Forex Knowledge — 5 Things to Consider Before Trading

4efaeba3-6436-4953-be70-6ea277363f79In certain aspects Forex has been around us, since there was no electricity in caves. Long ago people always traded currency they had: whether it was food, animals or some shiny minerals. With the creation of modern money (coins and then paper) different nations traded one currency for another. In modern times currencies are widely traded by the world’s major financial organizations. The birth of a retail market in mid 1970s allowed non-commercial players to trade Forex. However, the most crucial change to the industry came in 1996 when Forex trading was put online. Continue reading

Forex Knowledge — 5 Things to Consider Before Trading

4efaeba3-6436-4953-be70-6ea277363f79In certain aspects Forex has been around us, since there was no electricity in caves. Long ago people always traded currency they had: whether it was food, animals or some shiny minerals. With the creation of modern money (coins and then paper) different nations traded one currency for another. In modern times currencies are widely traded by the world’s major financial organizations. The birth of a retail market in mid 1970s allowed non-commercial players to trade Forex. However, the most crucial change to the industry came in 1996 when Forex trading was put online. Continue reading

Hedging

hedging_forexHedging denotes safety and security. Hedging is protection of client’s funds from unfavorable currency rate fluctuations. Account funds are fixed at their current price through conducting trades on Forex. Thus, hedging helps to ease exposure to currency rate change risks, which helps to achieve result not influenced by fluctuations. In fact, hedging presupposes using one instrument in order to lower the risk related to unfavorable market factors impact on the price of another one directly associated with it. More often, the notion ‘hedging’ means insurance from the currency price fluctuations, assets etc. Hedging can also be considered as Continue reading

Hedging

hedging_forexHedging denotes safety and security. Hedging is protection of client’s funds from unfavorable currency rate fluctuations. Account funds are fixed at their current price through conducting trades on Forex. Thus, hedging helps to ease exposure to currency rate change risks, which helps to achieve result not influenced by fluctuations. In fact, hedging presupposes using one instrument in order to lower the risk related to unfavorable market factors impact on the price of another one directly associated with it. More often, the notion ‘hedging’ means insurance from the currency price fluctuations, assets etc. Hedging can also be considered as Continue reading

Forex and Stock Markets

01Forex market and stock market (stock and securities market) are two independent markets with no relation to each other. They differ in trade instruments: currencies are traded on Forex market, and shares, on a stock market. Stock markets are often located at the stock exchanges. The largest stock exchanges are situated in New York, London and Tokyo. Another difference between Forex and stock market is the amount of money Continue reading

Forex and Stock Markets

01Forex market and stock market (stock and securities market) are two independent markets with no relation to each other. They differ in trade instruments: currencies are traded on Forex market, and shares, on a stock market. Stock markets are often located at the stock exchanges. The largest stock exchanges are situated in New York, London and Tokyo. Another difference between Forex and stock market is the amount of money Continue reading

Trading Psychology

12_6_origTrading is an activity that demands analytical and inference skills. It requires patience from the one hand and quick response with risk readiness from the other. Trading is an activity for those who understand psychology. These factors will largely determine whether you succeed or loose on Forex. Even if you switch to system trading, you will not avoid the emotional stress when making trading decisions. Forex traders are often inclined to believe that the less emotion, the better trade – i.e. emotions prevent a correct decision. But the sense of anxiety, fear of losing money, hope and belief in luck, regret, joy, frustration, and joy again – all these feelings inevitably associated with trading. Continue reading

Trading Psychology

12_6_origTrading is an activity that demands analytical and inference skills. It requires patience from the one hand and quick response with risk readiness from the other. Trading is an activity for those who understand psychology. These factors will largely determine whether you succeed or loose on Forex. Even if you switch to system trading, you will not avoid the emotional stress when making trading decisions. Forex traders are often inclined to believe that the less emotion, the better trade – i.e. emotions prevent a correct decision. But the sense of anxiety, fear of losing money, hope and belief in luck, regret, joy, frustration, and joy again – all these feelings inevitably associated with trading. Continue reading