Today we will focus on four examples of how to use Forex options to hedge spot Forex trades. If you need a refresher take a look at last week’s article here. Hedging is a strategy used by institutional traders to protect against the adverse and unplanned effects of trades on an asset in a given market. Now that we have let […]
Read Some MorePeople who own gardens constantly have to keep them trimmed. They do this to keep them neat and prevent them from growing out of control. The same concept is also used in Forex trading. It’s called Hedging. In Forex, hedging refers to the methods and strategies used to protect a trading account from excessive risk. […]
Read Some MoreOver the past week, we have seen economic numbers coming out of Europe that are slightly better than anticipated. We have had French/Manufacturing PMI come out better than expected, the German ISO business climate numbers come out much better than expected, as well as many supportive comments coming out of the EU economic summit. Because […]
Read Some MoreOn Friday, we saw a news conference that various congressional leaders gave in the United States suggesting that perhaps there was some type of hope for a bipartisan agreement after all. The fiscal cliff discussions have been one of the most widely followed issues in the United States recently, and as a result a lot […]
Read Some MoreOne of the most common areas of confusion for forex traders is trying to determine which direction the trend will take. We have all heard the saying: “the trend is your friend till it ends”. This holds true in forex, as the institutional traders who control the majority of volume in the forex market will […]
Read Some MoreIn this blog post, we will examine the triangle patterns and how traders can benefit from this chart pattern. There are three types of triangle patterns: a) Ascending triangles b) Symmetrical triangles c) Descending triangles Whatever the type of triangle pattern seen on the charts, they all share certain characteristics which are outlined below. – […]
Read Some MoreToday, we will take time to examine the rule established by the Commodities and Futures Trading Commission (CFTC) on leverage and margin requirements for individual forex accounts in the US. The concept of margin and leverage is one that is not well understood by the majority of the trading public. Lack of understanding on the […]
Read Some MoreIn today’s article, we will discuss a forex trading strategy that is quite simple to follow. In spite of it’s simplicity, it stands out as one of a few trading strategies that can deliver profits over the long term. In a nutshell, it is an intraday strategy which aims to pick a few pips with clear-cut […]
Read Some MorePrice channels are chart patterns formed when the highs and lows of the candlesticks can be joined by an upper and lower trend line that are parallel to each other. They occur all the time in the market, but traders sometimes have trouble identifying them, which should really not be the case. There are three […]
Read Some MoreWhen to Trade MACD Divergence + Stop Loss and Take Profit Levels Last time we talked about how to spot a MACD divergence and we looked at the different types of divergence, regular and hidden. See Part 1 HERE. Today we’ll go over regular divergence in more depth, explaining where to put the stop loss […]
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