Foreign Exchange, or Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro and the US dollar (EUR/USD) or the British Pound and the US Dollar (GBP/USD) 24/11/ · First of all, Trading is a very lucrative online business and anyone can do it as long as you have the right knowledge of how to go about it. LinkedIn Tolu Olatunji Understand what leverage is and how it affects your trading; Know Forex terminology like Ask, Bid, Spread, Equity, etc. Tell the difference between a Pip and a Point; Use all types of orders: Forex Trading A-Z™ - With LIVE Examples of Forex Trading. In this course, I will show you how you can take advantage of currency movements to make profits. We will talk in detail about By the end of this Forex trading education, your knowledge in trading will be enough to start trading on the live market. Of course, you should always practice first on a virtual ... read more
The Fibonacci sequence is 1,1,2,3,5,8,13,21,,34,55,89… to infinity. The sum of two consecutive numbers equals the next number.
The ratio of any number to its next highest number approaches. The ratio of alternating numbers approaches. Also, 1 —. The midpoint of. This is why. Official rate set by monetary authorities. Often the fixed exchange rate permits fluctuation within a band. FX and Forex refer to Foreign Exchange, the exchange of one currency for another. Foreign Exchange is traded over the counter on an inter-bank system, a network of several thousand banks, although most trading is done by a few hundred such institutions.
A cash market transaction in which a seller agrees to deliver a specific cash commodity to a buyer at some point in the future. In contrast to futures contracts, forward contracts are privately negotiated and are not standardized. A transaction consisting of a purchase or sale often of foreign currency with settlement to occur at a specified future date. Such a transaction will state the specific amount of the asset to be delivered at the specific time, as well as the unit price at which it will be delivered.
There are a number of fundamental indicators traders may follow that reflect how an economy is changing and gleam insight into Forex market prices to come.
A standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. In contrast to options, futures convey an obligation to buy. Abbreviation for the Group of Seven, or the seven largest industrialized countries, including the United States, Japan, Great Britain, France, Germany, Italy, and Canada. The significant price movement of a security or commodity between two trading sessions, such that there is no overlap in the trading ranges for the two days.
Acronym for Gross National Product, which refers to the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens including income of those located abroad , minus income of non-residents located in that country.
A monetary system that backs its currency with a reserve of gold, and allows currency holders to convert their currency into gold. Measures the value of goods and services produced with in a country. GDP is the most comprehensive overall measure of economic output and provides key insight as to the driving forces of the economy. A technical analysis term referring to a chart formation in which a price exhibits three successive rallies, the second one being the highest.
The name derives from the fact that on a chart the first and third rallies look like shoulders and the second looks like a head. A hedge is a type of protective investment designed to offset adverse price movements in a given asset.
Typically, a hedge is an offsetting position taken in a related security. Gauges the change in the number of new houses beginning construction. Housing Starts are one of the earliest indicators of the housing market, only trailing Building Permits in timeliness. The IMF, or International Monetary Fund, was established after World War II in December Its goals included promoting free trade, stabilizing exchange rates, and overseeing international monetary policy.
International Monetary Market is part of the Chicago Mercantile Exchange that lists a number of currency and financial futures contracts. A theoretical value designed to represent the volatility of the underlying instrument as determined by the price of the option.
The factors that affect implied volatility are the exercise price, the rate of return, maturity date and the price of the option. Such options have intrinsic value. Data which provide information about or predict the overall health of the economy or the financial markets; examples are inflation, interest rates, employment, volume, and insider trading. Measures changes in the volume of output produced by the manufacturing, mining, and utility sectors.
The amount of cash collateral required by a brokerage firm to be deposited before buying or selling on margin. A person or organization which is able to perform all the functions of a broker except for the ability to accept money, securities, or property from a customer.
A monthly measure of the change in purchases by corporate executives. An accounting record, outlining all business transactions. A journal details which transactions occurred and what accounts were affected. A leading indicator is an economic gauge that records changes before the overall economy experiences them. They are used to forecast financial and economic trends.
Acronym for London Inter-Bank Offer Rate. The interest rate that the banks charge each other for loans generally in Eurodollars.
Acronym for London International Financial Futures and Options Exchange. The three largest UK futures markets. A Limit, is an order to close a trade when the market moves a specified amount to the advantage of a position. The standard chart type, on which a given distance always represents the same absolute change in price. Liquid Market — the degree to which market participants are willing to buy and sell at every price level. M1 is the narrowest definition of the money supply and includes all coins and currency held by the public, plus travelers checks, checking account balances, and other checkable deposits consisting of negotiable order of withdrawal NOW and automatic transfer service ATS accounts at depository institutions, credit union share draft accounts, and demand deposits at thrift institutions.
The M2 measure of the U. M3 measure of the U. residents at foreign branches of U. Margin is a good faith deposit that a trader puts up as collateral to hold a position. The amount of margin that the trader puts up determines his leverage.
A demand for additional funds to be deposited in a margin account to meet margin requirements because of adverse price movements. A brokerage or bank that maintains a firm bid and ask price in a given security by standing ready, willing, and able to buy or sell at publicly quoted prices. A buy or sell order in which the broker is to execute the order at the best price currently available. Also known as at the market. A branch of economics, studying the behavior of small economic units i.
individual consumers or households. opposite of macroeconomics. Market for short-term debt securities with maturity of one year or less, and often 30 days or less. An open-ended fund operated by an investment company that raises money from shareholders and invests in a group of assets in accordance with a stated set of objectives. The futures delivery month with the soonest delivery date, or the option delivery month with the soonest expiration date.
Also known as nearest month. The difference between total open long and open short positions in a given security held by an individual. Report on the efficiency of industrial workers. Key figures released in this report include Productivity and Unit Labor Costs. Acronym for New York Stock Exchange. The oldest and largest stock exchange in the U.
Acronym for Organization for Economic Cooperation and Development, which refers to an organization that acts as a meeting ground for thirty countries which believe strongly in the free market system,. The lowest price for which an investor or dealer is willing to sell a given security or commodity. The elimination or reduction of a current long or short position by making a transaction with the same security in the opposite direction.
The total number of outstanding option or futures contracts that have not been closed out by offset or fulfilled by delivery. The buying and selling of government securities by a central bank i. the Federal Reserve Bank in the U. The right, but not the obligation, to buy call or sell put a specific amount of a given stock, commodity, currency, index or debt at a specified price the strike price during a specified period of time.
A call option whose strike price is higher than the market price of the underlying, or a put option whose strike price is lower than the market price of the underlyin. Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. The date on which a dividend, mutual fund distribution, or bond interest payment is scheduled to be made. List of employees that a company is paying.
The non-farm payrolls report is one of the key indicators of the labor market in the US. The report tends to include information on salaries, wages, bonuses and net pay after deductions. Survey conducted by the Philadelphia Fed questioning manufacturers in the Third Federal Reserve District on general business conditions. Price changes are normally quoted in percentage points and are often denoted using the percent sign.
PPI; an inflationary indicator published by the U. Bureau of Labor Statistics to evaluate wholesale price levels in the economy. Range refers to the area between high and low prices a currency pair tends to trade between during a given period of time. An options strategy in which long-term options are bought and a greater amount of short-term options are sold. A contract in which the seller of securities, such as Treasury Bills, agrees to buy them back at a specified time and price.
