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Are you prepared to elevate your trading skills? If you’ve ‍been dabbling in the ‍foreign ​exchange market and are looking to‌ up your strategies, you’ve come to the right‍ place. Mastering Forex Strategies: Your ‍Guide ‌to Success in the Foreign Exchange⁤ Market is⁢ here to provide‍ you‌ with the tips ⁣and tricks you need to navigate⁢ the ‍world of ⁣forex trading‌ like a ‌pro. Whether you’re​ a​ beginner ‍looking to build ‍a‌ solid foundation ⁣or an experienced trader looking to refine your‌ skills, ⁢this guide has got you covered.‌ Let’s dive‌ in ⁢and⁢ start maximizing your potential ​in the exciting world of forex⁤ trading.

Understanding the ⁣Basics ​of Forex Trading

When it comes​ to Forex trading, understanding⁣ the basics is essential for success in the‍ foreign‍ exchange ⁢market. By mastering key strategies, you can navigate the complexities of trading currencies and make informed decisions that lead to profitable outcomes.

One crucial aspect ⁢of⁤ Forex⁢ trading is having a solid understanding of⁢ market ​analysis. By learning ⁤how to analyze price⁣ charts,⁢ identify trends, and use technical indicators,‍ you can predict potential market movements and make ⁤strategic trades. Additionally,⁣ risk ‌management is key in ‍Forex trading. By‍ setting stop-loss orders, ⁤managing‍ leverage, and diversifying‍ your​ portfolio, you can protect ⁢your investments ‌and ‍minimize potential losses. Remember, success in Forex trading requires patience, discipline, and a ​willingness⁣ to continuously​ learn and adapt to market conditions.

Developing ⁤a Winning⁢ Trading​ Plan

Creating a winning⁤ trading plan is crucial⁣ for success in⁤ the⁢ foreign exchange market. To master‌ Forex strategies and⁢ achieve your financial⁤ goals,⁢ it ⁢is ​essential to⁢ develop a solid plan ​that outlines ‌your objectives,⁣ risk management strategies, and trading techniques.

Start by analyzing your trading goals and risk⁤ tolerance. Consider ‍factors such as your‌ desired profit targets, acceptable level of drawdown,⁢ and preferred ​trading style. Establish clear rules ‍for entering​ and exiting trades, and ⁣outline your strategy ‍for‍ managing risk. Utilize technical analysis tools ⁢and indicators to identify potential trading⁢ opportunities, and ‍stay disciplined in‍ following⁣ your plan. Remember, consistency and patience​ are key to long-term⁢ success ‌in the Forex market.

Implementing Advanced Strategies for Profit Maximization

In the fast-paced world of‌ Forex trading, implementing advanced ‍strategies is crucial for profit maximization. ​As a trader​ in the⁢ foreign exchange ⁢market, mastering ⁤these strategies ‍can ​be the key to​ your success. By staying ahead of the curve and ⁣continuously refining your ‍skills,‍ you can increase your chances ⁣of making profitable trades and ⁣achieving your financial goals.

One ​effective strategy for profit ‍maximization is to diversify ​your⁣ portfolio. By spreading your investments ⁤across ⁣different‌ currency pairs, you can ⁢reduce ‍risk and ⁢increase potential returns. Additionally, staying informed about market trends and economic indicators can help ⁣you make⁢ informed decisions⁢ when buying and selling currencies. Remember, success in Forex trading requires discipline, patience, and a willingness to constantly learn and adapt.⁣ With the right strategies‍ in place,⁤ you ‍can ‌take your trading​ to the next level and achieve⁢ your ⁣financial ​objectives.

Staying Disciplined and Managing​ Risks⁤ in the Forex⁤ Market

In ​order to succeed in the Forex market, it‍ is essential to stay disciplined and⁣ manage risks effectively.⁤ One of ‍the key strategies‍ for ‌achieving this is to set clear goals and stick to a trading plan. By establishing⁢ specific profit targets and stop-loss‍ levels, ‍traders⁢ can avoid emotional decision-making and maintain a consistent‍ approach to‍ trading.

Another important aspect ⁢of⁢ staying disciplined in‍ the ⁢Forex market is ⁢to avoid overtrading. It can ⁤be tempting to make‌ multiple ​trades in a short period of time,⁣ but this ‍can lead to unnecessary ‌risks ‍and losses. By‌ focusing on high-probability trades and only entering⁤ the market‍ when the conditions are favorable, traders can⁢ increase their chances of success. Remember,⁣ patience is key in the world of Forex‍ trading.⁣

Insights ⁤and Conclusions

So there you⁣ have it – a comprehensive ⁣guide to mastering forex strategies⁤ and finding success ‌in ⁤the foreign exchange market. By understanding the intricacies of the⁢ market, developing your own unique strategies, and staying ​disciplined in your trading ‍approach, you can ​navigate the world of forex ‍with confidence and skill.

Remember,​ success in‍ forex trading doesn’t happen overnight. It takes‍ time,⁣ dedication,⁢ and a willingness to learn from both your wins and losses. ‌So, keep honing your skills,⁣ stay informed on market trends, and never stop seeking out⁤ new knowledge to improve‍ your trading game.

With the right mindset and a solid foundation of strategies, ⁣you can thrive‌ in the fast-paced world ‌of forex trading. So go out there, take​ risks,​ and trust in your abilities ‍to ​achieve your financial goals. Good luck on your forex journey, and ⁤may the pips be​ ever ​in your favor!

Janet Ekelt

Janet Ekelt is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Janet has also been Editorial Writer at The Irish Times, a leading Irish English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.

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Have you ever wished you⁢ could ⁤trade like‍ a⁤ pro but don’t know where to start? Copy trading might just be ‍the answer you’ve been ​looking for.​ By following the ‍leader and mimicking ​their⁤ trades, you⁣ can learn the ‌ropes of trading without having to be an ⁤expert ⁣yourself. ‍In this article, we’ll ‌dive into how copy trading works and how ⁢it can help you become a successful‍ trader⁣ in no time. So sit back, relax, and let’s explore the world of‌ copy trading⁣ together.

– Unleash the Power of ⁣Copy⁢ Trading⁣ to Improve Your Trading Skills

Copy trading is ⁤a powerful‍ tool ⁣that ⁣can⁣ help traders of all ‍skill levels improve their trading abilities. ⁢By following the trades of experienced traders, you can learn from their strategies and decisions, gaining‌ valuable insights into ​the⁢ market. With copy trading, you ⁤can replicate the trades ⁣of successful traders in real-time, allowing‍ you to ⁢benefit from their expertise and potentially boost your own profits.

One of ‍the key ⁣benefits of copy trading ​is the​ ability ‍to⁢ diversify⁣ your portfolio without having to actively manage multiple trades. ⁣By following multiple traders ‍with different trading styles and strategies, you can ⁤spread your⁣ risk ‌and increase your chances of success. Additionally, copy trading can help you overcome ​emotional‍ biases⁢ that can often lead to poor trading ​decisions. By following​ the lead of experienced traders,⁣ you ⁤can trade with confidence ⁢and discipline, helping you to avoid common pitfalls ‌and maximize your⁣ trading potential. Start‍ harnessing the ⁢power of copy trading today⁤ and ⁣take your trading⁢ skills to ⁢the​ next​ level.

– Learn From ⁣the​ Best: ⁢Mimicking Successful‌ Traders ‍for Profitable Results

Copy trading is a popular strategy in the world of trading‌ that allows newcomers ⁣to ‌learn from seasoned​ professionals ‌by⁢ mimicking their trades. By following the ‌lead⁢ of successful traders,​ you can⁢ potentially replicate their profitable results‌ and​ improve ⁣your​ own trading skills. This method is especially beneficial for those who are new ⁤to the ⁢trading world and are looking ‌to gain ⁢valuable insights from experienced ⁢traders.

One of the ⁣key benefits of copy trading​ is the ability to diversify your investment portfolio without ⁣having to spend hours‍ researching‍ different ⁣assets and markets.⁣ Instead of ​trying to navigate the complex world of‍ trading on your own, you can simply follow⁣ the trades of established traders who have‌ a proven track record of success. Additionally, copy trading can​ help ‌you‍ learn new strategies and techniques‌ that ⁤you may not have ⁢been exposed ⁢to otherwise.‍ By‍ observing how ⁣successful traders analyze the⁤ market ​and make decisions,‌ you can⁤ gain valuable knowledge⁣ that can help you become a⁣ more confident ⁣and⁣ profitable trader in​ the long run.

-⁤ Tips and Tricks​ for⁤ Maximizing ‍Your⁤ Copy Trading Experience

Copy trading is a powerful tool that can help traders of ​all levels‍ improve their skills and maximize their profits. By following the trades of experienced ⁣investors, ⁤you⁢ can learn from their strategies and decision-making​ processes.​ Here are‍ some tips and tricks to ​help you get the most out ⁢of your copy trading ‍experience:

– Choose your leader wisely: When⁢ selecting a trader to follow, look for ​someone ‌with a proven track record of success. Check⁢ their‌ trading history, risk management ‌strategies, and overall performance before committing ⁣to copying their ​trades.

– Diversify your portfolio: Don’t⁢ put all your eggs ⁣in one basket. Spread your ⁣investments across different ‌traders to‍ reduce risk ‍and increase your chances of ⁣success. By diversifying,‌ you can ⁤also learn from a⁣ variety⁤ of trading styles and techniques, allowing you to develop a well-rounded approach to the⁢ market.

copy ‍trading can be a valuable tool ‌for ‍traders looking to improve ‍their skills and⁣ maximize their profits. By following‍ these tips​ and ‌tricks, you can trade like a‍ pro‍ and take⁣ your ‍trading to the next level.

