Trading articles

The foreign exchange (forex) market, with its 24-hour operation and daily trading volume exceeding $6 trillion, is the largest financial market globally. For successful online forex trading, understanding the basic types of orders executable on the best forex trading platforms is crucial.

In this article, we’ll explore the primary order types in the forex market and how to use them on an online forex trading platform like XtreamForex.

1) Market Order
Market orders are the simplest and most common forex orders. They enable you to buy or sell a currency pair at the prevailing market price. When executing a market order, the trade fills immediately at the best available price, which may differ from the exact price seen upon order placement due to market fluctuations.

2) Limit Order
Limit orders let you set a specific price for buying or selling a currency pair. These orders come into play when anticipating the market reaching your desired price before reversing. A limit order stays active until executed or canceled by the trader. By allowing entry or exit from trades at predetermined prices, limit orders help manage risk and secure profits.

3) Stop Order
Designed to protect trading capital, stop orders automatically close a trade when the market hits a specified price. They can be used to cap losses on open positions (stop loss) or lock in profits on favorably moving trades (take profit). Stop orders are vital for sound risk management in online forex trading.

4) Stop-Limit Order
Combining stop and limit order features, a stop-limit order has two price levels: the stop price and the limit price. When the market reaches the stop price, a limit order triggers to buy or sell the currency pair at the specified limit price or better. This order type manages risk while still offering potential profit if the market moves as desired.

5) Trailing Stop Order
A trailing stop order, a standard stop order variation, automatically adjusts as the market moves in your favor. It trails the market by a set number of pips, ensuring that your stop loss follows profitable market movements but stays fixed if the market reverses. This order type locks in profits while allowing trades to grow.

Final Words
Understanding these basic order types is essential for effective forex market navigation. When engaging in online forex trading, it is important to choose a reliable and the best trading platform. Xtreamforex is an excellent choice, offering a wide range of trading tools, educational resources, and a secure trading environment. With our advanced trading platform, you can easily execute various types of orders and access real-time market data, empowering you to make informed trading decisions.

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Trading Articles

June 13, 2023

Best Useful Forex Trading App That Help You Earn Money

If you are involved in forex trading, then there are going to be a lot of different balls that you need to juggle. Some people will rely more on technical analysis, while others are always watching the news and focusing more on fundamental analysis. Then there is the hybrid approach that combines these two styles. Whatever the case may be, there are many useful legal forex trading app words.

Find out which leading forex trading app in world might be most useful for your particular needs. By utilizing these types of tools, you can often improve the results of your trading, as well as save significant time and energy.

Modern smartphones allow you to access a huge amount of computing power in a small device. Therefore, you have many great apps on the market that can be very useful in your trading journey. Many people even prefer placing all of their trades through mobile trading platforms.

Xtreamforex Mobile App
To start off this best online app for forex trading in world list, we will look at an app that is very straight forward in what it offers, but also highly effective. Xtreamforex is a leader when it comes to financial news and information, no matter where in the world you might be located. This app is going to be ideal for people who want to access the most recent market news, with Xtreamforex app often breaking these stories faster than anyone else.

You will be able to take a look at the global financial markets, as well as all business-related news, market price data, and tracking tools. You can customize the menu to suit your specific preference and put certain currency pairs in your watchlist so that you are always able to easily keep an eye on them.

Xtreamforex Broker app
Xtreamforex is a leading trading broker and can be considered the best app for forex trading in world, as it offers traders the ideal blend of excellent research and trading tools. There is also the best in the business education offering, competitive products, as well as many different products being available for you to trade.

The company has been around for 7 years, so it is definitely legit, and it regularly ranks very highly for its research, tools, and trading platforms. The app provides you with more than 30 technical indicators, as well as 20 drawing tools, and other charting options. Some of the tools that are available include the likes of alerts, economic calendar, watch lists, and sentiment readings.