The amount in assets kept in case of urgent need for liquidity. The price level in which a currency pair has difficulty trading above. At resistance, price action tends to stall before breaking above, or reverse in the opposite direction. A basket of stocks that are considered to be widely held. Special Drawing Right. An artificial currency unit based upon several national currencies. The Special Drawing Right serves as the official monetary unit of several international organizations including the International Monetary Fund, and acts as a supplemental reserve for national banking systems.
Specific instructions made by an individual to a broker, bank, market maker, or financial institution to sell a currency, commodity, or security. The date by which an executed securities transaction must be settled, by paying for a purchase or by delivering a sold asset; usually three business days after the trade was executed. The difference between the price a trader expects to be filled at, and the price they are actually filled at.
Swiss Options and Financial Futures Exchange, a fully automated and integrated trading and clearing system. A large order which is broken into smaller pieces to be executed one at a time to avoid affecting the market price. The present delivery price of a given commodity being traded on the spot market. Also known as cash price.
An order to buy or sell a certain quantity of a certain security at a specified price or better, but only after a specified price has been reached. This is when an investor purchases or sells an equal number of puts and calls, with the same strike price and expiration date.
The purchase or sale price of underlying stock that an option holder sees upon the exercising an option contract. An exchange of different streams of payments over a given period of time, in response to prior specified terms. The most common swap is an interest rate swap. In such a swap, one party agrees to pay a fixed interest rate to the other company in exchange for receiving its adjustable rate. The difference between the forward exchange rate and the spot rate of a currency.
The spot rate is usually expressed in points. A short-term obligated investment that is backed by the U. These bills have maturities of a month four weeks , three months 13 weeks or six months 26 weeks. This bill is often called a treasury bill. The art of forecasting price movements through the study of chart patterns, indicator signals, sentiment readings, volume and open interest.
This investment tool is also called a technical. A market is thin when there are few bids and offers. Such a market condition is characterized by low liquidity, high spreads, and high volatility. This is the smallest possible movement in the price of a security.
A tick may also be called a minimum fluctuation. This is also called a time premium. One of three types of Treasuries. Treasury Bonds have a maturity of more than 7 years. They are exempt from state and local taxes, and pay interest every 6 months at a fixed coupon rate.
A market in which the market makers are required to give both a bid price and an ask price for each security in which they make a market. An exchange rate is normally considered to be undervalued when it is below its purchasing power parity. The unemployment figure is typically calculated by dividing the number of out of work individuals in the labor force, by the total labor force.
For exchange contracts it is the day on which the two contracting parties exchange the currencies which are being bought or sold.
For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. The only exception to this general rule is the spot day in the quoting centre coinciding with a banking holiday in the country ies of the foreign currency ies. The value date then moves forward a day. Volume is the number of contracts, shares or any other unit of trade in a security over a certain period of time.
The name denoted for a narrow street in lower Manhattan , New York City, and considered to be the historical heart of the Financial District. It was the first permanent home of the New York Stock Exchange. The sale of goods in high quantities to non-consumers, with the purpose of reselling these goods. a group of five international organizations responsible for providing finance in the form of loans to countries, with the objectives of economic development and eliminating poverty.
World Trade Organization. An international agency that facilitates trade between member nations, and administers global trade agreements. The yield curve describes the relation between the interest rates and the maturity dates of debt instruments for a given currency such as bonds and other related securities.
To begin your investment journey in the Forex markets, follow these simple steps. Make instant deposits to your Orbex Wallet via debit card, wire transfer or your preferred online payment method. The registered office is at 9A CT House, 2nd floor, Providence, Mahe, Seychelles. com is owned by Orbex Services Limited and is operated by Orbex Global Limited. Risk Warning: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.
Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Orbex does not offer its services to residents of certain jurisdictions such as the USA, Iran, North Korea, Indonesia, Mauritius, and Romania. Forex Trading Glossary Start Trading Trading involves a high level of risk. ABC Consumer Comfort Index - United States. Account Balance.
Account Statement. Active Account. Active Money. Active Participant. Adjustable Rate. Adjusted Futures Price. Aggregate Demand. Aggregate Supply. Asked Price.
WELCOME TO ORBEX ABC Consumer Comfort Index — United States Assessment of consumer sentiment toward the economy based on telephone interviews of several hundred adults. WELCOME TO ORBEX Accept Agree to specified terms, as in a contract. WELCOME TO ORBEX Account Financial relationship between two parties involving a transfer of funds, and an agreement to hold them. WELCOME TO ORBEX Account Balance The amount of money in an account. WELCOME TO ORBEX Account Statement Any document designed to summarize and record all transaction activity in a given accounting period, usually annual or monthly.
WELCOME TO ORBEX Active Account An account at a brokerage firm or a bank which generates more activity and transactions then normal. WELCOME TO ORBEX Active Money Money and coins that are circulated in the hands of consumers and businesses. WELCOME TO ORBEX Activity The volume of a stock or exchange over a given period of time.
WELCOME TO ORBEX Adjustable Rate Any interest rate that changes on a periodic basis. WELCOME TO ORBEX Adjusted Futures Price The cash-price equivalent reflected in the price of a futures contract. WELCOME TO ORBEX Advisor A person or organization employed by an individual or mutual fund to manage assets or provide investment advice. WELCOME TO ORBEX Agent A firm or individual that places transactions for securities in the place of clients.
WELCOME TO ORBEX Aggregate Demand The total amount of goods and services demanded in the economy at a given overall price level and in a given time period. WELCOME TO ORBEX Aggregate Supply The total supply of goods and services produced within an economy at a given overall price level in a given time period.
WELCOME TO ORBEX Alert A notification, often by email or pager, of a market event such as a stock reaching a target price.
WELCOME TO ORBEX Analysis The examination and evaluation of the relevant information to select the best course of action from among various alternatives. WELCOME TO ORBEX Arbitrage Profit made from a price discrepancy between markets when securities are purchased on one market and then immediately sold on another market.
WELCOME TO ORBEX Asked Price The price at which a security or commodity is offered for sale on an exchange or in the over-the-counter market. Back Office. Balance Of Trade. Bank Holiday. Bank Note. Bank Rate. Basis Trading. Bear Market. Break-Even Point. Bull Market. WELCOME TO ORBEX Back Office The administrative functions at a brokerage that support the trading of securities, including trade confirmation and settlement, recordkeeping, and regulatory compliance. WELCOME TO ORBEX Balance The amount of money in an account.
WELCOME TO ORBEX Bank Holiday The temporary closing of a bank in the event that its obligations exceed its resources. WELCOME TO ORBEX Bank Note A non-interest-bearing promissory note of a Federal Reserve Bank which is payable to the bearer on demand and can be used as cash. WELCOME TO ORBEX Bank Rate The interest rate charged by a bank for loans. WELCOME TO ORBEX Basis Trading An arbitrage strategy usually consisting of the purchase of a particular security and the sale of a similar security often the purchase of a security and the sale of a corresponding futures contract.
WELCOME TO ORBEX Bear An investor who believes that a security, a sector, or the overall market is about to fall. WELCOME TO ORBEX Bear Market A prolonged period in which investment prices fall, accompanied by widespread pessimism.
