**Objectives:** To provide short and mid term trade ideas, analysis and commentary for active investors. Equities, Options, FOREX, Futures, Analyst upgrades and downgrades, technical analysis and fundamentals are all welcomed topics. Warning! If you are new to the markets, I strongly suggest you go to /investing to learn the ropes.
A layman's understanding of basic Forex terms - please let me know if I got it wrong!
I'm a total newbie - please go easy on me! Here are some of the things I'm attempting to articulate; if I got it wrong, hope you could correct me. Okay, here we go:
Lot and Volume
Lot is a collection of units. This actually depends on the Trading Platform. 1 lot can be 100K whilst on a different Platform, it can be 10K. A lot and a volume is identical, but differs only on formatting e.g. 1K lot or 10K lot can be 0.1 or 1 volume respectively.
10K Units = 1 Lot = 1 Volume
I may get this wrong but does that mean if I buy or sell 1 volume (i.e. 1.00 or 10K units), it would equate to 10K * quoted currency?
1 unit is basically a dollar for USD. It's the base currency of the trader's account and not necessarily the traded pairs per se; but it can be used interchangeably.
EUD:USD. Though the base for this pair is EUD, the base unit itself is USD if the trader's account is USD.
But to be honest, sometimes I do get confused when people say 'based currency'; if there's a different explanation, please let me know!
A pip is basically the smallest difference in a pair currency ('difference' here means Buy - Sell). A pip can be either on the 4th position or the 2nd position.
1.0601 - 1.0600 = 0.0010. So we say the trader has gained 1 pips.
I understand there's "Pippetes" - I don't think this is critical (yet) for a beginner?. As I understand it's the 5th or 3rd decimal?
Lot Size and Pip Value
Your chosen lot size can determine the value per Pip. The formula is: Lot size \ Pip*
10K * 0.0001 pip = 1$ So if there's a positive difference, you'd get 1$ gain.
Your profit can be determined by the following: (Pip / Quote rate) * Lot Size
Say, EUD:USD is 1.0000:1.0001, so a difference of 1 pip. Thus, (0.0001/1.0001) * 10K = $0.9. You'd gain $0.9 per trade.
(not too sure about this one actually)
Leverage and Margin
Personally, I see leverage as % of how much you must have in your account against the "capital" the broker would give. Formula is (1/X)*100. The minimum amount you must have to trade by the given leverage is known as 'Margin'
Say the broker will give you 1 lot of 10K Units. But you must have 1% of that amount deposited. So that's 1:100 or (1/100) *100 = 1%. So 1% of 10K is $100. You need to deposit $100 to trade and the broker will give you a $10,000 capital. Your margin is basically $100.
The higher the % of the Margin Level, the better; this basically means you have money to trade as your Used Margin is low! Equations is: (Equity/ Used Margin)/100
As I understand, levels lower than 100% is not good as your Used Margin is getting larger. A 5% will force your broker to close your trades automatically. When your broker closes your trades like this, a Margin Call Level is used.
For "Used Margin" I understand this only for all "Opened" trades, and not "Closed" trade?
Balance is balance :p (hehe). It's basically what's left from whatever you've deposited.
It's basically your real-time balance. It includes current profit and losses that are not closed yet.
I want to compare Free Margin here but not too sure how to word it. I understand the formula for Free Margin is Equity - Margin.
Okay, that's about it for today! If I got any inaccuracy, or if I got things TOTALLY wrong and I'd fall flat on my face, please feel free to let me know!!
What are your thoughts as using forex swap as long term investment?
Looking at GBP/CHF specifically with its high swap rate and current low. Just buy at a low point and let it sit for a year and just collect the swap. Obviously have enough capital to withstand the market fluctuations over the year. With my broker, the yearly swap will roughly return 75%. Has anyone done this as long term investment? What are some pros and cons?
