Bid Ask Spread in Forex Trading

Bid Ask Spread in Forex Trading

If a Forex trader executes a forex deal that a broker or market maker has quoted on, it usually means that a few pips will be paid away by the trader to be able to take on or close the forex position they want is called the spread.

In quotations made by forex market makers, the trading spread observed is simply defined as the difference between the bid and ask price of a currency pair. The bid price is the exchange rate at which the currency pair will be purchased by the market maker, while the ask price is the exchange rate at which the currency pair will be selling.

Let suppose the EUR / USD currency pair as an example. You can remember that the bid exchange rate that the trader will sell is 1.05716, while the exchange rate of the purchase is 1.05733 for the offer or order. The trade spread is the difference between the bid or asking price. That would be either 0.00017 or 1.7 pips in this case.

Which Brokers Offer the Best Forex Spreads?

ICMARKET which is regulated and the most trusted broker. They provide very tight raw fix spread accounts on almost every pair with fast execution.
https://www.icmarkets.com/?camp=9803

Do you want to become Success Supply and Demand Trader?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

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Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

How to Read Candlestick Charts in Forex

How to Read Candlestick Charts in Forex

For any technical trader looking to gain a deeper understanding of how to read forex charts in general, learning to read candlestick charts is a great starting point. In the 18th century, Candlestick charts were invented and created, as you may already know. The beginning reference to a candlestick pattern used in financial markets was invented in Sakata, Japan, where something similar to a modern candlestick was used by a rice merchant named Munehisa Homma to trade in the Ojima rice market in the Osaka area.

While bar charts and line charts were very common among Western traders, in the early 1990s, a Chartered Market Technician (CMT) named Steve Nison introduced Japanese Candlestick charts and additional trends to the Western financial markets. Due to its extremely detailed predictive characteristics, the popularity of Candlestick charts has risen among Western market analysts over the last few decades. Candlestick charts can play a crucial role in the financial markets’ better understanding of price action and order flow.

Reading Candlestick:

candlestick

You need to grasp the basic structure of a single candle on the candlestick chart. For a given time span, each Candlestick contributes; it may be 5min, 1H, Daily, Weekly, etc. A Candlestick represents four distinct values on a chart, regardless of the time period.

  • The opening price
  • The closing price
  • The highest price
  • The lowest price

When you read a candle, it will give you information on whether the session ended bullish or bearish, depending on the opening and closing prices. Bullish Candlestick when the closing price is greater than the opening price. By contrast, Bearish Candlestick when the closing price is lower than the opening price. And during the time period, the upper and lower shadows of the Candlestick represent the highest and lowest cost.

Do you want to become Success Supply and Demand Trader?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
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Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

Trading Opportunities in Volatile Markets

Trading Opportunities in Volatile Markets

Forex traders consider volatility as one of the most relevant knowledge measures for decision-making on opening or closing trade positions. Actual price quotes, in fact, are constantly changing at different rates: sometimes rapidly, sometimes slowly. That is why a great deal of attention should be given, among all other market features, to volatility as a quantitative indicator of a currency pair’s past, present, and future price range.

Volatility refers to the amount of uncertainty or risk about the size of changes in the value of a security. Higher variance means that the value of protection can theoretically be distributed over a broader spectrum of values. This means that the protection price will shift drastically in any direction over a short time span. Lower volatility implies that the value of a security does not fluctuate significantly, but increases in value over a period of time at a steady rate.

No path is indicated by volatility. It clearly determines the degree of an exchange rate’s fluctuations. A currency pair that is more volatile is more likely than one that is less volatile to increase or decrease in value. Volatility is also seen as a negative in that uncertainty and risk are portrayed. Higher volatility, however, typically makes forex trading more appealing to market participants where most traders blow their account because the market has not a proper direction. The opportunity for profit in volatile markets is a significant consideration for day traders, which contrasts with the long-term view of buying and holding by investors.

