A forex gap is defined as an instance where the previous day's closing price does not match up with today's opening price. This results in the creation of an empty space or gap in between the two candlesticks, as shown below: Forex markets, which are open twenty-four hours every day, are technically closed for the weekend. Only retail traders are barred from participating … [Read more...] about Gap Trading in Forex
Before we can define what a forward swap is, it’s important first of all to understand what a swap is in foreign exchange. A foreign currency swap is a mutual accord between two entities concerning the exchange of legal tenders. Swap agreements usually contain a swapping of capital and returns of payments on a loan created in a legal tender for capital and … [Read more...] about Forward Swap and How to Use It
Is it possible for someone to 'paralyze' their analysis in forex? Research suggests it is indeed possible. It's an intriguing phenomenon affecting and continuing to affect even the most experienced traders, often unbeknownst to them. The phenomenon of analysis paralysis can be found in many fields ranging from Aesop's fables to sports. Trading forex or any other market … [Read more...] about The Cures For Analysis Paralysis In Forex
All forex traders are interested in as many methods of making profits with the lowest risk possible. Discussions of new and relatively unknown strategies are constantly hot topics. One strategy that may not be popular in forex with the masses is the carry trade. The carry trade is a long-term type of speculating in forex involving some decent knowledge of the interest and … [Read more...] about The Carry Trade in Forex Explained
We hear and read so many recurring statements about leverage in forex, such as it's a double-edged sword or it's the number one reason people lose substantial amounts of money. Naturally, the question becomes what the correct leverage ratio to use is. People throw around different numbers like 1:200, 1:100, or 1:50. Some brokers have received negative feedback over … [Read more...] about Is There a Recommended Leverage Ratio to Use in Forex?