Liquidity in the forex market is the ability for a currency pair to trade.
I mean Buy/Sell on Demand.
So when you trade Major currency pairs you are trading a market that is extremely liquid.
But not every currency pair is liquid.
Currency pairs actually have different levels of liquidity.
And this again depends on whether it is a Major pair or a Minor pair and then of course you also have the exotic pairs.
So Forex liquidity dries up as trader’s move from major pairs to minor pairs and finally to the exotic pairs.
Liquidity Pairs.
What are High Liquidity Pairs? / what is liquidity in forex?
Firstly high liquidity in forex refers to a currency pair that can be bought or sold in large quantities without major differences in the exchange rate.
So below is a list of the major pairs, which means pairs with a high liquidity.
EUR/USD (Is the world’s most heavily traded currency pair, representing more than 20% of all forex transactions.)
USD/JPY (Is a distant second place.)
GBP/USD
USD/CHF
EUR/GBP
AUD/USD
USD/CAD
NZD/USD
What are low liquidity pairs? / what is liquidity in forex?
Secondly Low liquidity pairs are pairs that cannot be bought or sold without major differences in its exchange rate price level.
Like exotic pairs for example AUD/NOK (Australian Dollar/Norwegian Krone).
Liquidity Levels.
What are Liquidity Levels? / what is liquidity in forex?
For large institutions and traders who have to fill large orders, finding high liquidity levels is very important.
So a market’s liquidity has a big impact on how volatile the market’s prices are.
When these major players enter the market, they naturally want their orders to be filled at the best price.
However, given the size of their positions, they need to find enough counter-forces to fill their orders, and here is the key, with the minimal amount of slippage.
For example imagine a big player coming in at a low liquidity area, the volatility it would create would have a negative impact on the average price it gets.
So low liquidity often makes the market more volatile and also causes the price to change drastically.
But where exactly do we find these levels?
The answer is actually very simple where Stoploss orders are hidden.
Maybe you already know the word Stop-Hunt? This actually has everything to do with it.
So the fact that large players have to enter the market in areas of liquidity as they aim to accumulate major positions.
These areas will always attract interest as that’s where pockets of liquidity exist.
As a result allowing them to get the best average price by reducing the risk of slippage.
Finally below is a clear video about how you can trade with High liquidity levels.
Or want to know more about what is liquidity in forex?
So if you are a beginner trader and to become a good professional forex trader.
Want to know more about what is liquidity in forex?
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones. Which are 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 Demand.
So join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations.
Which boosts your trading skills make you ProfessionalForex Market Trader.
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.
Is Forex Trading Legal?
This is a question I often hear from traders.
And yes forex trading is legal and trading the financial markets is completely legal.
Although there are special rules and laws in some countries and forex trading is banned in some countries.
The rules regarding Forex trading are different in every country.
So I advise you to take a good look at what the rules are in your country.
I have described below a few countries with special rules regarding Forex trading.
Countries where Forex is restricted.
Belgium.
Since 2016, the Financial Services and Markets Authority (FSMA) of Belgium.
Has banned binary options and rolling spot forex contracts.
Belgium simultaneously banned aggressive marketing.
Ensuring investors won’t be exposed to promises of riskless profit and outsized returns.
So as a resident of Belgium you are free to trade forex.
But you will have to use the services of an overseas broker.
Malaysia.
Trading forex is legal in Malaysia but only with a registered and approved financial institution.
So the official rule in Malaysia is that it is only allowed to trade forex at licensed institutions.
Of which there are several!
India.
Firstly forex trading is legal in India.
Securities and Exchange Board of India (SEBI) is the body responsible for the Forex trading industry.
SEBI regulates all the forex brokers in India regardless of whether they are onshore or offshore brokerage firms.
But when we talk about retail trading in India, there are limitations.
The government has not forbidden Indians to trade Forex.
So they have limited trading for Indian residents to only trade currency pairs against INR (Indian Rupee).
As a an Indian resident, as long as you are trading through an Indian Brokerage.
Which allows access to Indian Exchanges such as the NSE, BSE, MCX-SX.
And providing access to currency derivatives is entirely legal.
China.
Despite being the most populated country with a sound economy, they have restricted the forex market.
As similar to other Asian countries, China has restrictions on foreign brokers, trading forex and trading software.
So if a foreign trading company wants to trade with locals, it has to open a new local company in China.
Japan.
Japanese are way ahead of what they are doing but they have also given limited live forex exposure.
So Japanese also cannot use mobile trading. Margin trading is also not allowed in this nation.
Using these restrictions over online trading, Japan is protecting its economy.
Is forex trading legal
Countries where forex is banned.
Zimbabwe
Syria
British Columbia (Canada)
Cuba
Sudan
North Korea
Myanmar
Liberia
Iran
Ivory Coast
South Korea
Belarus
Quebec (Canada)
In addition, there may be a ban on trading in countries that live according to the laws of Islam.
