Hedging

hedging_forexHedging denotes safety and security. Hedging is protection of client’s funds from unfavorable currency rate fluctuations. Account funds are fixed at their current price through conducting trades on Forex. Thus, hedging helps to ease exposure to currency rate change risks, which helps to achieve result not influenced by fluctuations. In fact, hedging presupposes using one instrument in order to lower the risk related to unfavorable market factors impact on the price of another one directly associated with it. More often, the notion ‘hedging’ means insurance from the currency price fluctuations, assets etc. Hedging can also be considered as Continue reading

Hedging

hedging_forexHedging denotes safety and security. Hedging is protection of client’s funds from unfavorable currency rate fluctuations. Account funds are fixed at their current price through conducting trades on Forex. Thus, hedging helps to ease exposure to currency rate change risks, which helps to achieve result not influenced by fluctuations. In fact, hedging presupposes using one instrument in order to lower the risk related to unfavorable market factors impact on the price of another one directly associated with it. More often, the notion ‘hedging’ means insurance from the currency price fluctuations, assets etc. Hedging can also be considered as Continue reading

Forex and Stock Markets

01Forex market and stock market (stock and securities market) are two independent markets with no relation to each other. They differ in trade instruments: currencies are traded on Forex market, and shares, on a stock market. Stock markets are often located at the stock exchanges. The largest stock exchanges are situated in New York, London and Tokyo. Another difference between Forex and stock market is the amount of money Continue reading

Forex and Stock Markets

01Forex market and stock market (stock and securities market) are two independent markets with no relation to each other. They differ in trade instruments: currencies are traded on Forex market, and shares, on a stock market. Stock markets are often located at the stock exchanges. The largest stock exchanges are situated in New York, London and Tokyo. Another difference between Forex and stock market is the amount of money Continue reading

Trading Psychology

12_6_origTrading is an activity that demands analytical and inference skills. It requires patience from the one hand and quick response with risk readiness from the other. Trading is an activity for those who understand psychology. These factors will largely determine whether you succeed or loose on Forex. Even if you switch to system trading, you will not avoid the emotional stress when making trading decisions. Forex traders are often inclined to believe that the less emotion, the better trade – i.e. emotions prevent a correct decision. But the sense of anxiety, fear of losing money, hope and belief in luck, regret, joy, frustration, and joy again – all these feelings inevitably associated with trading. Continue reading

Trading Psychology

12_6_origTrading is an activity that demands analytical and inference skills. It requires patience from the one hand and quick response with risk readiness from the other. Trading is an activity for those who understand psychology. These factors will largely determine whether you succeed or loose on Forex. Even if you switch to system trading, you will not avoid the emotional stress when making trading decisions. Forex traders are often inclined to believe that the less emotion, the better trade – i.e. emotions prevent a correct decision. But the sense of anxiety, fear of losing money, hope and belief in luck, regret, joy, frustration, and joy again – all these feelings inevitably associated with trading. Continue reading

Swap-free or Islamic Accounts

00Swap-free accounts are also called Islamic because owners of such accounts exercise Islamic religion. According to the rules of the Mohammedan religion, any business transactions, where one of the parties must pay or get an interest from another party, are prohibited. Islamic or Swap-free accounts allow trading any currency pair and if a position is carried over midnight, a trader does not earn and there is nothing to withdraw from trader’s account, regardless of the open position volume. Islamic accounts were created special for Muslims, because crediting swaps and interests is against their religion. Accounts which are not influenced by swap allow their owners to hold positions as long as it is necessary. In this case the result of trading depends only on the currency rates change during a certain period of time. Due to this peculiarity Swap-free accounts became popular in both Islamic countries and worldwide. Many Forex brokers provide swap-free service for free.

Swap-free or Islamic Accounts

00Swap-free accounts are also called Islamic because owners of such accounts exercise Islamic religion. According to the rules of the Mohammedan religion, any business transactions, where one of the parties must pay or get an interest from another party, are prohibited. Islamic or Swap-free accounts allow trading any currency pair and if a position is carried over midnight, a trader does not earn and there is nothing to withdraw from trader’s account, regardless of the open position volume. Islamic accounts were created special for Muslims, because crediting swaps and interests is against their religion. Accounts which are not influenced by swap allow their owners to hold positions as long as it is necessary. In this case the result of trading depends only on the currency rates change during a certain period of time. Due to this peculiarity Swap-free accounts became popular in both Islamic countries and worldwide. Many Forex brokers provide swap-free service for free.