In ‌Conclusion

So there ⁣you have it, folks! Copy trading ​is like having a seasoned ⁤pro by your⁤ side, guiding ⁣you through the ups ⁢and ⁣downs of the market. By following the leader, you can learn from their experience and⁤ expertise, ⁢and hopefully see your‌ own trading ⁤skills⁢ soar to new heights. Why not attempt the exploration and observe the destination it brings you to. ‌Who knows, you might ⁣just find yourself ‍trading like a pro ⁣in no‌ time! Happy trading, and may the‍ profits be ⁤ever in your favor!

Janet Ekelt

Janet Ekelt is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Janet has also been Editorial Writer at The Irish Times, a leading Irish English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.

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Are you prepared to advance your Forex trading to the next stage? Have you ⁤been ⁣struggling to see significant gains⁣ in⁤ the‌ market? If so, it ‌may ‌be time to unleash the power of Forex strategies. With the right knowledge and tools, you can navigate the foreign exchange‌ market with ⁤confidence ​and‌ precision. In this article, we will explore how implementing proven strategies can help you maximize your profits​ and ⁣minimize⁤ your risks. Get ready ⁤to revolutionize your trading approach and achieve your financial goals.

Exploring the Benefits⁢ of Implementing Forex Strategies

Forex strategies are powerful tools that can help traders ⁤navigate the complex world of foreign exchange⁣ markets. By implementing these strategies, traders can better analyze market trends,​ make informed decisions, and ultimately increase their chances of success.

One key benefit of using ‍Forex strategies is risk management. These strategies‌ help traders identify potential risks and develop ⁢a plan to ⁤mitigate them. Whether it’s setting stop-loss orders, diversifying‌ investments, or using hedging techniques, implementing ‍Forex strategies can help protect traders’ capital and‌ minimize losses. ‌Additionally, Forex strategies can also help traders maximize profits by identifying opportunities for entry and exit points. ‍By using technical analysis, fundamental analysis, or a⁤ combination of ‍both, traders can make more⁤ informed⁢ decisions about when to buy or sell currencies.

the power of Forex strategies lies in their ⁢ability to help traders manage risk, maximize ⁣profits,⁣ and make⁣ informed ⁤decisions ⁣in the fast-paced world of foreign⁤ exchange trading. By utilizing these strategies, traders can take their ⁣trading ‌to the next level and increase their chances of success ⁤in the competitive⁣ Forex ⁤market.

Maximizing Profits with Effective Risk ​Management Techniques

Forex trading can be a lucrative endeavor, but it also comes with its fair share of risks. To truly‍ unleash the power of Forex‌ strategies and maximize profits,‍ it’s​ essential‌ to implement‌ effective ‍risk management‌ techniques. One key strategy is to diversify your investments across different currency pairs. By⁢ spreading ⁣out your investments,⁤ you can reduce the impact of market fluctuations on⁤ your overall ⁤portfolio.

One crucial strategy for risk management is establishing stop-loss orders. This allows you to ‌limit your losses by automatically closing a ⁤trade⁣ when it reaches a certain price point. Additionally, using proper leverage‌ and margin levels can help protect your capital and prevent you from overexposing yourself to unnecessary risks. Remember, the ​goal of effective risk management is not to ⁢eliminate risk entirely, but to ⁣strike a balance between risk and reward‌ that allows you to maximize ‍profits in ⁢the long run.

Unlocking Key Forex Strategies for ‌Success

Navigating the complicated realm of currency trading is essential. By understanding and⁢ implementing proven strategies, ⁣traders can increase their chances of⁢ profitability and minimize risks.‌ Here are ‌some essential strategies to help you unleash the power of Forex trading:

• Technical Analysis: Utilize charts and indicators to analyze past price movements and identify potential trends. The approach aids traders in making knowledgeable choices founded on past information.
• Risk Management: Protect your capital by setting stop-loss ⁢orders and properly managing your risk per trade. ⁢This strategy ensures that you can withstand⁣ losses and continue trading in the long run.
• News Trading: Stay informed about economic events and‌ news releases that can ‌impact currency⁤ prices. By incorporating fundamental analysis into your trading strategy, you‌ can capitalize on market volatility.

Implementing a combination of‍ these key⁢ Forex strategies can help traders achieve success in the ⁢foreign exchange market. Remember to stay disciplined, patient, and⁢ continuously educate yourself on the latest trends and developments in Forex‌ trading. With the right mindset and strategies in place, you can unlock your full potential as a Forex trader.

Proven‌ Tips for Developing Winning Forex Strategies

Developing winning forex strategies requires a combination of ⁢skill, knowledge, and⁣ discipline. By following ​proven tips ‌and ⁢techniques, you can increase your chances of ⁢success in the highly competitive forex market. Here⁢ are some key strategies⁢ to consider:

• Set Clear‍ Goals: Before diving into the world of forex ‍trading, it’s important to establish clear goals for⁢ yourself. Whether you’re looking ⁤to⁤ make a‍ consistent income or simply build your wealth over time, having ‌a clear vision of what you want to achieve can help guide your trading decisions.
• Do Your Research: Successful forex traders are constantly learning and adapting to the ever-changing market conditions. Stay up-to-date on economic trends, political events, and global news‍ that ‌could impact currency prices. The more informed you are, the better‍ equipped you’ll be to develop profitable ‍strategies.

Creating a winning⁤ forex strategy ​also involves managing risk effectively and staying disciplined in your approach.​ By incorporating these tips into your trading‌ routine, you can maximize⁣ your potential for ⁣success in the dynamic world⁣ of forex trading. Remember, consistency ‌and patience are key when‌ it ⁢comes to developing‌ and implementing winning strategies.‌

Future Outlook

Now that you have a better ⁣understanding of ⁣how to unleash the power ​of Forex strategies, ⁤it’s ‌time to put⁤ your⁣ knowledge into action. Remember, the ‌key to success in the world of trading lies in​ continuous learning, adaptability, and sticking to your strategies even when the market gets⁣ rough. So take these tips, implement them into your trading routine,‌ and watch⁣ your profits soar! Happy trading!

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

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Would you like to immerse yourself in the thrilling realm of forex trading? Follow our “A Comprehensive Guide to Selecting the Perfect Forex Trading Platform”.

Selecting the perfect trading platform from the numerous options can seem overwhelming. However, there’s no need to worry as we are here to help! Our comprehensive guide will assist you in finding the right forex trading platform that caters to your specific preferences and objectives. Through this guide, we will navigate you through the different platforms, uncover their characteristics, and determine which one best fits your trading tactics. So, sit back, relax, and join us on this journey of discovering your ideal forex trading platform.

Understanding ‌the Basics: What to Look for in a Forex Trading Platform

Selecting the correct forex trading platform is essential for all traders, regardless of their level of experience. With a plethora of options available, it can be daunting to find the best platform to meet your requirements. This guide will simplify the process by breaking down the fundamentals and highlighting crucial elements to consider when choosing a forex trading platform.

1. User-friendly ​interface: A user-friendly trading platform is essential for both beginner⁣ and experienced traders. Look ⁤for​ platforms that offer ‍easy navigation, intuitive ​layout,⁤ and ⁤customizable features that cater ‍to your trading style. A cluttered or complex interface can⁣ hinder ⁤your trading experience and lead ⁢to costly mistakes. Test out different⁣ platforms and choose one‍ that feels comfortable and easy to ⁣use.

2. Stability and reliability: The stability of a trading platform is ⁤critical when it comes to executing trades. You don’t want to experience lag or interruptions, especially during‌ high-volume trading periods. Opt for platforms that have‌ a reputation for stability⁣ and reliability. Look for reviews from other traders ‍or ask ​for‍ recommendations from experienced ⁢investors.

3. ⁤Charting and analysis​ tools: A good trading platform should offer a ⁢wide range of charting and analysis‍ tools that help you make informed trading decisions.⁤ Look⁢ for ‍platforms that provide customizable charts, technical indicators, and drawing tools. These ⁤features will enable you ⁢to analyze market trends​ and patterns, ⁣identify entry and exit points, and develop effective trading strategies.

4. Access⁣ to multiple markets: Consider a trading platform that offers ​access ⁢to a variety of markets in addition to forex. It allows you to diversify‌ your trading ​portfolio and take advantage of opportunities in different ‍asset classes such as commodities, indices, and cryptocurrencies. Having access to multiple markets within a single platform makes it convenient and​ efficient.

5. Availability of mobile and desktop versions: In today’s fast-paced world,⁤ trading ​on the go is a necessity. Look ‌for forex trading ⁤platforms ⁢that provide mobile applications for smartphones and tablets. ⁢This‍ allows you to monitor your trades, execute orders, and access real-time market data‍ anytime,⁤ anywhere. Additionally, a desktop version of the platform is important for those ⁢who prefer trading on a larger screen or need advanced features for analysis.

Remember, choosing‍ the right forex trading platform is⁣ a personal decision that depends on your individual trading goals, preferences, and experience level. Take the time to explore different options, consider the factors mentioned above, and ‌test out platforms with demo accounts before making a final decision. By doing so, you are more likely to find a platform that caters to your needs and ⁢enhances ​your trading journey.

Examining Key Features and Tools to ‍Enhance Your Trading Experience

Forex Trading‍ Platforms:​ A Comprehensive Guide to Choosing the Right One for⁤ You In today’s‍ fast-paced financial landscape, having a‍ reliable and user-friendly forex trading platform is crucial for any trader. With a wide range of​ options ‌available, it can be overwhelming to navigate through the countless features and tools offered by different platforms. However, by‍ examining the key features and tools ​that enhance your trading experience, you can make an informed decision and find the perfect forex ‌trading platform for your needs. One of the first features to consider is the platform’s user⁣ interface.