Copy Trading
One of the best forex trading apps in world and certainly a leading app for Copy Trading is an offering from the leading broker Xtreamforex. Xtreamforex is a copy trading service that allows you to follow and copy the trades of other more experienced traders. It allows you to browse through their success rates, risk appetites and back history to understand if their trading style and strategy is aligned to yours.

This app is suitable for new traders that would like to gain exposure to the trading markets, while learning how to trade for themselves. It’s a great way to learn as it gives you the ability to watch the way other more expert traders trade. For more experienced traders, it can also be very useful. Most advanced traders are experts in a few assets, which they really understand. They follow all of the news and research around these assets to know how certain events will impact the price movement.

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Trading Articles

June 2, 2023

8 Tips for Trading Gold (XAU/USD)

As forex traders seek out stable investments that can hedge against inflation, market instability, and other geopolitical factors, gold has become more popular than ever. Traders can use gold as a way to hedge against other investments or as a safe haven that provides consistency over time and is more resistant to dramatic swings in valuation than a majority of other currencies.

What Is Gold Trading?
XAU/USD is one of a number of gold pairings offered by forex brokers, making it easier than ever to incorporate gold as part of your forex trading strategy. The stability of gold prices over time also makes it an important asset during inflationary periods.

Following the impact of the COVID-19 pandemic on the global economy, foreign governments and savvy forex traders have moved more of their money into gold as a safeguard against losses resulting from current inflation. Economic practices such as printing more money can weaken global currencies, depreciating their value in relation to stable assets such as gold.

Forex vs. Gold Trading
Because trading gold is known to be stable in shaky economic times, it’s considered a favorite among traders who want to protect themselves from a volatile market or inflation.

The Value of Gold
When it comes to capital and commodities, gold is considered one of the most popular precious metals to invest in. Why? Gold can help investors diversify their portfolios, which is especially important during times of economic uncertainty.

What Factors Move Gold Prices?
What can impact the price of gold? Trading activity, economic inflation, supply, and demand are major factors that can impact the price of gold.

What Are Gold Futures?
Futures contracts are legally binding contracts that are bought and sold on exchanges. A buyer purchases a certain amount of a commodity at a predetermined price on a specific date, while the seller agrees to let the asset go under those predetermined conditions.

What Are Gold Options?
Gold options are derivatives that utilize gold or gold futures contracts as underlying assets. This type of contract is a contract between two separate parties to simplify a possible transaction on a certain amount of gold.

How Do I Get Started Trading Gold?
If you’re eager to make better use of gold and capitalize on potential profit opportunities, here are nine trading tips to keep in mind:-

1. Day trade with the New York close in mind.
Gold is a nearly 24-hour market, but peak liquidity is typically found during New York trading hours. Whether you should target trades during or after New York trading hours depends on your goals. Trades during peak activity offer high liquidity and low volatility, making them good targets for safe-haven positions.

2. Simplify analysis by targeting previous highs and lows.
Because XAU/USD tends to trade in a range, one of the easiest strategies is to identify buy or sell opportunities within previous highs and lows for the trading pair. Traders can open a position on gold when it’s trending up, for example, and target a previous high as their sell price, or vice versa.

Gold is a relatively stable asset, making it likely to reach these previous highs or lows over time. However, this isn’t a good strategy for day trading because it can take time for these targets to be hit. Range-bound strategies typically don’t offer quick profit opportunities like momentum strategies do.

3. When trading gold, consider geopolitical implications on currencies.
When political or economic uncertainty creates concerns about currency prices, gold can be a stable safe haven that protects your liquid assets.

Gold tends to be strongly correlated to the U.S. dollar as well as other stable currencies such as Japan’s yen, and opening a position with XAU/USD can be a reliable means of protecting your assets from unpredictable situations affecting other forex markets.

4. Use the symmetrical triangle for analysis.
The symmetrical triangle is a simple chart pattern that indicates a period of consolidation that may lead to a price breakout. Symmetrical triangles feature the convergence of two trend lines progressing at a similar slope but in opposite directions. As consolidation takes place, price movement on the pairing grows tighter, creating a potential trading opportunity on a breakout.

