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Forex Market Analysis

Forex Market Analysis

Forex Market Analysis

Forex Market Analysis! A Forex market analysis includes everything from the fundamental analysis to the technical analysis. There may be reports coming out on any particular day. If the US Fed report is coming out, the trader might want to stay away from the market until the dust settles. If the unemployment report is coming out, that is going to have a major effect on which way the market is going to move.

It’s not all about charts and lines. When fundamental news comes out, all the charts in the world could tell you that the market is going to do one thing, but it will react to the news in spite of the charts; not because of them. A Forex market analysis will alert you to anything that might come up.

Where to get it

Most forex brokers, on their websites, will offer some kind of Forex market analysis. Whether it’s just a column on the home page, or different channels for different Forex pairs, they offer the opportunity for their traders to stay informed. Up to the minute news is made available and actually should be clicked on periodically throughout the day. It doesn’t hurt to stay informed.

Forex portals and websites also give daily analysis. Not only will many of them provide the basic statistics and announcements, but many of them will offer an opinion and analyze the news that is provided. At the end of the day, it is each individual trader’s decision on what to do with the information provided. But to have the information out there and not be utilized is like leaving a valuable tool lying on the table.

Blogs often give Forex market analysis. There are a few that do it on a daily basis, and some that will give weekly wrap ups. Take a look around and see which one appeals to you. A variety of formats may also prove useful.

What to do with it

To have a good technical analysis is always the basis of solid Forex trading. That’s where you’re going to find your trading range; your buying points; your selling points; and your stop loss points. It’s going to show you where, technically, the support and resistance lines are in the Forex market. It is the foundation of your day trading.

However, the fundamentals can never be ignored because it can be the trap you don’t want to fall into. To spend some time and get a good Forex market analysis can add substantial profits to any traders day. And isn’t that what it’s all about?

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Forex Broker Guide

Forex Broker Guide

Forex Broker Guide

It is highly recommended for you to create your own Forex brokers guide so that you will keep in mind what offerings and preferences you want in a Forex broker. It is important to appreciate that the Forex market is very competitive and that you need to perform thorough research in order to identify a broker who is most compatible to your objectives and resources. In fact, if you aren’t entirely satisfied with your broker at any point, it’s worth revisiting your Forex brokers guide and trying out a new broker that can better meet your needs.

Useful Guidelines

Here are some questions that you can include in your Forex brokers guide that you should gain answers to during your quest.

1. How much will it cost you to open a Forex account?
2. What size leverage facility do they offer? You are well-advised not to enroll with brokers providing very large leverage facilities because they could cause you to easily overtrade. You may be interested to know that all USA brokers can now only provide a maximum leverage of 50:1 following recently introduced CFTC Rules and Regulations
3. What spreads do they charge? You can anticipate that most top Forex brokers will display a 2 to 3 pip spread for the EUR/USD currency pair.
4. What methods will you be able to use to deposit and withdraw money from your Forex account? For instance, will you be able to use credit cards and bank wires?
5. Will your new broker be able to provide you with the option of mini and micro accounts so that you can trade using smaller lot sizes?

Size Matters

Your Forex brokers guide should also help you evaluate the trustworthiness of a specific broker, which may be directly related to its size. Larger Forex brokers like XM.com tend to have direct affiliations with some of the world’s major banks, a relationship which can speak volumes of the broker’s trustworthiness. Smaller brokers, on the other hand, may not have close relationships with banks, but will focus instead on fostering their relationships with their traders, which can work to your advantage. Carefully consider what your needs are so that you can determine what size brokerage will be ideal for you.

Regulatory Bodies

Another critical thing to list in your personal Forex brokers guide is a confirmation that broker of your choice is a registered FCM (futures commission merchant) and registered with the US Commodity Futures Trading Commission (CFTC) or with the proper regulatory body in the country that the broker is based in. Ensuring that your Forex broker is properly regulated is critical so that you can trade with the knowledge that your funds are protected.

Adjusted Net Capital

Finally, it’s important to make sure that your Forex brokers guidelines includes review of the adjusted net capital of any potential broker. For your own security, favour brokers that present an adjusted net capital in excess of $25 million, as these brokers will have the stability and size that you require in order to be able to trade Forex with confidence.

