What loss limit can I use in my trades?

 

Again, as long as I speak of losses, I must start this article by saying that  is completely impossible to avoid losses. Sooner or later they come to all traders. A good trader simply accept them consciously, which also involves applying systematic rules to keep the losses well controlled.

This article will not discuss the position of the stop loss, it will focus on the loss limit on volume that should be applied in all trades. That is, the maximum amount of money that would be lost if the operation goes wrong. Knowing this amount is essential to calculate the size of the trade.

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Market Makers Brokers – Definition and Features

Market makers brokers

What is a broker market maker?

The Market Makers are brokers in which the buy or sell transactions of financial instruments (currencies, stocks, indices, commodities, crypto, …) that their client’s request are not made directly in the market but at the broker’s trading desk of the broker itself (therefore the Market Makers are brokers with trading desk and that’s why they are also called DD or Dealing Desk). In other words, the broker creates the market for its clients and, in many cases, acts as the counterpart in the client’s transactions.

Market makers brokers create an internal market for their clients and allow them to buy or sell at any time without having to wait for a transaction in the opposite direction to make the trade. Market Makers are always prepared to offer a buy price (bid) and a sale price (ask) for each financial instrument they offer, so the trader can execute his operations at any time and with the volume it deems convenient.

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Markets awaiting the Fed and trade negotiations

The markets reduced expectations of interest rate cuts by the US Federal Reserve after the unexpected improvement in the US labor market.

The United States Government reported last Friday that 224 thousand jobs were created in June, well above what analysts expected. Now investors are wondering if the US central bank will make any rate moves to support economic growth.

Powell could provide more clues about the prospect of his short-term monetary policy on Wednesday, in his half-yearly testimony before the United States Congress. On the same day, the Fed will publish the minutes of its last monetary policy meeting

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Bank transfer for the deposit of funds in trading accounts

Bank wire transfer in Forex brokers

Wire transfer is one of the most used methods by online brokers (Forex, CFD, binary options, etc.) to manage funds of their clients trading accounts, either for the deposit of funds in the accounts or as a means for withdrawal the profits generated by the traders in their transactions.

When the customer transfers or receives money through wire transfer has the advantage of maintaining full control of your money. In fact, many people prefer using bank transfer because they do not like sharing the details of their credit card which is understandable. Moreover, they not rely on electronic payment systems like Paypal or Skrill, although these companies and their services have become much safer. fast and reliable.

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Opinions on Pepperstone – Is it a reliable broker? – In-depth analysis

broker Pepperstone

Opinions about Pepperstone broker

One of the most important factors when making online trading is to choose a reliable and safe broker that offers a good level of service and transparent trading conditions. A broker in which our funds are completely safe and can be withdrawn when we want without problems.

In this article, it is time to analyze in-depth the opinions of clients of Pepperstone, the Forex broker of Australian origin that today is already one of the references in the online trading sector at an international level.

All the data analyzed in this article are based on our own experience and the collection of positive and negative opinions of users that we have found in various investment forums, blogs, and specialized web pages.

You can read a review of this broker in the following article: Review of the broker Pepperstone

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FBS Affiliate Program – Review of FBS Partnership

Affiliate program of broker FBS

This is an affiliate program implemented by the Forex and CFD broker in order to promote its services as a broker and acquire new customers (traders) who open an account and deposit funds. To this end, this affiliate program of FBS employs affiliates who have multiple marketing tools based mainly on the Internet (such as banners and text links) that this program has created and provides at no cost. Thanks to the commission plan it offers and the promotional resources, the IB Program is a good option for webmasters interested in monetizing a blog or website related to financial markets and especially with Forex.

See more details on this broker in the following analysis: FBS broker review

Commissions plans offered by the IB Program of FBS

With respect to the commission plans, this program currently offers the following:

  • Revenue Share: This is a very lucrative payment system through which the broker FBS shares with the affiliate a percentage of the revenue obtained from the referred traders. It is the more profitable commissions system because the affiliate receives a lifetime income while the referred customers continue trading with this broker. The Revenue Share offered by this program can be as high as 15 USD for each traded lot of each referred trader.

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Stock markets rise after the G20 summit

The week begins with significant rises in stock markets and retracements in bond yields, after the United States and China agreed to resume trade negotiations.

Both countries agreed on Saturday to resume trade negotiations, President Donald Trump offered some concessions to his Chinese counterpart, Xi Jinping, at the meeting held in the framework of the G20 summit in Japan. The US president promised not to make new tariff increases and will allow US companies to sell their products to the Chinese manufacturer Huawei.

On the other hand, the data published last Friday showed that the consumer price index in the United States fell to 1.5% in May. This is a key indicator for the monetary policy of the Federal Reserve and led investors to bet on an aggressive policy of monetary easing by the Fed.

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Bitcoin fell more than USD 2000 in one day: why is it so volatile?

The cryptocurrency can only become an accepted form of payment if its volatility stabilizes, but that depends on a constant conviction that it represents the future of the money

The volatility of Bitcoin frightens many potential users of the cryptocurrency. This is due to the close relationship between volatility and risk: the higher the level of volatility, the greater the risk associated with the asset. In the same way, however, risk can be a source of attraction: the more volatile the price of an investment, the higher the yield – or loss – that can be obtained from it. These general rules also apply to Bitcoin.

Bitcoin is considerably volatile compared to other assets, but much less volatile than it was before. Over time, fluctuations in the price of the main cryptocurrency have been decreasing in percentage terms. On average, the daily volatility rate (how much the price changes per day) has been mostly below 5% since 2015, compared to an average volatility of 1.2% for gold. In 2016, Bitcoin was less volatile than Twitter shares, and just as volatile as oil.

However, Bitcoin continues to register violent price oscillations. On Wednesday, the cryptocurrency fell USD 2,041 from a daily maximum (and annual peak) of USD 13,880 to USD 11,200, the biggest daily price movement since January 2018.

Price of Bitcoin drop 2000 USD

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The Fed pushes the stocks and presses the bonds and the dollar

Equity markets continued to rise the previous week, while the dollar and global bond yields contracted, after the Federal Reserve signaled possible cuts in interest rates for this year. The yield on 10-year US Treasury bonds fell to 1.974%, its lowest level since November 2016.

Signs that China and the United States will resume trade negotiations after a six-week hiatus also reinforced investor sentiment.

The Federal Reserve chairman, Jerome Powell, said after the monetary policy meeting that the “justification for a more accommodative monetary policy has been strengthened” but the Fed wants to “see more data” before making decisions.

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