Most traders use the symmetrical triangle pattern along with other technical indicators, such as liquidity or the relative strength index. When other indicators suggest a potential price breakout, the symmetrical triangle can add further confirmation and increase confidence in placing an order on XAU/USD.

5. Track industrial and commercial demand for gold.
Increased market demand for gold can affect prices due to the fixed global supply of the material. Demand can come in multiple forms. Certain industries may increase their acquisitions of gold due to the material’s role in consumer projects. Both the medical and tech industries, for example, use gold in certain products and solutions.

6. Monitor central bank buying.
Central banks tend to buy gold as a hedge when they’re anticipating volatility in certain currencies. Recently, for example, China and Russia made headlines for making significant investments in gold, which reflected their concern about the future price of the U.S. dollar and the euro, among other major global currencies.

7. Track real interest rates.
Gold has a well-documented correlation with real interest rates, with prices rising as interest rates decline and prices dropping as interest rates rise. The real interest rate is determined by subtracting the inflation rate from the nominal interest rate, resulting in a percentage gain or loss that takes inflation into account.

Historically, gold prices tend to rise when the real interest rate dips below 1%. By watching this interest rate as it changes over time, you can identify a strong buying opportunity—especially if you’re looking for long-term trading opportunities.

8. Target moving average crossovers.
Because gold prices tend to fluctuate within a range, they will cause different moving averages to cross over on forex charts. Many traders will buy whenever a shorter-term moving average crosses a longer-term moving average. For example, if a 20-day moving average were to cross the price point for the 50-day moving average, it would signal a buying opportunity for long-term traders.

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Trading Articles

May 31, 2023

What is a Forex Spread?

A Forex spread is the difference between the bid price and the ask price of a currency pair. Each Forex company offers different spreads on each of its currency pairs. For example if the EUR/USD pair has a spread of 1.5 pips that mean the trader will be able to buy the EUR/USD pair at 1.5 pips.

There are two types of spreads; Fixed Spreads and Floating Spreads. Fixed spreads mean that the spread offered for a pair does not change no matter the price changes. Usually fixed spreads are higher but they guarantee traders that they will always be betting on the same price, and never worry about the price getting any higher.

Most spreads however are Floating, and that means they can move either up or down based on market movements. Obviously these spreads are less predictable, but they have a chance of becoming even lower and helping the trader earns more. But their initial prices are usually lower which is why many traders prefer them.

Forex companies make their money by taking a small percentage of the spread, so every time a position is opened the company makes a small amount of the spread.

Traders are usually looking for the lowest spreads, especially new comers, or those who can’t invest big money, but a lower spread does not always offer the best option. It is important to remember that the lower the spread the lower the risk, but also the lower the profits. Higher spreads would cost more but the returns would also be more profitable.

10:56 am

Trading Articles

May 29, 2023

What is a Forex Strategy?

Forex traders start off by making trades based on minimal knowledge, and a close watch of the market without planning ahead. It is possible to trade this way and sometimes even make profits. But if trading is to be taken seriously it takes a lot more than just that.

Anybody who wishes to make big cash with Forex trading needs to delve deeper and learn more. The best way of planning and organizing trades is through strategies. Just like anything else in life, through experience trial and error people learn to find the best way to get the best possible outcome. The same applies to Forex.

Some strategies have existed for a long time, and traders have but to learn how to use them and when to apply them, sometimes traders use a combination of strategies which they believe will increase their chances of making money. And lastly they are able to develop their own strategies once they are knowledgeable enough to.
To create a strategy it takes skills, experience and usually the help of tools like technical and fundamental analyses which help make more accurate decisions. Strategies are made up of multiple signals which trigger buy or sell decisions.

Some strategies are manual, as in a specific set of actions is planned and then applied by traders, but some strategies are automated and can either be used by trading robots, or pre-set by the trader who keeps monitoring them, and has the ability to intervene at any point. Usually traders will put together their own strategy into the EA and allow it to make the trade.