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Forex Trading Can Be Simple

Forex Trading Can Be Simple

Forex Trading Can Be Simple

Forex Trading Can Be Simple! The first issue is a lack of self-confidence. This makes sense, because by being new to the trading world it is easy to feel that you know almost nothing. The average new trader is constantly looking for “hints”, “tips”, and “tricks” when it comes to trading. This is easily understandable as they will know little about currency trading. After all, sound trading decisions are the result of experience, and they will have very little of that. What many people don’t understand is that experience is often the result of bad decisions!

The lack of confidence will lead to system-hopping, and the constant switching of indicators and timeframes. The thing that is risky at this point is the trader very rarely understands how an indicator works. They just simply know that you “buy when this line crosses the other one”, or something like that. The understanding of the mathematics involved makes using these indicators more effective in theory, because at least the trader knows what they are seeing. Of course, at this point in time, they may have several indicators on their charts and this can lead to what is known as “paralysis by analysis”, which leads me to the other catalyst.

The other catalyst is simply a fear or losing money. Most traders go into the Forex markets looking to get rich, and not understanding that you can’t always win. Yes, they understand that a 100% win ratio is a bit much to ask for, but they don’t emotionally understand that. It is one thing to understand something from an intellectual level, and quite a different one to understand it from a gut level. Taking a loss isn’t fun, but it is something we all do.

The “paralysis by analysis” syndrome comes about because of this. There is a point in the new trader’s career that they will pile on the indicators in order to “read the markets.” They may start with a moving average, and add an M.A.C.D. indicator as time goes on. Perhaps they have attended a webinar that featured the trader using the ADX and Keltner Channels. At this point in time, they are starting to add the indicators to the chart, and not seeing the most important thing: where price is going!

With a ton of indicators, it isn’t easy to understand where to go. You could have three indicators saying sell, while another two are saying buy. It is at this point the trader understands how difficult this is getting for them. They have made it overly complicated, and now it is getting to be frustrating – and that can lead to really stupid trading decisions over time.

Hopefully, they reach the point where one day they look at a chart and say something like, “Wow, if I only had sold USD/CHF over the last few years. It has gone straight down over that time.” While there are pullbacks, the trader sees that in general, they could have made a fortune selling this pair over the last several years. This is where the idea of trading with the trend comes into play. There are traders out there that will only trade in the direction of the overall trend, and refuse to take set ups in the other direction. Of course, this takes a bit of patience when the pullbacks come – but it does work in the end. While there are many different ways to trade, those who choose this method simplify a lot of the decisions they are forced to make as they already know what direction they want to be in. Their entries may vary from trader to trader, but they all tend to sleep a little easier at night as well.

There are those who will debate the whole “the trend is up on the 15 minute, down on the hourly, but also up on the weekly timeframes.” Nonsense. Currency pairs only have one trend, and that is the major one. The rest is noise, and if you focus on that – you can avoid a lot of trouble. If you are trying to figure out the trend, simply look at a weekly chart and see if the market is going from lower left to upper right. If it is, you are in an uptrend. If it is going from the upper left to the lower right, you are in a downtrend. Anything that isn’t easily identified isn’t worth bothering with, as there are plenty of pairs to trade.

By approaching the markets in this manner, trading really can be as simple as you let it be.

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Is Forex Trading Allowed in Islam?

Is Forex Trading Allowed in Islam?

Is Forex Trading Allowed in Islam?

Is Forex Trading Allowed in Islam? It should be stressed that though we’ve researched the issue of Islamic Forex and its validity within Islamic law at length, we are in no way attempting to provide religious guidance for readers of this article or their acquaintances.  As evidenced in the research presented here, there are certainly many people who believe that in the right circumstances, Islamic Forex trading is permissible.  However, there may be some that aren’t comfortable using these workarounds, and this is a completely valid approach as well.

The question as to whether Forex trading is permissible according to Islamic law is a difficult question to conclusively answer. Although Islamic authorities certainly agree that currency exchange under certain conditions is halal (i.e., permissible according to Islamic law), there is some dispute regarding under exactly what conditions. Let’s examine the issues one by one after looking at the saying on the subject by the Prophet Mohammed (peace be upon him):

“Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, same for same, hand to hand. If the types are different then sell however you like, so long as it is hand to hand.”

Is there such a thing as halal Forex trading? Is Forex halal or haram?

