Tag: currency trading

Currency Trading Strategies That Work

Trading Articles
There are many different trading strategies that traders employ but very few of them actually work, in this article, I am going to write about what works in the Foreign Exchange (or Forex) market and why. Any trading strategy, no matter what it is, will not work if it does not employ at least one edge to give the trader better than 50/50 odds of either being right or of then gaining more from a winning trade than they will lose on a losing one. If trades were simply entered on a coin toss and exited at random then the traders doing this would, on average, win as often as they lost with the size of the average losing trade being equal with the size of the average winner. In a scenario like this traders would slowly lose all the money in their trading accounts as the costs of trading (i.e...
Getting started with trading exotic currency pairs

Getting started with trading exotic currency pairs

Trading Articles
The forex markets are pretty much dominated by the major currency pairs, EURUSD leading the lot. However, there is a little/lesser known aspect of forex trading that is usually overshadowed by the majors.. and for a reason. Before you get started with trading exotic currency pairs, you need to first understand the differences between the major currency pairs and the exotic currency pairs. In the following sections of the article, we give a primer on exotic currency pairs and the pros and cons of trading exotic currencies. Major Currencies in Forex The USD, EUR, GBP, CHF, CAD, AUD, NZD, JPY are the major currencies in forex. The reason they are called as major currency pairs is because of the high liquidity they posses, or in other words, high level of trading activity. High vol...

Difference between Risk and Safe Haven Currencies

Trading Articles
When reading the daily forex updates one of the most commonly used terms are safe haven currencies and risk currencies. This is nothing but a distinction on whether a currency is considered to be risky or safe, thus the terms are used for reference. The terms safe haven and risk currencies in fact have nothing to do with how safe the value of the currency is. The terms are only used as reference in a way how a currency reacts to the markets. There is a distinction between the risk v/s safe currencies and it is important to understand this fact. When a currency pair is considered to be risky or safe is determined by how it co-relates to other assets. To illustrate, when risky assets increase it is always best to buy. Similarly when risk prone assets fall, it is better to sell such pai...