What You Should Know About Leverage in the Forex Market

Two of the most important concepts that traders need to know are leverage and margin. If you want to become a profitable trader in the market, you need to know about these terms. Amargin is the loan given by your broker that allows you to put up your funds and the securities in your account and use them as leverage in order to engage in larger trades.

However, in order to get approval for using margin, you will need to open a margin account. The collateral for the loan is the securities and cash that you deposit in your margin account but the money you borrow to use as margin doesn’t come for free. You will have to pay an interest on the amount that you borrow. In general, you can expect to pay interest rates of anywhere between 5-10% on the margin.

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Understand Technical Analysis in the Forex Market

Most people have this perception that forex trading is all about poring over charts and figures. While that may be true to a certain extent, there are a whole bunch of other things involved. For instance, there are a host of different price action strategies that forex traders use in order to find and execute better deals. Analyzing different deals and figures is much easier said than done. In the past several years, technical analysis has been one of the most hotly debated topics among forex traders.

Technical analysis is essentially a statistical analysis of price changes in the past. The objective of carrying out a technical analysis is to forecast future price changes in the market. In many financial circles, this area has often been met with severe skepticism. Most traders are generally divided in their opinions: some believe that technical analysis actually works, others believe that it’s an absolutely useless tool for predicting changes in the price action and are those who believe that the tool itself is a self-fulfilling prophecy.

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Can Forex Trading be Addictive?

The foreign exchange market is the only global market that remains active round the clock. There are traders active from all parts of the globe who are constantly trading. Due to the difference in time zones, there’s always activity in the forex market. However, according to many forex experts who have lots of experience in the market, forex trading can also be considerably addictive. According to forex psychology experts, it is not easy to wean off a trading habit. Here are just a few reasons why forex trading can be so addictive:

Easy to Trade

Do you own a smart phone and a computer? If you do, you can jump in to theforex market right away. One of the main reasons why so many people end up developing an addictive trading habit is because of the fact that forex trading is so easy. The learning curve is relatively flat, and you don’t need to spend a whole lot of time in understand the different trading strategies or terminologies.

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Everything You Need to Know About ECN Brokers

The Forex market is an unregulated market in which currencies are traded round the clock. There are millions of traders working with brokers from all over the globe to execute trades. However, there are many different kinds of Forex markets and methods of trading that are currently in use today. If you are a forex trader, you need to know about the Electronic Communications Network (ECN). The Electronic Communications Network is a unique platform that’s designed to facilitate trades between small market participants and larger, tier-1 liquidity providers.

ECN can be defined as forming a link between larger liquidity providers and smaller market participants (traders) with the help of an ECN broker. The role of an ECN broker is integral in this process, since the broker is responsible for facilitating the trade between the traders and the liquidity provider. The link between the ECN brokers, the traders and the liquidity providers is based on the financial information exchange protocol, also known as the FIX protocol.

There are several advantages of trading with an ECN broker. Here are a few:

- Anonymous Trading ;
- Client/Bank Trading ;
- Variable Spreads ;

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Automated Forex Trading Systems - Do They Work ?

Nobody minds generating a considerable income on the side. Compared to other investment opportunities, the forex market proves to be a very compelling option for most people. However, many novice traders who enter the forex market often transpire with huge losses and end up leaving the market very quickly. A cursory search about the forex market will reveal to you the many different programs and robots that you can use. Almost all of these programs come with stellar reviews about how they have helped traders generate large sums of money in such a short span of time.

Needless to say, this attracts the attention of the ordinary investor. After all, you can just do your job throughout the day and leave your automated forex trading systems running in the background. When you come home, they will have generated a sizeable profit for you. What could go wrong? Plenty, it seems.

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Online Broker Reviews: Constructive, Informative, Valid

Some things should go without saying especially regarding how a forex broker review should be handled. Reviews serve both the brokers and interested clients looking to sign up with a new firm. It’s important to know how to conduct a useful review whether it is negative or positive in order for it to have the impact the trader or investor is looking for. A review is an honest statement about your experience with a certain firm and therefore there is an amount of power that comes with it. This power means that what you write can alter a number of things regarding a broker that’s why each word should be carefully thought of and true.

