Forex volume price action - South African Rand Quotes|Rand Rates|Rand Charts|Forex Rand Forecast|Rand News -

Possible head and shoulders, pattern is forming, with price extending to Also the economic and political conditions in South America forecast a deterioration of the Rand, and a turn to the USD for safety.

This trade is for demonstration and educational Hey Tradomaniacs, quick another chance, since we reached the bottom breaking out of this trendchannel! Now, finally it happened volum it seems that the price of this instrument has finally forex volume price action the direction.

I consider buying it from pullbacks and building a trend-following trade. Looking at this exotic pair, I believe it has the potential to volums bearish but that will depend on whether the retest goes our way.

As mentioned above, forex trading involves buying one currency and selling another currency at the same time. For this reason, when traders trade currencies, they trade them in pairs, meaning people trade two currencies.

Placing an order in forex means placing an order, you speculate on a currency whether it will depreciate or appreciate relative to another currency. The main reason we speculate forex volume price action currencies is because we want to make profit from the fluctuation of the exchange rate.

However, nowadays, South African forex brokers now offer direct exchange rates. The most used cross currencies come from three most important currencies besides the USD.

The three currencies are the British Pound, the Yen and the Euro. These three forsx currency pairs are also called minor currency pairs. The reason for this forex volume price action because major pairs are the most liquid and carry the lowest spread.

The first currency indicated in a currency pair is called the base currency while the second currency on the right is called the quote currency or the counterparty currency. The quote currency lets us know its forex volume price action against one unit of the base currency.

The base currency is forex volume price action for the buying power or the sale transaction. However, if we think the US Dollar will not shift to our advantage, we sell the pair, meaning we sell the Rand and buy the US Dollar simultaneously.

Two jargons you need to know:. In forex trading, the most liquid currency is the base currency.

In most cases, currently the USD is the base currency in Forex. The spread in forex trading is the charge or the difference between the price of the offer and the asking price for a transaction.

All transactions in forex are carried out by intermediaries who charge specific fees for their services. To understand the spread, you need to understand the basics of forex trading.

Forex Trading South Africa – What is Forex Trading?

For example, the USD can be worth 1. You might speculate that the Rand will gain against the USD, so you buy the asking price.

However, the asking price might not be the exact 1. On the other hand, the seller will not receive 1.

The difference between the asking and buying price will be 0. Pips are the smallest possible variation of a course anytime.

When a currency pair increases or decreases, its movement is measured in pips. Pips are the fourth decimal place of the currency pair. Forex volume price action currency pairs that are calculated in hundreds, the pips is the second decimal place.

A good example will be R The forex volume price action of pips depends on the leverage, the currency of the trading volume action forex price and the currency pair. To get the value of the pip, multiple R20 by the value of pip: You then apply the exchange rate, the Rand against Dollar is about R Leverage in forex enables traders and investors to get access to large amounts without having to deposit lots of money or capital.

SA Forex brokers offer their customers leverage. Leverage allows you to speculate with more money than the capital accessible, but it carries higher risks.

There are different levels of forex volume price action in forex.

Trading for beginners

For example, we have 1: Brokers also borrow you this money for free. A lot refers to a group of units in a trade.

A standard lot is units of currency. With this being said, most forex brokers offer leveraged trading.

forex volume price action Traders can also trade micro lots and mini lots worth 1 unites and 10 voluje. For example, if you visit your favourite supermarket and you want to buy a 12 pack of alcohol, you are actually buying 1 lot. You have to buy the whole pack and not just pick two bottles from the pack.

In the supermarket, there are examples of lots that you probably know. If you buy a pack pfice 6 cans of your favourite drink, you are actually buying forex volume price action lot.

You cannot buy three cans of the drink; you must buy them by full batch.

The currency exchange market is indeed an interbank market, trading place between the major international foex and a virtual meeting for traders sharing the same interests. Dealing Desk brokers in FOREX do not use banks to respond to your requests to buy or sell currencies, they play the role forex volume price action stockbroker themselves.

Fundamental analysis

No matter what happens on the market, Dealing Desk will always offer you a quote. To make money, they arrange to offset your buy or sell orders with those of other customers.

If at a given moment they manage to bring a seller and a buyer closer together for the same request, they reach the spread without any risk. As a reminder, the spread forex volume price action the difference between the purchase price and the selling price on the market.

The exotics, on the other hand, can have very high spreads that are usually well over 10 pips. That means well over 10 pips that you need to overcome before your trade is in profit.

Due to the low liquidity, exotic pairs can be much more volatile than the major and minor pairs. This volatility means the pairs can jump up and down very quickly.

This volatility leads the broker to protect themselves with higher spreads and these higher spreads actin with the volatility cause slippage. With 28 pairs to choose from when looking at the major currencies alone, there is no need to take on the extra risk in forex volume price action the exotic pairs even if the term exotic pair does sound more appealing.

Explainer: how currency markets work and why the South African rand is falling?

Volu,e within the 28 pairs, you can narrow them down to your favorite which can be based on which sessions you trade. Let me know which are your favorite pairs to trade in the comment section below.

I will also have an article on the best times to trade coming soon so keep an eye out for that one.

Description:Fast pace, global scope, large liquidity and volume, and a dozen different Since price movements occur twenty-four hours per day every day, margin calls can.

Views:32367 Date:29.05.2016 Favorited: 8102 favorites

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