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radex78

Active Member
#61
WHAT IS ECN?


Online trading exploded in popularity in the last years. Since the Internet connects people from all parts of the world, Forex brokers find it easy to attract new customers.

Not long ago, a Forex trading account had wide spreads. Most currency pairs had spreads (the difference between the bid and ask prices) even ten times than the ones we see today.

For instance, the EURUSD used to have three pips spread only eight years ago on most FX brokers. Also, the quotes were mostly four digits only, and the brokers were market makers.

ECN (Electronic Communication Network) changed everything. More importantly, the changes are in the retail traders’ favor.

What is an ECN Broker?

Perhaps the best way to describe an ECN broker is by stating what it is not. Well, it is NOT a market maker.

Also called dealing desks, market makers “mirror” the actual market. And, take the other side of their clients’ trades. There’s an ethical problem at stake, as the broker mostly makes a profit on the back on its clients’ losses.

An ECN broker avoids such issues. Not only that the broker doesn’t take the other side of the trades, but it offers much better trading conditions in terms of spreads and execution.

How Does ECN Work?

An ECN broker is a no-dealing desk broker. Moreover, it offers the best possible trading conditions by routing their clients’ orders to various liquidity providers. And, it picks the best quote to provide to customers.

The more liquidity providers the broker works with, the better. The competition for the best quote passes to liquidity providers, and the ECN broker truly represents its customers’ interests.

So, what is an ECN? Put in a simple format, ECN offers a linkage or a bridge between retail traders and liquidity providers. For the effort of connecting the two, the ECN broker, the broker charges a small fee, typically in the form of a markup on spreads. Or, in the form of commissions on every traded position depending on the volume.

An ECN trading platform, therefore, routes the clients’ orders automatically to the ECN broker’s liquidity providers. Responsible for the linkage is a FIX protocol (Financial Information Exchange) that makes sure the entire process works smoothly.



Benefits of ECN

The ECN account definition stands for the best market conditions available to retail Forex traders. An ECN broker represents the traders’ interests, being a partner interested in the trader’s success.

How come? The idea of a brokerage house is to earn a fee or commission for representation.

An active trader brings commissions. A successful active trader brings commissions all the time. Therefore, the ECN broker has a strong interest that the retail traders survive in the market and are profitable in the long run.

Therefore, the major benefit when trading with an ECN broker is that the retail trader doesn’t have to worry about the brokers’ interest. The interests align and the ethical issue mentioned earlier simply doesn’t exist.

Trading conditions are much better when using an ECN broker. Tight spreads and better execution are the norms.

Moreover, trades get executed faster. This is a tremendous advantage for traders using automated trading like Expert Advisors. But also, manual traders see less damage done by slippage.

Conclusion

There’s stiff competition among brokerage houses to attract more retail traders. But the true value of a broker sits with the efforts made to retain its customers.

An ECN broker retains the customers by offering the best available market conditions at present. Furthermore, it never trades against the trader, for the simple reason that the business model doesn’t allow it to.

By having the interests aligned, the trader and the ECN broker literally become partners in the trading arena. Both want for each party to profit: the trader from the market moves and the broker from the resulting fees from the traders’ activity.

FXOpen is such a broker. Look no further than FXOpen to represent a trader’s interests with fairness and accuracy. Moreover, FXOpen offers an affordable ECN solution with commissions starting from only 1.5 USD per standard lot.

source blog.fxopen.com

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#62

EUR/USD Technical Analysis

The Euro topped above the 1.1270 level and later started a major decline against the US Dollar. The EUR/USD pair broke many important support levels near the 1.1240 and 1.1220 levels to enter a bearish zone.

More importantly, the price broke the key 1.1200 support zone and declined heavily. Moreover, there was a close below the 1.1200 level and the 50 hourly simple moving average. The pair traded as low as 1.1143 on FXOpen and it is currently consolidating losses.


