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Leverage: How Does it Really Affect a Forex Account?
The attraction of forex and other financial derivative instruments is that a trader can use leverage, and the level of leverage that can be used in forex is higher than in the stock market. Leverage allows a trader to use a small amount of money to trade the markets, as the brokers will usually supply […]
Read Some MoreSetting Stop Loss and Take Profit Targets
There is a dilemma that seems to confound many retail traders where we see them making this mistake time and time again. This problem is the issue of setting stop loss and profit targets for their trades. Many traders simply set these targets arbitrarily without any principles guiding their actions. Picture this scenario: a trader […]
Read Some MoreForex Hedge Trade Examples
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 MoreHow to Hedge a Forex Trade
People 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. […]
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