Author: rcanessa - Page 66

Day Trading Techniques … What’s Best for You?

When Forex traders talk about intraday trading, they are referring to buying and selling currencies (currency pairs) on the same day. Day traders often look small price movements and use large amounts of leveraged capital to make money with these little movements. In general, they look for markets with high liquidity – where large volumes of trades and sufficient market participants ensure that deals are closed instantly. Liquid markets (like the main currency pairs) also offer tight spreads – which means that the transactions are more profitable – and adjusted slippages, ensuring that trades are closed in the quoted price.

However, there are actually a number of daily trading strategies – including trading against the trend, daily pivots, momentum etc. Each of these similar approaches is used to identify an entry point, but the exit strategy is different in each case.

Finmax – Binary Options Broker

by rcanessa

Update on the broker Finmax

Like other brokers in the binary options industry, Finmax has many complaints from clients who claim to have been victimized by this company. Therefore, we recommend great care when trading with this broker.

Among other things, clients claim that Finmax has taken their money or is not allowing them to withdraw funds. We cannot confirm whether these statements are true or not, but we recommend investigating and being careful.

However, if you are interested in trading binary options and other instruments such as Forex and CFD through a recognized and regulated broker, you can try IQOption.

You can get more information about this company in the following guide: IQOption broker review

Review of the Binary Options Broker Finmax

Finmax is a broker specialized in binary options trading which offers the possibility to trade with various types of options (including High/Low, Above/Below, and One Touch) based on a wide range of financial assets like stocks, indices, and commodities, and currency pairs (Forex). It offers a web-based platform with different trading features including prince charts, analytical tools and others.

This broker offers a social trading application which increases trading opportunities for customers, including beginner traders. Also, it offers a signals service.

The Parabolic SAR – Definition, Use and Calculation

by rcanessa

In this article, we will show you how the Parabolic SAR indicator can help you predict the market trend and its oscillations. The Parabolic SAR is another of the stock market technical indicators developed by the legendary Welles Wilder, who published it in his well-known book “New concepts in technical trading systems“, along with the RSI, the ATR, and the … Read more

Definition of Gap and Trap

by rcanessa

What is a Gap and Trap?

A “Gap and Trap” is a price formation that can be observed in a individual stock, a market index, a currency pair, futures contract or other instrument or asset traded in financial markets.

The “Gap and Trap” occurs when there is an upward gap between one trading session and another, and investors begin to buy in the first minutes of the new session, when the price suddenly changes direction and begins to fall, trapping traders who bought shortly after the opening. Hence comes the name of the event, as “Gap” is the space between the closing price of the previous session and the opening price of the current session and “Trap” is referring to traders (buyers) who get caught in the market.

The case of the Forex broker 4XP

by rcanessa

Much has been said about the broker 4XP (Forexplace) and what happened with this company and its customers. Certainly it is a clear example of the care that must be taken when choosing a broker and put our money in their accounts. Previously we had 4XP on our list of Forex brokers and we promoted its services but after seeing … Read more

Rollover in the Forex Market

by rcanessa

What is the Rollover?

Every time we trade in the currency markets, all positions must be closed within two business days. Despite this, every trader has the option to renew all his open positions easily without the need for physical delivery of the foreign exchange contracts with which he is negotiating.

For example, if a trader buys $10,000 on Monday is in the obligation to make delivery of those $10,000 no later than Wednesday of the same week, unless he want to renew the position, which is called Rollover. Currently, most Forex brokers include among their services to their customers the option of renewing their open positions automatically (the rollover is credited or debited automatically if the client does not close their positions before a certain hour) or manually, which is also known as tom/next swaps a trade for the next day of the position´s settlement.

Thus, rollovers or swaps involve the application of a credit or debit in the operator’s trading account, which is based on the positions that remain open in the market at precisely 17:00 pm EST and differentials in interest rates between the currencies that make up the pairs with which we are trading. In this case, if we have an open position in which we proceeded to sell the currency that has the highest interest rate, our trading account will be debited (the account will be charged with the difference in the interest rate applied on the total volume of the position). But if in that position the same currency was bought, the account will be credited by the broker (the money deposited in the account is equal to the interest rate differential applied to the size of the position).

Overnight Positions in Forex

by rcanessa

What is an overnight position?

These are open positions in the Forex market which are not closed at the end of the trading day in which they were opened. In the stock market an overnight position is considered at risk because it is common, for as long as the exchange is closed (after the trading session), that some events may occur which can negatively impact the price of the stock traded.

In the Forex market, which is an international financial market that operates continuously 24 hours, it has been set the 17:00 EST (00:00 UTC) as the final hour of the trading day. At this time, any position that is still open is considered an overnight position. This hour is strict. If you open a position at 23:59:59 UTC and close this same position at 00:00:01 UTC, it will be considered an overnight position.

Broker Plus500 get CySEC license

by rcanessa

The company Plus500, an online broker based in Israel and specializing in Contracts For Difference based on multiple assets like stocks, indices, currencies, commodities, ETF, and others, has received an additional license in the European Union from CySEC (Cyprus Securities and Exchange Commission) of Cyprus, which adds to the license that the company has with the FCA of UK. This increases the opportunities for customers of the broker and increases their confidence because now Plus500 has more control over its operations and services as a broker.

Plus500, through its subsidiary Plus500CY, has received authorization from CySEC to operate as a regulated investment firm. Now the company extends its coverage in Europe through the new licensee and is set as the second most popular broker in the sector in this region.

Plus500 CFD Broker

by rcanessa

Plus500

– A CFD provider which offers access to many financial markets

-Regulated by organizations such as the FCA and ASIC

Visit Broker Website

Plus500 Review – CFD online broker

Plus500 is a regulated CFD provider from Israel with various offices in different countries (UK, Australia, Singapore) that offers Contracts For Difference based on many different markets, including Forex, commodities, stocks, indices, ETF, and even cryptocurrencies. In 2013, this company was included in the London Stock Exchange (LSE), which means that the company shares can be bought and sold in the stock market.

It is a very versatile trading service that has its own trading platform.

In the following Plus500 review, we will present the main features and services of this online broker

Moving Average Convergence Divergence Indicator – MACD Definition

by rcanessa

The Moving Average Convergence Divergence (MACD) is a popular technical indicator used to identify changes in momentum, trend direction, and potential buy/sell signals for an asset. It was developed by Gerald Appel in the late 1970s and has since become a widely used tool by traders and investors.

The MACD is calculated by subtracting a longer-term exponential moving average (EMA) from a shorter-term EMA. The result is a signal line that oscillates around a zero line, which represents the point of equilibrium between buying and selling pressure. The most commonly used EMA periods for the MACD calculation are 12 and 26 days.

In addition to the MACD line, a signal line is typically plotted as a 9-day EMA of the MACD line. This signal line is used to identify potential buy/sell signals based on crossovers with the MACD line. When the MACD line crosses above the signal line, it is considered a bullish signal, suggesting that buying pressure is increasing. Conversely, when the MACD line crosses below the signal line, it is considered a bearish signal, suggesting that selling pressure is increasing.

The MACD can also be used to identify divergences between the indicator and the price chart, which can signal potential trend reversals. For example, if the price is making higher highs but the MACD is making lower highs, it may suggest that the bullish trend is losing momentum and a bearish reversal may be imminent.

Overall, the MACD is a versatile indicator that can be used in a variety of ways to help identify potential buy/sell signals, trend direction, and changes in momentum for an asset. As with any technical indicator, it is important to use the MACD in conjunction with other forms of analysis and risk management strategies to make informed trading decisions.

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