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-Whether you are looking to acquire new trading skills or hone your expertise, our free educational materials will provide you with the knowledge you need to trade with confidence.
Want to gain a wider forex market position control by investing a minimal amount? Consider using leverage in forex. It implies using borrowed funds to raise your trading position more than your cash balance can let you do it. Forex traders usually employ leverage to churn out profits from relatively small currency pair price changes. However, there is a double-edged sword with leverage since it can multiply profits as well as losses. Therefore, using leverage in the right amount is key for traders. Forex market leverage can be 50:1 to 100:1 or more, which remains significantly greater than the 2: leverage usually offered in equities and 15:1 leverage in futures.
Seeking forex trading without any third-party involvement? You have an electronic communication network (ECN) by which you can trade through a computerized system that matches buy and sell orders automatically, eliminating the need for a third party. ECN forex trading especially helps investors across different geographies seeking a secure transaction without a third party. With ECN, investors receive privacy, the luxury of automated investing, and the approach to trade beyond normal market hours.
Have you witnessed a difference between the expected price of a trade and the price at which it is executed in real time? This might be due to slippage, which can happen at any time. However, it prevails mostly when the market remains highly volatile. At the same time, it can also happen during large order executions. Read on to know more about slippage, its impacts, and the strategies to rein in adverse effects.
Gold is represented by the XAU/USD pair in the global forex market, reflecting the value of one ounce of gold against the US dollar. Here, XAU represents gold, while USD is obviously the US dollar. Gold acts as a commodity, and the dollar remains the primary currency in this pair. Forex traders use this pair to trade and invest in gold price fluctuations.