Author: rcanessa - Page 71

Position in Trading

What is a position?

In the field of trading in financial markets, a position is a binding commitment to buy or sell a specific amount of financial instruments such as stocks, currencies, commodities or derivatives, to a certain price. The term “position” is also used in finance to describe the number of assets held by a person, company or institution as well as the state of property of the investments of an individual or institution.

Do not confuse the meaning of “position” in the trading of financial instruments with the term “financial position”. The latter stands for “status” or “statement”, ie the balance sheet liabilities in a company to take charge of their debts and obligations.

Markets4you Affiliate Program

by rcanessa

Forex affiliate program of the broker Markets4you

The Forex broker Markets4you has an excellent, yet simple Forex affiliate program that allows any customer of the company to get an extra income promoting their services, ie by acquiring new customers (traders) who open a trading account and deposit funds in it. To this end, Markets4you available to the client/member a series of promotional tools which are based primarily on the Internet. Thus, this affiliate program is an interesting option for monetizing websites and blogs whose topics are directly related to Forex and financial markets in general.

PAMM managed accounts of Markets4you

by rcanessa

The PAMM accounts (Percentage Allocation Money Management) of the broker Markets4you are managed accounts which allow investors with little or no experience in the Forex market to connect with successful traders with extensive experience in this financial market, so that these investors can exploit the knowledge of these traders to profit regularly. Meanwhile, traders can offer a service as managers of these accounts and … Read more

Markets4you Review 2025 – Forex and CFD Broker

by rcanessa

Markets4you-Broker Review Markets4you –ECN/STP broker from Europe specialized in Forex and CFD -Tight spreads and low commissions -It offers autotrading solutions Visit Broker Website Markets4you is a Forex and CFD online broker operating as an ECN/STP and Market Maker. It is owned by E-Global Trade & Finance Group Inc., a company registered in the Virgin Islands. Currently, it has offices in … Read more

Forex Money Management Guide

by rcanessa

In this section, we will try to explain what is money management, what are the different techniques used when applying it, as well as other concepts related to this topic.

Introduction to Money Management

Money management is probably the most important aspect of managing a trading account. It is something so simple that can be learned in ten minutes and certainly is one of the most important causes of losses for most traders, usually in a reduced time.

As the name suggests, Monetary Management is nothing more than a set of techniques that help us to determine the size of our position to control potential losses that may arise when the market move against us.

Due to the high leverage offered in the Forex trading, many inexperienced traders assume a higher risk than any investor should take, resulting in hardly recoverable losses.

Scalping Guide for Traders

by rcanessa

What is scalping?

The scalping can be defined as a very effective (but also risky) trading technique which has become one of the most popular strategies in recent years. It is also known as “Quick Trading” and is one of the most effective trading strategies used in highly liquid financial markets such as Forex. Scalping is a series of short term operations (buy and sell fast trades) over the trading session, which can reach even the hundreds of daily trades with ease. In this case, it involves transactions that may take 1-2 minutes on average and sometimes even a few seconds.

The scalping is classified as an intraday trading technique, ie transactions whose duration is less than a day and can last from several seconds to several hours. Through the scalping, a human trader can make up to 20 or more buy or sell buy and sell trades in an hour to profit from micro-movements of the market. Automated trading systems based on computers are capable of a much larger number of scalping operations per day.

Common money management techniques for Forex

by rcanessa

In this article we will discuss some of the most popular techniques of money management applied in trading. Although the topic can get complicated and also there are many techniques, we will focus on the most important.

Fixed Capital Percent Technique

This technique determines that we should risk the same percentage amount over the size of our trading account in every operation we perform. It has several advantages, for example, when we win, we will gradually increase the size of our position, thus harnessing the power of compound interest, while when we lose, we will reduce the position size, protecting our account from further losses.

It is probably the most widespread money management technique among traders, because a priori, is the one that offers more advantages.

Basic Rules for a Proper Risk Management

by rcanessa

Of course no one likes to lose money under any circumstance, but losses are inevitable in trading and that is why we need some rules to keep them controlled at all times. Therefore we include the following basic rules of risk management:

1. Do not risk more than 1% on each trade. This will give you a chance to survive a series of losses (draw downs) without affecting your account too much. We must bear in mind that what makes a trader wins in Forex and other financial markets at the long-term are the accumulated earnings of all winning trades so we must begin limiting the losing trades.

We will talk later about what technical features must have a successful trading system, but the point is that we must find or develop a model with a high percentage of effectiveness (Win Rate), so that the amount of points earned will become greater than the amount of points lost at the long term.

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