Forex Articles

Forex Articles | Forex Education Center - In this section you will find latest articles submitted by contributors for education purpose.

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MQL5 Market and Overview of Trading Robots

MQL5 Market is a secure service created by MetaQuotes Software Corp. for its MetaTrader trading platform. This service facilitates the buying of trading robots, indicators, scripts and other trading programs. One can buy ready-made applications suiting their requirements to work on the financial markets. Traders just need to login to their MQL5 account, launch the marketplace and buy the applications of their choice. These applications can then be launched right from their terminals.

market_in_terminal

The marketplace has wide array of applications which cater to the needs of all type of customers. There are both free and paid applications available in the marketplace. Applications can be sorted by price, popularity, category and other parameters for ease of search. All applications are listed along with proper description and detailed images. [Read more...]

Seven Myths about Forex

forexIt’s hardly possible to find a person that has never heard of the Forex market, as FX-related advertising has literally seized nearly all the information channels. This sort of invasion has surely triggered a great response from the audience, resulting in spreading myths among both potential traders and those, who have already taken up this business. The present article is targeted at breaking the most common stereotypes and prejudices around the Forex trading.

Myth 1: Forex is scam.

Hundreds of people strive to plunge into the Forex environment after being promised mountains and marvels just within a few days or weeks. Naturally, unlucky fellows get disappointed at having failed to make a fortune. So, they start blaming the entire world in their bad luck, including Internet, brokers, big daddies but not themselves. [Read more...]

Why Trading the News is a Waste of Time

News TradingI am sure that throughout your Forex trading career, either short or long, that someone has suggested that you trade the news. Or at least use the economic news to help with your trading. Now I am sure that these people aren’t trying to waste your time but that is exactly what they are doing.

Believe it or not but all of the information that you get from reading the news can easily be read in a more efficient way. That way is using a chart, that’s right a regular old candlestick chart will get the job done.

Each candlestick that is printed on a chart tells a different story, being able to read what the story is telling you is very important. Reading a chart at the most basic level is very simple.

A small bodied candle means the market is undecided. A big bodied candle means the market has made up its mind and is ready to go one direction. A candle that closes above its open price is bullish and a candle that closes below its open price is bearish. [Read more...]

Comparing the Forex and Stock Markets: Which one is for you?

People who are not fond of reading the newspapers’ business sections will find these terms highly intellectual, and will feel as if they’re currencyhearing words from a different language – or maybe a little alien-sounding, perhaps. However, for those who are skilled and adept in maneuvering money in these markets, or just those who are frustrated investors, these words are more than what makes up their day.

Forex and stocks what are these two terms, anyway?

Forex                          

Foreign exchange, or forex as it’s simply called, is a market that deals with buying and selling currencies according to their value, with intentions of earning profit. People earn by selling the money they own for a higher value, which means they gain and have more money than the amount that they started with. [Read more...]

Overview of Trading Signals for MetaTrader 4 and MetaTrader 5

What is MetaTrader?

MetaTrader is an independent trading platform created by MetaQuotes back in 2002. MetaTrader is one of the very first truly Metaquotes_company_logoprogrammable trading platforms that comes with its own programming language. One can trade forex, options and futures with MetaTrader software.

MetaTrader 4 and MetaTrader 5 are the two versions of this software, MetaTrader 5 being the latest one in the market. This software works on MQL5’s Trading Signals service which allows traders to copy trading operations of a Signals Provider on a real time basis.

How does this service work?

Traders need only three things to subscribe to a Trading Signal:

  1.  An MQL5.com account.
  2. Select the broker name which will display based on the first few characters entered of the broker name.
  3. Enter the account number on broker’s server. [Read more...]

Why you should not worry about the Cyprus bailout

The article was originally published in Liquid Markets blog by Nick Bang, edited by Maria Appiou (Liquid Markets Marketing Executive)
Bank_Cyprus_imageThe actions of the European Union have left us all in disbelief and we condemn those politicians, officials and legislators who would make it legal to appropriate the savings of hard-working people.

However, to allay any fears you would have about holding funds with a forex broker, I wish to clearly explain why funds held in a trading accounts are not at risk.

Q. Why the EU or any government CANNOT impose a levy on your account with Liquid Markets now or in the future.

When a client deposits margin with a broker such as Liquid Markets, he uses one of our depositary banks to do so or uses his credit card to deposit funds. His account however is not directly with the depositary bank, it is with a forex broker.