An immediate resistance is near the 1.1160 level. The 23.6% Fib retracement level of the last decline from the 1.1225 high to 1.1143 low is also near the 1.1162 level.

Moreover, there is a key bearish trend line forming with resistance near 1.1165 on the hourly chart of EUR/USD. Therefore, the pair might struggle to break the 1.1160 resistance level in the near term.

Above the trend line, the next resistance is near the 1.1185 level, the 50 hourly simple moving average, and the 50% Fib retracement level of the last decline from the 1.1225 high to 1.1143 low.

However, the main resistance is near the 1.1200 level (the previous support area). If there is a close above 1.1200, the pair could start a fresh increase.

On the downside, an immediate support is near the 1.1140 level. If there are more losses, the pair is likely to test the 1.1120 and 1.1110 levels in the coming sessions.

blog.fxopen.com

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#63

EUR/USD Technical Analysis


EURUSD has changed the volume of trading very sharply on the trading session on Thursday, it seems that high impact news about the ECB press conference greatly affects the volume changes in this pair.

While the USD durable goods Core data showed a higher number than the previous month, this also triggered a change in transaction volume.

The EURUSD price movement tends to experience a balanced buy and sell pressure, so the candle daily forms the same candle tail from the top and bottom, or forms a doji candle.

The fibo level at 100 is an area of support on this pair, while towards the level 61.8 is the first retracement area, if this area breaks out then the price might go towards the level of 50.0 fibo which is the best area for a retracement


FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#64

EUR/JPY Technical Analysis

Earlier this week, the Euro declined steadily below the 121.00 support level against the Japanese Yen. The EUR/JPY pair even traded below the 120.50 support level and traded close to the 120.00 support level.

A swing low was formed near 120.04 on FXOpen and recently the pair jumped sharply higher. It broke the 120.50 resistance level and the 50 hourly simple moving average.


Moreover, there was a break above a major bearish trend line with resistance near 120.80 on the hourly chart of EUR/JPY. The pair even settled above the 121.00 level and recently traded as high as 121.37.

It is currently correcting lower below the 121.20 level plus the 23.6% Fib retracement level of the last wave from the 120.04 low to 121.37 high. It seems like there is a short term breakout pattern forming with support near the 121.00 level.

If there is a downside break, the pair might correct towards the key 120.80 support level. The main support is near the 120.70 level and the 50% Fib retracement level of the last wave from the 120.04 low to 121.37 high.

Therefore, dips in EUR/JPY towards the 120.80 and 120.70 levels are likely to find a lot of buying interest in the near term. On the upside, the pair might face hurdles near the 121.50 and 121.80 levels.

Detail analysis in blog.fxopen

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#65

US Dollar Index Speculator Positions

Large currency speculators raised on bullish net positions in the US Dollar Index futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of US Dollar Index futures, traded by large speculators and hedge funds, totaled a net position of 29,128 contracts in the data reported through Tuesday July 23rd.

This was a weekly gain of 1,796 contracts from the previous week which had a total of 27,332 net contracts.

This week’s net position was the result of the gross bullish position rising by 5,766 contracts (to a weekly total of 42,218 contracts) compared to the gross bearish position which saw a boost by just 3,970 contracts for the week (to a weekly total of 13,090 contracts).

Speculators have now pushed their bullish bets higher for a fourth straight week and for the seventh time out of the past ten weeks.

The current standing for Dollar Index positions has risen to the most bullish level since April 9th, a span of fifteen weeks.

investing

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#66
Join "The Lord of the Crypto" - a free contest on demo accounts

FXOpen broker invites traders to take part in a regular contest on demo accounts and to try their strength in cryptocurrency trading.



“The Lord of the Crypto” is a free demo contest for crypto fans. The contest will last for four weeks from August 12 till September 6. The winners will receive valuable prizes for a total of 3000 USD. 39+ cryptocurrency pairs with Bitcoin, Litecoin, Ethereum, Dash, Emercoin, Ripple, EOS, NEO, and etc. are available for trading.