WELCOME TO ORBEX Beneficiary An individual, institution, trustee, or estate which receives, or may become eligible to receive, benefits under a will, insurance policy, retirement plan, annuity, trust, or other contract. WELCOME TO ORBEX Bid The highest price a dealer will pay at any given time to purchase a currency pair or a financial instrument.
WELCOME TO ORBEX Break-Even Point The price at which a financial instrument cost is equal to the proceeds acquired by exercising this financial instrument.
WELCOME TO ORBEX Breakout Technical analysis term used to describe price action rising above resistance or dropping below support. WELCOME TO ORBEX Broker An individual or firm which acts as an intermediary between a buyer and seller, usually charging a commission.
WELCOME TO ORBEX Bull Market A prolonged period in which investment prices rise faster than their historical average. WELCOME TO ORBEX Bullion Gold, silver, platinum, or palladium, in the form of bars or ingots. WELCOME TO ORBEX Buy To obtain ownership of a security or other asset in exchange for money or value. Calendar Spread. Cash Delivery. Certificate of Deposit. Closed Position. Contract Expiry Date. Contract Month. Counter Party. Cross Rates.
Current Account. WELCOME TO ORBEX Calendar Spread A strategy in options or futures where a spread is established by entering both a long and short position at the same time on the same underlying asset but with different expiration dates.
WELCOME TO ORBEX Cash Currency and coins on hand, bank balances, and negotiable money orders and checks. WELCOME TO ORBEX Cash Delivery A requirement of certain futures contracts that the underlier should not be delivered to the buyer at maturity, and instead the value of the underlier should be paid out.
WELCOME TO ORBEX CBOT Chicago Board of Trade. WELCOME TO ORBEX Certificate of Deposit A negotiable certificate in bearer form issued by a commercial bank as evidence of a deposit with that bank which states the maturity value, maturity rate and interest rate payable.
WELCOME TO ORBEX Chart A chart is a collection of historical price action that is represented visually in a graph form. WELCOME TO ORBEX Chartist A person who uses charts to aid in technical analysis.
WELCOME TO ORBEX Closed Position A transaction which leaves the trade with a zero net exposure to the market with respect to a particular currency. WELCOME TO ORBEX CME CME.
WELCOME TO ORBEX COMEX Commodity Exchange. The leading U. exchange for metals futures and options trading. WELCOME TO ORBEX Commodity A basic good, such as food, grains, and metals, which is interchangeable with other commodities of the same type, and which investors buy or sell, usually through futures contracts.
WELCOME TO ORBEX Contract An agreement to buy or sell a specified amount of a particular currency on OTC, future or option basis for a specified month in the future. WELCOME TO ORBEX Contract Expiry Date The last trading date of a futures or options contract. WELCOME TO ORBEX Contract Month A futures contract expires during this month. WELCOME TO ORBEX Counter Party The party that takes the other side of an exchange transaction.
WELCOME TO ORBEX Cover To repurchase a previously sold contract. also called short cover. WELCOME TO ORBEX Credit A contractual agreement in which a borrower receives something of value now, in exchange for the promise to repay the lender at a later date—typically with interest. WELCOME TO ORBEX Cross Rates Rates between two currencies neither of which is the US Dollar or the base currency.
Daily High. Daily Low. Day Order. Deal Ticket. Dealing Desk. Delivery Month. Delivery Notice. Double Bottom. Double Top. WELCOME TO ORBEX Daily High The highest price achieved by a tradable security or commodity during a given day.
WELCOME TO ORBEX Daily Low The lowest price achieved by a tradable security or commodity during a given day. WELCOME TO ORBEX Day Order An order to buy or sell a security which automatically expires if it is not executed during the same trading session.
WELCOME TO ORBEX Deal Ticket The primary method of recording the basic information of a transaction. WELCOME TO ORBEX Dealer An individual or entity that acts as a principal and stands ready to buy and sell for its own account. WELCOME TO ORBEX Dealing Desk A desk where transactions for buying and selling securities occur. WELCOME TO ORBEX Deflation A decline in general price levels, often caused by a reduction in the supply of money, higher interest rates, and lack of credit.
WELCOME TO ORBEX Delivery Month The month of expiration for a futures contract. WELCOME TO ORBEX Delivery Notice A formal notification of the delivery of products on a specified date. WELCOME TO ORBEX Deposit Transaction involving the transfer of funds from one party to another for a particular purpose.
WELCOME TO ORBEX Derivative A financial instrument whose characteristics and value depend upon the characteristics and value of an underlier, such as a commodity, bond, equity or currency. WELCOME TO ORBEX Dip A small, short-term decline in price. WELCOME TO ORBEX Double Bottom A technical analysis term used to describe a chart on which the price of a security has made two approximately equal bottoms over a period of time. WELCOME TO ORBEX Double Top A technical analysis term for two successive rises to the same price level.
WELCOME TO ORBEX Downtrend Downward price movement of a security or the overall market over a period of time. Exchange Control. Expiration Month. WELCOME TO ORBEX E-Commerce The purchasing and selling of products and services by businesses and consumers over the internet. WELCOME TO ORBEX ECB European Central Bank ECB. WELCOME TO ORBEX EU Abbreviation for the European Union.
WELCOME TO ORBEX Exchange Control A system of controlling inflows and outflows of foreign exchange. WELCOME TO ORBEX Expiration Month The month in which an option expires. WELCOME TO ORBEX Exposure The condition of being subjected to a source of risk.
Factory Orders. Federal Reserve Board. Financial Leverage. First Notice Day. Fixed Exchange Rate. Floating Exchange Rate. Forward Contract. Forward Deal. Front Office. Fundamental Analysis. Futures Contract. WELCOME TO ORBEX Factory Orders Dollar volume of new orders, shipments, unfilled orders and inventories as reported by domestic manufacturers. WELCOME TO ORBEX Fed The United States Federal Reserve. WELCOME TO ORBEX Federal Reserve Board The 7-member Board of Governors that oversees Federal Reserve Banks.
WELCOME TO ORBEX Fibonacci The Fibonacci sequence, named for its discoverer Leonardo Fibonacci, forms the basis for Elliott Wave theory used in trading financial markets. WELCOME TO ORBEX Fill To execute an order or buy or sell a security or commodity. WELCOME TO ORBEX First Notice Day The first day that a buyer of a futures contract can be called upon to take delivery. WELCOME TO ORBEX Fixed Exchange Rate Official rate set by monetary authorities. WELCOME TO ORBEX Floating Exchange Rate An exchange rate where the value is determined by market forces.
WELCOME TO ORBEX Floor An exchanges trading area. May also be used as the lower limit of an option or an interest rate. WELCOME TO ORBEX FOMC Abbreviation for Federal Open Market Committee. WELCOME TO ORBEX Forex FX and Forex refer to Foreign Exchange, the exchange of one currency for another.
WELCOME TO ORBEX Forward Contract A cash market transaction in which a seller agrees to deliver a specific cash commodity to a buyer at some point in the future.