A well-designed and intuitive interface can significantly enhance your⁢ trading experience by allowing you to quickly navigate through various functions and execute trades efficiently. Look for platforms that offer customizable ​layouts and the⁢ ability to save⁣ your preferred settings. This way, you ⁤can⁢ tailor ‍the ⁤platform ⁤to your specific needs, making it easier​ to monitor market trends and execute ‍trades with just a few ⁤clicks. Additionally,‌ consider platforms ⁢that offer a mobile​ app, allowing ‍you to trade on the go and stay updated with‌ market movements even when you’re away from your desktop.

Another essential feature ⁤to ⁤consider is the⁣ range of technical ⁣analysis tools offered by the platform. ⁣These tools can help you analyze market⁤ trends and predict future price movements, giving you a competitive edge in⁢ the forex market. Look‌ for‌ platforms that⁤ offer a ​wide variety of indicators, such as moving averages, stochastic oscillators, and Bollinger Bands. It’s also beneficial to choose a platform that allows you to customize your technical analysis tools to suit your trading ⁤strategy. For example,​ you may prefer a‌ platform that⁢ offers Fibonacci retracements or‍ pivot points ‍for‍ accurate support⁣ and resistance levels.

With ⁢these tools at your disposal, you can make informed‌ trading‍ decisions based ⁢on technical analysis and increase your chances of success. To summarize, when selecting a forex‌ trading platform, consider the user‍ interface and its ease of ​navigation, as well⁣ as the range of technical analysis tools offered. By choosing a⁣ platform that aligns with your trading ​style and preferences, you can ⁢enhance your​ trading experience and increase your chances of success in the dynamic forex market.

The Top Forex Trading Platforms of 2021:⁤ Our Expert Recommendations

With the growing⁣ popularity of Forex trading, choosing the right ‌platform ‍can make all the difference in your trading success. To help you ⁢navigate through the ‌myriad of options available, we have compiled a list⁢ of the top Forex trading​ platforms for 2021, along with expert recommendations to guide you towards the perfect choice.

1. MetaTrader 4​ (MT4): Considered the gold standard in Forex trading platforms, MT4 offers a user-friendly interface with powerful features. ⁤Its extensive library of technical indicators, customizable charts, and automated trading⁢ capabilities make⁤ it a favorite among traders of all levels of expertise. With‌ its robust security measures and compatibility with ​multiple devices,‌ MT4 ensures a smooth and secure trading experience.

2. cTrader: Designed for professional⁣ traders, cTrader provides advanced ⁢trading features along with a sleek and intuitive‍ interface. This platform‌ offers numerous order ​types, ‍depth‍ of market⁣ information, and advanced charting tools, allowing you to analyze market trends and make informed trading decisions. With its lightning-fast execution speed⁣ and user-friendly interface, cTrader is a reliable choice⁢ for traders‌ seeking a premium trading experience.

3. NinjaTrader: Offering a comprehensive suite ⁢of tools and ‌features, NinjaTrader ⁣caters⁤ to both beginner and advanced traders. With its advanced​ charting capabilities, real-time market analysis, and robust backtesting functionality,‍ this ⁢platform provides traders with a competitive edge. Moreover, its extensive library of add-ons⁤ and third-party integrations allow for customization and enhanced functionality.

4. eToro: Known for its social trading platform, eToro ‍combines trading with a social community, enabling traders to learn from and​ follow successful peers. With its user-friendly interface​ and CopyTrading feature, eToro allows you to automatically replicate the trades of experienced traders. This platform also provides a wide array of educational‍ resources, making it an ideal choice for beginners looking to gain knowledge and‌ experience.

When choosing a Forex trading platform, it is essential to consider factors such as ease of use,​ technical analysis ⁢tools, security, and compatibility with your⁢ preferred devices. By evaluating your trading needs and preferences, ‍you can ​select the perfect platform that aligns with your goals and maximizes your trading ⁣success.

Important Considerations and Tips to Make an Informed Decision

Investing in forex can be a lucrative venture, but⁢ it requires careful consideration and ‌the right resources. One of the most important decisions you’ll make as a forex trader is choosing the right trading platform. With a plethora of options available in the market, it can be overwhelming to find the perfect fit‍ for your trading needs. That’s why we’ve put together this comprehensive guide to help you make an informed‌ decision.

1. Know Your ⁣Trading Style: Before diving into ​the world of forex trading platforms, ⁤it’s crucial to‍ understand your​ trading style. ⁤Different platforms cater ​to different trading styles, so knowing yours will narrow down your options and steer⁣ you towards the most suitable platform.

2.⁢ Consider User-Friendliness: Trading platforms⁤ can ​vary ‌greatly‌ in ‌terms of usability.⁣ Some platforms are designed‌ for‍ experienced traders with intricate charts and complex indicators, while others are more beginner-friendly with simplified ‌interfaces. If you’re just starting out, opt for a⁣ platform that offers a ⁤user-friendly experience ⁣and provides educational resources to help you navigate the⁤ world of forex ⁤trading.

3. Evaluate Features and Tools: ⁣A robust ‌forex ‍trading platform⁣ should offer a wide range of features and tools to enhance your trading experience. Look for platforms ⁣that provide real-time market ⁢data,‍ customizable charts,⁢ and technical analysis tools. Additionally, consider if the platform supports ⁣automated trading or offers the ⁣ability‍ to set up alerts and notifications. These features can significantly impact your trading decisions and​ overall success.

4. Assess Customer Support: When it comes to⁣ forex trading, having reliable customer support can make a⁤ world of difference. Check if the platform offers multiple channels ⁢of support, such as ‌phone, email, or‍ live chat. It’s also worth reading reviews or reaching out to⁢ current users to gauge the platform’s responsiveness and⁣ helpfulness in resolving ‌any potential issues or concerns. Choosing the right forex trading⁤ platform is a crucial step towards success in the forex‍ market. ⁤

By considering your trading style, looking for user-friendly interfaces, ‌evaluating ​the available features and tools,‍ and assessing customer⁢ support,⁣ you’ll be well on your way to making an‌ informed decision.⁤ Remember, thorough research and careful consideration are key ​in selecting the perfect platform that suits your individual trading needs. Well, folks, we’ve come‌ to the end of our journey through the world of Forex trading platforms. I hope that by now, you​ have all⁢ the knowledge and guidance ‍you need to choose ‌the perfect platform that⁢ caters to your trading needs and ambitions.⁣

Remember, the right platform is like a trusted companion⁣ on this thrilling⁢ adventure called Forex trading, so make sure you choose wisely! Throughout this comprehensive guide, we’ve​ explored ‍the key aspects to consider when selecting your trading platform. From ‌performance‍ and ⁢speed to functionality and user-friendliness, we’ve covered it all. We’ve even discussed the importance of research, reading reviews, and testing out demo accounts to ⁤ensure a smooth and⁤ fulfilling ⁣trading experience. But before we part ⁤ways, let me leave you with a few last words of advice.

First and ⁣foremost, always ⁣prioritize security. Your trading​ journey involves financial transactions, and you want to be certain that your money and ⁣personal information are in safe hands. Look for platforms with robust security measures to protect yourself from any potential risks. Secondly, never underestimate the power of‌ customization. Each trader ⁣is​ unique, with ⁢different trading strategies and preferences. Find a platform that allows for ⁤customization, whether it’s in terms of chart layouts, indicators, or even the overall look and feel. After all, you⁣ want ​a platform that feels like an extension of yourself. Lastly,‍ but certainly⁣ not least, keep evolving with the market.⁤

Forex trading is a constantly changing game. What works​ today might not work tomorrow. So, be open-minded, stay updated⁤ with⁣ the latest trends, and​ choose ‍a platform that offers ongoing education and support ⁢to keep you at the top of your trading game. Now, armed with this​ comprehensive guide, it’s⁤ time for you to take the‌ plunge into ‍the exciting realm of Forex trading.

Embrace the‍ challenges, celebrate the victories, and remember, no ⁤matter ‌which⁤ platform⁣ you⁣ choose, the‌ ultimate key to success⁢ lies in your‍ dedication, discipline, and perseverance. So, go forth, my fellow traders, and ‍conquer the Forex market with the perfect trading platform by your side. Wishing you endless profitable​ trades, unforgettable experiences,​ and a journey that leaves you one step ⁣closer to financial freedom.‍ Happy trading!

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

Bitcoin will lose 50 per cent of its cryptocurrency market share to Ethereum within five years, states an influential tech expert and business analyst. For his opinion Ethereum will end up overtaking Bitcoin.

The comments from Ian Mcloed, from Thomas Crown Art, the world’s leading art-tech agency that he established with renowned art dealer, Stephen Howes, comes as Ethereum, the world’s second-largest cryptocurrency by market cap, began a price recovery on Friday after being hit hard with a major sell-off in recent weeks.

Bitcoin – the biggest digital currency – had also been in decline, but it bounced back quicker than its nearest competitor.

Indeed, Ethereum had crashed 85 per cent overall this year.

However, Ethereum is regained ground late last week, jumping almost 14 per cent after its most recent plunge, only find itself trading again 10 per cent lower once more in the past 24 hours.

What is happening? And what does the future hold for Ethereum?

Mr Mcloed observes: “Turbulence is a regular, and sometimes welcome, feature of the crypto sector.  Therefore, the Ethereum rebound was, and is, inevitable. 