JOIN THE CONTEST

Conditions of the contest:

*dates: August 12 - September 6, 2019;
*registration is already open and will last until August 25, 2019;
*prize fund: 3,000 USD;
*free participation;
*number of winners: 10;
*Account type: competition demo ECN;
*initial deposit: 5,000 USD;
*leverage: 1:3;
*EAs: allowed;
*locking: allowed;
*lot volume: from 0.10 to 1.00 (maximum 1 lot per order);
*trading instruments: 39 pairs with BTC, ETH, XRP, BCH, ETC, LTC, etc.;
*trading platform: MetaTrader 4 (download).


Additional restrictions:

*total trades minimum quantity: 10;
*total trades minimum volume (lots): 10;
*maximum number of trades opened at a time (including pending orders): 5;
*to get the prize, you have to increase the initial deposit by at least 10%.


GET REGISTERED
Prize money:
The prize money will be added to your account in any cryptocurrency available with FXOpen at the exchange rate at the moment of prize crediting or in USD.
Please note that 50% of prize cannot be withdrawn and is intended only for trading on Crypto accounts. To get the money, you will have to open a Crypto account by yourself and email us its number at info@Forexcup.com. The profit from trading can be withdrawn at any time via any payment system available with FXOpen. You should also pay attention to the competition rules, violation of which would lead to disqualification.
*1st place - 1050 USD (525+525);
*2d place - 750 USD (375+375);
*3d place - 300 USD (150+150);
*4th place - 240 USD (120+120);
*5th place - 180 USD (90+90);
*6th place - 150 USD (75+75);
*7th place - 120 USD (60+60);
*8th place - 90 USD (45+45);
*9th place - 60 USD (30+30);
*10th place - 60 USD (30+30).
How to join the contest on demo accounts?
Newbies should register an account with[/URL]FXOpen or ForexCup, make sure that the "First Name" and "Last Name" fields are filled in in the section Settings → Profile andjoin the contest with your account data.
Existing clients should make sure that the "First Name" and "Last Name" fields are filled in in the section Settings → Profile and join the contest with your account data.
 

radex78

Active Member
#67

GBPJPY ANALYSIS

GBPJPY drop to the lowest side since the beginning of this week, the support area is now in a crucial area that has occurred in December 2018, but it seems that bearish pressure still dominates the movement.

In the weekly timeframe the oversold area has been shown by the RSI indicator which is at number 29. This may still be able to continue the bearish area, but it may not last long.

While the RSI value on the daily time frame, it is already at number 24 which is an oversold area, but still requires a confirmation of the candle, because there is no sign of a reversal.


FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#68

USD/JPY Technical Analysis


The US Dollar remained in a strong uptrend and it broke many hurdles near 108.00 and 108.20 against the Japanese Yen. The USD/JPY pair even surpassed the 108.50 resistance level to post a new weekly high.

Finally, there was a break above the 108.80 level and the pair traded close to the 109.00 level. A swing high was formed near 108.94 and the pair recently corrected lower.



There was a break below the 108.70 level and the 50 hourly simple moving average. A swing low was formed near 108.45 and recently the pair started a fresh increase. However, the upward move was capped by the 108.70 level and the 50 hourly simple moving average.

Moreover, the 50% Fib retracement level of the last drop from the 108.94 high to 108.45 low acted as a resistance. On the downside, there are many supports near the 108.50 and 108.40 levels.

There is also a major bullish trend line forming with support near 108.50 on the hourly chart. Therefore, dips remain well supported on the downside near the 108.50 and 108.40 levels.

The main support on the downside is near the 108.20 level. On the upside, the pair needs to surpass the 108.70 and 108.80 levels to revisit the 109.00 resistance area in the coming sessions. Above 109.00, the pair could test the 109.40 level.

blog fxopen

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#69
43% OF FXOPEN CLIENTS ARE PROFITABLE




Almost a year has passed since the new rules for European brokers working with private traders entered into force. The Finance Magnates editors analyzed how the profitability indicators of retail broker clients changed.

