Have you opened a new trading account and want to understand what is leverage in Forex? Leverage is one of the most powerful and alluring aspects of choosing to trade forex over most other asset classes. But what actually is leverage in forex and how can you use it to your advantage? Leverage allows a Forex trader to essentially borrow money from your broker, for the purpose of controlling a larger position than you could otherwise trade. Through what is essentially a loan from your broker, leverage allows you to use a fraction of your own money, while still being able to trade much bigger volumes than you otherwise could. An example of leverage in forex: Leverage is expressed in […]read more
Forex Trading Education
Forex trading education is a key factor when it comes to the success or failure of any traders’ financial outcome. Forex trading in South Africa is one of the fastest-growing trading geographics in the world, but sadly one of the most uninformed. Knowledge is power. Put in the time, expand your knowledge, and become a profitable trader.
Just like in any industry, knowing the terminology is an important factor. You can’t trade the markets blindly! Take it from a professionals’ point of view. Repetition, repetition. Do what works over and over again and you will reap the benefits of success. Screen time greatly assists in this. If you don’t put in the time you can expect the results you seek.
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The best piece of advice we can provide you as a trader is to not rely on indicators, tools, EAs or robots, thinking it will lead to success. These are short term solutions, unfortunately not profitable long term. Looks past the hype and empty promises. Save yourself the money and disappointment. This Forex trading tip comes from experience. When it sounds too good to be true, it usually is!
We are hard at work to build out a Forex Trading Education section from A-Z. This will help beginners and professionals alike get a better understanding of the FX market and how it operates. Without understanding, there can be no profitability.
Put in the time, expand your knowledge, and become a profitable trader. Don’t become a statistic! Become an individual that is educated!
Your quick guide to Forex trading in South Africa, answering the big question on every new trader’s mind: How to start Forex trading? The Foreign Exchange market, known as the Forex or FX market, is the most liquid market for the exchange of global currencies. It consists of $5.2 trillion in daily volume. Before you can learn how to start Forex trading, you need to understand the background, how did it evolve into the market we know today? Forex trading was not always widely accessible to retail traders. Institutional trading and the wealthy, took advantage of the lucrative form of trading. This all changed as the industry moved forward with the rapid growth of the internet and technology. At present, […]read more
Learn what is a pip in forex, calculate how much they’re worth and ultimately use this knowledge to manage your overall risk. A commonly asked question, what is a Pip in Forex? A Pip is the smallest unit of measuring a price move. It’s not a word, but rather an acronym for percentage in point (with some variables like point in percentage also widely accepted). When displaying the major Forex currency pairs such as EUR/USD on your trading platform, your broker will quote to the 4th or 5th decimal place. A pip is the 4th number in your broker’s price quote, while a pipette (or fraction of a pip), is the 5th. Although a pip may seem an insignificant price […]read more
When borrowing money from your broker, it gets referred to as ‘trading on margin. You do this to increase your exposure on the market. Your broker will borrow the money, and the amount will depend on the leverage ratio that gets used, and the collateral is a portion of your trading account. This is also known as margin for that trade. Along with margin is: what is free margin in Forex, indicated on your trading platform. What is Free Margin? What is remaining in your account will act as the free margin. These funds are necessary to withstand the potential unfavourable fluctuations from your leverage positions or to open new leverage trades if you want. Calculating Free Margin So, we […]read more
What is the NAS100, NASDAQ 100 or NDX100 which is a US-focused equity index made up of the 100 largest non-financial stocks by market capitalization listed on the NASDAQ stock exchange? The index is also known as the US Tech 100 due to the prevalence of tech stocks in the index – NASDAQ Financial stocks are included in a separate index, the NASDAQ Financial 100. NAS100 is not to be confused with the NASDAQ Composite, an index composed of each and every stock listed on the NASDAQ exchange. History of the NASDAQ exchange The NASDAQ exchange is the second-largest stock exchange in the world behind the New York Stock Exchange (NYSE). The exchange was founded more than 50 years ago […]read more
When selecting the best major currency pairs traded in South Africa for beginners, you get reminded not to trade with multiple currency pairs simultaneously and instead trade with one or two currency pairs. By focusing on not more than two, you will gain knowledge and become successful with trading the major currencies in the long run. Once you become more confident and comfortable, you can increase your trading portfolio. What is a Currency Pair? A currency pair is a term that refers to the value of one country’s currency calculated based on another country’s currency. When trading a currency pair, you are buying one currency while simultaneously selling another, intending to profit on the difference. In other words, you’re buying […]read more
Have you ever wondered how to trade forex in order to generate supplemental income or maybe even trade professionally full time? Getting started can be a little daunting so we’ve created this handy guide to help you on your journey to forex trading success. Read on and you’ll be trading forex like a pro in no time. Forex trading basics When you trade forex, you are trading one currency against another eg. the Euro against the US Dollar (EURUSD), or the US Dollar against the Rand (USDZAR). When you go long (buy) a currency pair, you are speculating that the first currency in the pair (the base currency) will appreciate against the second currency in the pair (the quote currency) […]read more
Hedging in forex is a common feature for many trading accounts provided by brokers. Hedging also refers to a tactic used to offset risks. Hedging is yet another delightful piece of Forex trading jargon which can have various meanings in different circumstances. Besides many other important matters, we shall explore the varying definitions to ensure you understand clearly what is hedging in forex and why it’s essential you know it. A common talking point for new traders is hedging in forex. But, the term is somewhat ambiguous. One of the most notable features of FX and CFD trading is being able to go long and short on a wide range of currency pairs, commodities and other global markets. Most retail […]read more
Your quick guide to Forex trading in South Africa, answering the big question on every new trader’s mind: How does Forex trading work? Forex, or the foreign exchange market, is significantly different from stock trading. Therefore, these differences often make Forex look exotic comparing to the more familiar terms and techniques that we associate with the stock market. Despite the familiarity that the stock market enjoys, the Forex market is overwhelmingly the largest in the world. What is Forex trading, what makes this market so popular and how does Forex trading work? How does Foreign Exchange Trading Work? The Forex market is a global market for the trading of currencies. The fall of the gold standard happened in the 1970s. […]read more
This is your quick guide to Forex trading in South Africa What is Forex trading? Forex trading is the buying and selling of global currencies within the USD 5 trillion a day Forex market. If you think that sounds like a lot, you’d be correct – The Forex market is the largest and most liquid market in the world! If you were to combine all of the world’s stock markets into 1, the daily volume wouldn’t even come close to the volume in the currency markets. This is achieved because unlike stock markets that require all trades to be executed through the one central exchange like the NYSE; the Forex market is globally decentralised. Regulated by the Financial Services Conduct […]read more