“But not only do we think it will rebound considerably before the end of 2018, I believe that over the longer time it will significantly dent Bitcoin’s dominance.

“In fact, I think we can expect Bitcoin to lose 50 per cent of its cryptocurrency market share to Ethereum, its nearest rival, within five years.”

Why is he so confident?

“Simply, Ethereum offers more uses and solutions than Bitcoin, and it’s backed with superior blockchain technology” says Mr Mcloed.

“This is why we use Ethereum’s blockchain in our art business.  It has allowed us to create a system to use artworks as a literal store of value; it becomes a cryptocurrency wallet.  

“It also solves authenticity and provenance issues – essential in the world of art.  All our works of art are logged on the Ethereum’s blockchain with a unique ‘smart’ contract.”

Last month, Stephen Howes explained: “Using this cutting-edge technology, the art world can eradicate one of its biggest and most expensive problems – forgery – and can protect artists, galleries, and private owners and collectors.”

Ian Mcloed concludes: “Whilst there will continue to be peaks and troughs in the wider cryptocurrency market, due to its inherent strong core values, Ethereum will steadily increase in value in the next few years and beyond.

“Unless Bitcoin does more now to tackle scalability issues, and improves the technology it runs on, we cannot see how it can catch up with Ethereum over the next five years or so, when the crypto market will be even more mainstream.

Again, is means Ethereum will end up overtaking Bitcoin: “Ethereum is already light years ahead of Bitcoin in everything but price – and this gap will become increasingly apparent as more and more investors jump into crypto. ”

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

Trading quotes to help tu understand this world. Trading requires a strong, clear mind to be able to see the opportunities and also the threats. For that, a good trader not only relies on his trading knowledge, but on his ability to foresee how a market is going to react to any given external stimulus. If he isn’t able to control his impulses, he might end up losing everything or making decisions that will drive him to that point. Skill and mental state have to go hand in hand to be successful in trading.

These trading quotes will surely help a trader to become profitable and understand that hidden mental game that underlies behind any trading endeavour:

1. “The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what’s going to happen contradicts my way of looking at the market.”

― George Soros, billionaire, trader and investor

2. “The markets are always on the side of exuberance or fear. It’s fear and greed. Right now greed has the better of it, which is rather nice (for investors) as long as it doesn’t get out of hand”

― George Soros, billionaire, trader and investor

3. “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”

― George Soros, billionaire, trader and investor

4. “Once we realize that imperfect understanding is the human condition there is no shame in being wrong, only in failing to correct our mistakes.”

― George Soros, billionaire, trader and investor

5. “The worse a situation becomes, the less it takes to turn it around, and the bigger the upside.”

― George Soros, billionaire, trader and investor

6. “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”

― George Soros, billionaire, trader and investor

7. “I’m only rich because I know when I’m wrong…I basically have survived by recognizing my mistakes.”

― George Soros, billionaire, trader and investor

8. “My approach works not by making valid predictions but by allowing me to correct false ones.”

― George Soros, billionaire, trader and investor

9. “Trading doesn’t just reveal your character, it also builds it if you stay in the game long enough.”

― Yvan Byeajee, Paradigm Shift: How to cultivate equanimity in the face of market uncertainty

10. “Money is just something you need in case you do not die tomorrow. Let this is a reminder for you not to obsess over profits and losses. In whatever you do, strive for enjoyment, focus, contentment, humility, openness… Paradoxically (and as an unintended consequence) your trading performance will improve significantly.”

― Yvan Byeajee, The essence of trading psychology in one skill

11. “The expectation that you bring with you in trading is often the greatest obstacle you will encounter.”

― Yvan Byeajee, Paradigm Shift: How to cultivate equanimity in the face of market uncertainty

12. “Confidence is not “I will profit on this trade.” Confidence is “I will be fine if I don’t profit from this trade.”

― Yvan Byeajee, The essence of trading psychology in one skill

13.“The goal of a successful trader is to make the best trades. Money is secondary.” 

– Alexander Elder, professional trader and teacher of traders

14. “Events, circumstances, and experiences arise and pass away. Winning trades, losing trades, fear, greed, sadness, happiness, and eventually your own life. Everything is in a constant flux. Learn to go through it with stability of mind. A meditation practice helps a lot.”

― Yvan Byeajee, Zero to Hero: How I went from being a losing trader to a consistently profitable one – a true story!

15. “Losers average losers.” 

― Paul Tudor Jones, one of the greatest traders in history

16. “Where you want to be is always in control, never wishing, always trading, and always, first and foremost protecting your butt.” 

― Paul Tudor Jones, one of the greatest traders in history

17. “A quiet mind is able to hear intuition over fear.”

― Yvan Byeajee, Zero to Hero: How I Went from Being a Losing Trader to a Consistently Profitable One

18. “All statistics have outliers. Money management, therefore, is key to the process of good trading.”

― Yvan Byeajee, Paradigm Shift: How to cultivate equanimity in the face of market uncertainty

19. “Trading mastery is a state of complete acceptance of probability, not a state of fight it.”

― Yvan Byeajee, Paradigm Shift: How to cultivate equanimity in the face of market uncertainty

20. “Don’t ever make the mistake of believing that market success has to come to you fast. Trade small, stay in the game, persist, and eventually, you’ll reach a satisfying level of proficiency.”

― Yvan Byeajee, Paradigm Shift: How to cultivate equanimity in the face of market uncertainty

21. “Freedom from blind reactivity begins with self-awareness.”

― Yvan Byeajee, The essence of trading psychology in one skill

22. “Money matters, but not as much as you probably think.”

― Yvan Byeajee, The essence of trading psychology in one skill

23. “Win, loss whatever emerges in the short-term, place and manage your next trades untouched, unattached… always keeping your eyes on the long-term picture.”

― Yvan Byeajee, The essence of trading psychology in one skill

24. “When you learn to let go of the need to be right, being wrong gradually lose its power to disturb you.”

― Yvan Byeajee, Paradigm Shift: How to cultivate equanimity in the face of market uncertainty

25. “Focus, patience, wise discernment, non-attachment —the skills you acquire in meditation and the skills you need to thrive in trading are one and the same.”

― Yvan Byeajee, Zero to Hero: How I went from being a losing trader to a consistently profitable one – a true story!

26. “Reaching any goal in trading requires specific domain knowledge and technical skills. But then, after that, it’s all mindset management. Yet most people ignore that —they automatically think they have that last part all figured out, and it’s a mistake.”

― Yvan Byeajee, Paradigm Shift: How to cultivate equanimity in the face of market uncertainty

27. “The process by which one accumulates money is so simple, yet so hard to implement for most.”

― Yvan Byeajee, The essence of trading psychology in one skill

28. “Genuine acceptance that there will be losses on your way to market success will greatly decrease the hurt when they eventually come.”

― yvan Byeajee, The essence of trading psychology in one skill

29. “Ultimately, consistent profitability comes down to choosing between the discomforts you feel when you follow your plan and the urge to let yourself be captures ( and ruled) by your emotions.”

― Yvan Byeajee, The essence of trading psychology in one skill

30. “There are no guarantees in trading. The sooner you accept that you sooner you can release your expectations and focus unconditionally on a proven process.”

― Yvan Byeajee, The essence of trading psychology in one skill

31 “Trading the markets is a totally self-centered activity. Nobody’s life gets better because you trade. Except your broker’s life.”

― Robert Rolih, The Million Dollar Decision: Get Out of the Rigged Game of Investing and Add a Million to Your Net Worth

32. “Always make confident that you are wise with choosing the services for your trading activities. Ensure that you will get the most reliable predictions available today.”

― Pam Sotiropoulos, a professional forex trader

Those are inspiring trading quotes for help us to trading day by day. But consider the following one.

Bonus Trading Quote

One of the most important trading quotes:

“The biggest risk is not taking a risk. In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” 

– Mark Zuckerberg, Founder of Facebook

We’ll come with more trading quotes on future articles. Keep following us.

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MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

Trading and Technology

Forex trading historical positions ratios can be a useful tool when using sentiment analysis techniques to inform forex trades. They show the percentage ratio of long (buy) positions to short (sell) positions over time, and these can be interesting to compare side-by-side, or overlaid on the same graph, with the price movements over that same time period. These ratios are broker-specific, in that they only show the position ratios for traders that use a specific brokerage. This means that they do not necessarily reflect the sentiment of the market as a whole, but they are nonetheless useful for analyzing the aggregate reactions of online traders to the information that is presented to them.

Where to Find This Data

This data is not available from all brokers, and the way in which it is presented varies from brokerage to brokerage. However, if you learn how to interpret this type of data using a set of graphs from one brokerage, you may find that the same principles apply when it is presented in different ways, and it is important for forex trading. One firm that does provide this data is Canadian brokerage Oanda, which provides it in the form of two sentiment analysis tools, which we shall explain here. Other similar tools include DukasCopy’s SWFX Sentiment Index and FXCM’s Speculative Sentiment Index (SSI).

The first graph shows a breakdown of current forex open position ratios for major currency pairs among Oanda customers, and is updated every 20 minutes.  The bars are split into two colours, with the blue portion to the left displaying the percentage of long positions taken on that currency pair, and the orange portion showing the percentage of short positions for the same pair. This is accompanied by a second graph (right) that gives a breakdown of the percentage of total open positions on the broker’s order book that correspond to each of the major currency pairs. It should be noted that minor currency pairs are not included in the calculations, hence the percentages of these major currency pair open positions always adding up to 100%.

