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.

Mirror trading strategy explained

Trading Articles
Mirror trading is another kind of a forex strategy that is often mixed up with auto trading. The Mirror trading strategy, not surprisingly, is popular among forex traders because it is a simple approach to trading. In a market that is known for its volatility, utilizing forex strategies is important. Following a seasoned trader by way of mirror trading their trades can be much more successful than self trading. With mirror trading you can simply mirror the methods of successful traders in your own Forex investments. Mirror trading is great because it allows investors to choose strategies that fit their personal needs. Mirror trading is completely different from auto trading and requires a special platform, Tradency or Zulu Trader and is offered by some forex brokers. Read more about Tra

What are Market Makers in Forex Trading

Trading Articles
Market makers make or set both the bid and the ask prices on their systems and display them publicly on their quote screens. A market maker provides liquidity for a particular currency pair and stands ready to buy or sell that currency by displaying a bid and offer price. A market maker takes the opposite side of your trade and has the option of holding that position or partially or fully offsetting it with other dealers, managing their aggregate exposure to the market. Market makers earn their commission from the spread between the bid and offer price. The exchange rates that market makers set are based on their own best interests. On paper, the way market makers generate profits for the company through their market-making activities is with the spread that is charged to their customer...

Forex Spreads Explained

Trading Articles
The difference between the bid and the ask price of a security or asset is known as a spread. In other words, the difference between bid and ask price is known as a spread. In the forex markets investors trade one currency for another. Therefore, currencies are quoted in terms of their price in another currency. Currencies are always quoted in pairs (e.g. USD/EUR). The first currency is called the base currency and the second currency is called the counter or quote currency (base/quote). For example, if it took EUR1.20 to buy US$1, the expression USD/EUR would equal 1.2/1 or 1.2. The USD would be the base currency and the EUR would be the quote or counter currency. Forex quotes are always provided with bid and ask prices, similar to what you see in the equity markets. The bid represe...

Which forex spreads is right for you

Trading Articles
When looking for a prospective broker a prospective trader/investor should research how the forex broker price their spreads. Most often it's not easy to miss as it's advertised quite visibly. There are basically two kinds of spreads. Fixed Spreads Variable Spreads In order to understand these two, we need to first know what spreads mean in forex trading terminology. Why should I be bothered by spreads. Over a period of time, the spreads that a trader pays to the forex broker while executing the trades ends up costing a significant amount, and should be a key consideration when choosing a Forex broker. Every forex trader pays a spread. A spread is the difference between the ask and bid price. It is the spread that earns market markers, or in other words the forex broker you trad...

Forex Scalping Explained

Trading Articles
Forex scalping is one of the most used and highly demanding forex trading strategies nowadays. In the Forex scalping methods, trading is done over shorter time frames and profits are taken after relatively small moves in the market. Forex scalping is a Forex strategy in which the trader intends to take profits quickly on very small pip movements. Usually the trade is entered and closed quickly, within minutes. Forex scalpers make profits on quick 5 to 15 pip movements. After a while, profits claimed on these small movements will add up. Forex scalping method of trading is different from other traditional forex trading methods where the profits are allowed to run and losses are cut shorter. When somebody is scalping the market he/she is not looking for the big move of the markets; ...