Profitability rates

As you can see from the chart below, the spread of values ??is very large. Some brokers managed to keep customers who earned more than a year ago. And some brokers failed. However, 17 brokers out of 35 improved their indicators.



CLIENT PROFITABILITY RATES

In particular, FXOpen broker lead in the table in terms of profitability of its clients this year, having increased the rate from 22% to 43% in a year. In total, 9 brokers reported that the profitability of retail traders did not change and another 9 reported a deterioration in performance. On average, the profitability of retail customers rose to 25.1% compared with 23.5% in a previous year.


FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#70

Gold Price Technical Analysis

Earlier this week, gold price declined below the $1,420 support against the US Dollar. The price even broke the $1,412 support level and tested the $1,400 support, where the bulls took a stand.

A swing low was formed near $1,400 on FXOpen and the price started a solid upward move. It broke many resistances near the $1,410 level. Moreover, there was a break above a short term declining channel with resistance near $1,408 on the hourly chart of gold.


The price rallied above the $1,430 resistance and the 50 hourly simple moving average. A swing high was formed near $1,449 and the price is currently correcting lower.

It broke the $1,440 level plus the 23.6% Fib retracement level of the upward move from the $1,400 low to $1,449 high. The price is now trading near the key $1,430-$1,432 support level.

If there are more downside, the price could test the next important support at $1,425. The 50% Fib retracement level of the upward move from the $1,400 low to $1,449 high is also near the $1,424 level.

On the upside, an initial resistance is near the $1,438 level. If the price starts a fresh increase above the $1,438 and $1,440 resistance levels, there are high chances of more gains above the $1,445 level.

blog.fxopen

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#71

USDJPY drop Trump tariff threat


USD / JPY was sharply bearish last week following the latest China tariff threat from President Trump.

The pair hit 109.32 highs on Wednesday, July 31, but ended the week below 106.60 on Friday.



However, just because something happens after something else, it does not mean there is a cause and effect between the two. In the case of USD / JPY, the stage is set for important declines long before Trump's latest tweets.

The 4h chart of USD / JPY reveals that the structure of the decline from 112.40 to 106.78 is impulsive.

Based on Elliott Wave theory, the correction of three waves in opposite directions follows each impulse.

Therefore, after the corresponding corrective recovery ends, the greater downtrend in USDJPY must be continued.

The pair was around 108.00 at the time.

It seems that the correction is ongoing as a double zigzag w-x-y.

The 'y' wave is still in process so a new swing high above the end of the 'must' wave occurs before a bearish return.

Regardless of whether or not there is a specific catalyst, Elliott Wave logic determines that a lower level will soon be expected in USDJPY.

Trump threatened to impose new tariffs on Chinese goods worth $ 300 billion.

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#72

USD/CAD Technical Analysis

The US Dollar formed a decent support base near the 1.3100 level against the Canadian Dollar. The USD/CAD pair climbed above the 1.3140 and 1.3150 resistance levels to start a solid upward move.

The pair gained strength above 1.3200 and the 50 hourly simple moving average. A swing high was formed near 1.3265 and the pair corrected lower. It tested the 1.3200 support area and is currently moving higher.



It is trading well above the 50% Fib retracement level of the recent decline from the 1.3265 high to 1.3191 low. However, the upward move was capped by the 1.3240 level.

Moreover, the 61.8% Fib retracement level of the recent decline from the 1.3265 high to 1.3191 low acted as a resistance. Therefore, if there is an upside break above the 1.3240 level, the pair could revisit the 1.3265 level.

Any further gains might push the pair towards the 1.3280 and 1.3300 resistance levels. On the downside, there are many supports near the 1.3210, 1.3200 and 1.3180 levels.