The second graph show the long to short ratios for a given currency pair over time, in this case EUR/USD, among Oanda customers. When the ratio is more than 50%, it means that there are more long positions than short positions being taken, and when it is below 50% it means that there are more short positions than long positions being taken. If, for instance, we had a ratio of 70% for EUR/USD, this means that 70% of EUR/USD positions at that point were long, and 30% were short. This is overlaid with a graph of the actual price movements over the same period.

Forex Trading – How a Contrarian Investor Might View This Data

Sentiment analysis techniques, such as analyzing long/short ratios, are often used as part of a contrarian investment strategy. When following this type of strategy, a contrarian investor will interpret the data as a cue to do the opposite of what the majority are doing. When the ratio rises above 50%, it can be taken to mean that the crowd sentiment is bullish on that pair, which a contrarian will interpret as a sign to be bearish. By the same token, when the ratio is below 50%, this means that the crowd is bearish on that pair, which might lead a contrarian to the conclusion that they should be bullish on that pair.

Given that these are broker-specific indicators, ratios that are close to the 50% mark could be said to be pretty inconclusive in terms of general market sentiment, as there is an implied margin for error when taking such a small sample of the total market. However, ratios that are much bigger or smaller – such as over 60% or less than 40% – could be said to be a fairly useful indicator of how the market is feeling about a currency pair. Also, extremes of sentiment make it more likely that the crowd is wrong, especially if the ratio goes against the grain of the dominant trend in the market as a whole. So, if the EUR/USD is 75% long (ie extremely bullish), and the price trend is downwards, it means that the crowds are buying into EUR/USD losses in an aggressive way, which could be taken as a contrarian signal that the pair could go even lower.

Conclusion

Historical positions charts are just one tool that can be used as part of a wider analysis of market sentiment and forex trading. While they are flawed in one sense, in that they do not represent the entire market, they can nonetheless be useful indicators of what the majority of independent investors are doing, which if you take the view of a contrarian investor, can be a useful guide as to what not to do. By looking at these charts side-by-side or overlaid with a price chart (as in the Figure 2 above), you can see how frequently this tends to be the case. If the crowd were right, then a sustained period with a high long/short ratio should see an accompanying escalation in the price of the currency pair, but as we can see, the crowd are more often than not wrong – which is the concept that underpins the contrarian approach to investing.

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

Today we will talk about one of the most important themes for the trader which are deposit and withdrawal funds. For the beginning, we will tell how it happens with the WFT Group broker.

Every broker has his own rules and principles how to deposit money by traders on the platform. Surely, the WFT group has its own system. But, it’s quite different from the input system of other brokers. The difference is for the better, that’s why we decided to consider it in more detail.

The Way to Involve in The Trading

Usually, brokers are offering several ways how to deposit money on their platform (with fiat currencies, electronic money as YAD, web money, Qiwi etc.), which are differ directly in the input technology and the percentage for the transaction. Moreover, there are usually more ways to deposit money than ways to withdraw.

With WFT Group brokers situations is different. He has approximately the same number of ways to deposit and withdraw earned money. Of course, there is a standard withdrawal of funds to bank cards of various international payment systems, as well as a bank transfer.

Also there are ways to withdraw funds to electronic wallets. Many brokers have a way to deposit funds using electronic wallets, but no withdrawal to them.  This is due to legal problems – it is necessary to conclude agreements with the owners of these electronic payment systems, to undergo a check with them. All this is time, money and hassle. WFT Group went to all this for the convenience of its clients. And now its traders can withdraw Funds to electronic wallets. You can withdraw part of the funds to a bank card, and part to electronic wallets. Such diversification allows you to avoid additional conversion (for example, if you need to transfer money from a bank card to an electronic wallet for a purchase), which means additional expenses.

WFT Group – Transactions via e-wallets

At the moment, the broker of WFT Group can withdraw funds to the following electronic wallets – Webmoney, Qiwi & Neteller.

Web Money is one of the oldest payment systems in Russia and CIS countries.

Due to its reliability, which is proved over the years, it has many users. The big advantage of Web Money is that it has a large number of electronic currencies (fiat currency equivalents). It also has electronic wallets for several cryptocurrencies.

Qiwi is one of the most popular electronic money in the world. It has a large number of ways to enter funds into this system, including using a variety of special Qiwi terminals.

Neteller is also one of the oldest payment systems that can be used to make international payment transfers around the world. It supports 26 currencies including USD, Euro, Yen, British Pounds, Swiss Franc, etc.

As you can see, WFT Group offers three of the most popular e-wallets. Another small convenience – by default, the system offers a withdrawal of funds in the same way as input. After all, users usually deposited and withdraw funds to the wallet that they often use. But, again, you can deposit and withdraw funds in different ways, including partly in one option, partly in another.

WFT group – withdrawal of funds

One of the most painful moments in the relationship between a trader and his broker is the withdrawal conditions. For some reasons, many brokerage companies operate according to the principle: “Entry – one ruble, exit – two rubles.” That is, it is easy and simple to deposit money on their platform, but it is much more difficult to withdraw money. In this regard, the WFT Group is a welcome exception. Let’s list the rules for withdrawing our earned funds from this broker:

WFT Group does not charge a commission for a single withdrawal within a month. The commission is charged only by the payment system through which the transfer is made – Visa, MasterCard, Qiwi, Webmoney, etc. From second and subsequent transfers during the month, the WFT Group withholds $ 12, regardless of the transfer amount.

The minimum amount of transaction – 25 dollars or euro, (other brokers usually have a minimum hold of $ 100). This is very convenient for innovator traders who usually cannot immediately boast of big earnings.

The withdrawal period does not exceed 24 hours (for other companies, the standard period is 3 banking days). Want to mention that 24 hours is the time it takes for WFT Group to transfer money for transfer to the payment system, which may have its own terms for transferring funds.

Due to the approval of fiscal state policy, WFT Group may require the submission of documents to verify identity. But, let us clarify again, this is due to state policy, and such restrictions have all brokers.

Money for Withdrawal

A unique feature of the WFT Group in its withdrawal policy is that you can withdraw ALL money that is currently in the trader’s deposit, including those, which are received as bonuses. Of course, except of those, which are involved in open positions. So, bonuses can be withdrawn from the deposit according to the general rules! Other brokers significantly limit the withdrawal of bonuses or even prohibit the withdrawal of such funds.

Based on the foregoing, we can recommend both to beginners and experienced traders WFT Group as a broker.

WFT Group Reviews

A broker is required for trading. Therefore, people who want to make money on this, read reviews of brokers on the Internet in order to find the most professional for themselves, who will help them become successful.

We want to warn you. Very often the reviews are not real! For example, you can find notes that the WFT Group is a deception, that they are scammers. Although, objective information from this company suggests otherwise.

These messages can have two purposes:

1. They blackmail the broker in order to get money from him for deleting such notes.
2. To defame a broker so that novice traders can go to another broker.

It is no coincidence that such texts appear exclusively on sites that have been repeatedly caught in blackmail and posting paid reviews.

Before you believe the message from an unknown person that WFT Group are scammers, please, make an objective analysis, according to absolutely reliable and easily verifiable information.

WFT Group is an international broker with many years of experience and the winner of many prestigious competitions.

It cooperates with over ten thousand traders all over the world.

Offers convenient and fast money deposit and withdrawal.

Insures traders from unsuccessful deals.

Offers traders the most advanced trading software available today – the platform MetaTrader5.

We encourage traders to work with the WFT Group to make objective assessments of this broker. Let’s make the Internet more truthful together and help novice traders to make the right choice.

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

We all know that central bank decisions are some of the most influential occurrences on the forex markets, but how do the actual mechanics work? When the Bank of Japan lowers interest rates, the SNB stops buying Euros, or the ECB starts buying bonds, what’s going on?
Here we’re going to have a look at the basic mechanics that cause central bank decisions to hit the forex markets. The important thing to remember is that old solid Supply and Demand. Currencies trade based on this in the same way as any other commodity. Central Banks have to affect on, the other or both in order to change exchange rates.

Interest rate changes
Back before 2008 central bank’s simply wouldn’t attempt to intervene overbearingly in markets and interest rate changes were the only likely outcome of a meeting of the Federal Reserve. When the Federal Reserve changes its interest rate, it changes the relative benefit of keeping money in one currency instead of another.

If the central bank increases the interest rate, bank rates and bond rates in the United States tend to go up. If everything else remains equal the US dollar is more attractive to hold that the euro or yen and money begins to flow into the country’s investments.

Basically the price of the currencies with higher interest rates will go up until no more money can be made through simple transfers. On the financial markets, as you can see after major interest rate decisions are made, this happens almost instantly.

Direct market intervention
This is the actual buying and selling of currencies by central banks designed to influence exchange rates. At its simplest level it involves affecting the demand for one currency in another by central bank intervention. It can take several different forms in specific cases, however.

The best example in recent years has been the intervention of the Swiss National Bank which set the maximum exchange rate at 1.2 Franc to the Euro in 2011. The central bank kept its currency low against the euro by printing francs and using them to buy euros, meaning there would always be infinite supply of Francs at that level and none above it. Nobody is going to sell 1.3 francs for a euro when the central bank is selling them at 1.2.

This, of course, was risky for the Swiss National Bank and was a last gasp policy designed to reduce the impact of serious deflation brought on by a flight to safety during the financial crisis.

The other, more common side of direct intervention is propping up a currency: a practice Russia attempted sporadically through 2014. This involves buying your own currency with the central bank’s foreign currency reserves. This is an unstable practice that can result in the bank running out of reserves, and the weakening of the currency accelerating as a result.