Forex Trading – Halal or Haram Fatwa

Usury is of course completely prohibited in Islam, and is defined very widely. This implies that any kind of deal or contract which involves an element of interest (riba) is not permissible according to Islamic law. For a long time, retail Forex brokers reflected the market practice of paying or charging to the trader the interest differential between the two components of any currency pair whose position remains open overnight. Eventually, most Forex brokers responded to market forces (and pressure from Islamic traders) by becoming “Islamic Forex Brokers” and offering “Muslim Forex Accounts” which operate without standard interest payments. You might ask how they did so and maintained the profitability of their operations. This was achieved by charging increased commissions in spot Forex trades, and this practice has become the hallmark of nearly all Islamic Forex brokers. Arguably, this in itself is just a camouflaged interest component, and if this view is taken, it makes Forex trading problematic according to Islamic law.

The interest problem also eliminates any possibility of trading Forex forwards, as there is always an interest element involved in these transactions.

However, “regular” spot Forex trading offered by Forex brokers, with no overnight interest payments or charges, could clear the hurdle of riba.

What Islam Says on Online Forex Trading

Having reduced the issue to one of trading spot Forex and assuming there is no interest element deemed to be involved, we move onto the next issue. It would seem to be permissible only “so long as it [the exchange] is hand to hand”. So clearly, the Prophet Mohammed (peace be upon him) had in mind exchanges of different types of commodities that would be made between two parties, recognizing that this was a natural and just aspect of commerce. The question here lies in what is considered to be “hand to hand”. In the olden days, there were of course no computers or telephones, so the aspect of making a deal face to face (or hand to hand) wasn’t much of a question. In fact, one could extrapolate that it was natural and accepted for a deal to made between two different parties. In modern times, it can be argued that in regards to Forex trading, the deal is made between a Forex broker and a trader, so this would qualify under such a definition of two different parties, which would be permissible according to Islamic law.

A further widely recognized stipulation is that the actual exchange must take place during the same “sitting” in which the contract is made- in other words, trades must be concluded more or less immediately. We would seem to be on solid ground here, as when a trade is made with a Forex broker, it takes effect immediately. Interestingly, this could suggest that all non-market trades (i.e. stop or limit orders) are haram!

It is here that we arrive at the biggest hurdle in attempting to answer the question “Is Forex halal or haram?” Generally, Forex traders do not expect to take actual delivery of the currency they are “buying”, and never actually own the currency that they are “selling”. They are simply speculating that the value of one with go up and the value of another will go down. Is such speculation permissible according to Islamic law?

This is an extremely difficult question to answer and it may be one that should be discussed with your own religious leader rather than being decided base on an internet article. Nevertheless, we’ve researched the issue thoroughly and will be outlining some points of thought below.

We can start by saying that Islam recognizes that nearly all adult human beings strive to improve their financial positions, and that life involves a large element of uncertainty. In life we are confronted with many choices, the outcome of which is unclear, and we strive to use intelligence and skill in choosing the available option that will produce the superior outcome. However, we then must go on to say that gambling is strictly forbidden by Islamic law, even as a form of recreation or entertainment when undertaken with small monies which the gambler might be said to be able to afford to lose.

In measuring these two competing elements, it can be said that it is the method of speculation that makes the difference. One author has examined the subject and stated that speculation on the basis of fundamental analysis is permissible, but technical analysis is not, and an interesting reasoning is given: placing trades based on technical analysis is essentially tantamount to betting on the bets of others, and relying upon the behavior of the crowd to influence your speculation is drenched with the essence of gambling, which is forbidden by Islamic law.

However, this argument can certainly be criticized as spurious as related to market realities. For example, is a speculator who believes that the U.S. Dollar will rise against his Euros due to economic fundamentals bound to simply make the trade immediately, and forbidden to take any action to time the trade entry to a psychologically opportune moment?

Once you’ve done your research thoroughly, you can decide whether Islamic Forex is right for you.

A stronger argument could be made that a Muslim has no business speculating on the currency markets unless he or she has a firm basis upon which to anticipate success. This would mean that trades must involve either some element of fundamental analysis or technical analysis which the trader actually has a firm reason to believe in. One example might be trend following trends that have an academically established track record as a profitable trading method in liquid financial markets, and trading these trends using Islamic FX Brokers. A trader could argue that a strong technical trend is easier to establish – and is also likely to have an underlying (if invisible) “fundamental” reason behind it – than a classical fundamental economic outlook which might be disputed by professional economists!