WELCOME TO ORBEX Forward Deal A transaction consisting of a purchase or sale often of foreign currency with settlement to occur at a specified future date. The International Monetary Fund IMF is an organization of countries, working to encourage global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
It oversees the global financial systems of its member countries by monitoring policies that have an impact on exchange rates and the balance of payments. It also offers highly leveraged loans to underdeveloped countries. The IMF was formed in July during the UN Monetary and Financial Conference when the delegates agreed on a framework for international economic cooperation.
This took place after the infamous Great Depression when countries attempted to save their economies by raising barriers to foreign trade and devaluing their own currencies. As these measures proved to be self-defeating, it became necessary to form an institution that would ensure exchange rate stability and encourage member countries to eliminate trade restrictions.
The IMF came into formal existence after its first 29 member countries signed the Articles of Agreement. From then on, the number of IMF member countries have more than quadrupled to countries today. This strength of policy and cooperation gives strength to the Forex Market and the ability to consistently trade it.
The inverted head and shoulders represents the end of a Down Trend and entry into a new Up Trend. Learn more about this strong Bullish Chart Pattern in The Chart Pattern Module of the LIFT Investor Trader Program. Strong Technical Analysis Trading Methods, such as the LIFT Trading Method, used exclusively by members of the LIFT Investor Trader Program, use a combination of high probability responsive indicators that, through their movement and analysis of the upwards and downwards pressure of price movement, give the trader an insight of POTENTIAL trade entry positions.
This allows us to project strength and weakness forward into the next trading period to see possible areas where price may move from and to. This can lead to stronger trade entry and exit points.
rapid unpredictable volatile movements in price. As professional Investors and Traders, we always suggest being educated in how and why a Trading Method works and to be coached by traders who have successfully followed the Method. The use of borrowed capital, such as margin, to increase the potential gains or losses of a trade. Most retail brokers will allow Traders to leverage the value of their account by — allowing them to access profits made in the smaller movements of the market. Included in this is an agreement that the Trader must keep an additional amount in their trading Account — not in trades to cover this margin.
This is called a Margin Requirement. More about Financial Control and Financial Responsibility is covered in the LIFT Investor Trader Program.
A currency pair is said to have high level of liquidity when it is easily bought or sold and there is a significant amount of trading activity for that pair. A currency pair can have low liquidity when there is a rapidly moving price, or when there is low activity lower volume of trades. On the daily chart, each candle represents the price movement from midnight to midnight and on the 1 hour candle, each candle represents the price movement over one full hour X.
Gwenerally; depending on the settings of your charts, the colour of the Long Candle will either be Green or White. Long term trading, also known as Position Trading, refers to a trading style in which the trader will enter a trade and hold on to a position for an extended period of time.
Most long term trading Traders rely heavily on fundamental analysis — where they analyse the socio economic factors of a price movement in a currency pair. This type of trader is mostly interested with the long term future outlook of the market they are trading. They are not as concerned with the intraday ups and downs and instead focus on the fundamental factors driving the longer term price trend. Because of their longer term outlook, long-term traders will normally look at daily, weekly and even monthly charts for their analysis.
As a result, Traders hope to make profit of a large pool of funds, often letting the market move significantly against them before they make any profit. The LIFT Investor Trader Program focuses on intra day trading, where the risk can be managed more strategically and short term, consistent profits with a smaller investment can multiply your trading funds quicker by taking advantage of smaller, more predictable trades and compounding profits.
Since the graph has been produced as a histogram, which most traders use as a replacement for a volume indicator in forex trading. The moving average as expressed by the MACD is essentially the average of a price over 2 set amounts of time blue line is 12 candles and red line is 26 candles.
The MACD gives a quick and easy view of the strength of both the short term and long term average price. The direction of the blue line and whether it is above or below the red line gives traders the most current bullish or bearish pressure of the average price.
The blue line crossing up through the red line is often used as a buying signal and the blue line crossing down through the red line is often used as a selling signal. More detailed strategies, specifically for success trading forex using MACD are taught in the LIFT Investor Trader Program. When an investors free equity falls below the Margin Requirement for the Broker to allow the Trader to hold a Position, resulting in a demand to reduce the position or deposit more funds.
The amount of equity required by a customer as a percentage of the market value of the position held. This is a term of the Broker to allow the Trader to Margin Loan and use Leverage on their account. A person or broker who normally quotes both the BUY and SELL prices. In other words, their trades are executed and covered internally, without appearing on the Open Market. Because of the potential for such brokers to artificially enter and exit traders from trades and potentially tamper with traders funds, in Australia, any organisation caught acting as a Market Makers is de-registered and may face criminal charges.
Be careful when choosing your broker — an overseas broker is not necessarily subject to this control and you may have no recourse if this should happen to you. For this reason, we highly recommend that Australian Traders use only ASIC registered brokers to execute trades. Momentum, in technical analysis, refers to the overall rate of change and strength of that movement in the price of an asset.
As such, extremely high or extremely low values for momentum are looked at as signs that an asset is either overbought or oversold. If momentum reaches an extreme high, the asset is overbought; if momentum reaches an extreme low, the asset is oversold. Buy signals are generated when momentum reaches an extreme low and then rapidly advances back upward across the zero line. Conversely, sell signals are generated when momentum reaches an extreme high and then rapidly falls below the zero line.
This allows LIFT Method Traders to find stronger entry points where price is less likely to reverse against your position and more likely to produce profit.
Monetary policy refers to the process by which a monetary authority controls the money supply in the economy. Usually it is the central bank that is responsible, adjusting the amount of money available in order to generate economic growth, stabilize prices and exchange rates, and promote employment. Usually central banks do this by buying or selling bonds in exchange for money to be deposited in the central bank.
In this process, the liquidity in the economy is increased. Another way to control money supply is to limit the amount of assets that banks must leave with the central bank as reserves. The central bank allows commercial banks to borrow reserves in exchange for collateral, making liquidity available for them in times of emergencies.
When the central bank raises interest rates, the money supply contracts because there is more money used to pay for borrowing costs and less money to go around the economy. The average middle point of price of a commodity over a given time. Calculated by adding the price at a regular interval over a time trame and dividing by the number of points. a 5 Moving average on a 1 hour chart is calculated by adding the close price of each 1 hour candle for 5 candles and dividing by 5.
The resulting number is the MA5 for that period. A moving average is one of the basic common tools of technical analysis. The two most popular types are the simple moving average and the exponential moving average. The simple moving average is calculated by averaging market prices over a given period.
For example, the 20 moving average would average price levels for the last 20 candles on the chart. On the next candle, the SMA would include that candle in the Moving Average and drop the first candle. The lower the value of the SMA, the more the line of the indicator moves. Traders use several Moving Averages overlaid to show the difference in current price average, compared with a larger timeframe.
This can indicate current upwards or downwards pressure, with line crosses as potential trade entry points. The LIFT Trading Method can be modified to use specific value Moving Averages to add value to the strength of a Trade Entry or Trade Exit Point.
The exponential moving average is more complicated, being calculated by taking the difference between the current price and the previous EMA. An oscillator is a technical analysis tool used by technical analysts to determine whether a commodity has the potential to move up in price or down in price. Based upon variables specified by the Trader, the line of the oscillator will plot higher or lower within these two extremes. The Trader can use this information, in combination with other indicators to look for Trade Entry or Trade Exit Points.
