Author: Editorial Team

ForexPromos Editorial Team is comprised of a selection of hand picked editors that bring you the latest breaking news from the financial markets. We also provide forex educative articles as well as comprehensive fx broker reviews.

How Fibonacci Trading Works

How Fibonacci Trading Works

Trading Indicators
Fibonacci trading is a concept in the technical analysis of a security. Fibonacci trading is nothing but identifying support and resistance levels that will most likely trigger a price reversal. The golden mean or phi is a result of the Fibonacci numbers. This proportion divides a measured wave such as price and gives potential levels of support and resistance. These levels signal a high probability of a reversal. It is not always easy to understand the ins and outs of the financial market. This is especially true when the understanding and application of complex analytical methods becomes involved. In this article, we will look at the history and background of Fibonacci numbers and The Golden Ratio. We will then outline three specific money management tips that can help increa
Credit Spread Adjustments: Delta Hedging with Stock

Credit Spread Adjustments: Delta Hedging with Stock

Trading Strategies
One of the most effective ways to adjust a broken out-of-the-money vertical spread is with stock. So many of us in the retail world—having been introduced to the flexibility and/ or leverage of options—seem hotly opposed to taking a position in an underlying stock, ETF or futures. Many of us would rather torment a simple vertical spread with layer upon layer of complicated adjustments, so that what started out as a hands-off strategy becomes a position that must be constantly tweaked—the original thesis for the trade reduced to a footnote. The Decision to Adjust Often the biggest risk to a credit spread is price: a trader establishes a position and price woefully moves in the complete opposite direction than anticipated. When trading out-of-the-money credit spreads, the general ass
What are straddles?

What are straddles?

Trading Strategies
With the implied volatility of the S&P 500 Index (as represented by the VIX) touching 18 and the 20 day Realized Volatility down at around 8%, I’ve been hearing quite a bit from students and colleagues about long gamma positions – straddles in particular. The idea is that volatility is so low that options are under-priced and should be purchased in bulk to profit from the impending price explosion. Without necessarily arguing for or against that position, what follows are some thoughts on what I believe to be very basic options strategy. The purpose of the straddle is to profit from either a gain in Implied Volatility or Realized Volatility (ie: a sudden change price movement). Since most beginning traders buy straddles in the hope of cashing in on an unforeseen breakout, it m
What is a Multilateral trading facility (MTF)?

What is a Multilateral trading facility (MTF)?

Trading Articles
Multilateral trading facility  or MTF is a regulatory term in Europe for non-exchange financial trading venue. A non-exchange financial trading venue is an alternative to the more traditional stock or futures exchange. For example, forex is often traded over-the-counter with no centralized trading exchange. However, orders can be executed and matched at an MTF venue. An MTF works in the same way as a stock or a futures exchange and brings together buyers and sellers. In the United States, it is also referred to as an Alternative Trading System. A multilateral trading facility or MTF can be used as a stand alone entity to the stock exchanges. An MTF isn't as complex as one might think and one of the simplest examples is that of LMAX Exchange, which is allows forex trader access to CFD
What is happening to the bond markets after a Trump victory?

What is happening to the bond markets after a Trump victory?

Financial Markets Explained
The bond markets were in the news for the two straight weeks since the U.S elections held on November 8th 2016. After an initial rally, bond markets fell sharply and continued to fall in the following days making it one of the most talked about asset in the financial media. It wasn't just U.S bonds but also across the world, including Japan and Europe. For example, yields on the 10-year government bonds in Japan rose to 0.035% on Friday, November 18th, 2016, up from 0.005% just the day before. It was the first time that yields rose. Even far flung economies such as Singapore, Malaysia, Thailand, bond yields spiked. In bonds, yields run inversely to prices; meaning that when bond prices fall, yields rise. Learn the basics of bonds here. Blame Trump's policies for rise in bond