Strategies can either be created or learnt as mentioned before, but they can also be purchased online from Forex services or even other traders.

10:18 am

Trading Articles

May 25, 2023

8 Useful Tips to Choosing the Right Forex Broker

There has been a lot of interest in forex trading lately, and it is easy to see why. With your phone or laptop and an internet connection, anyone can make extra money in their spare time. One of the most important things you need to do before you start is to choose the right forex broker to start trading with. But with so many trading platforms and apps, where should you start?

1:- Always choose a partner you can trust
There are thousands of trading brokers, but not all of them are safe. There are many fraudulent websites and apps that will steal your hard earned money if you are not careful. You should always choose a broker operating within a legal framework. One reliable broker you should consider is Xtreamforex – licensed and regulated by the FSC (Financial Services Commission) in the BVI. Xtreamforex keeps its clients’ funds safe. It ensures proper segregation of client funds – client funds are in first-class banks.

2:- Find a platform that makes trading reliable and easy!
If you are new to Forex, starting your adventure in trading can be confusing. That is why it’s important to find a trading platform like Xtreamforex that makes trading easy and contains all the trading tools that you need. What’s more, Xtreamforex is a stable and reliable platform that you can count on to make your trades happen with a piece of mind.

3:- Trade whenever you want, from wherever you are
Xtreamforex uses the same proven trading platform as the best international forex brokers in the world. This means you can access a wide range of trading tools to suit your trading style. Best of all, Forex4you offers a multi-trading platform, which means you can trade on your browser, desktop, smartphone, or tablet – it’s all up to you! You can even download our Xtreamforex Online Trading App and Xtreamforex Copy Trading App to trade on the go.

4:- Maximize your earnings and reduce your fees!
Every cent counts, so if you wish to maximize your profits, you must keep your trading costs low. That’s why you should always look for a broker that offers the lowest possible spreads as well as the highest leverage you feel comfortable with. With more competitive spreads offered by brokers such as Xtreamforex, you will be able to keep your trading cost low.

5:- Don’t wait, Trade!
Another important factor to consider is how fast to execute your trading decisions. When it comes to forex trading, speed is everything on the trading platform. When you click “BUY” or “SELL”, a few seconds difference can mean you will win or lose on a trade. Look for a broker such as Xtreamforex who offers near-instant trade execution speeds.

6:- Trading Accounts that grow with you
As you gain experience and confidence as a trader, your trading needs will change. With xtreamforex, you get 4 different types of trading accounts to suit your growing trading needs. For example, with the Cent account, you can trade with a minimum lot size of 0.01 lot. There is also no minimum deposit required, which means you can start trading immediately with a deposit of as low as US$10. This type of trading account is perfect for those who have started trading. Also, with all our trading accounts, you can make instant deposits and withdrawals, so your money is not stuck with us.

7:- World-Class Customer Support
Always ensure that the forex broker you choose can provide you with professional customer support. Many brokers are helpful when you are opening your account, but become difficult to contact when you face problems! So, look for a trusted broker like xtreamforex which can provide 24/7 support via a toll-free number to call, live chat, or email.

8:- Find a broker with nothing to hide
Another point to consider when choosing the right broker is transparency. A good broker always displays real market prices and volumes and publishes its operational data on the website. Audited by a Big Four Accounting Firm every year, Xtreamforex publishes its performance statistics on www.xtreamforex.com for all to see.

8:13 am

Trading Articles

May 22, 2023

The Gold Standard In Forex Trading

What is the Forex market?
Before moving on to the gold standard, let’s review the concept of Forex trading. Forex trading means trading in currency pairs. That is, it is an exchange of one currency for another. Traders make money when market prices fluctuate. After all, the trader gets a profit when buying currency at a lower rate and selling it at a higher rate. These market fluctuations are influenced by several factors, among which we can note the following:

Interest rate:- The interest rate is the rate at which the central bank provides funds for use. When the interest rate increases, the rate for deposit investments also increases. This makes the country more attractive to foreign investors.