Moreover, there is a connecting bullish trend line forming with support near 1.3210 on the hourly chart. As long as the USD/CAD pair is trading above the 1.3180 support level, there could be more upsides in the coming sessions.

blog.fxopen.com

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#73
FXOpen broker invites traders to take part in a regular contest on demo accounts and to try their strength in cryptocurrency trading.



“The Lord of the Crypto” is a free demo contest for crypto fans. The contest will last for four weeks from August 12 till September 6. The winners will receive valuable prizes for a total of 3000 USD. 39+ cryptocurrency pairs with Bitcoin, Litecoin, Ethereum, Dash, Emercoin, Ripple, EOS, NEO, and etc. are available for trading.

JOIN THE CONTEST

Conditions of the contest:
  • dates: August 12 - September 6, 2019;
  • registration is already open and will last until August 25, 2019;
  • prize fund: 3,000 USD;
  • free participation;
  • number of winners: 10;
  • Account type: competition demo ECN;
  • initial deposit: 5,000 USD;
  • leverage: 1:3;
  • EAs: allowed;
  • locking: allowed;
  • lot volume: from 0.10 to 1.00 (maximum 1 lot per order);
  • trading instruments: 39 pairs with BTC, ETH, XRP, BCH, ETC, LTC, etc.;
  • trading platform: MetaTrader 4 (download).

Additional restrictions:
  • total trades minimum quantity: 10;
  • total trades minimum volume (lots): 10;
  • maximum number of trades opened at a time (including pending orders): 5;
  • to get the prize, you have to increase the initial deposit by at least 10%.

GET REGISTERED

Prize money:

The prize money will be added to your account in any cryptocurrency available with FXOpen at the exchange rate at the moment of prize crediting or in USD.

Please note that 50% of prize cannot be withdrawn and is intended only for trading on Crypto accounts. To get the money, you will have to open a Crypto account by yourself and email us its number at info@Forexcup.com. The profit from trading can be withdrawn at any time via any payment system available with FXOpen. You should also pay attention to the competition rules, violation of which would lead to disqualification.

  • 1st place - 1050 USD (525+525);
  • 2d place - 750 USD (375+375);
  • 3d place - 300 USD (150+150);
  • 4th place - 240 USD (120+120);
  • 5th place - 180 USD (90+90);
  • 6th place - 150 USD (75+75);
  • 7th place - 120 USD (60+60);
  • 8th place - 90 USD (45+45);
  • 9th place - 60 USD (30+30);
  • 10th place - 60 USD (30+30).

How to join the contest on demo accounts?

Newbies should register an account with FXOpen or ForexCup, make sure that the "First Name" and "Last Name" fields are filled in in the section Settings → Profile and join the contest with your account data.
Existing clients should make sure that the "First Name" and "Last Name" fields are filled in in the section Settings → Profile and join the contest with your account data.

Source: FXOpen News.
 

radex78

Active Member
#74

USD/CHF Technical Analysis

The US Dollar failed to surpass the 1.0000 resistance and started a strong decline against the Swiss franc. The USD/CHF pair broke the 0.9900 and 0.9840 support levels to move into a bearish zone.

Moreover, there was a close below the 0.9800 support and the 50 hourly simple moving average. Finally, the pair traded below the 0.9740 support and tested the 0.9700 support area.



A swing low was formed near 0.9703 and the pair recently started an upside correction. It broke the 0.9740 resistance plus the 23.6% Fib retracement level of the downward move from the 0.9974 high to 0.9703 low.

However, the pair struggled to surpass the 0.9800 resistance and the 50 hourly SMA. Moreover, there is a key bearish trend line forming with resistance near 0.9765 on the hourly chart.

Therefore, if there is a successful break above the 0.9765 resistance, there could be more upsides. However, the main resistance is near the 0.9800 level, above which the pair could start a decent upward move.

Conversely, if there is no upside break above 0.9765 and 0.9800, the pair could resume its decline. An immediate support is near the 0.9740 level, below which USD/CHF might revisit the 0.9700 support level in the near term.


FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#75

EOS/USD Analysis

Last Monday the price of EOS was $4.133 end even spiked further to the downside reaching $3.87 at its lowest point but since then has recovered to $4.58 on Monday this week. From Monday the price started decreasing again and came down by 10% on the next day but is currently being traded at $4.187 as it’s retesting its horizontal support level.



On the hourly chart, you can see that the price is stuck in a horizontal range much like in the case of Litecoin and is moving between the $4.58 and the $4.16. This range has been formed after the price ended its downfall when it came down to $3.6 coming from slightly above $6 which was a decrease of 40.19% which could be interpreted as a consolidative range. The prior downfall was a higher degree correction from the yearly high at $8.63.

As the price decreased in the previous period we might be seeing another attempt of recovery with the horizontal range being the 2nd wave out of the starting five-wave move to the upside, but since it took some time for the price to form the mentioned range it doesn’t look much likely. More likely we are seeing another corrective range after another downfall.

blog FXOpen
FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 

radex78

Active Member
#76

Pound Through $ 1.21 On High Recession Fear


The GBP is under pressure due to concerns that the UK economy could head for the first recession in a decade.

The toxic combination of Brexit uncertainty, running out of Brexit inventory built before the previous Brexit deadline and the closure of car factories, resulted in the British economy contracting 0.2% in the second quarter.

Growth of only 1.2% is expected throughout the year, down from 1.8% and far from expectations.

Given that the next Brexit deadline is 2½ months, there is still time for Brexit anxiety to continue to have a negative impact on the economy.

This means a second consecutive second contraction and therefore a technical recession is now a very real possibility. Adding to the misery of the pound, industrial production and manufacturing figures also lost hope by a large margin.

The outlook for the pound remains very fragile because the prospect of Brexit without agreement is increasing. With the blame game between the EU and Britain in full swing, the chances of the two sides to renegotiate Irish support seem slim; instead of preparing for worse case scenarios, no agreement prioritized Brexit.

Add to this a clearly bleak mix of British fundamentals, with little prospect for improvement in the near future and it's easy to see why bears are controlling the pound

GBP / USD levels to watch out for

The pound has broken through to $ 1.21 and is looking for support at $ 1.2080.

A break here could open the door to support in the area of $ 1.2030 before the psychological level of $ 1.20.

On the plus side, resistance can be seen at $ 1.2180 ahead of $ 1.22.




FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 
#77

EUR / USD is still in a triangle shape

EUR / USD is still moving in the daily range, since 6 August ago the pair has not been able to pass the breakout, the price is moving in the daily high and low frames on the frrame.

If this pair allows a break low, after the resistance area it will be possible to reverse the trend towards bearish.

The pattern formed on the daily timeframe shows a triangle pattern, where the movement is increasingly conical due to weakening volume, this week is a crucial week of possible reversal of the trend



FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 
#78

EUR/GBP Technical Analysis

The Euro remained well bid above the 0.9100 support area against the British Pound. The EUR/GBP pair started a decent upward move and climbed above the 0.9120 and 0.9200 resistance levels.

It opened the doors for more gains and the pair broke the key 0.9250 resistance plus settled well above the 50 hourly simple moving average. Finally, the pair traded above the 0.9300 level and formed a new multi-month high at 0.9324.



At the moment, the pair is correcting gains below 0.9310. An immediate support is near the 0.9300 level plus the 23.6% Fib retracement level of the recent wave from the 0.9214 low to 0.9324 high.

On the downside, there are many important supports, starting with 0.9280. The next key support is near the 0.9270 level plus the 50% Fib retracement level of the recent wave from the 0.9214 low to 0.9324 high.

The main support is near the 0.9250 level and the 50 hourly simple moving average. Moreover, there is a major bullish trend line forming with support near 0.9240 on the hourly chart of EUR/GBP.

