CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Click here to read full risk warning

Recent Posts by Graeme Watkins

 
CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience. Key roles include management, senior systems and controls, sales, project management and operations. Graeme has help significant roles for both brokerages and technology platforms.
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Negative Balance Protection: Why It Pays to Trade With Valutrades

In contract for difference trading, market movement can happen fast. In best-case scenarios where traders are on the profit end of that movement, this can mean significant earnings potential within a short span of time.

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CFDs vs Options Trading: What's the Difference?

Contract trading is popular in many financial marketplaces. As a trader, you can purchase a variety of contract types—and each comes with unique risks and rewards. To choose and execute the right strategy for your goals, it’s important to understand the differences between them.

Below, we’ve outlined the benefits and drawbacks of two popular strategies: CFDs and options trading.

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Breaking Down Bid and Ask Rates

Bid and ask rates play an important role in all types of financial marketplaces. Below, we’ve defined what these two terms mean and how they relate to forex trading.

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6 Common Misconceptions of Forex Traders

As one of the largest global marketplaces, forex attracts a large volume of traders of different backgrounds and experience levels. Naturally, a market this popular also has its own mythology. Below, we’ve debunked the six most common misconceptions of forex traders.

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Common Chart Patterns: A Forex Cheat Sheet

Making money on the forex market—or any other exchange, for that matter—can certainly be tricky. But thanks to a number of chart patterns, you can learn to anticipate price movements and act accordingly. Making money doesn’t have to be impossible.

Unfortunately, with so many different patterns out there, it can be difficult to figure out which ones are best for determining where prices will go in the near future.

To make your job easier, we’ve outlined five of the more helpful continuation and reversal patterns below in a forex cheat sheet. Become familiar with each of them to make better trades.

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End of Day Forex Trading: How to Find Signals and Potential Breakouts

 

In trading, timing is everything. You might be able to anticipate market changes, but if you don’t know when those changes are scheduled to occur and how to time your entry and exit points accordingly, you aren’t bound to reap the reward. The most reliable and profitable forex strategies are those that consider timing as it relates to the trader’s chosen market, strategy, and trading style.

End-of-day trading is a deliberate forex strategy in which traders choose to place trade orders after the New York stock market has closed for the day. This allows them to outline their strategy and create pending orders for the next day while time is effectively paused (i.e., when no trades are occuring).

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3 Risks to Consider Before Trading Currency

The forex market is the largest investment market the world, and there are a number of different ways to trade it—spot transactions, currency swaps, options, foreign exchange swaps, and more. But, as with any kind of trading, there are risks to be wary of when you dip your toes into the game. To help you understand these risks, here are three things to consider before you start forex trading.

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Forex Target Trading: What Is It and How Does it Work?

Target trading is one of the most popular forex trading strategies. If you can identify how the market is trending and anticipate how price will move, you can use that information to preemptively establish profit-taking points, or targets, at which to exit or partially exit your position. A grid trading strategy is a common form of target trading whereby traders preemptively create conditional stop entry orders and set a profit target for each pending order.

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Forex Trading Basics: Understanding Swap Fees

In Forex, all trades have a timeline of two days. If, at the end of that period, a trader wishes to remain in a trade rather than settle up for the amount they’ve borrowed, they must pay interest to retain those funds and hold their position for another day. The “swap rate” represents the interest rate differential between the two currencies being traded. Because interest rates are influenced by market conditions, swap rates are constantly in flux.

If you know the current swap rate for a currency pair, you can calculate the swap or “rollover” fee you’ll owe or accrue if you decide to hold your position overnight. This knowledge will help you understand the costs of holding your position open and allow you to weigh those costs alongside potential risks and rewards to mitigate risk.

To accurately calculate the swap fee for a currency pair, you need to know the current swap rate for the currency pair in question, your net pip value on that trade, and the number of days you’d like to hold your position. Although it may sound like a lot to navigate, the formula for calculating swap fees is fairly straightforward:

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Valutrades November 2018 Market Recap

Several significant issues have lingered through November including Brexit, in which the Bank of England (BOE) have recently warned the nation of some significant consequences should the exit be disorderly.  Britain risks suffering an even bigger hit to its economy than during the global financial crisis 10 years ago in a worse-case scenario, according to the BOE.  The U.S. Federal Reserve have also recently changed their tune as Fed Chairman Jerome Powell said he considers the central bank's benchmark interest rate to be near a neutral level, an important distinction from remarks he made less than two months ago.  The markets have generally welcomed this change.

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