Negative Balance Protection in Forex

forex_generic2Retail Spot FX traders tend to be highly leveraged, with many traders making use of leverage in excess of 100:1. While this allows traders to make impressive profits when the markets move in their favour, it also means that traders can be exposed to heavy losses should the market move against them. When trading with a brokera...
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What is Scalping?

forex_generic2When Forex traders talk about scalping or scalping strategies they tend to be referring to trading strategies which see traders enter into positions for only a short period of time. It is for this reason that scalping is sometimes also referred to as quick trading. Most scalpers do not keep positions open for any more than a ...
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What is a liquidity provider?

forex_generic2A liquidity provider is an individual or institution which acts as a market maker in a given asset class. This means that the liquidity provider will act as the both the buyer and seller of a particular asset, thus making a market. For instance many stock exchanges have liquidity providers who make the commitment to provide l...
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Differences between Demo and Real Forex Accounts

forex_generic2Many traders have noticed their performance differ significantly when they make the switch to a real account. Often the differing performance can be put down to a trader adopting a different mindset when trading with their own funds on the line. This difference in performance is not always down to a trader adopting a differen...
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What is Slippage?

Slippage is the difference between the expected price of trade, and the price at which the trade is ultimately executed. For instance a trader may want to go long in the EUR/USD executing a buy order at 1.3580 but the order is actually fulfilled at a price of 1.3582, in this example the price slipped 2 pips from the price the order was originally placed at. Slippage can also occur when closing out a position manually or when a trader uses stop loss or trailing stop, as it may not be possible to ...
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Drawdown Explained

Those who are new to trading may not be familiar with certain terminology. Drawdown is most commonly used to refer to the high-to-low decline experienced by a trader or fund over a specified time period.drawdownIn general drawdown is quoted as a percentage, for example if $100,000 was a funds high point but after a series of bad trades this...
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Why do some brokers ban scalping?

forex_generic2In the world of Forex the term Scalping is most commonly used to refer to a legitimate trading method that focuses on making profit from short term market momentum. How scalpers derive their trading signals varies greatly, but what unites all true scalping strategies is that positions are only opened for a few minutes at a ti...
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Forex: A Zero Sum Game?

forex_generic2What Is a Zero Sum Game? A Zero sum game is any game or activity where a participants gain or loss is exactly balanced with the losses and gains of the other participants. If the total gains are added together and the total losses subtracted the sum will be zero, hence the name zero sum game. Poker is one example o...
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