Quantitative easing and other innovations
Less understood than direct intervention because of its novelty, QE involves printing currency in order to buy securities, i.e. bonds and equities. The US began doing this several years ago and was followed by the ECB, the BoE and the BoJ. The way it affects currencies is still debatable, but the central theory references two factors: increase in currency supply and lower interest rates.

Buying US treasuries at such a level means that yields fall substantially, lowering demand for the dollar to buy them in and having a knock-on effect on interest rates across the economy, and having the same effect, at one level, as a change in interest rates.

Increasing the money supply by such a margin, 60 billion euro in the case of the ECB program, every month creates a downward pressure on the price of the currency compared to others.

This has been the basic effect of easing programs in the US, Japan and the UK, but the ultimate result of the European program remains to be seen. Further study as central bank innovations keep popping up will result in greater understanding of these mechanics.

Predicting movement

The above gives an outline of the mechanics that central bank decisions drive on the market, but there’s so many factors affecting the supply and demand for currencies that none is a guaranteed bet. Take any currency chart and look at it through the last seven or eight years to get an idea of the unpredictable volatility that drives forex at certain points in time.

Knowing is half the battle, however, so getting used to the way that central bank decisions are made, and learning about these mechanics and the decision making apparatuses behind them will put you ahead of the average market participant and give you insight into the more complicated derivative results of central bank intervention.

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

The role of central banks in deciding exchange rate levels cannot be overestimated. If you want to trade currencies you need to understand what a central bank is, and how it controls exchange rates.

The actions of these institutions drives the day to-day fluctuations in the forex markets, but who are they, and how do they work? Here’s  a look at the 6 most important central banks in the world, and the way they make their decisions.

1. The Federal Reserve
This is the big one. The Federal Reserve is the most talked about, and by far the most important, central bank on the planet. The Dollar is the currency of world trade.

How does it work? The seven governors, appointed by the president and confirmed by the senate, serve 14-year terms. The meet once every six weeks with 5 of the 12 presidents of the district reserve banks to form the Federal Open Market Committee. This committee decides interest rates, and more dramatic actions by the central bank.

What does it want? The Federal Reserve’s dual mandate is full employment and stable prices, meaning it wants to keep both inflation and unemployment low. This goal, which is wider than that of many other central banks, is what allowed actions like quantitative easing to take place based on unemployment figures rather than inflation numbers.

2. The European Central Bank
The guardian of the European common currency, the ECB was set up by a treaty between the member states of the Eurozone, which now number 19.

How does it work?  The decision making body of the bank is made up of the 19 heads of regional central banks and six executive board members nominated by the governments of the bloc in concord with each other. The bank’s governing council meets twice per month in Frankfurt, and announces its monetary policy decisions at the first of these.

What does it want? Enshrined in treaty, the objective of the ECB is clear: maintain price stability in the Eurozone. This is the reason that the ECB was not able to introduce QE-style program to allay the effects of unemployment. The bank was only allowed to interfere on the grounds of dangerous deflation.

3. The Bank of Japan
The keeper of the Yen since the nineteenth century Meiji Restoration, the BoJ is the monetary policy decision maker of Japan.

How does it work? The committee of the bank of Japan is made up of nine members, including a governor and two deputy governors. The committee meets once or twice per month in order to decide the country’s monetary policy.

What does it want? The bank of Japan doesn’t have the kind of clearly defined goals that the Fed or ECB have, making it a little less predictable. It’s mandate gives it reign to implement monetary policy and ensure the soundness of the financial system while maintaining price stability, though it doesn’t put any of these goals on a pedestal above the others.

4. The Bank of England
By far the oldest bank on this list, and the one that the rest have based themselves off of, the Bank of England has been around for more than three hundred years.

How does it work? Tricky because of its reliance on British traditional politics for guidance, the Bank of England’s monetary policy is decided by a committee which is made up of nine members and meets once every month.

What does it want? Price stability is currently the main goal of the BoE, but that can change as it’s the government that chooses the inflation target, and the overall objective can be amended by act of parliament. If the bank misses that target by a wide margin it has to explain its mistakes to the Chancellor of the Exchequer.

5. The Swiss National Bank
Established in 1907, the Swiss National Bank floats 45% of its shares on the stock market, and is the only central bank on this list that actually makes a profit.

How does it work? The SNB is supposed to conduct it monetary policy decisions as if it were an independent central bank. The governing board of the SNB has three members who are responsible for decisions on monetary policy. It decides interest rates quarterly.

What does it want? Price stability, including a definition thereof, is the central goal of the Swiss National Bank, though it has a secondary goal of accounting for economic developments in order to foster an atmosphere that supports economic growth.

6. The People’s Bank of China
Unusually opaque, the People’s Bank of China acts as the central bank for the yuan. It was the only bank in the communist country for decades, but the liberalization of the banking system left the PBC squarely with the duties of a central bank.

How does it work? China’s monetary policy is decided by  a committee which includes the governor and two deputy-governors of the PBC, along with representatives from government, regulators and an academic. The committee meets quarterly.

What does it want? The goals of the monetary policy committee are set to be prescribed by the State Council, meaning they’re unusually amendable.

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

The cTrader platform, designed for Forex traders, is an insightful and precise, and user-friendly platform designed by Spotware. It offers top-level liquidity and a vigorous trading structure into the platform, with a fast and smart ECN connection. A fast ECN connection is what gives clients the edge when they compete in a cut throat Forex environment.

Spotware cTraders Platform dashboard, TradersDNA

Here are some of the benefits of cTrader:

A Fast and Effective Trade Execution

When you talk about Forex trading, timing is absolutely essential. A successful trade is only guaranteed if you’re fast and calculating. Spotware cTrader is an innovative platform that helps to fill in trade order in a matter of seconds. Moreover, with cTrader, you can easily and very quickly process all your orders simultaneously.

Level II Pricing

Another advantage of using cTrader is its ability to identify and display a variety of different executable prices straight from the liquidity providers. Using the VWAP (Volume Weighted Average Price), you can conveniently fill in all your orders using your trade book.

Precise Charting

The charting feature of the platform boasts a number of different options for you to use while trading in the Forex market. For example, you can use a variety of different presentation options, view information in any layout you want and alter any template you want.

Chart Trading

Another great benefit of the platform is it makes your trading experience a lot simpler. Using the platform’s interactive click and drag feature you can choose to open and close all your trade orders. Plus you can customize your own stop losses, calculate profits and minimize your orders.

In-Depth Analysis

You’d be surprised to know that cTrader provides you with all the customizable trading tools that guarantee a precise technical evaluation of all your trades. This may include factors such as common trade trends, oscillators, volatility analysis and line drawings. Additionally, via cPanel you will more easily be able to plot different objects and trade indicators.

Custom Indicators

Traders using cTrader can easily familiarize themselves with the algorithmic infrastructure which will help them develop their own indicators. In other words, cTrader offers the option for easily customizing your indicators for both manual and automatic trading. Developers can also designate different parameters and graphical integrations for different indicators.

Favorites Option

The ‘Favorites’ option in cTrader allows traders to bookmark their most desired currency pairs allowing them to conveniently access those pairs anytime they want.

QuickTrade Feature

The QuickTrade feature allows you to quickly access different trading charts. Combine this with the platform’s fast executions and you have a powerful tool helping you any fast trading market.

Multiple Accounts

Spotware’s cTrader allows traders to maintain an unlimited number of accounts. You can even designate each account with your preferred currency. Switching accounts is fast and easy.

Feedback Driven Updates

cTrader takes into account different feedbacks, especially when developers decided to launch new products. Now, as a trader using cTrader you will be able to directly control the dynamics of your trades using your account at cTrader. The feedback process is relatively easy and just by clicking the feedback tab on the platform you will be able to offer your suggestions and queries pertaining to any aspect you deem necessary on the platform. Upon completing your feedback, you will see that the process of launching feedback is automated and takes no time at all.

Charting Templates

Using Spotware’s cTrader, you will see that developing newer charting templates becomes easier. Furthermore, your templates are shared on cAlgo which means you will encounter zero problems upon switching templates between automated and manual trading.

Trading Sessions

When trading, the element of knowing which markets are open for trading around the world is critical. This way, you can optimize your trading strategies to determine a more favorable outcome. cTrader’s trading sessions give you an edge by instantaneously notifying you which markets are in session around the globe.

cAlgo Integration

Although cAlgo and cTrader are two different trading platforms Spotware’s developers have provided with an easy way to integrate the use of both platforms simultaneously. This way, traders can streamline their strategies and switch between manual and algorithmic trading easily.

Detachable Charts

Each chart on cTrader is designed to be separable, which means it can act as an impartial trading application on your desktop, allowing you to use options in full screen.

Concluding Thoughts

The cTrader platform is tailored for Forex traders that need to make quick trades with customizable options and features. Plus, with a user-friendly interface, you can even trade on the go, using the platform on your mobile device. All in all, there are few brilliantly designed Forex trading platforms and Spotware Systems’ cTrader is one of them.

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

World digital map Tradersdna

The Global Currency Forecast 2015 by Scandinavian Capital Markets (SCM).

The outlook for the EURUSD in 2014 was for the prices to move within a 1.2753-1.4225 zone with a downside break of 1.2753 favoring further price decline to 1.2319 followed by 1.2185, and 1.2050. The range for EURUSD in 2014 was 1.2096-1.3992 and the pair closed at the low of 1.2096 and more importantly well below the 200 month simple moving average (SMA) which is at 1.2237. For 2015, the EURUSD risk remains for further price decline in the weeks and months ahead as a monthly open and lower close below the 200 month SMA will confirm further price decline to 1.1580, 1.1423, 1.1295, 1.1096 and 1.0033. As to the upside, only a monthly open and higher close above 1.3322 will confirm further rise is once again underway initially targeting 1.3522 and the 2014 high of 1.3992.