Here are some things that a trader should keep in mind when putting together an online broker review:

– If you don’t have to say it, then don’t;
– Get your story straight;
– Don’t do it now, do it later;

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What is Forex ECN Trading ?

Forex trading is a great pastime for many people. If you have saved a bunch of money, investing it in the forex market is a great option. The forex market essentially allows you to trade in currency pairs and it is a great option for people who are interested in making more money on the side. You can easily trade whenever you have free time, thus making it even more attractive. However, there are several things that you should keep in mind when trading in the forex market. First of all, since this is a completely unregulated market, there are certain market makers which determine the prices of certain currency pairs.

Rather than go through all the hassle, you should consider joining the forex ECN trading platform. ECN trading is touted by many as the way of the future when it comes to trading. The Electronic Communications Platform was designed to give small market participants the option of trading with greater liquidity. The Electronic Communications Network acts as a link between the brokers and the traders. The broker helps obtain liquidity from the tier 1 liquidity providers, and then executes orders from the clients.
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The Cost of Trading in Forex

Forex trading is a highly attractive option for people who are interested in making a decent side income. However, before you start trading in forex, you need to know the overall costs of trading in the foreign exchange market. The overall cost of trading is the cost you will have to pay in order to run your trading business as a forex trader. There are certain optional costs, which are also termed as variable costs that you might have to incur based on your requirements. Optional costs generally include faster connections, customized technical analytics as well as dedicated news services that help you remain informed and up to date.
Apart from variable costs, there are certain fixed costs that a trader must incur. The costs of membership and essential services are often termed as the fixed cost, since they cannot be avoided whether you trade or not. For every single trade that you make, a certain amount will be paid as a commission to your broker. While the commission costs generally differ from one broker to another, the amount itself is relatively small. This is the basic cost of trading that you will incur.
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Can You Make Money With Zulutrade ?

 

Zulutrade is one of the most popular financial trading services provider in the world today. The company is headquartered in Athens, Greece and has been operating in the foreign exchange market for several years. The company owns the domain name zulutrade.com, which is an online foreign exchange platform that allows people to trade socially. Founded back in 2007, Zulutrade is often regarded by many Forex brokers as an automated trading broker. The concept on which the company works is relatively simple: all trades are shown as mirror signal providers. However, only a handful of brokers are able to use Zulutrade.

The brokers are responsible for paying Zulutrade for every trade made through the company. The signal providers receive a payment that’s the amount at half a pip per lot traded using the signals from the provider. However, it should be known that payment is only made when the trades are profitable.

So, when you first sign up on Zulutrade, you will start searching for signal providing traders. There are several different traders that you will find and can mirror. The company maintains a whole bunch of different statistics that are honest and transparent and provide key information about different traders. This will make it easy for you to see which trader is raking in the most amount of money. You can also view the trading records of a particular trader before making a decision. On the whole, Zulutrade is set out to be a transparent and a logical trading process.
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Collaborating with a Broker ECN - What You Should Consider

Trading on the ECN markets is fast becoming a popular option for most traders. Even though you have to pay a fee for every transaction you make on the market, there are many reasons why ECN markets have become popular today. One of the biggest reason why so many people prefer working with a broker ECN is because they can help you get much greater liquidity.


The Electronic Communications Network essentially forms a bridge between different tier 1 liquidity providers as well as small market participants. On one end of the spectrum, when an order is placed, the broker will take that order and deliver it to the liquidity providers for execution. However, before that can happen, the broker obtains liquidity from tier 1 providers such as banks and organizations. All of this is done over a highly secure and sophisticated platform known as the Financial Information Exchange Protocol.

Before you collaborate with any broker ECN, there are several things you must keep in mind. Here are a few:
-Reputation;
-Services;

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Why is Latency so important for forex trading ?

Latency or delay as known in computer networking, is the time interval for a process to present an outcome, the time delay between the cause and effect of a physical change within a system. In Forex Trading, latency indicates the time needed for the traders’ requests to get a response from the broker’s server. Latency is considerably important because it can have a huge impact on the price that traders pay in the markets, hence it is significant for latency to be at lowest when making a trade. Traders can identify the range of latency in accordance with the trade that they are executing.

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