Tag: forex strategies

Forex hedging tips explained

Forex hedging tips explained

Trading Articles
Hedging is nothing but a fancy term for insurance, often used in the financial markets despite most traders misreading this term as trying to make a profit from both rising and falling markets. The reason behind this gross misunderstanding of the term has largely to do with the term hedge funds. As one might already know, hedge funds are expected to perform regardless of the market direction; ie. Rising or falling markets. Therefore it is easy to see where this concept of hedging which is primarily all about minimizing losses by way of insurance had transformed itself into a misunderstood concept of making a profit irrespective of the market rising or falling. So what exactly is insurance? It is those small monthly premiums you pay towards either protecting your home against any theft o...

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; ...