Liquid markets such as forex, since their high liquidity results in lower volatility, prefer to shift in smaller increments. In general, more traders trading at the same time results in the price making up and down moves. In the forex market, however, dramatic and unexpected movements are also likely. Because so many political, economic, and social events influence currencies, there are many incidents that cause prices to become volatile. In order to locate possible gains and to help prevent potential losses, traders should be aware of current events and keep up with financial news.

Analytical data on the volatility of currency pairs is open to the public and easy to access. It is provided either by forex brokers or via their trading platforms in most instances. For forex traders, forex market volatility is not simply a disorderly move. Trends and trends appear even within seemingly random value fluctuations as market participants try to make sense of the price action. In general, high volatility markets mean that patterns are reversed much quicker than average, whereas low volatility markets appear to have a much longer pattern.

Do you want to become Success Supply and Demand Trader?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

Currency Pair Correlation in Forex Trading

Currency Pair Correlation in Forex Trading

What is the Correlation in Forex Trading?

The statistical measure of how two different assets move in relation to each other is the correlation in finance. There is a positive correlation between assets tending to move in the same direction. For example, A positive correlation between the value of the Canadian Dollar compared to the U.S. is observed. The dollar and the price of crude oil in the United States Dollars.  Conversely, there is a negative correlation between assets usually moving in opposite directions. There is typically such a negative correlation between the exchange rate of EUR / USD and the exchange rate of USD / CHF.

Currency correlations highly influence the overall volatility of a portfolio of forex currency pairs, and thus the risk involved in keeping them. As a consequence, a crucial aspect of currency risk management for any serious forex trader to understand learning how to use currency correlation. The trader should first consider how to market correlation influences the value of currencies to comprehend the idea of forex correlation in currency pairs.

Positive Correlation:

If two currency pairs move in the same direction, one pair moves up, the other pair also move up. The EUR / USD and GBP / USD are positive, for instance, because if the demand for the U.S. Dollars is increasing, and the amount of both currency pairs is generally decreasing. Alternatively, if the market for U.S. Dollars will fall, then both currency pairs’ levels will begin to rise.

Negative Correlation:

The negative correlation is the opposite of the positive correlation, with currency pairs’ exchange levels typically moving inversely to each other. For example, the EUR / USD and USD / JPY currency pairs have a negative correlation. As demand for US dollars grows, currency pairs frequently move in opposite directions, with USD / JPY usually rising due to the base currency in the pair being the US dollar, and with EUR / USD decreasing since the counter currency in that pair is the US dollar.

Want to become Success Forex Trader?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

How to Trade Triangle Chart Patterns

How to Trade Triangle Chart Patterns

What is the Triangle Chart Pattern?

 

The triangle pattern is a particular figure created on the price chart, usually recognized as, like the sides of a triangle, the tops and the bottoms of the price action move towards each other. Traders foresee an eventual breakout from the triangle when the upper and the lower stage of a triangle interact. As such, for the identification of breakout entry points, many breakout traders use triangle formations.

On a Forex chart, there are various kinds of triangles that can be seen. You should know the difference between the formations before you jump into triangle trading. Now we are going to take a closer look at the different trends of the triangle chart and the associated trade setups. If you are armed with this knowledge, you should be able to add your trade setup arsenal to a triangle trading strategy.

Ascending Triangle Pattern:

This pattern of the triangle has its flat upper side and ascending the lower one. The tops of this triangle are on the same level in this way, and the bottoms are rising. Typically, this sort of triangle has a bullish character. You should be prepared to capture a bullish price change equal to at least the size of the triangle when you spot this triangle on the chart. Breakouts through the upper level are used in this manner to set entry points for long positions.
This is the shape of an ascending triangle pattern chart:

Ascending-Triangle-Pattern

Descending Triangle Pattern:

The ascending and descending triangles are, as noted earlier, a mirror opposite of each other. As such, it has the opposite feature of the descending triangle pattern. Below the market action, the flat side of the descending triangle. The triangle’s upper side is bent downwards. The downward triangle has a bearish potential equal to at least the size of the trend in a bearish market. The descending triangle is then used to open short positions after its lower (flat) side has been broken by the price.
This is the shape of a descending triangle pattern chart:

Descending-Triangle-Pattern

Want to become Success Forex Trader?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

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