Understanding the Retail Trading Side of the Forex Market

Understanding the Retail Trading Side of the Forex Market

The Foreign Exchange Market, also known as Forex (FX), is an international currency trading market. It is the world’s biggest and most exciting financial market, with a daily trading volume of more than $5 trillion. Essentially, the Forex market is where banks, investors, companies, governments and traders come in to swap currencies. The smaller portion of the Forex market is called the retail trading understanding or individual Forex market and because of the presence of retail Forex brokers, anyone can trade this market with as little as $100.

Forex is the speculation on the price of one currency against the other as it relates to retail traders. Example, if you believe the pound will rise against the US dollar, you can buy the GBPUSD currency pair low and then sell it to make a profit at a higher price. Indeed, you’ll be in a losing position if you buy the British pound against the dollar (GBP/USD), and the US dollar strengthens. So, it’s important to know about the risks involved in Forex trading and not just the profit.

Most of Forex currency pairs move less than one cent a day, which represents a change in currency value of less than 1 per cent. It makes the market least volatile financial markets for foreign exchange. Consequently, many currencies speculators are dependent on the availability of massive leverage to raise the value of potential moves. Leverage in the retail forex market would be as much as 250:1 or less. Using High leverage can be extremely risky, but owing to round-the-clock trading and strong liquidity, forex brokers have been able to make high leverage a standard in the industry to make currency traders movements meaningful.

Retail Forex traders have indirect access to the market, through either a broker or bank. The main types of Forex brokers in retail that offer us the opportunity to gamble on the currency market: dealers and brokers. Brokers act as a trader’s agent by attempting to find the best possible price in the market and operate on the client’s behalf. They charge a fee/commission on top of the market price achieved in the market. Dealers are also known as market makers as they, for the market traders and serve as the counterpart to their transactions, dealers quote a price at which they are willing to deal and are paid by the spread, between buying and selling price.

FX Trading is a great way to make money, but it’s just like other investment firms. It requires some learning and patience. You can make a lot of money if you keep your head together. A retailer who views forex trading as a game rather than a defined business struggles to maintain his invested money and is likely to lose everything if proper care isn’t taken. On the other hand, a trader who treats foreign exchange trading as an actual business making a decent profit from his investment because he/she is willing to understand the Forex market language and how the market works.

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What is Price Action Trading?

What is Price Action Trading?

In Forex all price movement comes from buyers and sellers. When the price action trading goes up It is because there are more buyers than sellers and vice versa. The Foreign exchange market is in a state of constant battle between buyers and sellers. Trading in markets includes analyzing who owns and controls prices, buyers or sellers and whether they are likely to remain in the trade.

Study of the price action was first developed by Charles Dow, who formed the basis for modern technical analysis. It has already been amazingly developed and improved since its inception. Knowledge of price action allows you the extra edge you will get over the profit line. That’s one explanation why so many forex traders are involved in using a price action strategy as one of their main trading decision-making tools Because price action isn’t predicting the future like many others indicators that never lies; this will tell you how the market will behave in different time frames and volatility periods.

The simple tools of technical analysis can easily read price actions. Candles, Doji, pins, engulfing patterns, and narrow range these are just some examples of the regular price action. Price action means that a trading strategy is being built in order that past or current price behaviour can be read/analyzed. Price Action analysis approaches can be split into two groups: strategies to continually track price fluctuations, to determine the point of entry or exit of a market, strategies to analyze the price movement on a chart in the past. Every way is helpful to establish a credible plan for price action in forex.

For technical indicator calculation or chart identification, many technical analysts use price action. The aim is to find order in the apparently random price movement. Price action is very subjective in its definition. While evaluating the same price action, it’s common for two traders to come to different conclusions. One trader could see a downward trend and another could assume that the price trend is likely to be a turnaround.

The price action involves the exclusive price action trades and not on the basis of fundamental or technical analysis. Some examples of price action are fluctuations (higher and lower), resistance and support levels, and consolidation. For example, before a long position is taken, a short-term trader will observe the breakout of the preceding price at higher volumes. Trading of prices action among retailers and institutional traders is the most common. This would encourage many forex traders to use price action as one part of a larger strategy.


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Forex Training Nederland

Learn Forex Training Nederland

Wij hebben een strategie weten te ontwikkelen waarmee we meer dan 80% winstgevend zijn.

De Forex training nederland

Want in de forex wereld leer je echt met vallen en opstaan.
Elk begin is moeilijk maar in de wereld van het traden helemaal.
Misschien heb je al veel geld verloren op de markt?
Wil je nu wel wat meer investeren in jezelf.
Waarschijnlijk heb je een droom een droom die ook wij hadden om te kunnen leven van je trade’s, en er goed van te kunnen leven!

Trading gaat vooral over lezen, observeren, analyses maken en toeslaan.
Belangrijke reden waarom ca 90% van de traders uiteindelijk verliest, is dat zij te lui zijn om het werk te doen dat noodzakelijk is om succesvol te kunnen zijn.
Vaak is een andere reden is dat zij geen handelsplan hebben.
Ze gissen, gokken en hopen.
Eigenlijk meer gokken dan dat ze traden.
Hoe dan ook, als je bereid bent om hard en gedisciplineerd te werken dan zou je weleens tot die 10% traders kunnen gaan behoren die wel succesvol zijn met de Forex cursus.


“When I became a winner, I said, ‘I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade.’” 
– Marty Schwartz

Bij Forex Training Nederland

Wil je meer weten over het handelen in forex of wil je de forex groep joinen?
De forex groep is vooral engelstalig maar je hebt altijd een nederlands sprekende mentor!
Neem vrijblijvend contact met mij op zodat ik je veel meer kan uitleggen over wat wij precies te bieden hebben.
Dan kan ik al je vragen beandwoorden.

Bij Forex training nederland

Opzoek naar goede Forex Educatie? www.theforexscalpers.com
De beste Broker?  IC MARKETS.

Forex traden nederland
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