The foreign exchange market, also referred to as forex or FX, is the global currency trading market. It is the largest, most liquid financial market in the world.
When trading forex, currencies are traded in pairs. For example, the Australian dollar and the U.S. dollar (AUD/USD) or the euro and the Japanese yen (EUR/JPY).
Commodity trading covers the buying and selling of a large range of instruments including oil and gas, metals such as gold and silver and soft commodities like cocoa, coffee, wheat and sugar.
Commodity trading is as old as the financial markets, and perhaps even older than that. The first example of an organised exchange for trading commodities dates back to Amsterdam in 1530. These days there are a whole host of markets available to trade with just a few clicks of a mouse or taps on your mobile device, but some commodities remain as popular as ever.
How to trade commodities
- Choose your market – Choose the commodity, such as Crude Oil Brent, Gold or Natural Gas, that you want to spread bet or trade CFDs on.
- Decide to buy or sell – Buy (go long) if you think prices will rise, or sell (go short) if you think prices will go down.
- Enter a trade size – Decide on the amount per point movement (spread betting) or how many units (CFDs) you want to trade. When trading CFDs the value of one unit can vary depending on the instrument you’ve chosen to trade.
- Manage your risk – Select from a range of stop-loss orders including guaranteed stop-loss orders (GSLOs). GSLOs work exactly the same as regular stop-loss orders, except that for a premium, they guarantee to close you out of a trade at the price you specify regardless of market volatility or gapping. The premium is refunded in full if the GSLO is not triggered.
- Monitor your position – After placing your trade, monitor your open positions (including any stop orders or take profit orders) to follow your real-time profit or loss. Please remember that losses can exceed your deposits.
- Close your position – If your trade is not automatically closed out as a result of a stop or take profit order being triggered, close your trade when you are ready.
Cryptocurrency trading is the act of speculating on cryptocurrency price movements via a CFD trading account, or buying and selling the underlying coins via an exchange.
CFD trading on cryptocurrencies
CFDs trading are derivatives, which enable you to speculate on cryptocurrency price movements without taking ownership of the underlying coins. You can go long (‘buy’) if you think a cryptocurrency will rise in value, or short (‘sell’) if you think it will fall.
Both are leveraged products, meaning you only need to put up a small deposit – known as margin – to gain full exposure to the underlying market. Your profit or loss are still calculated according to the full size of your position, so leverage will magnify both profits and losses.
Buying and selling cryptocurrencies via an exchange
When you buy cryptocurrencies via an exchange, you purchase the coins themselves. You’ll need to create an exchange account, put up the full value of the asset to open a position, and store the cryptocurrency tokens in your own wallet until you’re ready to sell.
Exchanges bring their own steep learning curve as you’ll need to get to grips with the technology involved and learn how to make sense of the data. Many exchanges also have limits on how much you can deposit, while accounts can be very expensive to maintain.
A currency pair consists of a base currency and a quote currency (or counter currency). It is a way to display and price one currency against another.
Currency pairs are conventionally shown as two abbreviated currency names, separated by a slash. For example, with the”EUR/USD” currency pair, the euro (EUR) is the base currency and U.S. dollar (USD) is the quote currency.
A pip (percentage in points) is the term used in the forex market to represent the smallest incremental move an exchange rate can make.
For example, if an exchange rate was previously 1.2510 and increased by one pip, the exchange rate will be 1.2511.
Currency pairs are traded in specific amounts called lots, which are the number of currency units you wish to buy or sell.
The standard size for a lot is 100,000 units of currency. There also a mini, micro, and nano lot sizes that are 10,000, 1,000, and 100 units respectively.
The spread is the difference between the bid and the ask price.
The bid is the price in the market that a buyer will pay, and the ask is the price a seller is willing to accept.
For example, the USD/JPY bid/ask spread is 110.00 / 110.02. Currency pairs that are less actively traded have wider spreads.
A long position is when a trader opens a trade and the base currency is bought.
For example, if you “long EUR/USD“, this means you are buying the euru, and selling the U.S. dollar. The euro (EUR) is the base currency and the U.S. dollar (USD) is the quote currency.
A short position is when a trader opens a trade and the base currency is sold.
For example, if you “short EUR/USD“, this means you are selling the euru, and buying the U.S. dollar. The euro (EUR) is the base currency and the U.S. dollar (USD) is the quote currency.
Margin is basically collateral to open and maintain a position. Before you place a trade, you are required to make a deposit into your margin account. The amount depends on the margin percentages required by your broker to trade leveraged positions.
Leverage is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest.
The use of leverage allows traders to trade in bigger sizes allowing higher potential return (and losses) than otherwise would have been possible.
Rollover is the interest paid or earned by a trader for holding a position overnight. Interest is paid on the currency that is borrowed and earned on the one that is bought.
Since every currency trade involves borrowing one currency to buy another, interest rollover charges are part of forex trading.
We have free trading signals which our traders generate using different trading algorithms. These are available on our public telegram channel.
In addition, we deliver manually sent paid trading signals by our expert analysts (professional traders) via our private telegram channel through push messages.
Trading Signals Hub provides almost daily signals and analysis for your use. There are two ways to enjoy signals from our expert traders.
1. Free Trading signals, which can be accessed via our public telegram channel TradingSignalHub.
2. Paid Trading signals service, with precise entry and exit points (detailed buy and sell notes) , which are available exclusively on our private telegram channels.
You will first have to sign a trading account with a broker.
Second, you 're going to have to download the Telegram App and access our Channel where we're sending the daily signals.
Finally, you will have to download an app to operate, we suggest MT4 or MT5, you will be connecting your broker there.
Then you can start copying our Trading Signals for currencies, commodities and cryptocurrencies to buy and sell.
That will take your time in less than 10 minutes.
That depends on what broker you use. You can start trading Forex with as little as $50, with some Forex brokers. Our personal advice is to begin with at least $500 or more.
Depending on your current geographical position, financial markets around the world have specific trading hours. Visit tradinghours.com website for more information.
Our plans are subscriptions so unless you cancel them they will continue to bill. If you bought your Subscription, you can cancel any plan on the same bot.