What is market momentum in forex?

In the foreign exchange market, momentum is level of force behind a change in the price of a currency pair. Traders can measure momentum using various technical indicators, such as the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD).

When a currency pair’s price rises strongly, it is said to have positive momentum. Conversely, when the price is falling, it is said to have negative momentum.

Momentum can be used as a leading indicator to predict future price movements. For example, if a currency pair has been rising for several weeks and shows no signs of slowing down, it will likely continue to rise. However, if the momentum starts to slow down, this could be a sign that the price is about to reverse course.

What to consider when trading with market momentum

The trend

It would be best to consider the trend when trading with market momentum. Is the overall trend bullish or bearish? If it is in a strong uptrend, you want to look for currencies that are also in an uptrend. In contrast, if the market is in a downtrend, you should look for currencies also in a downtrend.

The strength of the momentum

The second thing to consider is the strength of the momentum. A currency pair could be in an uptrend, but if the momentum is weak, it could signify that the trend is about to reverse. Likewise, a currency pair could be in a downtrend, but if the momentum is strong, it could signify that the trend is about to continue.

Support and resistance

The third thing you need to consider is support and resistance, which are levels where the price has difficulty breaking through. It could reverse course if a currency pair is an uptrend and hits a significant resistance level. Likewise, if a currency pair is downtrend and hits a significant support level, it could rebound.

How to trade with momentum

Identify the overall market trend

You should first identify the overall market trend. You can look at a longer-term chart, such as a daily or weekly chart.

Find currency pairs that are in a similar trend

The second step is to find currency pairs that are in a similar trend. For example, if the overall market is in an uptrend, you want to find currency pairs also in an uptrend.

Wait for momentum to confirm the trend

The third step is to wait for momentum to confirm the trend. As mentioned, momentum can be measured using various technical indicators, such as the RSI or MACD.

Once you have identified a currency pair with solid momentum, you can enter a trade in the direction of the momentum.

For example, let’s say you identify EUR/USD as a currency pair with strong positive momentum. You would then enter a long (buy) position at 1.3500 with a stop loss at 1.3450 and a target of 1.3600.

Risks of trading with momentum

The trend could reverse

The first risk is that the overall market trend could reverse, which would cause your trade to go against you.

The momentum could fade

The second risk is that the momentum could fade, which would also cause your trade to go against you.

You could get stopped out

You could get stopped out if the price hits your stop loss.

You could miss the move

The fourth risk is that you could miss the move if you don’t enter the trade in time.

How to manage risks when trading with momentum

Use a stop loss

The first thing to do is use a stop loss to help limit your losses if the price goes against you.

Take profits at critical levels

The next thing to do is take profits at critical levels, such as support and resistance levels, to help lock in profits if the price starts to reverse.

Use a trailing stop

A trailing stop could help you stay in the trade if the price continues to move in your favour while protecting your profits.

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The KuCoin Crypto Podium A Home future Global Trading 

KuCoin is here to help you master your cryptocurrency world. KuCoin is the most secure platform, with state-of-the-art encryption technology. You can access it quickly and securely at home, on the train, or in your car.

A Thumping Experience With Crypto Quiddities

Thump to know more about the special trading rules set by KuCoin, especially the KCS Price, follow us on telegram and get access to our private group for cryptocurrency traders.

The KuCoin analysts and App designers are well versed in their respective skills. The KuCoin engineers have developed the KuCoin Wallet App to give you a secure ETH/USDT conversion experience place to keep all of your digital assets. Download the KuCoin app to earn and collect rare non-fungible tokens (NFTs). Collect them all!

How Collectables Work With An Enormous Scintillation In The Crypto Market Despite An Earlier Bitcoin Collapse

Collecting NFTs is fun, but it can also be crazy overwhelming. Exchanging NFTs with other users through third-party applications requires setting up a private key and sending your funds to an unknown address, leaving you vulnerable to identity theft or funds being stolen without your knowledge. The KuCoin wallet solves this problem by allowing you to trade NFTs and manage multiple coins in the same KuCoin account.

The KuCoin wallet is free to install and easy to use. We help you manage multiple coins and take care of your exchange tokens simultaneously, so you don’t have to do it alone.