GBPUSD

GBPUSD fall continues to unfold as our November 2014 outlook confirmed a weekly open and lower close below the 200 week simple moving average (1.6032) would witness further price decline to 1.5721, 1.5373 and eventually 1.4812. November prices closed at 1.5641, below the 1.5721 prior target as our December outlook confirmed lower prices was underway to 1.5373 and 1.4812 in the weeks that followed. December prices opened 1.5641 and closed 1.5577 thus confirming continued decline to 1.5371. As of this writing, GBPUSD has reahed 1.5324 and remains offered into the months and weeks ahead. For 2015, GBPUSD risk remains for significant price decline as a weekly open and lower close below 1.5373 followed by a monthly open and lower close below 1.5373 will confirm continued downside risk to 1.4812, 1.3904 and 1.3623 into the months ahead. As to the upside, only a monthly open and higher close above 1.6037 will turn the outlook to neutral with modest upside risk to 1.6477. Currently, we continue to hold GBPUSD September 2, 2014 short trade from 1.6565 for 1.4812, 1.3904 and 1.3523 targets.

AUDUSD

AUDUSD’s fall from the April 2013 high remains active as prices will continue to move lower in the week’s and month’s ahead with the 200 Simple Moving Average (SMA) currently at 0.7780 as the next downside target. As to the upside, only a monthly open and higher close above 0.9334 will turn the outlook to neutral with modest upside risk to 0.9629. For 2015, AUDUSD will continue to move lower as USD makes broad gains with an AUDUSD monthly open and lower close below 0.7780 confirming further downside risk to 0.7203 followed by 0.6006.

USDJPY

For 2015 USDJPY will likely continue to move higher with 122.55, 124.13 and 128.83 as the next upside targets into the weeks and months ahead while only a monthly open and lower close below 99.48 will turn the outlook to neutral with modest downside risk to follow.

USDSEK

The multi-month rise from 6.3221 continues to unfold as risk remains for further price rise in the weeks and months ahead is favorable. For January 2015, look for a monthly open above 7.6662 and higher close to confirm further price rise is underway to 8.0492 followed by 8.5375 and 9.3270 in the months ahead. As to the downside, only a month open and lower close below 7.2585 would turn the outlook to neutral with modest downside risk to 7.0827.

USDCAD

USDCAD rise from 0.9405 continues to unfold with 1.2199, 1.2323, and 1.3062 as the next upside targets in the month ahead. For 2015, look for a monthly open and higher close above 1.2323 to confirm further price extension to 1.3062, while to the downside, only a monthly open and lower close below 1.0335 would change our outlook to neutral.

UAXUSD – Spot Gold

Gold continues to consolidate the multi-year rise from $212 as 2015 will witness prices consolidating within a $889-1,526 zone as a sustained break of this zone will witness further price extension in the direction of the break. For 2015, look for $889-$1,526 range as a month open and lower close below $889 will witness further price decline to $777.41 followed by $645.94. As to the upside, a monthly open and higher close above $1,526.85 will confirm further price rise is once again underway initially targeting $1,637.83 and 1,745.90. Though still in a multi month consolidation phase, the spot gold market remains net long as this net long sentiment could witness a very painful downside correction or squeeze similar to that recently witnessed with crude oil prices. Look for a monthly open and lower close below $654.53 to witness a dramatic decline or near collapse of the gold market with prices eventually reaching $263.45.

Crude Oil (WTI)

Barring any significant cuts in production from OPEC or any geo-political events which could impact oil prices, crude oil prices will remain low throughout 2015 and risk for further price decline towards $33 is favorable. For 2015, look for a WTI monthly open below $52 and lower close to support further price decline to $33.18 while to the upside only a monthly open and higher close above $86.40 will remove any downside risk.

Scandinavian Capital Markets SCM is a Sweden based asset and fund manager founded 2010. The company was founded by a group of traders and former portfolio managers to help investors diversify their portfolios and provide a profitable alternative to other asset classes with risk-adjusted returns. The company’s global wealth management seeks to identify and capitalize on intermediate-term price movements in a broad range of major currencies through global macro investing using a combination of fundamental, technical and systemic trading. The company is registered under Swedish Financial Supervisory Authority (Finansinspektionen) 

Investment Philosophy

The team has based on several years of research and trading effectively developed automated and discretionary strategies that incorporate macro-economic views and technical analysis that seek not only to outperform major benchmark and stock indices but also to generate uncorrelated and risk-adjusted returns that offer true diversification.

Investment Team

The investment group consists of a highly competent trading team of currency traders, market analysts and skilled portfolio managers including former Head of Portfolios from Barclays, Citigroup and Lloyds TSB. The team utilizes more than 25 years of trading experience within the banking and institutional investment sector which has made it well suited to generate risk-adjusted returns irrespective of market climate.

Scandinavian Capital Markets Social Media presence:
Twitter: @ScmFX
LinkedIn: linkedin.com/pub/scandinavian-capital-markets-scm/52/2bb/33b
Facebook: facebook.com/ScmForex

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

GreySpark Partners have recently posted a report pertaining to the various explorative elements of the ripe but new A2A market, which stands for (all-to-all) in direct correspondence to Forex trading in 2014. The report stresses on how, with the massive increase in trading frequency, many buyside companies have now placed themselves on the side of spot Forex trades in the market areas which were before considered to be only used by Forex brokers and dealers.

After 2008, the occurrence of circuitous buyside-to-buyside spot Forex trading has increased when you talk about inter-dealer venues. The investment banks have also adapted to currencies dealings and business models to remain less competitive in the venues. Prime brokerages investment platforms which were run by inter-dealer spot Forex locations are a great example of the ground breaking technological progress and solution building which significantly aided in the expansion of buyside-to-buyside trading quotations and volume.

This slow and steady movement in spot Forex liquidity enables buyside market traders to demand the fact that a variety of electronic investment and trading platforms and solutions be sold to them from over the sell side.

According to the report published last month by GreySpark Partners which is a capital market consultancy firm based in London, it was revealed that buyside companies have now been trying to excessively access spot Forex trading via numerous spot Forex companies which were considered to be bank-only trading platforms. This report also gives a detailed analysis of how this has affected the Forex market, especially when talking about Forex trends in 2014. You will see that this recent development is leading to the rise of A2A markets which has the potential to spread over a variety of other instrument classes for example, Forex options and non-deliverable forwards in the future.

Senior consultant and co-author of the GreySpark Partners report on Forex trends, Russell Dinnage said,

“A GreySpark assessment of bank FX e-trading service offerings and a likewise survey of buyside opinions of those service offerings showed that, while all the banks reviewed offer strong principal trading business and dealing models that their clients find useful, the competitive battleground of the future is in the agency trading space. The leading FX banks must continue to develop e-trading technology offered to their clients via single-dealer platforms to build new agency dealing models that simplify and bring efficiency to the provision of liquidity or access to liquidity venues to their customers, which will ultimately reduce costs across the board.”

Direct Market Access

Another thing that was disclosed in the report is the fact that there are currently 3 top level banks that now provide (DMA), which stands for direct market access to their buyside customers to indulge in e-trade spot Forex within the market’s best inter-dealer platforms for spot Forex. There are various other banks that too, provide their clients high-speed connectivity to inter-dealers for spot Forex systems requiring the utilization of bank ID access codes to conduct spot Forex trading.

What this means is that while dealer and broker banks for Forex still maintain a bigger control of the extent of the liquidity that the market has in a spot Forex platform of an inter-dealer in a given day. The banks too are encouraging buyside customers to determine the extent of the volatility or the churn in the market. The banks are also encouraging their clients to identify the extent of market volatility in the spot market of Forex by making the entire process simpler for them. This effectively enables their client to touch base with various other market players, such as hedge funds.

The extent of buyside-to-buyside Forex spot trading has expanded significantly since 2008. GreySpark Partners agree to the fact that these alterations in Forex spot trading will place a benchmark for even higher trading volume in other Forex trading options. The fact that the overall level of Forex trading is increasing considerably, electronic Forex trading could result in lucrative equities, for instance, A2A market infrastructure for Forex spot trades to occur.

Forex options will essentially be traded via banks using multi-dealer trading venues and platforms with most of the venue becoming worthy of selection for the liquidity of calls and puts. On the other hand, it has been seen that sellside NDF trading could evaporate in the near the future, with ETF (Exchange Trade Funds) contracts being predominantly used to imitate market liquidity in currency markets that the instruments at present provide.

GreySpark Partners’ managing partner, Fredrick Ponzo was reported as saying,

“In 2014, already high levels of e-trading in the FX market are causing all-to-all market structures to evolve, especially in spot FX, where evidence of an equities-like trading environment is common knowledge to the majority of market participants. The next steps in this evolutionary journey will be for electronification of trading to increase in other instrument classes – standardised FX options could become nearly fully electronic in the next few years. These changes mean that the balance of power in the FX market is now shifting toward the buyside, away from the sellside, and banks must continue to find new ways to compete with each other for client flow.”

Concluding Thoughts

Overall the GreySpark report on FX trends for this year carefully evaluates electronic commerce and e-trading shifts and movements in trends which currently affect the Forex market along with the Forex options and the NDFs. However, it is important to note that the GreySpark report is in no way a prediction in regards to the rise of A2A markets in Forex.

