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 ...
MoreWhat is a prime brokerage?
Prime Brokerages Explained The term Prime Brokerage gets thrown around a lot, but many people don’t fully understand what is meant by the term. Prime brokerage is a generic term for a package of services offered by major investment banks to hedge funds, broker dealers and other large professional investors. Typica...Introducing Japanese Candlesticks
Candlestick charts were first developed in the 18th Century by successful Japanese rice trader Munehisa Homma. It took a long while for candlestick charts to gain popularity in the Western world. It wasn’t until Steve Nison’s 1991 book Japanese Candlestick Charting Techniques that the charting style gained any real traction with western traders. Throughout the 90’s candlestick charting grew in popularity and is now used by the majority of currency traders.Forex Candlesti...
MoreWhy do some brokers ban scalping?
In 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...Spot Forex vs. Forex Futures
Many who become interested in Foreign exchange trading wonder what the crucial differences between Spot Forex and currency futures are. While both forms of trading involve making decisions regarding the future prospects of global currencies there are a number of subtle differences traders should take note of before deciding which product is suitable for them.
MoreFuture Contract (Forward Contract)
A futures contract is a legally binding contract that obligates the two pa...Forex Swap Rates Explained
Trading the Spot Forex market you may have noticed that when you hold a position overnight, you receive or are charged a fixed rate of interest on your position. When developing a trading system which holds positions overnight it is very important to take account of these overnight swap rates as they can affect a strategies p...Introducing Fibonacci Retracements
Who was Fibonacci? Leonardo Pisano Bigollo better known as Leonardo Fibonacci was an Italian mathematician. Fibonacci is often considered to have been the most talented mathematician of the middle ages and is best known for a number sequence named after him. The number sequence is begins with 0 followed by 1 and then continues by adding 0+1 to derive; 1 the third number in the sequence. The sequence then continues by adding the second and third number together getting 2. The sequen...
MoreWhat Is Fundamental Analysis?
Fundamental analysis involves analyzing certain types of fundamental data in order to get a better understanding of the factors that affect supply and demand for a particular asset class. Just like other assets, Forex prices are largely driven by the global supply and demand for a particular currency. For instance if there is little demand and numerous sellers, then prices are very likely to fall. By looking at economic, social and political data those using fundamental analysis hope to get an i...
MoreWhat is Technical Analysis?
Technical analysis is the idea that traders can look at historical price movements and us this data to work out current market conditions and potentially predict future price movements. Many proponents of technical analysis claim that all current market information is reflected in the current price and historical prices. If all market information is contained within current and historical price action, then traders would have all the information they need readily available to them.Technical ...
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