The KuCoin wallet makes it safe to store and manage your digital assets. Users can hold multiple coins, follow the market, receive dividends and track trading information in one convenient place.

Your First Doorstep For A Crude And Risk Less Trading Experience

At KuCoin, we believe that managing your ERC-721 tokens is too complicated. We bring everything under one roof; our own KCS, Terra Luna, and ETH Price wallets. Now you can manage your KCS, NEP5, and Ether all in one place.

KuCoin makes it possible to own multiple ERC-721 tokens in one place. Crypto savvies don’t think that you should have to monitor three different wallets to keep track of all your cryptocurrency investments. We created KuCoin to make your life easier by bringing everything into one place.

How A Bulk Data In Crypto Ledgers Can Be An Immensely Perplexing Issue

Getting all your crypto details together can be challenging, but with KuCoin, you’ll never have to worry about keeping tabs on your portfolio.

We have some very cool features you won’t find anywhere else in the crypto world.

Think of KuCoin as a one-stop crypto shop. You can manage your transactions and balances from a single dashboard, deposit and withdraw cryptocurrencies using just one click, instantly convert funds using our advanced platform and even launch ICOs on board with us!

An Easier Trading Experience With So Much Fulmination In The Wide Open Crypto Market

KuCoin aims to make your life easier by offering simple, innovative solutions for you to use in whichever ways suit you best.

KuCoin aims to provide industry-leading support. We fix issues in real-time and work closely with those who seek to be the best.

KuCoin is a cryptocurrency exchange platform. It has its token, KCS Coin, which is the native currency of KuCoin and powers every operation on the forum. The KuCoin holders receive dividends for holding their KuCoins, and this dividend allows users to buy on the platform at a discount.

The Luxuriant Trading Experience Of An Elite Crypto Backdrop

Smooth and Convenient for Everyone KuCoin is a cryptocurrency exchange platform. That makes trading in cryptocurrencies more accessible and more convenient. The KCS Coin token holders receive 50% of all trading fees, allowing users to trade with a discount.

KuCoin also provides 24/7 professional customer service, an essential need for loitering crypto scavengers.

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The perks of Forex bonus program – different types of Forex bonuses

Forex trading is booming these days. And brokerage companies are fiercely competing to attract clients through various bonus programs. That’s why we would like to remind you of the different types of bonuses applicable in Forex trading to make the most of your trade.

1.  The initial / welcome bonus

The Instant Bonus is often the juiciest bonus in Forex trading. It’s a type of bonus immediately added to your Forex account. For example, you get into Forex trading with an initial capital of € 1,000 on a platform offering an instant 20% starting bonus.

Your Forex account will therefore be opened with an initial capital of € 1,000 plus 20% (€ 200), for a total of € 1,200.

It is generally accessible at a specific rate for any seed capital investment.

Some brokers like LBLV offer quite massive welcome bonuses of 30%. So get a sneak peek into LBLV review for more details about their trading conditions and bonus offer.

2.  The pending bonus

The pending bonus is a bonus that cannot be used immediately for trading. Instead, you have to trade a certain number of positions to unlock it.

Once unlocked, you can then either cash it in or reinvest it. For example, a broker may offer you a pending bonus of 30%, which you will only be entitled to from a certain negotiated amount.

These bonuses may seem less attractive because they are not immediate, but they are often higher and more attractive in the long term. Remember that even if Forex trading relies on the foreign exchange market’s volatility, investments in Forex are generally made over the long term, the time to learn all the strategies necessary for a safe and less risky investment.

3.  The no deposit bonus

The No Deposit Bonus is the only bonus in the Forex world that takes the form of real money. Like the instant bonus, however, you must trade a number of positions before you can cash it out.

However, brokers rarely use it because it does not encourage you to reinvest with them, which is against their interests. It is therefore generally used for purely marketing purposes. It is, therefore, necessary to be wary of it.

4.  The reload bonus

Finally, the reload bonus, uncommon, is the promise of another bonus from the broker in exchange for a new deposit from you.

It’s generally accessible to regular clients. For example, your broker may offer you a 25% reload bonus for every deposit. It’s an instant bonus that you will be entitled to with every deposit.

This bonus can be very interesting for experienced traders who are already familiar with effective strategies in Forex.

What are the benefits of bonuses in Forex trading?