Therefore, a downside correction towards the 0.9275 or 0.9250 support is likely to find a strong buying interest in the near term. Only a close below 0.9240 and the 50 hourly simple moving average might start a major decline.

On the upside, an initial resistance is near the 0.9325 level, above which EUR/GBP could rise towards the 0.9360 and 0.9370 levels in the near term.

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 
#79
WHAT IS LEVERAGE IN FOREX?


Leverage is a blanket term that describes debt that a person or business uses to increase their exposure to a market. Banks leverage their deposits to gain extra income, and many companies use debt to expand the amount of activity that is possible in a given time frame.

A company may use debt to fund the acquisition of a smaller company which is experiencing a growth phase. The amount of money the larger company has to pay on the debt is likely to be much smaller than the revenue growth from the company they are buying, so taking on the leverage makes a lot of sense.

Many traders and speculators also use leverage to amplify the potential gains from a given investment. By using more money than is deposited in a margin account, a small move in the markets will produce larger moves in the underlying account.

What Is Leverage in Forex?

Almost every Forex trader uses leverage when they trade in the global currency markets. Using leverage in the Forex markets simply means that a trader uses borrowed money to make Forex trades so that smaller moves in the markets create meaningful profits.

Using leverage in the Forex markets is the same as using leverage in any other market. There are risks involved in using leverage, which are discussed below.

How Does Forex Leverage Work?

Let’s say that a trader has $5,000 in their Forex brokerage account, and they want to take on a $100,000 position in the EURUSD cross. The trader will need to use $95,000 in borrowed assets, which would give them a leverage ratio of 20:1.

Leverage is easy to calculate. Just take the size of the position, and divide it by the amount of money in a margin account. In the above example, the amount of money backing up the $100,000 position is 1/20th the amount of the position, which can also be expressed as leverage of 20:1.


The margin balance is used to secure the position from a broker, and the trade is placed. If the market goes in the right direction for the trader, their profits will be 20 times higher than if they were trading with no leverage.

How to Use Leverage in Forex Trading

Leverage is almost always used by Forex traders because the amount of movement in major currency pairs is generally very small. By using borrowed money smaller market movements become much larger.

When the Euro falls by 0.05% against the US Dollar, an unleveraged position would barely change in value. If the trader is using leverage of 10:1 that 0.05% move is now worth 0.5%. If leverage of 100:1 is used, it becomes a 5% movement.

Choosing the right level of risk for a Forex trade is critical to maintaining a brokerage account, and making sure that the value of a position isn’t too large for the underlying margin. Failure to understand the risks that are involved in leverages positions can lead to big losses in the space of a single trading day.

Leverage risk

Using leverage means that both gains and losses are magnified.

For example, in the example we used above, a move of just 1% in the wrong direction would mean that the trader would lose 20% of their margin balance. When a trader uses leverage, it is very important to calculate stop-loss levels with extreme precision.

Knowing how to use stop-loss orders can help a trader to limit the amount of risk that is inherent to using leverage. Leveraged positions should never be opened without a stop-loss order in place, and the level of the stop-loss order should maintain a positive margin balance.

FXOpen Broker Offers Great Trading Tools

FXOpen Broker gives its clients the ability to use as much as 500:1 leverage with some of the best Forex account options available.

Aspiring traders can open a Micro account at FXOpen Broker with as little as $1, and immediately gain access to leverage as high as 500:1. It also has great account options for more experienced traders. An ECN account with FXOpen Broker can be opened with $100, and gives traders access to more than 70 currency pairs, in addition to CFD trading.

Using leverage is always going to carry risk, so FXOpen Broker gives its clients the industry-standard MT4 and MT5 trading platforms to manage buy and sell levels with some of the best trading platforms ever created.

FXOpen Broker was founded as an educational platform for traders, and it maintains its dedication to helping clients become the best traders possible. If you want to learn more about the educational resources that FXOpen Broker offers, please click here!

source blog fxopen

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.

 
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HOW DOES CFD TRADING WORK?