The GreySpark report is a combination of a string of different reports which include ‘Trends in Equities Trading’, and ‘Trends in Fixed Income Trading 2014. The main aim of the GreySpark report on Forex trends is to streamline the variety of options offered by Forex trading and other products that are provided by the sellside this year along with promoting a bunch of other trading solutions and tools on a multitude of dealer trader platforms. So, this will enable you understand the trends in FX trading to a certain extent.

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

With so many technological advancements, predicting the future of trading can’t really be that difficult. Computers can break down currency transactions to search for good stock prices just as any normal trader would. However, the only major difference between human traders and machines is that machines don’t employ the use of chat rooms, which, if you can remember, have attracted a high degree of scrutiny from trading regulators who attempted to disclose all evidence leading to manipulative practices in the market.

And because of this high frequency trading is seen as a solution to the Forex market and has now become a benchmark in case of trading complications and a crisis in the markets. So, what are human traders to do then just babysit the algorithm trading systems? ICAP’s Justyn Trenner stated,

“To the extent the future is machines, its humans babysitting machines, it’s like the U.S. Air flight that landed on the Hudson River. The pilot had to control the angle of descent manually and used the autopilot to keep the plane level; Captain Sullenberger could only do this because he knew how to use the machine”.

And it is true when you think about it, because can you ever go to sleep behind the wheel after putting your car on cruise control? However, if you look at the algorithm and high frequency trading from a broader perspective, you will realize the machines can significantly aid traders in choosing the most perfect trade condition and help execute decisions fairly rapidly.

The chief execute of C-View, Paul Chappell said,

“[Algorithms] seem the most appropriate way to execute a trade. We have implemented a tool to take profit and stop losses on each currency. This program automatically puts a risk wrap around our trades, saving us the manual effort of introducing the same controls manually.”

Over the last couple of years, you may have witnessed a great deal of change in the financial community, more specifically in trading and the investment markets. There have been some cutting edge advancements made pertaining to how trading data and information is transferred and how traders use this information to conduct fast trades. Not to mention the significant progress which has been made in regards to how traders communicate with each other.

>The technology has made a great impact on the financial industry and has helped democratize entire equity markets. In simple words, traders are now seeing an end to trading floors where trades in stocks, commodities and foreign exchange. This is how technology impacted trading:

Simultaneous Access and Information Gathering

For a majority of traders and investors, the technological trends shifts in trading have provided a beneficial window of opportunity. And traders and investors these days and for the days to come will not have to lead a central position at an important hedge fund and neither would they have to work hard to make important connections with the brokerage community over at Wall Street.

This is mainly because of the fact that all vital information and updates pertaining to the stock and Forex markets are now made available instantly to all traders via news sources like CNBC and Bloomberg as well as on websites like Forbes.com and Seeking Alpha and social media networks like Facebook and Twitter. This automation and the free flow of financial notifications give a strong chance to every trader to make his trading decisions and implement his strategies. Information is now accessible to anyone and not just the top dogs in trading.

Individual traders can now eliminate the time limit and delays that over the years have accompanied trading reports pertaining to government inflation and corporate earnings and data. Traders of today and tomorrow will use different stock and Forex trading and investment platforms designed to help you trade via your smartphone, tablet, PC, and laptop from virtually anywhere in the world which means you will never be detached from the financial world. Plus, traders will also get financial notifications on the go using various trading applications.

Moreover, all this innovation has also allowed traders to come up with various types of strategic trading methods they implement in order to establish their positions in the financial markets for assets. Algorithm trading or high frequency trading have been established as the most popular form of trading traders from different financial firms have started to use. In fact, there are many recognized and well-known traders in the market who firmly believe that algorithms, along with complex charting and analysis of trades, can make traditional approaches to analysis and evaluation redundant.

Although this is disconcerting to some traders but you cannot undermine the fast developing trends technology is bringing, especially at this stage. It has therefore become increasingly apparent that electronic trading has taken over a considerable portion of both stock and Forex markets.

Increased Trader Competition

Ryan Jordan who is a market analyst at Prime Trade said that,

“It is now relatively easy for individual traders to gain access to a wide variety of asset classes, and to trade them high efficiency execution. This is why there is such a high level of competition from broker to broker to carve out larger sections of the market.”

 

If you look at it from a broader perspective, competition can be a good element here. And this competition has resulted in various brokerage firms drastically altering their approach in order for the financial communities to take notice. For example, most brokerages firms have guaranteed, that’s right, they have guaranteed stock and Forex traders a ‘trading execution’, which means they ensure traders their stock orders will be executed at exactly the price levels they want. But, as you may know, guaranteeing this is impossible when market volatility sets in, making price execution impossible.

Secondly, a majority of modern-day brokerage companies have explained price slippage can be devastating, especially when you’re talking about a highly volatile market. And this is where trading platforms come in and many platforms have undergone several improvements to guarantee efficiency in trading.

The future of trading is bright although it is too soon to be predicting any trends changes. When you talk about trading, marketing specialists have predicted that three or four year down the line even non-professional traders will also be able to establish themselves in the market for assets and the Forex market, which is a good thing.

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.

Wall Street, along with the financial centres in London and Hong Kong, have become algorithm trading hubs where thousands of traders employ sophisticated algorithm programs to gauge the market trends and rely on the analytical superiority of these high powered super computer programs. Algorithm trading is carried out by mathematical robots and big data crawlers that still few people actually know about.

Believe it or not, algorithm trading is now done all over the globe which has led to the emergence of a new technological trend in financial industries of several developed nations. You have to admit that at times people fail to predict market volatilities, the bull and bear trends and a number of factors, which algorithm systems never overlook.

What is Algorithm Trading?

At its core, algorithm trading, which can also be referred to as high frequency or HF trading, is a trading process which is conducted by highly sophisticated computer programs. These programs determine various aspects of a trade, which include critical decisions like timing, trends and prices in the market and the all the factors associated with these factors that can either affect them positively or negatively.  These programs are also designed to function independently, which means they can if they choose to, execute an entire trade order without consulting the trader.

Who Uses Algorithm Trading Strategies?

High frequency or algorithm trading is most commonly conducted by traders belonging to mutual and pension funds and in some cases, institutional traders who aim to break down a big trade into smaller chunks solely to manage the impact and risks caused by it in the market. Algorithm systems are complex and are not meant for every trader. These programs are designed to search for crucial trading factors like the ups and downs in interest rates, minor fluctuation in the economy, important news and notification and a number other intricacies.

They look for areas where they can mark an existing opportunity that is before anyone else can mark them. The algorithm systems which are employed in today’s trading practices have the ability to disperse massive trading orders into manageable pieces so they could be used in a multitude of regions across the world and at a speed which will remain unmatched.

Why Use Algorithm Trading?

The central purpose of HF or algorithm trading is to reduce the risk involved in a trade as much as possible. They present traders with smaller deals which allow them to enter and exit the markets faster than any other trader, also allowing the HF trader to switch between different trading platforms and exchanges.

Moreover, all financial markets are now operated by various sophisticated and overly complex trading technologies which have given a considerable edge to most traders. At the moment in the financial markets, top companies like Goldman Sachs, Morgan Stanley, and Citi, along with Barclays have been using some complex computer programs and big data programming in the Forex markets, which are responsible for a majority of trading in worldwide markets.

75% of All World Trading Is Done Through Algorithms

According to statistics and analytical research done on high frequency trading, it has been identified that algorithm trading now accounts for 75% of all trading done in the world. And not only that, it was also discovered that market trends are established through not just the macroeconomic factors or data but they are also determined by the traders who vigorously compete against each other to see who comes out on top in terms of the fastest information processing and the most analytical business minds. These are backed by big numbers in financial algorithms which have the ability to evaluate massive amounts of data to determine top profits margins.

Algorithm Trading & the Forex Markets

Some of the best algorithm traders in the Forex market are interbank traders who have been incorporating algorithm trading for the past couple of years. However, it is important to realize that algorithm trading has not yet put most independent trades at a disadvantage because most traders are focused on the long-term and upon witnessing the increased liquidity in the financial markets along with stability in share prices, a majority of independent traders are now seeking to integrate their trading styles and strategies with algorithm trading techniques and technologies.

Forms of High Frequency Traders

There are varying forms of algorithm traders. There are many HF traders who are referred to as market swingers and employ trading strategies to trade mostly on signals to create a market through the provision of securities on every side of the buy and sell trade order.

Other algorithm traders use high frequency systems to try and get a fix on where the markets are headed in the short run. Irrespective of the trading strategies these HF traders use and implement, they all aim at one thing only: making massive amounts of money without increasing the risk involved in their trades.

In the past five years alone, there has been a considerable rise in the number of traders using algorithm trading systems and according to a statistical analysis report published by the Aite Group LLC, a Boston based firm, it was identified that a third of all trades that were conducted in Europe and the US in 2006 were carried forward through algorithmic programs. Keeping this number in mind, you can say that 2% of 20,000 US companies use algorithm trading, especially in the equity markets.

Matthew Rothman, an analyst at Barclays Capital, had this to say,

“Five years ago, ‘high-frequency’ traders, and few others considered the funds more than a niche strategy. However, the niche’s role now overshadows that of mainstream brokers mutual funds and hedge funds.”

All in all, it is safe to assume there is going to be a big change in trading trends now that most independent investors and traders have seen what algorithm trading can do for them. And the sole reason for its increase in popularity is its potential for making huge profits while minimizing risk.

Market Place

MKTPlace is a leading digital and social media platform for traders and investors. MKTPlace offers premiere resources for trading and investing education, digital resources for personal finance, news about IoT, AI, Blockchain, Business, market analysis and education resources and guides.