Learn forex trading

broker fxThere are three main types of FX trading: speculation, investing and hedging. Speculative forex trading involves short-term positions, while investors in the FX market tend to keep their positions open for a longer period of time. Of course, there is no strict cut off time for when a position is considered an investment rather than speculation. It’s more of a sliding scale.

Hedging is about managing risk. A person or a legal entity can purchase currency or FX derivates to mitigate other risks. A company that receives most of their earnings in one currency but have expenses in another can for instance use FX hedging to manage the currency risk. They want to protect themselves from the risk of losing a lot of money if the first currency drops sharply in value in relation to the other currency.

Another alternative if you want to make money on the FX market is trading CFD:s or currency backed binary options. Binary options allow you to make larger profits with a limited downside.  You never risk loosing more money than you have lost. You can learn more about Binary Options by visiting binaryoptions.net

Examples of Forex trading strategies


This strategy is a price action strategy utilized for all currency pairs. It can be used for short-term, medium-term and long-term positions.

Bollinger Band Bounce

This strategy was developed for raging markets. Using it together with confirming signals rather than alone is advisable.

Daily Fibonacci Pivot

This strategy is based on the Fibonacci sequence and is normally used for daily pivots only (any number of pivots). Fibonacci retracements and extensions are combined.

Overlapping Fibonacci

This is another FX strategy based on the famous Fibonacci sequence. Using it together with confirming signals rather than alone is advisable.

Pop ‘n’ Stop

A method for increasing your ability to correctly predict if the price will continue to rise when you have spotted an upwards trend.

FX scalping

forexFX scalping is a method of arbitrage. The successful FX scalper makes a profit by exploiting small price gaps created by the bid-ask spread. FX scalping is popular among FX day traders. One advantage of this method is that you can make money even when the bid price and ask price aren’t moving. Scalpers love stable markets.

Traders involved in FX scalping will simply buy at the bid price and sell at the ask price and pocket the difference. Typically, the time between buying and selling will be very short – sometimes considerably less than one minute. It is therefore important to use an FX site where super fast transactions are possible. Also, you need a reasonably fast computer and reliable and fast internet connection.

Long-term investments (positional trading)

If you aren’t willing and able to spend a lot of time on FX trading, long-term investments in currency is usually a better choice than day trading and other types of short-term speculation. You keep a position open for a long time, e.g. several weeks, and don’t fret too much about small swings up and down. What you are interested in is where the price is going longer term.

Generally speaking, it is best to avoid leverage, or at the very least refrain from making highly leveraged trades. You are exposing yourself to long-term risks.

Latest Forex Guides


Forex Analysis Guide

Fundamental Analysis In finance, fundamental analysis is the analysis of the foundation of an asset or similar. For a company share, fundamental analysis will typically involve the analysis of financial statements that includes information about the company’s assets, liabilities and earnings. Looking at the company’s overall health, risks

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Trading Exotic Currencies

The foreign exchange market is the largest financial market in the world and also the most liquid. At the time of writing, it has an average daily turnover of (the equivalent of) roughly 5 trillion USD. That’s 5,000,000,000,000 – five million millions – per day. However, just because the market as a whole is characterized by a high liquidity

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Forex & The Martingale System

There are quite a few people out there that hail the martingale system as a fool proof way to get rich on the forex market. Many times, they are also selling some type of e-book or similar that they promise will help you iron out the kinks and understand exactly how to employ the martingale system when trading in currencies. The problem is that the

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Benefits of Forex Copy Trading

Copy trading is a type of trading where the trader copies another trader’s actions. During recent years, social networking platforms have been developed that makes it very easy for traders to copy each other. The goal is of course to increase your profits by copying the trade of a successful trader. One reason why copy trading is popular is that

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CFD trading

A Contract for Differences (CFD) is an arrangement made in a futures contract whereby differences in settlement are made in the form of a cash payment. There is never any obligation for any part to deliver actual physical goods, securities, etc when the contract expires. Both losses and gains are paid in cash. If you want to engage in CFD trading,

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When equity market news impacts the FX market

The FX market is often impacted by the equity market, and vice versa. The share price of a stock company can for instance drop if the company is predicted to become adversely impacted by a strengthening of the national currency against the currency of a major import market. Conversely, the FX market can react in various ways to new released by enterprises.

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FX Scalping

A profitable FX scalper exploits small price gaps created by the bid-ask spread. To put it simply, the FX scalper will buy (pay the bid price) and then sell (receive the ask price). The difference between bid and ask is the profit, before transaction costs. It is a type of arbitrage, and it can be profitable not just in volatile markets but also in

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Basic info for the aspiring FX trader

What is a currency pair? Currency pairs is the foundation of the FX market. Currencies are traded in pairs, where one currency is the base currency and another one is the counter currency. The quote for a currency pair denotes how many units of the counter currency you must pay to receive one unit of the base currency. Examples of frequently traded

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FX Spread - the hidden cost

In the world of trading, the difference between the bid price and the ask price for something, such as a company share, is called the spread. How to calculate the spread In the forex markets, currencies are traded in pairs and the price of a currency is always quoted in terms of its price in the other currency that makes up the pair. Example: A commonly

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FX Trading & News Events

The foreign exchange market, also known as the FX market, is not one centralized market. Instead, it is made up by numerous market places, from the big interbank currency market to small retail FX trading platforms. Governments, banks, corporations, organizations and individuals all need to exchange one currency for another for various reasons, and

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