First of all, you can trade bigger lot sizes. More invested money, more return you can expect. Furthermore, you can use more leverage.

Finally, if you just aim to explore the trading platform and brokerage service that interests you, using a bonus on a small deposit opens you more wiggle room for testing. Also, you can better test trading outcomes and strategies along with testing the withdrawal process.

Last but not least, always read carefully trading conditions regarding the bonuses to make sure you understand the rewarding system of a specific brokerage platform.

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Why Is Foreign Exchange Risk Management Essential?

For businesses operating across borders, it is a priority to assess the degree of Foreign Exchange risk that the organization is exposed to. Ignoring FX management is one of the most expensive mistakes a company can make. Increased trade flows, outbound M&A growth opportunities, expansions, and access to foreign currency (FCY) borrowings subject corporations to fluctuating FX rates. Impacting different areas of the balance sheet and cash flows in various ways, quantum, and frequency, these activities can have a material impact on a company if they aren’t managed properly.

What is FX Risk Management?

Foreign Exchange Risk Management policy, also known as FX Hedging Strategy, refers to any of the measures devised by companies or investors to shield the value of their cash flows, assets, or liabilities from unfavorable exchange rate fluctuations.

The markets are constantly changing, and volatility can have a significant impact on your company’s bottom line without warning. Without an FX risk management plan, you will only be able to act after the damage has been done, and some of your initial response time will most likely be spent strategizing on how to respond properly.

Why do you need a Foreign Exchange Risk Management policy?

In the absence of an FX management policy, a business is unprepared to control the possible negative consequences of currency movements, which could result in higher costs, decreased market share, and lower profit margins. Companies should develop and document a policy statement that outlines the company’s attitude, goals, and acceptable responses when handling FCY foreign currency exposures in order to prevent these negative outcomes.

How to build an effective FX risk management policy

An effective policy requires a clear corporate strategy and objectives. It should begin with the identification of what key metrics can demonstrate the successful execution of a strategy to its stakeholders.

It should include:

  • Your business’s foreign exchange risk capacity and timeframes.
  • Risk mitigation tools your organization will use.
  • A company’s decision-makers for FX risk.
  • A robust system for managing currency risks on an ongoing basis.
  • Strategic planning over the long-term (as opposed to daily developments).
  • FX risk management measures and actions that can be shared with a team so the burden is not solely on one individual.

Recognizing that reducing currency volatility to zero is both unrealistic and impossible, FX managers must prioritize the risks and implement a policy and strategy that aligns with the corporate’s target goals, view, risk tolerance, and budget.

If businesses and the operating environment transform, so should risk management policies to ensure they are fit for purpose and contribute to the maximization of shareholder value.

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Forex Trade Signals – The Very First Stop For Beginner Forex Traders

The greatest mistake that newbie Forex traders make is the fact that they are able to effective pick winning currency trades simply because they read a few Forex e-books, blogs, or forums. The truth is, it requires years (and countless currency trades) to be able to gain sufficient understanding and experience so that you can accurate pick how currency pairs will behave.

What exactly options do newbie Forex traders have?

The solution: forex trade signals.

Forex trade signals are specific buying and selling instructions that tell Forex traders which currency pairs to purchase, what cost to purchase it at, and which cost to market it at. All emotion and thought is taken away in the equation. That is good since newbie Forex traders just can’t make lucrative currency trades (yet).

Forex trade signals originate from websites that employ experts with experience and who’re while using latest Forex software to properly evaluate historic and up to date currency cost data. Their full-time clients are to precisely predict the direction that currency prices will require. Then they provide these Forex trade signals to people which have agreed to receive them.

Now, this is not free information. We’re speaking about experienced experts using very costly software. That being stated, Forex trade signals could be incredibly valuable to newbie Forex traders.

It’s similar to getting a mentor with you. Every day, he analyzes the apparently overwhelming quantity of data, and transmits an email of the items he believes are the most useful trades available. Now, it’s not necessary to act upon every trade signal he transmits you. However if you simply are just like the normal beginner trader, you might not have confidence using the potential trades looking back at the out of your computer monitor.