Creating a Muslim Forex Account

There is no question that currency exchange is permissible in Islam, provided that there is no interest element, that it is made hand to hand (though this phrase can be translated in multiple ways), and that the exchanger has a valid reason to anticipate a probable profit based upon an analysis that does not rely upon the psychology of gambling. On a minimal basis, Islamic Forex brokers can be used to trade, which should at least remove arguably all of the riba challenges. As we have seen, there are certain grey areas within this qualification that must be investigated deeply in good faith and conscience by anyone wishing to begin halal Forex trading with a Muslim Forex account.

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How to Set Up a Trade

How to Set Up a Trade

How to Set Up a Trade

How to Set Up a Trade? The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, and expiration date. All trades have dates at which they expire.

When the trade expires, the behaviour of the price action according to the type selected will determine if it’s in profit (in the money) or in a loss position (out-of-the-money). In addition, the price targets are key levels that the trader sets as benchmarks to determine outcomes. We will see the application of price targets when we explain the different types.

There are three types of trades. Each of these has different variations. These are:

  1. High/Low
  2. In/Out
  3. Touch/No Touch

Let us take them one after the other.

High/Low

Also called the Up/Down binary options trade, the essence is to predict if the market price of the asset will end up higher or lower than the strike price (the selected target price) before the expiration. If the trader expects the price to go up (the “Up” or “High” trade), he purchases a call option. If he expects the price to head downwards (“Low” or “Down”), he purchases a put option. Expiry times can be as low as 5 minutes.

Please note: some brokers classify Up/Down as a different types, where a trader purchases a call option if he expects the price to rise beyond the current price, or purchases a put option if he expects the price to fall below current prices. You may see this as a Rise/Fall type on some trading platforms.

In/Out

The In/Out type, also called the “tunnel trade” or the “boundary trade”, is used to trade price consolidations (“in”) and breakouts (“out”). How does it work? First, the trader sets two price targets to form a price range. He then purchases an option to predict if the price will stay within the price range/tunnel until expiration (In) or if the price will breakout of the price range in either direction (Out).

The best way to use the tunnel binaries is to use the pivot points of the asset. If you are familiar with pivot points in forex, then you should be able to trade this type.

Touch/No Touch

This type is predicated on the price action touching a price barrier or not. A “Touch” option is a type where the trader purchases a contract that will deliver profit if the market price of the asset purchased touches the set target price at least once before expiry. If the price action does not touch the price target (the strike price) before expiry, the trade will end up as a loss.

A “No Touch” is the exact opposite of the Touch. Here you are betting on the price action of the underlying asset not touching the strike price before the expiration.

There are variations of this type where we have the Double Touch and Double No Touch. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration (Double Touch) or not touching both targets before expiration (Double No Touch). Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels.

Some binary options brokers offer all three types, while others offer two, and there are those that offer only one variety. In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set.

Mobile Apps

Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms have been designed with mobile device users in mind. So the mobile version will be very similar, if not the same, as the full web version.

Brokers will cater for both iOS and Android devices, and produce versions for each. Downloads are quick, and traders can sign up via the mobile site as well. Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading. Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are.

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Eight trading reasons for trading in Binary Options

Eight trading reasons for trading in Binary Options

Eight trading reasons for trading in Binary Options

The advantageous of Binary Options

Failure to pay the commission and spread to the broker’s for opening in trading

One of the biggest problems in Forex is usual Spreading by brokers of Forex which can danger all traders in Forex easily.

However, in Binary Options the traders never pay spreads and commission. Moreover, the traders are not afraid of any things like increasing spreads when some political news occurs and they can trade easily and everything is ok and controllable.

Acting and trading with the least investment

Nowadays, you can trade in financial market of Binary Options with the least investment. And this is an important point for fresh traders. In Close Option Company, you can participate in real trade with only one dollar. Deal with your activities and trading system to promote your capabilities with the least amount of risk.

Fixed and predicted profit and loss in Binary Options trades

One of the great challenges of trading in Forex is determining the appropriate extent of profit and loss rate for trading. While this somehow has been solved in Binary Options. And as a trader opens the trade, the amount of loss rate and profit is calculated by Binary Options platform.