This is a defined area in a specific technical indicator that demonstrates the potential of price hitting a high point in the market. Once the indicator plots in the Overbought area, the Trader can expect Bullish pressure of price movement to ease.
The balance of pressure into Bearish is generally indicated when the indicator subsequently starts plotting below this Overbought area.
Two of the most common indicators of overbought or oversold conditions are the relative strength index RSI , range expansion index REI and the stochastic indicators…. This is a defined area in a specific technical indicator that demonstrates the potential of price hitting a low point in the market. Once the indicator plots in the Oversold area, the Trader can expect Bearish pressure of price movement to ease. The balance of pressure into Bullish is generally indicated when the indicator subsequently starts plotting above this Oversold area.
A pip is the last decimal place of a quotation. Pivot points are common tools used in technical analysis. A pivot point represents the point at which the overall trend in price changes from Support to Resistance or vice versa. The positions of Pivot Points are determined using a recognized formula that takes into account the Opening, Closing, High and Low prices of the currency in the previous trading period.
Intra Day Traders including those who use the LIFT Trading Method use daily Pivot Points which are calculated over the previous trading day some use the midnight to midnight GMT Greenwich Mean time and others use their strongest local market US Traders may use the New York Midnight to Midnight timeframe.
All Profitable Traders look to capitalise on the start of new price trends as much as possible in order to maximise their profit. Price reversing at a Pivot Point combined with other strong momentum indicators can trigger a trade entry point.
In the contra, when in a trade, price approaching an opposite Pivot Point can indicate the end of a price run and the trade exit point. The LIFT Trading Method uses these points in combination with other signals to identify potential stronger trade entry and exit zones.
A position can be either flat or square no exposure , long more currency bought than sold , or short more currency sold than bought. If you are looking to build a trading fund and use compounding to maximise profit, this trading style may not be recommended. It is commonly recognised that the most profitable traders let their profits run and cut their losses short, but this is often the opposite of what can occur in this trading style. We suggest a balanced portfolio of short term profit generating trades and long term, capital growth trades, especially once you have developed the experience and financial position to make the most of these types of trades.
The study of price action is often promoted as a responsive way to make quick money, but the LIFT Trading Method uses the added strength of recognised momentum, moving average and support and resistance indicators to manage risk, improve trade probability and profitability than just price action allows. As a highly regulated investment instrument, forex is revered amongst professional traders for its transparency. Psychology in Forex is almost as important as the money that traders invest in the market.
Without the proper mind-set, trading can be intimidating and confusing. Thought is reality here. Emotions have to be identified, structures built to manage them and concerted effort made to control them in order to become a consistently successful, profitable Forex trader.
As human beings, it is easy for traders to say that they can control their impulses, but when potential profit is staring them in the face, it can be hard to deny the strong desire for a better life. To guarantee a future in the Forex market, traders must be educated and supported to learn how to recognise and control their impulses, remain motivated and persistent even when a potential loss stares them in the face, and develop a self-awareness that will intuitively point them in the direction to success.
The LIFT Investor Trader Program dedicates a large percentage of our education, coaching and support structures to help traders develop the mindset of a successful, profitable trader. The program includes material, videos, events by thought and mindset leaders, developed to help you create long term, consistent profit as a LIFT Investor Trader. Relative Strength Index, sometimes shortened to RSI, is a price oscillator used in technical analysis to show changes in the strength of price movement.
The Relative Strength Index is considered a popular tool and is a relatively easy one to interpret. This price following oscillator is shown as a basic graph which ranges from zero at the bottom to one hundred at the top.
By far one of the most popular methods of analysing the Relative Strength Index is to look for an area on the graph that shows a divergence away from the current trend, in particular seeking an area of divergence in which the currency price seems to be aiming to create a new high, but where the Relative Strength Index has as yet failed to reach a level on par with its previous price high.
This sort of divergence can often be considered a good indication of an upcoming price reversal to the current trend. An estimated upper price level at which price is likely to stall and Bullish Traders are more likely to sell out of their position or Bearish Traders are likely to enter a Short Trade.
For example, a retracement in an uptrend is a brief period of selling before the uptrend continues, also known as a dip. This is not to be confused with a Retracement which is a short term period of sideways or opposite price movement during a Price Trend.
If the price has been in an Up Trend and price hits a Peak where there is no continuing Bullish pressure, that commodity can turn into a period of Bearish Reversal. If the price has been in a Down Trend and price hits a Trough where there is no continuing Bearish pressure, that commodity can turn into a period of Bullish Reversal.
The ratio is computed by dividing the profit that a trade is expected to yield by the loss that the trade may incur. The LIFT Trading Method includes a strong managed Risk Reward requirement that limits potential losses of valid trades to no more than 5. The rising wedge is formed by drawing two ascending trendlines, one representing high prices and one representing low prices for a currency.
The slope of the trendline representing the highs is lower than the slope of the trendline representing the lows, indicating that low prices are increasing more rapidly than high prices are. Because the trendlines that describe the rising wedge are ascending, rising wedges are occasionally falsely thought of as continuation patterns for an overall upward trend.
The seeming upward trend in asset prices invites bullish traders to begin investing in the asset, while bearish traders continue selling off their holdings and maintaining the strong upper line of resistance.
This is reflected in the smaller slope of the upper trendline in the pattern. Since prices refuse to break the upper level of resistance, buying pressure gradually decreases, the lower level of support is broken, and the asset usually enters a strong downward trend. Thus a rising wedge should be taken as a strong sell signal and an indication that a market reversal is most likely.
In the forex market, this normally means that traders are more willing to invest in currencies that have higher interest rates i. Australian dollar, British pound , equities and commodities. In the forex market, currencies who have relatively higher interest rates are regarded as higher-yielding currencies.
Therefore, in times of risk aversion, traders tend to exit their positions in these currencies. dollar or the Japanese yen. These currencies are regarded to be safer because of the size of their capital markets and liquidity. Professional Traders will always be aware of potential losses and make strategic investment decisions to balance their risk and accept or review trade opportunities.
The LIFT Investor Trader Program includes Handbooks, Videos, Workshop Modules, Exercises as well as group and individual conversations to help educate and coach Members to manage risk in their trading and moving into developing their multiple investment incomes. Relative Strength Index, or RSI, is an oscillator used by some Traders to determine whether a commodity is Oversold or Overbought. The indicator compares the Relative Strength of movement in price over a time frame to identify if the commodity has the potential to ease or reverse.
You can overlay multiple RSI lines with different values on a chart to determine whether there is more pressure in the shorter term in one direction compared with a longer timeframe. The LIFT Trading Method primarily helps LIFT Traders find Trade Entry Points at the start of these price runs and a Trade Exit just before the price starts to Retrace or Reverse. Depending on your chart settings, the colour of the real body of the candle would generally either be red or black.
A short squeeze happens when there is excess demand and a lack of supply for a particular financial security.
Traders holding short positions try to cover their positions i. close their positions , which can only be done by buying. With more and more Traders looking to buy, we normally see an extended rally as prices go higher and higher. In the forex market, a short squeeze normally happens after a strong sharp move and we see a reversal. At a certain point, some Traders may feel that the euro is undervalued, making it a good investment. As more and more buyers enter the market, Traders holding short euro positions decide it would be best to close out their positions or potentially suffer losses.
