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After strong upward movement on the AUD/JPY pair, the price is currently correcting to the downside. We are expecting the price to reach approximately the 91.32 price level, where we have a 23.6% Fibonacci retracement level, as well as an inside support point.


After strong downward movement on the GBP/CHF pair, the price found support, bounced and is currently correcting to the upside. We are expecting the price to reach approximately the 1.0513 price level, where we have a 38.2% Fibonacci retracement level, as well as the 50 Moving Average.


After strong downward movement on the BROADCOM stock, the price found support, bounced and is currently correcting to the upside. We are expecting the price to reach approximately the 322.10 price level, where we have a 23.6% Fibonacci retracement level, as well as the 50 Moving Average.
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Forex Trading is the abbreviation of the words Foreign Exchange. The Forex Market is made up of a global network of banks, spread across the five Major Financial centres (London, Frankfurt, Tokyo, New York and Sydney). Due to the different time zones, they are not all opened at the same time, but the Forex Market is open 24 hours a day, 5 days a week, where the trader can buy or sell currencies and try to profit from the exchange rate fluctuations. There are 95 currencies in total, 7 Major, 21 Minor and 67 Exotic.
The 7 major currency pairs that cover 85% of the volume of global trade are the main currencies that trade against the US Dollar:
The minor currency pairs refer to exchange rates between the major currencies that do not include the US Dollar. Some of the most popular are:
The Exotic currency pairs are traded less often than the others, they have higher spreads, and they belong to the Scandinavian countries and countries with emerging economies, like:
Let’s say that a trader wants to trade the EUR/USD pair. In trading you have the option to buy or sell the selected currency pair. If you want to buy the EUR/USD, this means that you are buying the first currency (EUR) which is called the Base currency and selling the second currency (USD) which is called the Quote currency (USD).
If you buy the EUR/USD at 1.1000 exchange rate and the price fluctuates to 1.1050, this means that the trader won 50 pips. If the price fluctuates to 1.0950, this means that the trader lost 50 pips.
On the other hand, if the trader believes that the price of the EUR/USD will decline, then you can sell the EUR/USD, therefore you sell the EUR and you buy the USD.
The financial instruments that are offered by online brokers to trade in the Forex Market are known as Contracts of Difference (CFD).
You can choose your broker here.
A stop-loss is a function offered by brokers to limit losses when the market moves in a contrary direction to your position. You can implement it by setting a specified number of pips away from your entry price.
A take-profit is a function offered by brokers to lock your profits when the market moves in the direction of your position and has reached your target.
The pending orders are:
Sell Limit: Sell on a higher price
Sell Stop: Sell on a lower price
Buy Limit: Buy on a lower price
Buy Stop: Buy on a higher price
Pip is an acronym for Percentage In Points. A pip is equal to the fourth decimal point in the price (i.e. EUR/USD 1.1000 to 1.1050 is 50 pips profit), except for the currency pairs with the Japanese Yen (JPY), where the Pip is calculated from the second decimal point (i.e. EUR/JPY 161.50 to 161.70 is 20 pips profit).
The acronym CFD stands for Contracts of Difference. CFDs value tracks the rate of exchange and allows you to trade currencies without having to make mathematical conversions. CFDs are derivative products, which means that they derive their value from an underlying asset.
CFDs are contractual agreements between the buyers and sellers and their broker, to settle the difference between the buying and selling price of the asset, without owning the asset.
Trading CFDs is very risky due to their use of leverage.
Leverage gives the ability to trade with higher amounts in the market with a relatively small amount of money. For example, a trader that has €1000 in his account and a Forex broker offers him 500:1 leverage, means that the trader can trade up to €500,000 (1000×500).
Leveraged products are highly risk instruments and although they can help the trader achieve bigger profits, they can also make the account to get liquidated very quickly.
Liquidity refers to an asset’s ability to be sold or bought and converted into cash without significant loss of value.
Instruments are quoted with a price to buy and a price to sell. The BID price is the lower price, and this is the selling price. The ASK price is the higher price and this is the buying price. The difference in these prices is the spread.
Spread is the price difference between the sell (BID) and buy (ASK) prices of the instrument.
Instruments are traded in lots, which refers to the volume that is bought or sold. One lot is equivalent to $100,000 trading. Therefore, if you buy EUR/USD with position size 0.50 lots, this means that you traded $50,000. If your broker offers you leverage 500:1, then you must have at least $100 ($50,000/500) in your account to be able to make the trade.
The lot size or volume of trade determines the value of each pip. Therefore, when you trade one lot, one pip is worthing approximately $10. The higher the lot size, the more you can potentially win or lose.
Volume in Forex is the number of lots traded in an instrument within a certain time period and it measures the market participation in the selected instrument.
Volatility measures how much and how quickly the price of an instrument moves. Volatility is a critical factor in Forex trading, as it can influence the potential for profit and the level of risk involved. A highly volatile instrument has rapid price fluctuations and large price ranges.
Slippage is defined as the difference between the price at which you want to execute your trade and the price at which it is executed by a broker or liquidity provider. This happens during highly volatile times.
A swap in Forex refers to the interest that you either earn or pay for a trade that you keep open overnight.
Equity in Forex trading is the total value of a forex trader’s account. When a forex trader has active positions in the market, the equity on the account is the sum of the margin put up for the trade from the account, in addition to any unused account balance.
Margin is the amount of money that a trader needs to put forward to place a trade and maintain the position. Margin is not a transaction cost, but rather a security deposit that the broker holds while a forex trade is open. The margin is calculated by dividing the trade size in $ by the leverage.
Margin level is the amount of funds in a trading account that is used to maintain open positions versus the available free balance.
Free Margin is the amount of money left that is not involved in any trade and you can use it to open new positions.
A margin call is a tool that notifies you that the securities held in the account have decreased in value. The trader must choose to either deposit additional funds or sell some of the assets held in the account when a margin call occurs. If no action is taken, the danger of a stop out (forced liquidation) becomes a reality.
A margin stop-out occurs when your margin level falls to a specific percentage (%) level in which one or all your open positions are closed automatically (liquidated) by your broker. This liquidation happens because the trading account can no longer support the open positions due to a lack of margin.
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