Less need for precise analyses than Forex

Another significant merit of Binary Options is ease of trading and lack of need for precise analyses of price changes. All we need is a correct prediction of rising or falling of the stock prices or currencies in a specific interval. In the currency market, for making a good profit. While trading, the price must have been moved from the entry point. while in Binary Options, if your trade even for a Pip was in direction of the correct prediction, you will be successful.

Binary Options is a market without any increasing the investment

Leverage of increasing the investment is a factor in Forex. It increases the capital until 50 to 200 times and even more this amount is different in Forex brokers and each broker will suggest its  reliability. And it will be bigger to increase the volume of trading in the markets.

It is for sure this reliability is like a double-edged sword and has a lot of ability to get profit or lose a lot of money. Reliability in Forex has a lot of criticism. These critics believe that this reliability has a lot of potential to make loss for traders. There is no reliability in Binary options. You just trade with your real money to improve reality in daily trading and managing investment.

To minimize the stress during trading

One of the problems that all traders will face is being excitement and emotional during trading. It can be profitable or might be with loss which gives the traders a false hope and his/her investment will be ruin.

One of the common mistakes for beginners in Forex is to advance losing in hope of returning money and price. Meanwhile closing fast trading due to losing money which some traders experienced this regularly. However, in Binary options, these problems become less and when you enter a trading. You should wait for its result and this means decreasing the excitements and harmful emotions.

Lack of restrictions on the implementation of the styles of trading in binary options market

In Binary options you can trade with different methods of trading. You can improve your ability to get more profit

Now current brokers give various time frame to all traders to cover all methods of trading in Skypeor daily trading.

High and fast efficiency in binary options

Trading in Binary options is one of the fastest ways of reaching a lot of money and a high efficiency

Among all markets and other business markets, even in a minimum of time like 30 seconds, can get profit. 76% of his/her investment and this kind of efficiency is rare in other business.

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What are the wrong ideas in Binary Options?

What are the wrong ideas in Binary Options?

What are the wrong ideas in Binary Options?

Nowadays many traders have wrong ideas about Binary options so here in this article,  I want to mention What are the wrong ideas in Binary Options?

    • You should learn Forex before trading in Binary Options.

      This is a wrong idea that you can start Binary Options trading without Forex learning. You can start to learn your Binary Options trading strategies so Forex market is not a prerequisite for Binary Options trading.

    • You need a lot of money to start Binary Options trading.

      This is another wrong idea about both Forex and Binary Options market.  The Forex brokers minimum deposit was more than 10,000$ for trading but today you can start your trading just with 1$!

binary.com no deposit bonus

  • You dont need a strategy to trade in Binary Options!

    This Idea is very funny.  If you believe this Idea, I highly recommend you leaving Binary Options trading and go to the Casino for gambling!

  • All Binary Options brokers are scammed!

    If you choose a wrong broker for your trading, this is your fault.  There are many Forex and Binary Options brokers which are scammed. You should be careful to choose the best brokers.

  • The chart trend is not predictable!

    If you think the market is not predictable, why do we have a lot of universities that learn Forex market and economic indicators?
    If you can’t predict the market, increase your knowledge.

  • I should find the best strategy in Binary Options

    You should know there is not the best strategy in Binary Options or Forex market.  All profitable strategies are good and you can’t count on fix strategy for a long time.  Some strategies are good in trading area and some strategies are good in market trends. Hence, the others are good for important news.

  • You can use your Forex strategies in Binary options.

    If you look in the normal way,  this idea is not wrong.  But If you look at Binary Options trading wisely, you can understand that the Expire time is a very important factor in Binary trading.  In Binary Options trading,  the return and loses are fixed in each position, after that, you can’t use your Forex strategies on Binary Options without innovation.

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FreshForex Broker – Forex No Deposit Demo Account & 101% Tradable Deposit Bonus!

FreshForex Broker – Forex No Deposit Demo Account & 101% Tradable Deposit Bonus!

FreshForex Broker

FreshForex Broker review FreshForex Broker review FreshForex Broker – Forex No Deposit Demo Account & 101% Tradable Deposit Bonus!

FreshForex is a russian company founded in 2004, as today they are one of the top forex brokers at the market.