This leads to more and more traders buying the euro, and all the short positions getting squeezed out of the market. The difference between the requested price of a trade or pending order and the price and the price at which the order was executed or filled. This generally occurs in a highly volatile market where the time taken to fill the trade by applying a contra position from another trader is too long and too far away from the original requested price.
More likely to occur when the Trader is trading a large contract size e. In the financial world, speculating can be described as the act of making an investment in a financial asset, looking to make a profit when the asset appreciates or depreciates, when short selling over time. In the forex markets, retail Traders are speculating when they try to make profit when one currency appreciates versus another currency. An order sent to a broker which becomes a market order when the market reaches the specific price stated.
To be a responsible, professional investor who accepts risk and the responsible for their results, we recommend that traders physically click to enter and click to exit trades. Particularly important when looking for potential Long Trade Entry Points or Short Trade Exit Points. Defined peaks and troughs in price which are represented by a 3 or 4 candle pattern where the middle candle or 2 candles indicate a distinct point at which price has tested a new high or low and the next candle reverses at that point.
We join Lower Swing Highs in a Down Trending Market to identify a Tom DeMark Down Trend Resistance Trend Line. The LIFT Investor Trader Program covers this in greater detail, also showing how we use these Trend Lines to identify potential Short Trade Entry Zones.
We join Higher Swing Lows in an Up Trending market to identify a Tom DeMark Up Trend Support Trend Line. The LIFT Investor Trader Program covers this in greater detail, also showing how we use these Trend Lines to identify potential Long Trade Entry Zones.
In fact, Swing Trading sits right in the middle between Intra Day Trading and Trend Position Trading in terms of the length of time invested in a position.
These Traders stick around just long enough to see how the short term trends form before deciding to stay and see a trend through or go on to other positions.
An order used by some currency traders to automatically close their position once a certain profit has been made. Although it halts any further advance in profit, it guarantees a specific profit after a level has been hit.
The LIFT Investor Trader Program covers in detail advanced, profit maximising and loss minimising exit strategies that increase your trading profitability. In its truest form, technical analysis disregards any fundamental information on an asset than cannot be found on its price chart. Instead, a set of tools known as technical indicators are overlaid onto a chart to identify recognisable price patterns. A technical analyst believes that those price patterns will tend to repeat themselves in the future.
The LIFT Investor Trader Program combines the strongest aspects of Technical Analysis in Forex Trading with an awareness of Fundamental Analysis influences to gain a clearer insight into the upcoming movements of the market, and the Sentiment of the Larger Traders.
A bearish reversalJapanese candlestick pattern consisting of three consecutive black bodies where each candle closes near below the previous low, and opens within the range of the body of the previous candle. Each should open within the range of the previous body and the close should be near the high of the candle. There are many different styles of trading that may be used in Foreign Exchange trading. As a new trader, it is recommended that you consider using an established proven profitable trading method whilst you develop your own.
There are several factors to consider when choosing a trading method, including whether you intend to trade intra-day, swing between one price trend and another , or position longer term trades. The LIFT Trading Method, developed by The Trading Coach International is specifically designed for Traders who prefer to trade intra-day, with the peace of mind that they are not at the whims of market forces when they are not actively looking at the market.
The LIFT Method is a very structured trading method with very clear signals that indicate the strongest potential trade entry and exit in both Bullish and Bearish markets. All members of the LIFT Investor Trader Program use the same trading method, providing consistent high probability profitable trades that members can discuss and peer mentor with clarity.
Your stop will then stay at 1. Position Traders often makes use of trailing stops to lock in profits while minimizing their risk. An order that moves as the price progresses in the direction that you are trading. If the trade moves back towards the order, the order will stay stationary until hit. An order that sits below the current market price and when it opens a new position with the intention of benefitting from an upward price movement.
An order that sits above the current market price and when it opens a new position with the intention of benefitting from a downward price movement. Although, most traders will tell you that the stronger, more profitable trades are generally with the trend.
Trend channels are very useful to help Traders correctly determine where their trade entry or exit point is strongest. Although regular trend lines are able to demonstrate the direction that the price is moving, trend channels allow you to clearly see where the currency is forming equal, increasing or decreasing price range to identify potential trade price projections.
We do this by joining swing highs with higher previous swing highs and swing lows with lower previous swing lows with straight lines over a given timeframe. When these Swing Highs and Swing Lows are moving upwards to the right, we call this an Up Trend Channel.
When they are moving downwards to the right, we call this a Down Trend Channel. The vertical distance between the lines represents the number of pips in the range of the channel.
When in a trade, it is useful to note the opposite line of the channel, as this may be the point where price may reverse against your position. Trendlines have a variety of uses in technical analysis, most fundamentally for their ability to predict levels of price support and resistance. Trendlines are also used as components in a variety of specialized technical analysis charts, including trend channels and patterns.
A less common Bullish reversal pattern that consists of three consecutive or nearby candles with equal lows of price. Often indicates the end of a bearish trend and possible commencement of a new strong bullish trend. It is generally recognised that the longer a particular trend takes to fully develop, the stronger the significant change in price once breakout occurs. A less common bearish reversal pattern that consists of three consecutive or nearby candles with equal highs of price.
Often indicates the end of a bullish trend and possible commencement of a new strong bearish trend. As with a triple bottom, it is generally recognised that the longer a particular trend takes to fully develop, the stronger the significant change in price once breakout occurs.
Two or more candlesticks with matching lows in price. Usually close together — stronger if they are side by side. Often indicates the end of a bearish trend when touching a strong point of support with increasing Bullish Pressure demonstrated in your indicators.
Often indicates the end of a bullish trend when touching a strong point of resistance with increasing Bearish Pressure demonstrated in your indicators.
The A to Z of Forex Trading With the rapidly changing face of Trading, new terminology is created daily. Ascending Trend Channel. A basic chart pattern used in technical analysis to predict overall changes in trend. Price moving within an ascending trend channel indicates a continuation in the upward trend.
Ascending Trend Line. The LIFT Trading Method uses these Trend Lines to identify strong Trading Zones. Ascending Triangle.
Ask Price. An item that has exchange value. Asset Purchases. At Best. The instruction given to a dealer to buy or sell at the best possible rate. At Or Better. The instruction given to a dealer to deal at a specific rate or better. Balance Of Trade. A leading economic strength indicator used by Fundamental Traders. Bar Chart. Also known as the Western Bar Chart A type of chart used by some traders in trading forex. Base Currency. The first currency in a currency pair on the left. Always set to a default value of 1.
Base Rate. Top quality borrowers will pay a small amount over base. Basis Point. Equivalent to one percent of one percent of the currency.
Bear Bear Trader. A Trader who believes that prices will decline go down. Bear Market. A market in which prices are noticeably falling. Bearish Candlestick Patterns. There are more than 12 defined Bearish Reversal Candlestick Patterns.
Bearish Engulfing Pattern. The market must currently be in clearly defined price uptrend. The first candle is bullish. The second candle is bearish. Bid Price. The price at which The Market will BUY a currency. This is the price that The Trader may SELL the base currency. This is the left hand side figure in price window. To enter a Short Trade, the Trader clicks the SELL BID Button. The difference between the BID and ASK price. Some Brokers also charge a monthly fee.
