Margin and margin requirements are something that no forex trader can afford to ignore. Margin has often been labeled a “good faith deposit” to open a position.

Margin is usually presented as a percentage amount of the full position, 0.25%, 0.5%, 1%, 2%, and so on. You can calculate the maximum leverage you can use with your trading account based on the margin required by your broker.

There is a saying that goes, “Blink and you may miss it”. Well, with Forex trading, there is maybe no truer saying. In an industry that transacts more than five trillion dollars a day and with more and more being driven by algorithmic (“algo”) traders, it is becoming increasingly harder for the individual trader to keep up. One of the solutions for forex traders is the VPS, or virtual private server. In this post, we will look at three reasons why serious traders should use a VPS.

“Forex VPS” is a term that is currently doing the rounds within the world of investing, but what does it actually mean? If you’re not sure, don’t worry—not only is this tool easy to understand and implement, but it offers a lot of benefits to your overall forex trading strategy.

VPS stands for “virtual private server,” with the term actually having established links within the realm of web hosting. Forex VPS is a slight twist on the normal use of this technology: through the use of a virtual private server, you can tweak your trading activity and increase your reliance on automated expert advisors (EAs) or signal services.

Those who are just starting out in the world of forex trading are likely to face a wealth of options on the trading platform front. ZuluTrade, NinjaTrader, and Trading Station—among others—all have plenty to offer, but there is one trading platform that appears to be head and shoulders above the rest. MetaTrader 4 (MT4) is used by all leading forex trading experts and is truly award-winning in stature. Considering its comprehensive nature and growing reputation, the following looks at why MT4 is the perfect trading platform for almost every forex trader.

Timing is everything in forex trading. Enter a position too late, and you might miss out on the price movement you were hoping to use to generate a profit from your trade. 

The same is true when exiting a trade: If you exit too early, you might miss out on additional price action that would have fattened your profits. But if you hold on to a position too long, your profit margin could come crashing down as the price movement reverses and puts you at risk of taking a loss.

Experienced traders understand the importance of exiting as close to the peak of their potential profit as possible. Forex exit indicators can offer the foresight and information you need to identify the right exit opportunity and take a profit from your trading action. If you’re unfamiliar with these indicators, it’s worth educating yourself on your options so you can experiment with different strategies and identify the indicators that work best for you. 

Here are some popular forex exit indicators to consider using in your own exit strategy.

The parabolic stop and reverse (parabolic SAR) indicator was developed to help traders locate buy and sell signals for current trends and determine when to enter and exit trades based on an asset’s momentum. It was created by J. Welles Wilder Jr., a prolific mechanical-engineer-turned-analyst who pioneered a variety of the technical analysis tools that financial traders still rely on today. His other feats include the relative strength index (RSI), average directional index (ADX), and average true range (ATR).

Odds are that you’ve heard of the Elliott Wave Theory, which is often discussed in the same breath as Fibonacci patterns. The Elliott Wave Theory was developed back in the 1920s by American accountant and author Ralph Nelson Elliott—hence the name. He believed that stock markets traded in cycles that were repetitive. This was a revolutionary way of thinking at the time because, among 1920s traders, the stock market was considered to be chaotic. Since then, the Elliott Wave Theory has gained traction as a market analysis method within the world of forex.

Here we’ll take a look at the history of the Elliott Wave Theory, along with how you can apply it to forex trading in an attempt to predict market swings.

Economic calendars lay out the dates and potential impacts of scheduled national and international events that are likely to affect the price and popularity of given markets or assets. Because certain types of events have been known to impact trade in significant, predictable ways, the nature and date of each event on an economic calendar can be used as a trading indicator to maximize profit potential.

Recurring news events tend to make the most compelling indicators because they have predictable effects on trading sentiment and volume. Examples include scheduled publication dates for widely regarded market statistics or surveys, and anticipated events such as federal decisions on interest rates, trade balances, and inflation.

Welcome to our look back at January 2021 and what happened in forex markets around the world.

The main market drivers were quite varied, but quite predictable, this month with the COVID-19 Lockdowns, COVID-19 Stimulus Packages, COVID-19 Vaccines, the new US Government, US/China Trade Relations, and Brexit.

Regarding global trade issues with China, the world has been waiting for the new Biden administration to get up-and-running as the only way forward to resolving these.  An alliance between all major industrialised nations (hopefully led by the US) is really the only way to stand up to China.  Any news on this from will have major impact on Commodities, Currencies and Equities.

Forex trading isn’t just an analytical venture—it’s an investment path where emotions play a decisive role in performance. While most traders want to envision themselves as cool, calculating finance experts who set emotions aside and only make trading decisions based on cold, hard numbers, the reality is that even successful traders can fall prey to the impulses of their emotions.

These emotional impulses often pose a greater threat to trading strategies when traders lack awareness of these inclinations. When left unchecked, impulsive decisions and a lack of trading discipline can sabotage your risk management practices and put your trading strategy in a far more precarious position.

Don’t let unchecked emotions and undisciplined decisions derail your trading strategy. Use the following trading tips to place checks on your own emotions and manage your level of risk exposure.