As such he does not have a bank account with a forex broker but a trading account. A trading account implies the purchase and sale of financial instruments such as FX, CFD equities, futures etc. Moreover, it implies the utilisation of margin. A levy, tax, or any other form of deduction therefore cannot be applied on your account without your consent because this would imply the possibility of any open positions being liquidated by the deduction, triggering the margin liquidation level. This would mean that the European Union [Read more...]

The benefits of opening an account with ECN brokers

ecn-forex-tradingForex market is a massive international market where agreeable sellers and buyer make forex transactions. The market is decentralized which means that there is no centralized forex exchange, unlike stock markets. Furthermore, the forex market is open 24 hours. To be able to start trading currencies, first and the foremost thing is opening an account with the ECN broker. When your account is opened, the broker provides a username and password; hence, you become eligible to make transactions. The clients of ECN brokers are individual investors, banks, insurance companies, large corporations etc.

What is the importance of ECN brokers? ECN brokers have automatically integrated software which enables traders to do forex trading. If you have a computer, an internet connection and ECN account, you trade currencies from any where in the word; from your office, home etc. In other words, you can do forex trading from home or anywhere without going to the offices of your ECN broker. The problem with most ECN brokers’ spreads is that they are very wide; hence, people loose to them every time they open and close a trade. This thing adds significant loss to frequent traders. One other big problem is the lower capital requirement with high leverage which they attach their clients with. Would it be right to say that a broker always wins the money while their clients always lose? No it would not be an appropriate thing to say. Let’s talk about some of the key pros and cons of ECN brokers as follows: [Read more...]

Introducing Binary Options to FX Traders

Binary options have captured the acceptance and endorsement of investors world-wide in recent times to the point that their Binary Optionreputation is improving faster than any other type of financial speculation. They have attained this remarkable standing mainly because of their primary feature, which is their ease-of-use.

For your information, they are also known as binaries, fixed returns and digital options. Prominent analysts rate binary options as a more user-friendly investing vehicle than any other prevalent methods, such as trading stocks or currencies directly, etc. Consequently, you should seriously consider investigating the intriguing world of binary options, especially if you are a beginner or a trader of limited experience.

1.   Introducing Binary Options

Explicitly, binary options are legal arrangements that guarantee the precise payout of refunds and returns at a pre-specified expiry time. They are constructed utilizing underlying assets that can be selected from one of the four main investment categories, i.e. indices, currencies, stocks or commodities. [Read more...]

Latest Forex Trading Trends

Forex trading involves a decentralized form of global exchange of currencies by different countries against each other. The different countries have their own unique form of currency. In the US for instance we have the dollar. The currency that is in circulation in UK on the other hand is the pound. Forex trading therefore in this case could be a situation whereby the UK buys the dollar while at the same time selling the pound.

Operation

The foreign exchange trade, or in other words forex trading, is normally conducted by a broker or a market maker. There are financial centers featured in various places worldwide, which anchor the processes of buying and selling of the different currencies. This task is conducted on a 24-hour period almost on a daily basis, with the exception of the weekends. The value of currencies keeps on changing from time to time, but the forex trader is in a position to choose the value of the currency pair that he/she wishes to trade. For instance 500 USD may cost a trader 1500 Japanese yen at the beginning of the year. Towards the end of the year we may witness a rise whereby the same 500 USD may be worth 2000 Japanese yen. If the trader chooses to end the trade towards the end of the year, he/she would encounter more profits. [Read more...]

Not all ECN Brokers are Created Equal

Another factor that makes it rather difficult to choose an ECN broker from a list of brokers you have carefully Forex Trading ECNreviewed, filtered, and verified is the fact that not all of them are created equal. In a bid to outdo each other in attracting forex traders to their fold, each one of them try to incorporate additional features into their services and improve and expand on their existing ones.

For example, one factor that will distinctly draw a line between the mediocre and the best among them is the depth and quality of the electronic communication network they belong to. Obviously, brokers who belong to a more extensive network with more reputable financial institutions and reliable liquidity providers under its fold will be able to guarantee immediate and fast execution of orders with the best price and the narrowest spread.

The first ECN for forex trading was the debunked MatchbookFX which was established in 1999. It has since been replaced by other networks like HotspotFX, Currenex, Bloomberg Tradebook, Baxter, FXall, and 360T. Each of these networks provides access to the interbank foreign currency market and supplies streaming currency quotes coming from top tier, major banking institutions. They are in effect intertwined with each other since a network may be connected to several banks which may also be connected to other [Read more...]