Bull Bull Trader. A person who believes that an asset will rise in value. Bull Market. A Market characterized by rising prices. Bullish Candlestick Patterns. There are more than 14 recognised Bullish Reversal Candlestick Patterns. Bullish Engulfing Pattern. The market must currently be in clearly defined price downtrend. The first candle is bearish. The second candle is bullish. The Icon to Click if you want to Enter a Long Trade or Exit a Short Trade.
Buy Stop. Buying at a specified price above the market. Candlestick Chart. Carry Trade. Cash Market. The market on which a futures or an options contract is based. The forex market is also known as the Spot Cash Market.
Contract For Difference. Conversion Rate. A rate used to convert one currency into the value of another currency. Cross Currency Pair. The coupling of 2 currencies in which one currency is traded against the other. Also known as a Currency Pair. Any form of money a government endorses and is used for trade. Currency Code. GBP Great British Pound , USD United States Dollar , EUR Euro , AUD Australian Dollar. Currency Manipulation. This can be done by fixing the exchange rate or deliberately increasing or decreasing its value.
In the long run, this could eventually result to a global trade imbalance. Currency Pair. The pairs are traded in set formats, as specified by the International Monetary Fund. The most traded currency pairs in the world are called The Majors. Currency Risk. The potential negative effect involved in exchange rates. Daily Chart. Day Trader. Those Traders who execute multiple trades within a day are known as Intra Day Traders. Day Trading. This candlestick looks like a cross, inverted cross or plus sign.
Evening Doji Star. Evening Star. A physical location where commodities and futures are traded. Exchange Rate. The current rate at which a Trader can Buy or Sell a currency in a Trade. These rates can change every microsecond. In all transactions, this means having a BUY Price which is LOWER than Your SELL Price.
Exchange Rate Risk. The potential loss that could be incurred from an adverse movement in exchange rates. Also Known as Market Exhaustion. Fibonacci Channel. Fibonacci Extension. Fibonacci Retracement. Markets move in rhythms or waves. This occurs in either bull market or bear market conditions. Fibonacci Studies. Fibonacci Time Projection.
Fibonacci Time Zones. Fibonacci Time Zones are a series of vertical lines. First In First Out. The rule in which positions are closed in the order they were originally opened.
Also known as FIFO. Foreign Currency Effects. The loss or gain on foreign investments due to a rising or falling domestic currency. Foreign Exchange. Forex Spread. The difference between the Bid and the Ask Price of the currency pair. Forex Swap. This makes forex swaps very useful for multinational and exporting companies.
Fundamental Analysis. Traders can either use fundamental or technical analysis exclusively, or a blend of the two. Going Long. Going Short. How Does This Work?? The resulting candlestick looks like a square lollipop with a long stick.
For more information, book in to speak with one of our experienced Trading Coaches. Hanging Man. Harami Cross. Harami crosses are reversal signals and are formed when a long candle is followed by a doji. Interest Rate Risk. The potential for losses arising from changes in interest rates.
An increase in the value of currency due to a favourable market reaction or an increase in the value of a general asset. The act of taking two equal and opposite positions on the same currency pair at the same time to benefit from small price variations between related markets. Because these variations are very small, this is generally only beneficial if you have a large amount of money in the trade. Some traders consider price breaching either line forming the channel a strong signal either to enter a buy or sell position.
A break through the upper trendline to buy, whilst a break through the lower trendline to sell. The LIFT Trading Method will generate an earlier trade entry opportunity — maximising your profit from each trade. A Bullish pattern created by connecting two or more successively higher swing lows. This creates an upward sloping trend line that acts as Support in a Rising Market. A Bullish Chart Pattern that indicates a strong upper resistance to price movement with increasingly higher support swing lows.
The theory behind this chart pattern is that; with the strong upper resistance at a particular price point a double zero number — e.
The price at which the market sells a currency. The trader can BUY the base currency at this price. This is the right hand side figure in price window. An unconventional measure used by a central bank to stimulate an economy.
Most recent examples are the purchasing of government bonds to lower interest rates, inject capital into the economy or both. Measures implemented by a government to reduce spending in order to lower their deficit.
Usually involve wage cuts and tax increases — a political attempt to reassure creditors that they will be able to pay back outstanding loans. The currency of Australia. Currency code AUD The Australian dollar is one of the top 6 traded currencies.
It has four major points- the high and low prices which form the vertical bar, the opening price is marked as a small horizontal line on the left side of the bar, and the closing price is marked as a horizontal line on the right.
As such, this indicates in the price how many of the other currency in the pair is 1 of the base currency worth. A term used in the UK and Australia for the rate used by the banks to calculate the Interest rate to borrowers. These include the Bearish Engulfing Pattern, the Harami, Dark Cloud Cover, the Evening Star and the Shooting Star. Bearish Reversal Candlestick Patterns should form in an uptrend and will require Bearish Confirmation as reinforcement of the pattern. A Japanese Candlestick Pattern which identifies the potential of a price trend changing from Bullish to Bearish.
An even stronger signal occurs when the bearish candle engulfs the bodies of two or three previous candles. if the GBP USD Bid Price is 1. An agent or company who executes orders to buy and sell currencies and related instruments for their clients. Brokers are agents working on commission and not principals or agents acting on their own account. In the foreign exchange market, brokers tend to act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties.
There are four or five Global Brokers operating through subsidiaries, affiliates, and partners in many countries. These include the Bullish Engulfing, the Piercing Pattern, the Harami, the Hammer, the Inverted Hammer, the Morning Star, the Bullish Railway Tracks and the Abandoned Baby.
To use Bullish Reversal Candlestick Patterns successfully, look for the pattern in a downtrend and use Bullish Confirmation as reinforcement of the pattern.
A Japanese Candlestick Pattern which identifies the potential of a price trend changing from Bearish to Bullish. An even stronger signal occurs when the bullish candle engulfs the bodies of two or three previous candles.
Also known as a Japanese Candlestick Chart, as this is where this style of charting method originated. More information about Candlestick Charts that specifically relate to forex trading can be found in the Candlestick Module of The LIFT Investor Trader Program. Placing an order to take an advantage of position swap rates and also the positive movement in the currency pair.
Typically used by traders to take leveraged short term investment positions in highly volatile markets. Allows Traders to take short term positions with other Traders as to whether the price of an commodity will rise or fall.
By doing this, your profits will generate a higher level of profit for you and; therefore, leverage your results. All successful Traders and Investors consistently reinvest a percentage of their profits because they know that this allows them to produce greater results, by taking the same effort.
The LIFT Investor Trader Program teaches members how to use this and many other strategies to increase the rewards from your actions. An agreement of trade between traders — each Contract executed has a BUY and SELL price indicated. Traders who believe the currency pair price will RISE Bullish Trade , set their BUY Price on Entry into the Contract and their Sell Price on Exit to close the Contract. Traders who believe the price will FALL Bearish Trade set their SELL Price on Entry into the Contract and their Buy Price on Exit to close the Contract.