If you open account in FreshForex, you will receive forex analysis, financial news, fresh trading forecasts, fundamental analysis and many other important things about forex trading. They offer also demo account for beginners, this is the perfect way to test the services of FreshForex. They have a lot of promotions, bonuses and advantages such as:

  • Forex No Deposit Demo Account
  • 200$ Forex No Deposit Bonus
  • 101% Tradable Deposit Bonus – Click Here to Open An Account
  • MetaTrader Coupons to Use on MQL5 Community
  • Megarebate 2.0$20 from each lot of loss trades OR $10 from each lot of profit trades OR $5 from each lot of all the closed trades
  • 48% Per Annum
  • No Deposit Commission
  • Mobile Trading
  • Great Customers Support & Personal Manager for each client
  • Very Fast Withdrawal – Less than 25 minutes on average for processing a withdrawal applications on business hours
  • Swap Free trading is possible on a special FreshForex account where swap payment is not collected
  • 1$ Minimum Deposit
  • Narrow floating spread from 0 p
  • ECN accounts with the lowest commission – from 0.003%
  • Flexible hedging with “Smart Bridge Technology®”, which provides the best NDD execution and the most accurate quotations.

FreshForex team has launched a new service of Simple Trading — FreshForex Easy Bot.

You no longer need a platform to start trading. Telegram application is just enough.

FreshForex Easy bot will provide you with essential information for a quick trade: current quotes, data on accounts and open trades etc. With FreshForex Easy Bot service you do not need charts and complicated analysis.

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Binary Options Trading Requires Very Little Experience

Binary Options Trading Requires Very Little Experience

Binary Options Trading Requires Very Little Experience

The common misconception is that binary options trading and forex trading can only be done by one that has a certain amount of experience in the area. There is no requirement to have any previous experience in financial trading and with a little time, any skill level can grasp the concept of binary options trading, so Binary Options Trading Requires Very Little Experience!

The basic requirement is to predict the direction in which the price of an asset will take. The price will either increase (call) or fall (put). Successful binary options traders often gain great success utilizing simple methods and strategies as well as using reliable brokers such as IQ Option.

How to minimize the risks

Our goal is to provide you with effective strategies that will help you to capitalize on your returns. These are simple techniques that will help to identify certain signals in the market that guide you make the proper moves in binary options trading. Risk minimizing is important for every trader and there are a few important principles that aim to help in this area. Binary options trading can present several risks but to decrease them, take the following into consideration.

• Never invest the entirety of your capital at once
• Review the dynamics of your trading asset prior to investing
• Exercise the strategy by investing only 5 to 10 percent of your equity per placement

Types of Binary Options Strategy

Binary options strategies are all different, but they have three common elements:

  1. Creation of a binary option signal and getting an indication of how to trade this signal
  2. How much you should trade
  3. Improving your strategy

The precise strategy can vary on each step, so there are a huge number of possibilities. The most important part of developing a successful strategy is understanding as much as possible about each element. This will be covered in the next section, starting with the creation of signals.

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Why trade forex?

Why trade forex?

Why trade forex?

There are a number of benefits to trading forex, including the ability to trade on margin, high liquidity and the flexibility to trade around the clock from Sunday through to Friday.

Leverage

Leverage is a key feature of FX trading, and means you only need to put up a small initial deposit, or margin, to enter a trade. Our margins start from 0.20%, which is a leverage of 500:1.

Margined trading can be a more efficient use of your capital because you only have to provide a percentage of the overall value of your position, while maintaining full exposure to the market. This effectively means that you increase your profit potential if the market moves in your favour, and loss potential if the market moves against you.



For example, with £100 as position margin, you could enter a position that has an overall value of £40,000. Remember that increased leverage enhances losses as well as profits. Additionally, markets can move against you and losses can exceed your initial deposit due to rapid price movements.

24-hour market

Forex is an over-the-counter (OTC) market, which means trades don’t take place through a centralised exchange, like shares or indices for example. FX trading takes place across the globe, around the clock, from Sunday night through to Friday night.

This means that unlike any other financial markets, investors can almost always respond to currency fluctuations caused by economic, political and social events as they occur, without having to wait for markets to open.

Currency markets offer price volatility 24 hours a day, so whatever your trading strategy, there is the potential to find numerous trading opportunities. This also means that the markets are constantly moving, which places even more emphasis on monitoring your positions and using the appropriate risk management tools.

High liquidity

The currency market is the most heavily traded financial market in the world, with a daily average turnover of around $5 trillion. With so many global market participants trading at any one time throughtout the day, the currency markets are more liquid than any other financial market.

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