Stop-loss orders are the fail-safes of the trading world. They’re the most common way for traders to balance risk and reward without having to stay glued to their computer screens 24/7. Stop-loss orders can help investors minimize losses on new positions.

Since the financial crisis of 2008, Japan’s yen has been generally viewed as a reliable reserve currency. Once considered the world’s third-largest safe haven currency due to its high liquidity and low bid-ask spreads, USD/JPY has been favored by both experienced traders and beginners. 

The pairing has also played an important role in trading activity throughout Asian markets since the yen was often bought or sold as a substitute for more unpredictable currencies in the region.

Trading indices with Valutrades is a great alternative to stock trading, and now you can trade with a minimum of just 0.01 lots, which offers more flexibility in your positions. Instead of trading individual stocks, you now have the ability to trade a group of equities at one time within an index, which is based on the stock prices or market capitalization of each company.

Bid and ask rates play an important role in all types of financial marketplaces. Let’s take a look at what these terms mean and how they relate to forex spreads and trading.

Index trading is a popular, easy way to invest in a group of businesses, or a representative sample of a country’s largest companies, without being forced to invest in individual companies.

For forex traders, index trading is an attractive alternative to directly investing in a specific country’s stock market. Typically, indices are designed to offer a reflection of a given country’s economic strength. But these indices can also serve as a high-performing collection of select holdings from a single market, offering a more concentrated investment opportunity in a foreign country’s economy.

Contract-for-difference (CFD) trading is popular for index investments. Of the various indices available around the world, the US30 is one of the best-known options available to traders, offering an easy way to get exposure to 30 of the United States’ largest companies.

With the U.S. economy experiencing inflation at rates not seen since the 1980s, forex traders are monitoring the U.S. dollar closely to see how the currency’s purchasing power and exchange rates are influenced by the accelerated devaluation of the U.S. dollar.

At the same time, U.S. regulatory efforts to curb inflation are already underway. Meanwhile, currency values continue to be roiled by global events such as the Russian invasion of Ukraine, global gas shortages, and lingering economic disruption caused by the pandemic.

While inflation needs to be balanced among other economic forces, this rapid rate of inflation deserves the close attention of forex traders. Here are some tips to help you weather the challenges and preserve your capital when trading in an inflationary environment.

What are forex trading signals?

When it comes to the hyper-competitive realm of forex trading, it’s pretty clear that every investor is looking for an “edge”. While what actually constitutes an “edge” is routinely debated, there is no denying that many traders invest large amounts of time into forex trading signals. Ranking as one of the most important tools that any forex trader can have within his or her trading arsenal, forex trading signals can help you stay one step ahead of the market.

Active forex traders are relentless when it comes to monitoring the various key economic indicators intertwined with the market. The reason for this is pretty clear: These indicators allow a trader to identify both minor and major trends with regard to economic growth. 

Key economic indicators that many advanced forex traders opt to monitor include the Consumer Price Index (CPI), housing stats, gross domestic product (GDP), personal consumption expenditures (PCEs), and the employment report. 

Across these indicators, the employment report arguably carries the most weight because it contains a wealth of statistics that allow traders to read between the lines when it comes to understanding the current state of the economy.

Understanding how to trade forex isn’t always the easiest of tasks. In order to successfully turn a profit, a trader must have detailed knowledge of the market, the right trading strategy, and a selection of functional trading tools. One tool that is commonly praised is leverage. Through correct use, leverage can boost a trader’s output without the need for any additional capital up front. This article takes an in-depth look at leverage, helping you grasp what kind of leverage is appropriate for your forex trading strategy and overall market approach.

Both the moving average convergence divergence (MACD) and the relative strength index (RSI) rank among the most popular momentum indicators used in forex trading. When used in combination with other technical indicators, both MACD and RSI can offer value in validating trade opportunities and timing trades to optimize your risk management practices.

While they represent a similar approach to evaluating forex trades, the functions of both MACD and RSI are distinct, which makes them useful indicators to combine in trade evaluation. Here’s a look at how to use MACD and RSI as part of your trade analysis.