This is used in actual currency transfers when one currency asset from one country e. British Pound is converted into another e. Australian Dollar. This practice is illegal in the United States and frowned upon internationally, as creates an artificial distortion in currency prices.
The governments of some countries are known to use this method, making their currency more difficult to trade consistently based upon technical analysis or fundamental analysis. These pairs are how the Spot Forex Market is traded by displaying and pricing one currency against another to be used to make a trade. Currency pairs are normally shown as two abbreviated currency names, separated by a slash or side by side. These are the BASE currency on the left and a QUOTE currency or COUNTER currency on the right hand side.
They include the currencies euro, US dollar, British Pound Sterling, Swiss Franc, Japanese Yen, and Australian Dollar. The Majors make up the largest share of the foreign exchange market and are considered by The Trading Coach to be the Strongest Currency Pairs to trade, because of their strong fundamental value, their trade volume and that they are traded by the large banks and investment funds. This day is most commonly the midnight to midnight period of the country in which the trader is based.
Some charts can show the daily candle as the midnight to midnight period GMT Greenwich Mean Time or New Your Time ET.
Always be aware which your broker shows you on your charts — it may impact various tools, especially Pivot Points. The LIFT Investor Trader Program teaches intra day trading techniques as a way to mitigate risk and ensure that the trader is always aware of their financial position and has the ability to enter and exit trades while minimising risk.
Day trading on the foreign exchange market is recognised as one of the most active forms of trading. The ability to enter and exit trades in a short time frame to take advantage of the smaller fluctuations in price is not for every trader.
Should decide that day trading is for you, the LIFT Investor Trader Program can teach you our proprietary LIFT trading method that is used by all of our active LIFT Traders to trade Intra Day. Please be aware that here are many different styles and variations of day trading with the currency market outside this program. The lack of a real body with equal open and close prices indicates indecision between buyers and sellers — with a potential shift in the current buying or selling pressure.
A three candle bearish reversal pattern similar to the Evening Star. The next candle opens higher, trades in a small range, then closes at the same price as its open Doji.
The next candle closes below the midpoint of the body of the first candle. A bearish reversal pattern that has the potential to take an upwards price movement into a bearish retracement or trend reversal.
The LIFT Trading Method uses candlestick chart patterns as added confirmation of Price Trend Retracements or Reversals. Forex Trading Successfully is about making PROFIT when transacting into and out of a currency contract. A situation in which a majority of participants trading in the same asset are either long or short, leaving few investors to take the other side of the transaction when participants wish to close their positions. Leonardo Fibonacci de Pisa was a 12 th century mathematician who explained the Fibonacci sequence — a mathematical progression of numbers based upon adding the current number in the series with the previous to find the next.
The sequence starts off 0, 1, 1, 2, 3, 5, 8, 13, 21, 34 and continues. As the values increase, the difference between each number in the sequence calculates at Numbers in the sequence are a universal constant and appear consistently in nature, from the dimensions of the nautilus shell to the dimensions of the human face.
There is an inherent psychology to the numbers which affects according to proponents of Fibonacci the way traders enter and exit trades, based upon price movement and price cycling. Fibonacci can be utilised in many different strategies to varying benefits — More on this topic is covered in this guide and in the LIFT Investor Trader Program.
We have found that an uncomplicated approach to Fibonacci use often produces the most consistent result…. Human behaviour is not only reflected in chart patterns as large swings, small swings or trend formations.
Human behaviour is also expressed in peak-valley formation. Fibonacci channels make use of peak and valley formations in the market and lead to conclusions on how to safely forecast major changes in trend directions. The secret of Fibonacci channels is to identify the correct valleys and peaks to work with. Support and resistance lines can be drawn weeks and months into the future, once the appropriate tops and bottoms in the market have been detected. Only major tops and bottoms should be considered for a base line of a Channel with one or more prominent side swings.
The widest swing within a time frame of the base line is used for a trigger line. Fibonacci channels are a method of predicting levels of support and resistance for a given market. Fibonacci channels are variants of the more-popular Fibonacci retracement strategy, with retracement lines running diagonally rather than horizontally.
To generate Fibonacci channels for a chart, a trader first creates a base channel by drawing parallel lines through a price top and price bottom. The slope of the Fibonacci channel is determined by connecting either two bottoms or two tops, depending on the overall trend: in a downward trend two bottoms are connected, while in an upward trend the slope is generated from two tops. Once the base channel is drawn, additional parallel lines are drawn above or below it, with the distance between lines determined by Fibonacci numbers: 0.
These Fibonacci channels determine the support and resistance levels for the market within the overall trend. When used, Fibonacci channels are often drawn along with Fibonacci retracement charts. The points where the diagonal lines and horizontal lines cross are considered to be exceptionally strong levels of support or resistance for the market. The study of Fibonacci can be all consuming and it can often times be easy to get caught up in one aspect of the study. Fibonacci extensions are, as the name indicates, not a separate Fibonacci Studies in their own right, but rather a way to increase the utility of Fibonacci retracements over time.
Fibonacci extensions are created by first generating a Fibonacci retracement chart for a market. Once a basic Fibonacci retracement is created, a Fibonacci extension can be created by extending the vertical and drawing additional horizontal lines through it at higher or lower price levels, corresponding to greater Fibonacci-significant percentages: Once a Fibonacci level is met and broken through, that level becomes support, with the following Fibonacci level becoming resistance.
Chapter -3, Forex Terms like CFD, Contract Size, Lot Size & different types of CFD trading accounts for online trading & investing in Forex, Stocks, Crypto & Forex Trading A-Z™ - With LIVE Examples of Forex Trading. In this course, I will show you how you can take advantage of currency movements to make profits. We will talk in detail about 24/11/ · First of all, Trading is a very lucrative online business and anyone can do it as long as you have the right knowledge of how to go about it. LinkedIn Tolu Olatunji Forex. FX and Forex refer to Foreign Exchange, the exchange of one currency for another. Foreign Exchange is traded over the counter on an inter-bank system, a network of several Understand what leverage is and how it affects your trading; Know Forex terminology like Ask, Bid, Spread, Equity, etc. Tell the difference between a Pip and a Point; Use all types of orders: By the end of this Forex trading education, your knowledge in trading will be enough to start trading on the live market. Of course, you should always practice first on a virtual ... read more
This indicates a potential point of Price Lower Support in the market. Risk warning: Trading in financial instruments carries a high level of risk to your capital with the possibility of losing more than your initial investment. A position in which the base currency in a currency pair is sold. WELCOME TO ORBEX Floating Exchange Rate An exchange rate where the value is determined by market forces. Also known as nearest month. About this course Learn everything you need to know to start Trading on the Forex Market In this course, I will show you how you can take advantage of currency movements to make profits.A technical analysis term used to describe a chart on which the price of a security has made two approximately equal bottoms over a period of time. Trades can be entered or exited at the price change rather than after the fact. WELCOME TO ORBEX Advisor A person or organization employed by an individual or mutual fund to manage assets or provide investment advice. All other URLs containing 'tradimo' do not belong to Tradimo and might be fraudulent websites, a to z of forex trading. A notification, often by email or pager, of a market event such as a stock reaching a target price. Forex Trading Glossary Start Trading Trading involves a high level of risk. Margin Call.