Trading Articles

Read all the articles related to forex trading and binary options trading. Our forex articles help both new traders as well as experienced traders to help improve your trades. Our articles are focused on forex as well as binary options trading. The forex articles section is updated every week, so keep checking for new articles.

Dealing Desk or Non Dealing Desk? – The SNB Aftermath

Dealing Desk or Non Dealing Desk? – The SNB Aftermath

Trading Articles
Last week's Swiss National Bank shocker caught the markets off guard posting heavy casualties which was felt more with the retail forex trading industry. Traders and brokers alike got caught up in a black swan event which led to quite a few brokers going bust while some reputable brokerages seeking capital to continue to keep up with the operations. The event has also given rise to the age old debate of which of the two main models of trading execution is better, market makers (also referred to as dealing desk brokers) or agency model brokers (referred to as non dealing desk brokers). In the aftermath of the Swiss shocker, in a typical reactionary mode, market makers were hailed as the heroes as they (the brokerages) managed to come out unscathed. But does this one instance justify h...
Variable spreads and why they matter

Variable spreads and why they matter

Trading Articles
Forex brokers nowadays offer a lot better choice of trading conditions for their customers. When it comes to spreads, brokers usually offer either fixed spreads or variable spreads. Fixed spreads are known to be the key giveaway for market markers, or brokers that operate a dealing desk or acting as a counter party and thus not widely preferred. Most ECN/STP or non dealing desk execution brokers however are known for their variable spreads. While this second option makes for a preferred choice for the more serious traders, it does come with its own disadvantages, which if the trader does not pay much attention to, could prove to be a very expensive mistake they would make. How variable spreads work? In order to understand if are getting a fair deal, it is important to understand how v...
Trading Correlations – Introduction to pairs trading

Trading Correlations – Introduction to pairs trading

Trading Articles
Trading currency or stocks correlation, or pairs trading as it is often referred involves buying one currency pair or stocks and shorting an inversely correlated currency or stock. The basic premise of currency correlation trading is to maximize the profits when a bias of one currency pair is extreme. Currency correlation can be used in many different ways and for different purposes. One of the common reasons for trading currency correlation has to do with the swap rates. For example, if you were to short AUDUSD, which attracts a negative overnight rollover fees, finding an inversely correlated currency pair whose long position would attract positive swap rates would reduce any additional fees that might incur. Pairs trading or correlation trading is considered to be a market neutral...

Are all Forex brokers the same?

Trading Articles
Let us start with a completely different scenario. All cars do the same thing; they provide a sit-down environment, they allow you to be on the road and take you from A to B with the assistance of your effort to drive it. The same applies to Forex brokers. They all do exactly the same thing. They allow you to get involved in a global currency trading environment where you can get in and out of the market whenever you want, depending on strategies you use. However, are they all the same? They should be but they are not. Competition Forex brokers are part of one of the most competitive industries in the world. The demand for them is huge because it reflects the chances they provide for us to become financially successful. So, it is within their interest to sign us up as a customer. This is...
Introduction to using Line Charts

Introduction to using Line Charts

Trading Articles
Line charts are a form of chart type that takes into consideration the closing price for a particular period of time. It is the simplest form of plotting price on a chart and works in any markets. Perhaps the biggest advantage of using line charts is that this chart type works in any market, regardless of liquidity. The basic tenets of technical analysis are still applicable to line charts which make it a powerful yet simple chart type to use. The line chart is plotted along an X and Y axis, representing Time and Price and can be plotted in any time frameā€¦ from Monthly or yearly and down to the five or one minute chart. Line chart comparison with Candlestick and Bar Chart The chart above shows a comparison of the line chart along with a Bar chart and Candlestick chart. Notice that th