#USDJPY #TechnicalAnalysis ~~ The counter is currently in a #descendingchannel formation. It has made an inverted and #cupandhandle formation within that. ~~ Hence, we expect the pair to be #bearish in the short-term. Get the #freeanalysis now: https://traderpulse.com/forex-analysis-app/#pricing
http://twitter.com/forex_in_world/status/1309440184803618816Chart Art: Short-Term Triangle Opportunities on CAD/JPY and GBP/CHF https://t.co/23winayfD8— FOREX IN WORLD (@forex_in_world) September 25, 2020
http://twitter.com/forex_in_world/status/1308756477021044736Chart Art: Brief and Prolonged-Term Retracement Plays on USD/JPY and AUD/NZD https://t.co/KQoUt2rRaV— FOREX IN WORLD (@forex_in_world) September 23, 2020
#EURUSD #TechnicalAnalysis This counter has formed a #head&shoulderpattern but made a #staticmovement for few days.Finally, now it breaksout the strong support @ 1.1700 that leads to its #downtrend.Hence, we are expecting it will be #bearish for short term.https://traderpulse.com/forex-analysis-app/
#BTCUSD #TechnicalAnalysis #Bitcoin has formed a #headandshoulderpattern against dollar and has broken the neckline. It has formed after a significant uprun, which validates the pattern. We expect the counter to be bearish in the near-term https://traderpulse.com/forex-analysis-app/#pricing
The best moves are the ones when the short-term trend coincides with the long-term trend.And Neural Trader can detect such trades for you.Here is a recent performance in #GBPJPY where it rendered 75 pips profit.Get #NeuralTraderhttps://wetalktrade.com/velocity-finder-best-forex-trading-strategies/
Bang On! Pipbreaker hits the TP again. This time it made 121 pips in NZD/CAD. Want to make the most of the short-term volatility? Get Pipbreaker now https://wetalktrade.com/best-indicator-for-mt4/ #pipbreaker #forex #volatility #NZDCAD #chartpattern #technicalindicator #forexmarket #forexsignals
#AUDCAD #TechnicalAnalysis --> This counter has been in the #bullishmomentum for long time period. --> Now, it made a #head&shoulderpattern & about to broke it. --> Also, the #trendline was broken. --> Hence it will be #bearish in the near term. https://traderpulse.com/forex-analysis-app/#pricing
http://twitter.com/forex_in_world/status/1305433391345606657Commerce Thought: Long-term Immediate on GBP/JPY https://t.co/m3K3aFwxnV#forexsignals #forextrading #donaldtrump— FOREX IN WORLD (@forex_in_world) September 14, 2020
Forex is a portmanteau of foreign currency and exchange. Foreign exchange is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or ... Forex trading is legal, but not all forex brokers follow the letter of the law. ... "Over the long term, investing in the stock market is a positive-sum game" because the value of stocks rises ... Swing traders and position traders who have a longer-term approach to trading are less affected by the spread as they open a smaller number of positions and have relatively higher profit targets. #8 Pip. When Forex traders talk about profits or losses, they usually use the term “pips”. A pip is short from Percentage in Point and represents ... ~~ The counter has formed a topping out formation in the near-term. ~~ It made a double top and has broken a key support level of 1.99508. ~~ Further, the round number of 2.00 can act as psychological barrier in the near-term. ~~ Though a pullback to the top cannot be ruled out, we still expect the pair to be bearish in the near-term. Forex Trading Terminology . The Forex market comes with its very own set of terms and jargon. So, before you go any deeper into learning how to trade the Fx market, it’s important you understand some of the basic Forex terminology that you will encounter on your trading journey… • Basic Forex terms:
Lesson 12: Long Term VS Short Term Forex Trading - YouTube
FREE trial at TackleTrading.com here: https://tackletrading.com/pro-member-youtube/ In Chapter 3 of the Forex Trading 101 series presented by Tackle Trading ... What's up! I'm Hannah and I'm learning how to trade the forex markets. Join me as I document my forex trading journey through film, sharing the ups and the d... The most successful stock and forex traders are the ones who have developed an edge, and this is where simple market analysis and profitable stock trading te... Welcome to Chapter 2 of the ASFX Course. Check out https://asfx.biz/ for more info on our courses, real trader testimonials, and more. I decided to give away... Get more information about IG US by visiting their website: https://www.ig.com/us/future-of-forex Get my trading strategies here: https://www.robbooker.com C...