Utilizing a Forex trade signals provider (like Forex Ambush 2.) will maximize your odds of success with currency buying and selling. Signing together is quite simple and memberships run monthly which means you aren’t locked right into a lengthy-term contract. And on top of that, websites like Forex Ambush 2. that provide Forex trade signals also allow you to test the waters by providing an effort offer. For around per week, you’ll be able to receive Forex signals and find out should you take advantage of their service.

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In and Outs to become a Effective Forex Trader

Forex buying and selling has several benefits mounted on it that may be exploited by anybody searching to produce substantial wealth by working online. There’s both versatility and convenience connected with Forex buying and selling. To become effective Forex trader you should understand your objectives and goals associated with employed in the Forex market. Forex buying and selling isn’t meant just for big organizations or several traders. Anybody with fundamental skills associated with buying and selling within the Forex market can make wealth on their own regardless of their whereabouts. Nowadays you just need your personal computer and web connection to obtain began with Forex buying and selling activities. You’ll be able to earn a complete time earnings through Forex buying and selling by obtaining the required skills associated with buying and selling.

However, prior to embarking on the road to be a effective Forex trader make certain that you simply keep the fundamentals of Forex buying and selling inside a proper manner. Failure or success within the Forex market depends upon the type of skills acquired on your part through training or buying and selling activities. You should determine whether you’ve sufficient appetite for Forex buying and selling before involved in the Forex market. Like a Forex trader should you stay with a particular time zone it’s advised to utilize quick buying and selling moves to achieve sufficient earnings every day. This can require some kind of learning by calling experts who make wealth in the same way.

If you’re somebody that cannot spend considerable time while watching buying and selling screen and also be a effective Forex trader, it’s advised to utilize swing buying and selling activities regularly. In order to be effective within the Forex market you should comprehend the technical setups for all these styles. That method for you to get the fundamentals so as and build up your own techniques for the street ahead. Possess a obvious knowledge of your risk profile. If you can’t tolerate risk for several types of buying and selling then it is advisable to steer clear of the same. Attempt to get involved with buying and selling activities according to your present risk profile. Try to undergo different strategies whenever you open a small Forex or demo Forex account.

Get accustomed to the marketplace volatility and discover whether your look of buying and selling is working. It is really an important requirement of being a effective Forex trader. It is just during swing buying and selling activities that you simply consider keeping your trades for extended duration. There’s simply no need to bother about large capital on your initial buying and selling period. A tiny bit of investment will help you to build a fortune in the process. This will help you to develop sufficient experience without taking a loss because of any wrong moves. Thus, success in Forex buying and selling relies upon the type of set of skills you develop through buying and selling activities, which could be either of technical or fundamental nature. There’s not short-cut to success also it takes persistence to know and cope with the reasons of Forex market.

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Beat the marketplace With Managed Forex Accounts

Following the stock marketplace crash of history 12 several weeks, a number of people are venturing in to the forex market, and therefore are searching at managed forex accounts like a vehicle to gain access to this more and more well-loved asset class. In the following paragraphs we take particular notice at managed forex accounts, and explain why forex ought to be a part of neglect the portfolio.

Forex buying and selling may be the buying and selling between banks along with other institutions or buying and selling between individual parties where the first is acquiring the currency along with the other having to pay for this. There is no centralised exchange, for shares, along with other goods for example oil.

From the start 35 years back, the currency marketplace has grown to become the biggest as well as the most powerful financial market worldwide and it is growing. Buying and selling occurs between central banks and large banks, too as people, hedge funds, corporations, currency speculators, along with other parties.

A brief history of forex managed funds is a reasonably recent 1. Using the recognition from the currency buying and selling company, it’s really no question a lot of consumers are becoming thinking about it. By having an average every single day turnover that will reach to trillions of dollars, who’d not want to get their hands within the organization? Purchasing the foreign currency marketplace could be a positive champion due to the want for buying and selling in currencies for example pounds, dollars, plus a much more.

Thus together with the increase in recognition from the currency companies are an upswing from the ideal vehicle to gain access to that marketplace, the managed forex account. Investors which have forex managed funds will come across that getting them makes going through the enterprise a great deal extra convenient and fewer difficult. It let you measure the forex marketplace situation even if they are from the pc screen.

One of the leading the best-selling forex market is basically that you usually can profit with managed forex accounts. Whereas with mutual funds, the roi is generally determined by the direction of the stock exchange. Whether or not the shares are going lower, you might still make money from what’s occurring inside the currencies market.