CFD trading is one of the best ways for small investors to gain access to currency markets, and a whole lot more. Today modern Contract for Differences (CFD) brokers give their clients leveraged CFD that cover stocks, major indices, and FOREX markets.

In addition to being easy to trade CFDs give investors the ability to rapidly trade between asset classes. There is no other kind of financial instrument that allows investors to take on various amounts of leverage across most major asset classes.

What is CFD Trading?

If you want to know more about ‘what is CFD trading’, you are in the right place. At its most basic level, Contract for Differences trading allows investors to trade a derivative contract with a trusted CFD broker.

Most brokers use a trading platform that is easy to use and allows investors to buy and sell Contracts for Differences directly with the broker. If the value of the contract rises, then the investor will make a profit when the contract is sold.

Trading CFDs is pretty simple and can make savvy investors a lot of money.

Are CFDs Different from Stocks?

In some ways, trading stocks is similar to trading CFDs.

Like stocks, CFDs can be traded with retail brokerage accounts. Unlike stocks, CFDs aren’t the equity of actual companies. A Contract for differences represents the value of another financial instrument, like an equity, commodity, FOREX pair.

Unlike stocks, a CFD is purchased from a single broker, who will be your counterparty for the trade. You don’t gain legal title to the equity of a company, and you can’t transfer the ownership of the CFD to a third party in most cases.

How does a CFD Work?

A CFD is simply a contract that represents the value of another financial instrument.

For example, if you buy a CFD that is tied to the value of the NASDAQ 100, you can buy or sell that index in the form of a Contract for Differences.

Let’s say you think that the value of the NASDAQ 100 is going to rise.

At the moment you want to buy the stock index, it is trading at 7452. You can buy the NASDAQ 100 at this level, and if the price of the index rallies 7512, you will be able to sell the CFD and make a profit.

Depending on the CFD broker, you may be able to buy a partial contract, which would require less capital in your margin account. Nearly every CFD broker will allow you to use leverage, which allows you to trade with more money than you have deposited with the broker.

The Benefits of CFDs

One of the biggest reasons why CFD trading makes sense for advanced investors and traders is the leverage they offer.

Unlike margin accounts that limit the amount of borrowed money you can use to a fraction of your capital, most CFD brokers will allow you to use a multiple of your account’s capital.

Let’s say you have $1,000 USD in your margin account, and you want to buy $10,000 worth of NASDAQ 100 CFDs. A $10,000 position in NASDAQ 100 CFDs would represent leverage of 10x, which is possible with most CFD brokers.

It is important to remember that a fall of 10% in your position would wipe out your margin capital. Learning how to use risk management strategies is essential for any CFD trader. On the other hand, a 10% rise would double your initial margin, which is a 100% gain in real terms.

One more benefit is that CFD provides a variety of trading opportunities. Many brokers currently offer index, treasury, currency (including cryptocurrency), stock, sector and commodity CFDs.

Ready to Start Trading CFDs with FXOpen Broker?

There are numerous CFD brokers out there, and it is important to deal with a CFD broker you can trust. FXOpen Broker has a range of account options for traders to choose from.

With micro accounts that can be opened with just $100, FXOpen broker is ready to progress with a young trader as they grow. It also offers full ECN accounts for advanced traders that offer industry-leading fees which take advantage of every pip.

FXOpen Broker more than 90 FOREX pairs, and has added numerous cryptocurrency pairs to its platform as the crypto world gained in popularity. FXOpen Broker also give its clients the industry-standard MT4 trading platform to use, which has a depth of third-party add-ons available to fine-tune it to perfection.

If you want to learn more about all the FOREX pairs, cryptocurrency pairs, and CFDs that FXOpen Broker has waiting for traders, just click here!


source blog fxopen

FXOpen
FXOpen - one of the most successful and fastest-growing Forex brokers.
UK & AU regulated. ECN, STP, Crypto, Micro, PAMM accounts.