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

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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

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

Understanding Volatility in Forex Trading

Understanding Volatility in Forex Trading

For forex traders, volatility in the forex market is not simply chaotic change. Also inside seemingly random fluctuations in value, trends, and patterns arise as market participants try to make sense of the price action. Volatility is a measure of the extent to which the value of a currency, currency pair, or the entire forex market varies. Volatility is most frequently applied to when elative to all of the other currencies in the market, a currency has seen sharp increases in value.

Historical volatility, measured from historical prices, is equal to the standard deviation of asset values over a given time frame. The estimated volatility is determined on the basis of current prices, assuming that the asset’s market price represents the risks estimated. Forex traders consider volatility as one of the most relevant knowledge measures for decision-making on opening or closing currency positions

In essence, an important consideration to take into account when trading is that the risk involved in holding and position greatly depends on the amount of uncertainty faced over the time period that the position is held at the exchange rate of the currency pair. Generally, volatility depends on the fluctuations observed for a currency pair in the exchange rate. For previous results, it can be calculated by analyzing the degree of past or historical volatility or by plotting the Bollinger Bands around the exchange rate. By looking at the degree of implied volatility used to price options on that currency pair, some traders often predict potential volatility.

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. 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. No path is indicated by volatility. It just determines the degree of an exchange rate’s fluctuations (moves). A currency pair that is more volatile is more likely than one that is less volatile to increase or decrease in value.

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

Exit Profitable Trades in Forex Trading

Exit Profitable Trades in Forex Trading

Many traders spend more time planning entrances than exits and considering them. Most seasoned traders agree that trading success depends on how a trader exits their trades, while proper entries are necessary. A reality of forex trading is that, instead of leaving the market at a pre-determined goal or through a pre-planned exit strategy, most traders take their gains as a result of an emotional impulse. As a result, traders who exit an emotional trade normally take far lower profits than they would like, while traders who exit a rational and disciplinary trade are generally very satisfied with the profits they make.

Establishing where to get out before a trade even takes place helps the trade to be measured with a risk/reward ratio. The stop loss is just as important as the benefit goal. The stop-loss calculates the potential loss for trades while the potential profit is determined by the profit goal. The reward opportunity, ideally, should outweigh the risk. While we will never decide which trades will be winners and which will be losers until we take them, if our winning trades are greater than our losing trades, we are more likely to see an overall benefit over several trades.

It is arguably more important to exit from trade than to entry, as the exit is what decides the profit. The trader positions himself to theoretically lock in higher returns by discovering several methods of exiting a trade. There are some helpful exit strategies, all of which are easy to execute and can be implemented in a trading strategy. At the time of the trade, a stop-loss is put and worked out beforehand. There are probably several ways to choose a stop-loss rate, but essentially it must be at a place where the trader does not fairly expect the market to hit before placing the trader in a lucrative position that merely warrants compensation for the possible risk taken.

Looking at the reward/risk ratio of any trade is one of the most important forms of exiting profitable trade when assessing exit points. Applying a reward/risk ratio guarantees exit points that are well-calibrated and pre-set. The trade is avoided, which helps to prevent low-quality trades from being taken if the trade does not have a desirable reward/risk, according to the plan, the position is closed at the target price.

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

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