Forex managed funds could make steady profit and reduce loss due to the fact of superior risk management. An entire return of investment, and normal profits, despite the declining companies are regular with managed forex accounts. With managed forex accounts, investors possess a totally hassle-free investment when it comes to coping with this currency exchange market. With this selection, managed forex accounts are totally helpful for the newbie inside the organization. An investment is safe due to the fact just the investor has got the accessibility forex managed funds which can be checked on the an every day basis.

Since buying and selling online is very well-known, opening a forex account is a reasonably painless procedure. It generally depends upon the broker or investment manager that you made a decision to open managed forex accounts with, truly it comes down to a first deposit of $5,000 or more. There will probably be the the least documents to accomplish, although to conform with anti-money washing rules, you will need to present proof of your identity and prove of address. The trades in your forex managed funds will probably be inside your name only, not from the broker or those of an investment management corporation. Everything they are doing is read the market, determine the popularity making the trades for you personally. They’ve got no use of withdraw out of your forex managed funds.

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How Price is Decided in Options Trading

Option is a legal contract between buyer of the option and its seller. Option is transacted in the form of buying and selling securities at an agreed price in a certain period of time. This flexibility is unique feature for options trading. Another unique aspect about options is you do not need demat account opening for options trading. Although for convenience, most traders prefer demat account to keep track in their portfolio.

Options is quite similar to insurance that you pay an amount of money in order that your property is protected by the insurance company. The difference between both of them is minor, based on their mode of operation; option can be traded whereas, insurance policy cannot be transferred or traded. There are two types of option contracts; call options and put options. We can buy call option when we expect the stock price to go up and buy put option when we predict the stock price to drop. We also can anytime sell call option if we predict the security price will drop sharply and vice versa if we want to sell put option. Usually, option is counted by units of contracts – one contract is equal to 100 unit options. 1 unit option protects 1 unit share. So, one contract protects 100 unit shares.

Before starting online trading in options, you must know most important factor that valuates the options. The trading is done based on the strike price.

What is Strike price in Options Trading

Strike price is the value that is agreed by both traders; buyer and seller of the option to deal with. That means if the determined strike price of the call option is 35, seller of this option abides to sell stock at this price to the buyer of this option even if the market price of the stock is higher than prevailing 35 if the buyer exercises the option. Buyer of this option is free to buy stocks with a price that is lower than the market value.

If the current market price is ₹39, the buyer will earn ₹4. If the stock value is lower than the strike price, buyer will try to hold the option and leave the existing option to expire worthless.

For strike price in put option, buyer of the option has the obligation to sell the stock at the strike price to the seller of the option. For example, if the put option strike price is ₹40, seller of this option abides to buy the security at this price from the buyer if he or she executes the option even if the market price is lower than this price. If the market is ₹35, the option buyer will earn ₹5. At first glance, it seems that a lot of transactions are involved; but actually, seller of the option will not purchase a security and sell it to the buyer.

The broker firm will perform all the transactions but the extra money incurred to buy the security has to be reimbursed by the seller. This means, if the seller loss ₹5, the buyer will earn ₹5.

Remember, in some cases, when the stock value equals the strike price, the option has apparently zero value.

This is how price is decided in options trading.

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Foreign exchange Online – Become a specialist Trader

Foreign exchange on the internet is booming, many people are actually making over 6 figures annually foreign exchange buying and selling online. Foreign exchange buying and selling is very addicting and challenging, and simultaneously exciting and rewarding should you strive in internet marketing. To become a effective foreign exchange trader you have to fully realize the company inside and outside. That is among the foreign exchange choice to success. You have to buy an excellent foreign exchange ebook and start understanding the foreign exchange system.

Commence with some foreign exchange workshops, foreign exchange demos, and foreign exchange courses. Just about all foreign exchange websites offer an opportunity to on line free of charge and start buying and selling for play money as though it had been real cash to obtain a sense of the way the foreign exchange global buying and selling market works. You can aquire a quick idea about how fast you’ll succeed or see what you ought to focus on immediately to become effective. This certainly is the greatest foreign exchange tool which will make you your ability to succeed.

