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.

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 frame… 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
Introduction to Renko Charts

Introduction to Renko Charts

Trading Articles
Renko Charts is a type of charting concept that was developed by the Japanese. Renko (or Renga) is the Japanese word for Brick and aptly reflects the nature of the Renko charts. Renko charts are constructed by plotting price movements as bricks of a certain size. Unlike its close cousin, the Bar Chart or Candlestick chart which plots Price’s Open/High/Low/Close against Time on the x-axis and Price on the y-axis, Renko charts purely reflect price movement and is time independent. Although most Renko charts do have time plotted on the x-axis, it is irrelevant. Renko charts are considered to be pure price action minus the noise one gets to see on Bar or Candlestick charts. The Renko’s or bricks are printed next to each other. So when price moves up by a certain number of pips, a bullish Re
Do traders and gamblers meet in Forex?

Do traders and gamblers meet in Forex?

Trading Articles
There are a lot of people out there that consider retail Forex trading as a casino packaged up as financial trading and those people more often than not are gamblers. For the typical gambler it is perfect, they can control their risk and project the image of being a trader, which has much less of a stigma attached than being an outright casino going, poker playing gambler. These people usually place trades that far exceed their means using massive leverage and lose all their money in most cases but sometimes win big and they feel and embrace the thrill of the market. Now, trading is definitely not gambling even though it can be used for gambling by gamblers. There are professional traders out there that consistently profit from trading, manage the money of others, make respectable money