Author: Peter

The forex market will always be unpredictable. You never truly know how the market is going to move, and prices can change very suddenly. That’s why having a stop-loss can be helpful. What is a Stop-Loss? A stop-loss order enables you to exit trades automatically, when a predetermined price is reached. This, in turn, enables you to manage your risk and limit any potential losses. Let’s take a look at an example. Say you buy EUR/USD at 1.1708 expecting it to rise. With this in mind, you set up a stop loss at 1.1688 which accounts for 20 pips. In…

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In the forex market, there are two types of market analysis: technical analysis and fundamental analysis. In this article, we will focus on fundamental analysis, and the use of economic indicators. This refers to the analysis of political, social, and economic forces that may influence the demand and supply of currencies. It also refers to the use of economic data and news in understanding those forces. Let’s take a look. Economic Indicators Economic indicators are reports disclosed by governments and private organisations that show the performance of a country’s economy. A country with a good economy has a high currency…

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If you are just starting out in trading you may have come across the term hedging and wondered what it’s all about. Read on to find out what is hedging and why it can be important. Hedging is a strategy applied to reduce the amount of loss incurred in case of occurrence of an unfavourable event. Hedging only reduces the negative impact of an event on an investment but cannot prevent the adverse event from happening. A hedge is an investment that protects against adverse changes in prices on investments. Corporations and individual investors are the ones who mostly use…

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CFD is an acronym which stands for Contract for Difference. CFDs are financial instruments that allow traders to take advantage of price differences in stocks, commodities and many other types of financial vehicles. As differences between opening and closing prices fluctuate day-by-day, CFD traders attempt to profit from the changes in price that occur, and they do that in a very similar way to traditional forex trading. The CFD has an opening value when it is purchased, and whether the trader makes money or must pay a difference depends on the value of the CFD when it is sold. CFDs…

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Trading currencies, CFDs, indices, commodities, and cryptocurrencies presents a lucrative opportunity to make profits. However, that doesn’t guarantee success when trading the market. Here are six awesome tips to help you improve your forex trading skills. 1. Invest In Yourself Before Entering The Market It’s important to spend time improving your knowledge and skills. It will help you make better trading plans and improve your chance of long-term success on the market. Fortunately, most forex brokers offer free educational resources such as webinars, e-books and seminars. In addition, many other companies also offer high quality educational resources for both beginners…

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Forex traders analyse the market using either technical analysis or fundamental analysis. Technical analysis involves studying historical price movements while fundamental analysis involves studying news events. Technical analysis mostly involves using technical indicators to determine the probability of a price moving in a certain direction. The indicators apply mathematical formula where the calculations are based on price. Technical Indicators can either be lagging or leading indicators. Lagging indicators follow price movement and provide signals after the trend has already begun. Examples are Moving Averages and Bollinger Bands. Leading indicators, on the other hand, can be used to forecast price movement…

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Access to the forex market is important to forex traders. With billions of transactions done daily in the market, opportunities to make profits are immense. This is where trading platforms come in. Trading platforms are what gives traders access to the forex market. They are where you do your research, plan your trades, and execute your trading strategy. The most commonly used trading platforms are Metatrader 4 (MT4) and Metatrader 5 (MT5). Today, we are going to be taking a look at Metatrader 5. What is MT5? Launched in 2010, Metatrader 5’s purpose is to provide traders access to the…

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Understanding the MetaTrader 4 Platform MetaTrader 4 is one of the most popular and widely used software applications for Forex trading. MT4 can be used not only for technical analysis, but also for placing and managing orders. Here we examine how to use it in trading. How To Install MetaTrader 4 You need to download MT4 from your broker’s website (every Forex company has its own MT4 platform), or if you prefer our recommend broker HotForex. Click on the link, a window appears prompting you to save the installation file.Click on “Save File”, you will need to indicate in a…

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The Nigerian Naira is the official currency of the Federal Republic of Nigeria. Its currency code is NGN, and it is managed by the Central Bank of Nigeria. Here are the seven most important facts about the NGN: Fact #1: The name Naira was invented by Chief Obafemi Jeremiah Oyeniyi Awolowo. He was a Nigerian nationalist, as well as a strong and influential advocate of independence and federalism. Fact #2: One Naira is divided into 100 kobos. Interestingly enough, today, you will only find a coin of 50 kobos in circulation. As of February 2007, the CNB stated that the…

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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.…

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