Just like any foreign exchange investment, it’s dangerous however the reward is really incredible that you can’t avoid an chance not to purchase the forex market. Unlike the stock exchange, no-one can predict the direction certain foreign exchange currencies goes. It’s all according to real life occasions which influence the foreign exchange currencies market. Once you get enough training you can start investing real cash in to the foreign exchange market. I recommend beginning out at something around $25.00. $25.00 you can get a lengthy lengthy way, inside a couple of months that $25.00 may are a couple of 1000 dollars should you play your cards right and discover the machine inside and outside. The truly amazing factor concerning the foreign exchange product is that you don’t need no fancy broker foreign exchange and shed 100’s of dollars on the system. You just need a foreign exchange ebook along with a understanding and understand how of methods the foreign exchange buying and selling market works.

The fundamental fundamentals from the foreign exchange trade market is you buy currency for low, then sell it for any so much greater cost. You won’t ever wish to hold foreign exchange currency for to lengthy once you purchase it. The foreign exchange marketplace is constantly altering and you have to remain on your toes. You should utilize the fundamental fundamentals and also the training you’ve acquired with time to constantly create a stable earnings within the foreign exchange market. Remaining in your toes and being conscious of whats happening within the foreign exchange news can get you a lengthy means by the forex market. The good thing of by pointing out foreign exchange market is you can trade onto it 24 hrs, five days per week. They fit your schedule perfectly so there’s no excuse having the ability to not trade about this market. Watch out for foreign exchange signals, because they are constantly altering and learn the marketplace in general. Believe in instinct and uncover all foreign exchange tips for buying and selling as possible. Best of luck!

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How Can You Effectively Trade The Foreign exchange Market?

Effective Foreign exchange market buying and selling is definitely an accomplishment that may be achieved via different buying and selling methods. However, whichever buying and selling method or system you at long last finish up using, there are several components to effective Foreign exchange buying and selling which are necessary and therefore should be present. So, let us review these elements to be able to make learning Foreign exchange buying and selling as efficient and effective as you possibly can.

• Effective Foreign exchange Education

It is important it does not matter what buying and selling strategy or system you finish up using, that you simply learn it from your experienced trader and make certain it’s really effective and relevant. Regrettably, the Foreign exchange world is filled with scammers and great online marketers who’re just attempting to jam some indicator or buying and selling robot lower your throat. You’ll need a real comprehensive Foreign exchange buying and selling education you have to really teach me to trade, not only learn to enter spoon-given exit and entry signals just like a monkey. Fortunately, there are several excellent Foreign exchange education sites on online, those operated by real traders who act more as mentors than sales males are often the best.

• Foreign exchange Management Of Your Capital

You will have to come with an effective Foreign exchange management of your capital plan, regardless of what buying and selling strategy or system you finish up using. Many, otherwise most traders, overlook management of your capital once the begin buying and selling Foreign exchange. They believe it is something they is to later or exercise once they begin to make money. Regrettably on their behalf, case not reality. You must have a particular Foreign exchange management of your capital approach and plan before you decide to ever start buying and selling with real cash. If you do not, you’re almost certain to lose much of your buying and selling money, if not completely from it. So, if you wish to become successful like a Foreign exchange trader, make certain to highlight management of your capital while you learn foreign exchange buying and selling.

• Foreign exchange Buying and selling Psychology

The mental facet of Foreign exchange buying and selling is among the impost main reasons towards the profession, otherwise thee most significant. Yet, many traders ignore their very own feelings as well as their inabiility to manage them. Indeed most buying and selling mistakes and account blow-outs are due to over-buying and selling over-leveraging. Both of these mistakes are a result of ineffectual emotional control or perhaps an ignorance from the important of managing a person’s feelings while you trade Forex currencies market.

So, in case you really wish to effectively trade the Foreign exchange market, you will must learn how to control yourself while you communicate with the marketplace. What this means is being disciplined even when confronted with constant temptation, because that is what the Foreign exchange market is a continuing temptation arena that you should over trade or higher leverage. You have to learn how to overcome this temptation while you learn Foreign exchange, since you certainly don’t want to end up giving in to these temptations once you begin buying and selling the marketplace with real cash. Keep your points in the following paragraphs in your mind while you learn Foreign exchange buying and selling they all are most evident and incredibly important to being a lucrative trader.

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