Author: Kent

Are you ready to trade on a live account? A demo account offers a safe place for you to hone your skills without the fear of losing money. But how do you know when it’s time to start trading real money? And what do you need to consider before moving from a demo account to a live account? This article will help guide you through the process. Have you learned how to use the platform? Are you comfortable making trades? While many forex trading platforms are quite user-friendly, it’s still important to make sure you know how to use them…

Want to learn about forex? You’re in the right place. In this article, we will cover all the basic information you need to know about forex trading and the forex market. What is Forex? Forex stands for Foreign Exchange. It involves the buying and selling (exchanging) of currencies. The goal with forex trading is to make a profit from the change in currency value. You might have already tried exchanging currencies before, for example, when going on holiday. And you might have already noticed that you can buy and sell currencies at different prices. For example, when you exchanged money…

A pip is a unit of measurement that indicates the smallest change in value between two currencies. The term “pip” stands for Price Interest Point or Percentage in Point. Pips are quoted to either four or two decimal places. For most currency pairs, pip movements are quoted to the fourth decimal place. The one exception to this is the Japanese Yen (JPY), which is quoted to the second decimal place. For example, if GBP/USD moves from 1.4250 to 1.4251, then we say that the price has moved by one pip (0.0001). In this situation, the movement is in the fourth…

The basic meaning of swap is exchanging one thing for another. In finance, a swap is a contract between two parties where they exchange cash flows of two different financial instruments over a specified period. One cash flow is fixed while the other cash flow can change based on factors such as interest rates, commodity prices among others. Interest rates, currencies, and commodities are some examples of financial instruments that are exchanged. Swaps are traded over the counter. Over the counter is where trading of financial instruments is done directly between two entities without the involvement of a central exchange.…

The MetaTrader 4 and 5 are popular trading platforms provided by brokers around the world. MetaTrader 4 (MT4) is the most popular and was launched on July 1, 2005. The MetaTrader 5 (MT5) was released on June 1, 2010, and it came with more features than the MT4. Both platforms provide trading tools for their traders. Also, traders can gain access to the markets through these platforms. Although both platforms enable trading in the markets, they have differences. The Difference Between MT4 and MT5 Timeframes One important difference between MT4 and MT5 is the timeframes available. Timeframes are time intervals…

It’s important to understand how to use MT5 and its various trading tools. Having that knowledge enables you to use the MT5 to your advantage. For example, you can use the trading tools in MT5 to develop trading strategies. In this article, we’ll explain what they do, where to find them, and how to use them on the platform. Chart Types Some of the most important tools you’ll need to get familiar with are the charts. Charts show the price movement of different assets at different times. There are three chart types your can choose from – lines, bars, or…

Trading psychology looks at how a trader’s emotions, discipline, and mindset affect their trading decisions. Knowledge, skills, experience, and strategy contribute to a trader’s success on the market. However, trading psychology is what determines how well a trader applies their knowledge and strategy when trading. In trading psychology, the most common emotions that influence trading mistakes are fear, greed, and revenge. It is, therefore, important to understand and control these emotions. Emotions That Affect your Trading Fear Fear leads traders to exit the market earlier than expected, which often costs them profit. For example, a trader closes a position heading…

The growing popularity of retail forex trading has led to a rise in the number of forex brokers. Most brokers aim to offer high quality services to their clients. However, some brokers are less trustworthy. It’s important that you choose a good, reliable forex broker. That’s why we’ve put together a list of things for you to look out for when deciding which broker to trade with. 1 – Compliance With Regulations It’s important to check whether a Forex broker is regulated by the relevant regulatory bodies. Regulatory bodies ensure that brokers conduct their activities as per the required standards.…

Slippage occurs when the expected price of an order is different from the price at which the order was filled. Slippage is a normal occurrence during forex trades, and can either be positive or negative. Let’s take a closer look below. The Definition of Slippage In the forex market, buy orders are matched with sell orders. An imbalance in terms of buyers, sellers, and prices will result in slippage. Slippage is likely to occur when there is an imbalance in the market. Moreover, slippage is influenced by factors such as major news events and execution speeds of orders. News events…

Forex trading has become increasingly popular in recent years. In fact, Nigeria is now the second largest retail online forex market in Africa. According to some estimates, the country has at least  200,000 daily forex traders, with numbers continuing to grow each year. But is forex trading in Nigeria profitable? In this article, we look at some of the reasons why it is becoming so popular in Nigeria and what the local market has to offer. Why is forex trading popular in Nigeria? Forex trading involves buying and selling of currencies. Forex traders seek to profit from fluctuations in the…