When trading volumes are heaviest forex brokers will provide tighter spreads , which reduces transaction costs for traders. Likewise institutional traders also favor times with higher trading volume, though they may accept wider spreads for the opportunity to trade as early as possible in reaction to new information they have. The best time to trade stocks also depends on various factors such as market conditions, stock exchange location, and personal preferences. However, most traders consider the first two hours of the stock market opening as the best time to trade. You usually want to avoid trading when only one trading …

If this wholesaler charges a customer from the EU €1000 immediately after sending goods, they might expect to receive £850 based on exchange rates on the day of the sale. They may not have to pay the invoice for something like three months. By the time the customer pays the value of the pound may have dropped and when the customer pays the bill of €1000, this converts to, say, only £800. Interestingly, forex dealers in the United States do not allow this type of hedging. Instead, firms are required to net out the two positions—by treating the contradictory trade …

Many advisors demonstrate excellent results when tested on one currency pair, but perform poorly on others. It is better to use the advisor for those instruments that you have tested on. They have the function of an independent trading system and dub the trading signals. They are very popular with beginners and were created specifically to demonstrate the abilities of programming the MetaTrader 4 Client Terminal. Inexperienced beginners are always interested in finding a trading robot that does all the work so that the trader does not have to lift a finger. Forex Fury’s algorithm has been finely tuned to …

Meanwhile, a bullish divergence indicates a possible entry point for traders before the price begins rising. Forex divergence is one of the basic early signals. Divergence is easy to spot in any market and on any trading instrument. The daily EUR/USD chart below gives a clear example of hidden divergence and the trend reversal that follows. This sort of chart pattern means that when the stochastic was overbought the second time, EUR/USD buyers couldn’t push any higher. So, the upside was complete even though EUR/USD couldn’t make new highs. Trading based on divergence alone is not accurate. I strongly suggest …

Find our Forex reviews to help you compare the Broker and their Bonus offers. Ensure that you check Forex-Broker features combination along with good no-deposit bonuses. A No-deposit bonus is not dependent on the amount you deposit. Retail-focused Forex brokers would be generous with Bonus offers, while those gearing towards Institutional/Professional trading would offer limited deals if any at all. Trading signals — follow free trading signals from brokers and other traders. Crypto bonuses — all bonuses related to cryptocurrency trading. It provides balanced conditions for efficient trading on the currency and other types of markets. You have an opportunity …

A correlation coefficient of -1 indicates that the currency pairs are perfectly negatively correlated, that is, a higher value for one pair tends to correspond to a lower value for the other. A correlation coefficient of 1 means that they are perfectly correlated, indicating a higher value for one variable tends to correspond to a higher value for the other. The weaker the relationship, the closer the correlation coefficient is to 0. To be an effective trader and understand your exposure, it is important to understand how different currency pairs move in relation to each other. Some currency pairs move …