The retail Forex market would not be as robust as it is today if it weren’t for the concept of margin. Although the Forex market has existed for decades, it used to be only accessible by high net-worth individuals. Margin brought an end to this by allowing traders with little capital to make high value trades.
Back in 2008 when commercial EA’s were entering the Forex market, some of us believed that if you have a good system, all you need to do is automate it, place it on a chart, “set and forget it” and you can then start planning your dream vacation. Over the years, many of us came to the realization that automated systems do not last forever. As markets are always changing we need to continuously adjust, tweak, or change our strategies to keep them functional.
Very often you hear how big the Forex market is, with a daily trading volume of $5.1 trillion every day. No one can dispute that is a really huge number, but reading between the lines will show you that the volume of trades has dropped. According to the Triennial Central Bank Survey by the Bank for International Settlements, the Forex market had a daily trading volume of $5.4 trillion back in 2013.
The Forex Market is full of traders whose sole objective is to make plenty of profits. But is it really as easy as it is made out to be? Can beginners really breeze their way to a quick buck? Not at all.
Every business develops a set of procedures or safety nets to ensure that it is protected from suffering a series of huge losses. That safety net is also known as Forex money management. Forex money management manipulates accounts by conserving, investing, splurging, budgeting and controlling money.
As important it is to know how to trade, it is more important to know when to trade in terms of the forex market timing. Forex market is a world wide online market with no time limits when you consider the whole world as your base. The markets are active through the week except for a Saturday giving you five and a half trading days every week; taking into consideration the time zones. You can trade anytime in any market! But, to maximize the yield of the trade, the hours you decide to trade do matter.
Brexit is a small six-letter word, but hugely far-reaching in terms of impact. Ever since the referendum was announced by erstwhile British Prime Minister David Cameron, there had build a heady mix of excitement and tension in the months building up to the deciding hour. In the mass voting that followed on June 23rd, a majority of people in the United Kingdom chose to opt out of the European Union. As predicted by many economists, the pound slid down to a 31-year low of a $1.31 against the US Dollar. FTSE 100 found itself in exasperation, as the prices of major futures started plummeting.