When the interest rate decreases, investment attractiveness decreases accordingly, so the exchange rate becomes lower. However, the central bank’s ability to change the rate depends on a large number of factors. For example, with high unemployment rates, the rate is unlikely to be raised. This can lead to a further increase in unemployment because business lending becomes more expensive and it becomes more difficult to operate.

An increase in the discount rate should be expected if the country has a high level of inflation, but at the same time, unemployment rates are acceptable.

Cost of raw materials:- Every country depends to one degree or another on the export of natural resources. Such as oil, coal, ores, and others. And countries whose volume of export of these resources is quite large receive a large profit from these sales. When the price of resources increases, the country’s profit becomes larger, which strengthens the national currency. If such a situation occurs that the demand for these resources becomes less or the supply increases sharply, then the price of the resources falls accordingly.

Export volumes:- Export volumes usually show how attractive a country’s products are. The higher the demand for goods produced in that country, the more foreign currency enters the country, which in turn, increases the value of the national currency.

Trade actions of major players:- In Forex, there are several Forex sessions, which, accordingly, create a 24-hour market. During each session, different financial institutions work respectively. European banks work during the London Forex session, and their actions affect the market during this period.

Political situation:- The international political situation affects the international economy. In case of unfavorable actions of a certain country, sanctions may be imposed on it, which will complicate its functioning and weaken the currency.

New trade alliances and agreements lead to the development of the economy and the strengthening of the currency.

The domestic political situation also greatly affects the currency value. The leadership may come to power with different plans for the development of the economy. Sometimes these plans can be more successful.

General health of the economy:- Perhaps the most obvious of all factors. The strength of the national currency is influenced by the strength of the economy. The most expensive and traded currencies on the Forex market are the currencies of countries with the most developed economies.

As you may have read, the Forex market is currently influenced by many factors, but it was not always like that. At the time of its birth, the market had a completely different appearance, and gold played a significant role in it.

What is the gold standard?
In finance, the gold standard is a monetary system in which the value of a country’s money is directly linked to a fixed quantity of gold. According to the gold standard, a country would exchange paper for gold at a fixed rate, and individuals would also be able to exchange their currency for gold. The gold standard was widely used in the 19th and early 20th centuries but was largely abandoned in favor of fiduciary money schemes.

What is the history of the Forex market?
The impetus for the emergence of the gold standard system was the industrial revolution in European countries and North America. The division of labor led to an urgent need for international trade. To make this process the most effective and simple, they began to use this system.

The main characteristic features of the Paris currency system were as follows:

Gold played the role of world money
Import and export of gold were unlimited
Regulation of the balance of payments balance was carried out at the expense of gold import and export
Each national currency had a clearly defined gold content
National currencies are exchanged depending on their gold consistency

The task of the state was to maintain the gold-to-currency ratio, which in turn narrowed the state’s ability to intervene in the regulation of the economy through emission.

After the beginning of the First World War, this system began to change, and the gold standard turned into a gold currency standard. At that time, several currencies of the most developed countries were recognized as world currencies. This system is called the institutional system of the gold exchange standard, and it was approved at the Genoa Conference in 1922.

But already in 1944, this system was changed to the Bretton Woods system. The economies of European countries were greatly affected by the Second World War. And in 1944, this system was adopted. So the US dollar became the world currency. The US dollar had a fixed permanent exchange rate for gold. The dollar was worth a troy ounce. That is, one dollar was worth a little more than 30 grams of gold.

Conclusion
Since that moment, the market has changed many more times, it was influenced by such factors as the appearance of the accessible majority of the Internet and private computers, online brokers, etc. The reformation of the Forex market began just then. And it was then that all these factors mentioned at the beginning began to affect the value of currencies because the currencies of developed countries currently have a floating exchange rate.