Such as Iran, Saudi Arabia, Pakistan, etc.
But trading in financial markets can be legal when using the so-called Islamic account.
Which implies trading without swaps.
(according to Sharia law, it is prohibited to receive or pay interest).
Why countries restricting or banning Forex Trading?
In conclusion some countries view gambling and forex trading as the same thing.
That is why trading forex is restricted or banned in some countries.
Because we all know if you don’t use good risk management you can lose your entire capital.
And the country wants to protect its inhabitants from that.
There is also a danger to the economy and currency of the country due to forex trading.
If you are a beginner trader and to become a good professional forex trader.
Want to know more about Is forex trading legal?
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones. Which are 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 Demand.
So join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations.
Which boosts your trading skills make you ProfessionalForex Market Trader.
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.
You are probably interested in trading forex or you are looking for a good forex trading course but you are not sure what to do.
Because is a forex course worth it?
After all, we now live in a time when you can also find a lot of information for free on the internet.
I mean google and youtube are these times of information seeking our best friends.
So if you can easily find the discipline yourself to learn from all the free and good information you can find online then you should definitely do that.
But I also know from experience that because of all that information you sometimes no longer know where to start and how exactly you can find a good working strategy.
But now let’s talk about the forex courses and training, are they worth spending your money on?
If we take a look around we can find forex courses, training and mentors everywhere.
We all know that the financial markets can be complex.
They offer a wide array of arenas and instruments one can trade.
There are all kinds of methods and techniques for identifying good trades and making money management decisions.
And there are scores of products and services intended to teach you how to play the market and/or help you do so.
While there certainly are some of dubious character operating in this field, as in any business,
the vast majority of the people providing such offerings are honourable folks with the best of intentions.
Most forex courses teach you to trade in the right steps and in the right order.
So if you are looking for a good Forex trading course, take a good look at what they teach you.
It is important that in addition to offering a strategy to be learned, you also learn the tricks of good risk / money management.
And don’t forget that the psychological aspect also plays an important role.
What should you choose? Online forex trading course.
When choosing the right forex course you start by delving into the different strategies and techniques that exist.
If you have made a choice for yourself, you will of course look for the course or mentor that best suits your needs.
Then it is of course also important that you check whether there are reviews and experiences about the course or mentor so that you are not scammed.
We know, of course, that there are many good mentors and courses.
But unfortunately there are also a lot of scammers active in the world of learning to trade forex.
So watch out!
Conclusion
A good forex course or training is certainly worth it from my point of view.
Think of it as an investment in yourself.
It will all pay off later if you have completed the correct forex course.
You will immediately learn to trade in the right way and so you can reach your final goal faster.
But again immerse yourself in the experiences of others so that you do not lose money to a scammer!
When I had made my course I thought it was important to make all the separate elements into a whole.
Because I think I had the most trouble with that when I first started trading.
What worked for me and why am I making success in the forex market?
I have bundled all of this together in a book and a course.
With the intention to teach others to trade in the right way. We already have a lot of successful traders in the community.
That makes me proud!
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are 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 ProfessionalForex Market Trader.
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.
Let’s face it, everyone is looking for easy ways to make money.
Some people who have a lot of savings invest in companies or buy stocks of large companies.
And still other people might take a gamble on the Forex Market.
Forex is also super popular right now and many people have heard about Forex trading.
Since it gives the opportunity to earn money to everyone and at any time as there are round the clock sessions
But you can also lose your money very quickly.
Especially if you don’t know enough about it or are not well informed about it.
That is why I will now give you some simple tips so that you will not lose so much money on the Forex market.
Let’s start with the main rules:
Learn something about forex trading before you even start!
Find a good and reliable Broker.
Start with small money. And don’t get yourself into debt.
Keep a record!
Learn to make a good and correct Analysis.
These are the first and most important tips!
I will now give you 1 extra tip where most novice traders fail in particular.
Do you see the image above?
This where the majority lose money, it’s a monday New York has yet to open and the impatient ” the big part ” ‘is not rewarded.
Why? Because they are impatient and have preferably already taken 3 trades for New York open.
The large volume is in the London and New York overlap, these are the two largest sessions and have the most volume.
with the largest players active in the markets.
You want to trade a market that has enough volume to flow with, and where you can also be profitable.
That is why it is very important that you don’t jump into a trade when there is no volume.
We don’t want to end up in a market that is almost standing still, right?
Believe me less is more, a number of golden rules such as Supply & Demand are at fresh levels, that is our core focus. and so we anticipate on that too.
Within these levels you can find the orders and your winrate will be higher.
And again for these trades in Supply and Demand volume is needed!
So pay attention to this!
Even if you trade in a different way than Supply and Demand, the volume is still very important to open a successful trade.
I can therefore recommend everyone to be patient and let the trade come after you.
