Have you been looking at opening a trading account and found yourself puzzled trying to understand what is a Swap in Forex? A Swap in Forex is an interest payment that you either settle or collect for carrying positions overnight into the following day. Swaps in Forex play an important, yet confusing role and they affect your trading strategy, sometimes without you even noticing. If this isn’t the first article that you’ve read about Forex Swaps, then we sympathise. Unfortunately, the phrase Swap can have a different meaning in varying contexts. Allow us to enlighten you. In this article, we will explain precisely what is a Swap in Forex from the perspective of a Forex and CFD trader. A Swapread more
Forex Trading Course
A Forex trading course 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.
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’t be profitability.
Put in the time, expand your knowledge, and become a profitable trader. Don’t become a statistic! Become an individual that is educated!
What is margin in Forex and how to avoid receiving a dreaded margin call Margin is the capital that your broker requires you to have available in your trading account to open a leveraged position. Think of margin in Forex as the deposit that your broker holds as collateral when you take a leveraged position much larger than your account could otherwise control. Many new Forex traders think of margin as a cost, but this isn’t actually the case. Margin in Forex is nothing more than a security deposit that allows you to trade a much larger leveraged position and ensures that you can cover your losses if the position moves against you. Don’t worry, it’s returned to your accountread 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, weread more
The traders need to know about margin calls, how they arrive, and avoid them for successful trading in the trade market. Margin Call is like a warning for the traders that alerts them to deposit more funds in their trading account to free more margin to avoid losing positions. Margin Call is determined when you open your trading account, and your broker sets a fixed percentage of it that is also mentioned in the account specifications. The margin level falls when the trade market moves against your open positions. Once it falls from a certain percentage fixed by the broker, the trader receives a notification in their terminal. Overall margin calls alarm the traders that the trader’s account is approaching aread more
A margin closeout is a condition when the broker closes some open positions automatically because the affected trading account has limited free margin left to absorb further losses in trades. The open positions are closed to reduce the probability of decreasing more amount used as a margin from the trading account. It is a situation when your margin closes out, the value falls below the level of your margin used, and then all your open positions in the market are closed. However, the open positions unavailable for trading at the time of margin closeout will be held open, and the trade market will manage your margin requirements. But as soon as the trading becomes available on those open positions andread more
Hedging in forex is a common feature for many trading accounts provided by brokers. Hedging is yet another delightful piece of Forex trading jargon that 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. Hedging also refers to a tactic used to offset risks. 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 retailread more
One of the basic terms that you are sure to come across time and time again in forex trading is “a lot.” In this guide, we’ll take a look in detail at what exactly a lot is in forex trading. What is a forex lot? Forex is commonly traded in lots, which are essentially the number of currency units you can buy or sell. A “lot” is a unit of measurement for a transaction amount. When you place orders on your trading platform, they are placed in lots. The regular lot size is 100,000 units of currency, but there are now mini and micro lot sizes of 10,000 and 1,000 units, respectively. We’ll go over each one in more detailread more
Learn what is a pip in forex 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). Calculate how much they’re worth and ultimately use this knowledge to manage your overall risk. 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 priceread more
When we get into a conversation about Forex trading, you will come across different terms, i.e., pipette, pip, and many more. Understanding this whole concept and figuring out how to calculate it for trading is a crucial thing. This is because it covers all the exchange rate movements, loss, and profit calculations on a specific position and determines effective risk management. But still, some traders are not entirely familiar with the term, pips, which somehow put a bit of a burden on their overall trading performance. So, right through this guide, we will explain the actual concept of the pipette in Forex and how you can calculate its value. Introduction about pipette? The movement, which is equal to 1/10 ofread more
One major thing which each trader needs to be conscious about is related to the calculation of pip values and how you can estimate profit and loss. Pip is the unit of measurement, expressing a constant change in the value between two different currencies. Fractional pips were added by brokers to provide more accurate pricing. Defining the term pip is the last decimal place of any price quote. So, for example, if the EUR/USD is moving from 1.1070 to 1.1071, then that .0001 EUR rise in value is one pip. Pip is the abbreviation of Percentage in Point, which is the smallest price move that the given exchange rate can make. What is fractional pip all about? Talking about fractionalread more