1185, as the prospect of snap elections in Italy weighed.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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