And trade the hours with the most volume, see below a correct schedule with time zones & trading hours where you will find the most opportunities to catch a good trade with a good chance of success.
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are 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 ProfessionalForex Market Trader.
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.
Many who know me know that I love to trade gold.
I really love gold!
If you learn to trade gold in the right way, you will not want anything else I can promise you.
In this blog I will go into more detail about ‘how to trade gold’ and you may understand my love for gold at the end of this blog.
As many already know I only trade Supply and Demand and this way of trading also works extremely well on gold.
Drawing the Supply and Demand zones on gold
If you are a member of my community you now know how to draw the correct Supply and Demand Zones.
And you also know that every forex pair or gold, for example, reacts differently to the Supply and Demand zones.
We know that the behavior of gold, like GBP / JPY, for example, moves a lot more violently than for example EUR / USD.
That means that gold is more likely to fake out at the Supply and Demand Zones.
And we should certainly take this into account when we trade gold.
Above, I took a piece from the XAU / USD chart. I have drawn a Supply zone and a Demand zone here.
As you can see in the image above, it is very unwise to get in too early with gold.
For example, at the first touch of the Supply, we see the price first go through a bit. Then the price falls back and closes below the baseline.
This is a behavior that gold often shows.
My tip is to be patient with trading gold. Truly your patience will be rewarded.
This piece of the chart is from the H1 timeframe and I advise you to also switch to the lower timeframes such as the m30 or the m15 to find a good entry on gold.
When is the right time to take a sell on gold? – How to trade Gold?
To start from the chart above and also only the h1 timeframe.
Would be the correct time to take a sell on gold if the price has come back and then closed below the baseline.
The members who have completed the course know how to draw a correct baseline.
Of course this is not the only thing we should pay attention to and you should also check the other points explained in the course to see if the trade is valid to take.
Among other things, we still have to pay attention to the right volume, what is the momentum, and the higher time frames or whether there are no other important zones in the area.
Only if this is all correct can we take a nice Sell from the Supply on gold.
The XAU / USD chart now on the h1 timeframe.
We see that the price is now entering the Supply zone and we now have to wait and see what the price does here.
Above the Supply zone we see another Supply zone which is also clearly visible on the H4 time frame. So we have to take this into account.
There is a good chance that the price will rise further to the Supply zone above because this is also an h4 zone.
So again have patience and watch how the price develops.
Also pay close attention to the volume and the possible reversal at 1 of the 2 supply zones.
I hope that I was able to make it clear in brief how I trade gold and what you should pay attention to when trading gold.
If you want to go deeper into this subject, you can always join my course and you will learn everything about trading gold.
Do you want to become Success Supply and Demand Trader or want to know how to handle a losing trade?
If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are 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.
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.
How to handle a losing trade?
Let’s face it we all know that every now and then we have to deal with a losing trade.
And this is not bad at all and this is completely part of it.
And if you have good risk management, it doesn’t have to hurt at all.
I think every trader can identify with blowing up your trading account.
This often happens when you have just started trading and you think you are all there with just a good trading strategy.
Then your trade goes into the min and you stick to your strategy and you move your stop loss more and more or you remove it completely.
Eventually the trade keeps going the other way and you get that annoying message from a margin call.
I bet almost all novice traders have had to deal with this at some point.
How to handle a losing trade?
Or simply the fact that you trade too large a lotize on your account that is too small.
This one will also be familiar to many traders, I think especially in the beginning of the trading career.
How painful is it if you lose your entire account with just 1 losing trade that you may have spent months trading it together? ouch!
But how do experienced traders do this, how do they deal with a loss?
It is actually very simple use strict risk management!
Perhaps this is also one of the most important parts that you should learn before you start trading.
Only risk a small percentage of your account at a time!
How to handle a losing trade?
Give your trade room to move and don’t worry too much.
And if a trade takes too much time to gain profits, you take the loss and cut the trade lose earlier and than you can look for other trades!
How to handle a losing trade?
Just remember that you are going to lose money. This is going to happen, and it cannot be avoided in the long term no matter what you do.
There are factors outside of your control, and this means that you can prepare as much as you like, something will still go wrong.
Keeping that in mind, remember also that this doesn’t have to be a bad thing.
If you lose money, so be it.
The fact of trading is that things move very fast.
If you actually expect to lose some of the time, but make larger winning trades when you do win compared to when you lose, then you are making progress and profit.
Everyone knows it gets rough, and you can’t just ‘win’ because of luck, or even your skills.
Sitting back and cutting your losses is actually part of a successful trader mindset.
Ignoring this makes no sense.
Set a reasonable loss limit and leave it there. Then get on with your trading.
This way, no matter what happens, you’re not going to lose everything even if you have a bad day.
Do you want to become Success Supply and Demand Trader or want to know how to handle a losing trade?
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 are 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.
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.
