- The Fine Print: Understanding Forex Trading Regulations In Belgium
- Digital Currency Types, Characteristics, Pros & Cons, Future Uses
- Financial Modeling Best Practices: Tips & Tricks
- Range Bar Charts: A Different View Of The Markets
- P2p Platforms Look To Bring Banks Into The Fold
The Fine Print: Understanding Forex Trading Regulations In Belgium – This article was co-authored by staff writer Jennifer Mueller, JD. Jennifer Mueller is a content creator. Specializes in reviewing, fact-checking and evaluating content to ensure accuracy and accuracy. Jennifer received her J.D. from Indiana University Maurer School of Law in 2006.
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The Fine Print: Understanding Forex Trading Regulations In Belgium
Forex is a global currency market where foreign currencies are purchased and sold. The market uses currency pairs to assess the relative strength of one currency against another. Pairs show how much of the second currency (quote) can be purchased for one unit of the first currency (base). Forex traders use forex charts to evaluate the movement of currency pairs and predict trends. If you identify the trend correctly, you can potentially make money in Forex by buying and selling in Forex, reaping profits. There are 3 types of Forex charts that are most popular among traders: candlestick charts, line charts and bar charts.
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This article was co-authored by staff writer Jennifer Mueller, JD. Jennifer Mueller is a content creator. Specializes in reviewing, fact-checking and evaluating content to ensure accuracy and accuracy. Jennifer received her J.D. from Indiana University Maurer School of Law in 2006. This article has been viewed 309,359 times.
A Forex chart is a visual way of reading price changes over a specific period. When you look at a Forex chart, you will see rectangular symbols that look like candles – they indicate the opening price and the closing price. In the case of black, the upper part is the opening price and the lower part is the closing price. In the case of whites it is the opposite. The small “sticks” at the top and bottom of each candle indicate the highest and lowest price swings during a given period. For more tips, such as how to understand different candle patterns, read on. A filter rule is a trading strategy that sets parameters for when to buy and sell investments. The filter rule is commonly based on the belief that rising prices tend to continue to rise and falling prices will continue to fall.
When using a filter rule, traders often highlight the percentage change from previous prices. The designated percentage change can trigger a buy or sell depending on the price movement up or down. This is a subjective strategy because the selected percentage level is based on the trader’s analysis.
Technical analysts exercise their discretion in setting trading parameters and filter rules. Generally, filtering rules are based on historical trends and security price patterns identified in the asset’s price chart.
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A technical trader may notice that when the price rises 5% above a selected level, it tends to move another 10% in the same direction. Therefore, an investor can apply a filter rule to look for stocks that have moved 5% from their previous closing price, low or high.
The percentage is usually based on short-term trends where security prices range from 1% to 10%. The levels can be smaller, such as 0.2% or 0.5%, if they are based on intraday price movements. When using a filter rule, a trader must decide to trade in both directions, up and down, or only in one direction.
Under the 1% buy/sell filter rule, an investor buys a stock when its price rises 1% above its previous closing price, low price, or high price. The trader then sells it when its price falls 1% below the previous close, low or high.
Implementing filtering rules requires software that provides technical analysis or charting that can be set up for price alerts or automatic trade execution based on trader preferences. Some investors choose automated trading, which allows them to take advantage of trading opportunities faster.
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Depending on the parameters, a filter rule can result in a large or small number of transactions. Small parameters like 1% will result in many more trades than 15% or 20%. Often, investors need to pay attention to commissions and position size. Commissions should be low enough and position sizes large enough to cover the costs of frequent trading with small price movements.
If the price falls by 0.6% from the last high or low, the trader enters. They will exit their position if the price moves 0.6% in the opposite direction of the high or low. The trader only uses this strategy between 9:30 a.m. and noon Eastern Time, and any open position is closed at noon.
The chart shows how this could play out on a day when the share price increased by more than 3% during the specified period.
The first transaction resulted in an increase of 2.29%. The second transaction brings a profit of 0.14%. The third trade brings a profit of 0.03%. This assumes no slippage in orders and commissions must also be taken into account.
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A trade trigger is typically an increase or decrease in the price of an index or security that triggers a sequence of trades. Trade triggers are used to automate certain types of trades, such as selling a stock when the price reaches a certain level. A trade filter is a criteria used to narrow down or screen investment options.
A common filter is to focus on stocks whose prices are above moving averages. Traders also filter for stocks that have broken support or resistance and are seeing increasing interest in the market.
A filter rule is a trading strategy based on price movements, usually dependent on a percentage change. Technical analysis or charting helps investors determine the best filtering rules to apply when trading stocks.
Requires writers to use primary sources to support their work. These include white papers, government data, original reports and interviews with industry experts. Where appropriate, we also refer to original research from other reputable publishers. For more information about the standards we follow in producing accurate and impartial content, please see our editorial policy. Trade is the exchange of goods or services between two or more parties. So if you needed gas for your car, you would trade your dollars for gas. In ancient times, in some societies, trade was carried out by barter, in which one good was exchanged for another.
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The trade could look like this: Person A repairs Person B’s broken window in exchange for a basket of apples from Person B’s tree. This is a practical, manageable, everyday trading example, with relatively easy risk management. To reduce the risk, Person A can ask Person B to show the apples to make sure they are safe to eat before repairing the window. This is what trading has been like for millennia: a practical, thoughtful human process.
Step onto the World Wide Web now and suddenly the risks can get completely out of control, in part because of the speed at which transactions can occur. In fact, the speed of trading, instant gratification and the adrenaline rush of making a profit in less than 60 seconds can often trigger a gambling instinct that many traders may succumb to. Therefore, they may turn to online trading as a form of gambling, rather than treating trading as a professional activity that requires appropriate speculative habits.
Speculating as a trader is not gambling. The difference between gambling and speculation is risk management. In other words, when speculating you have some control over your risk, whereas when gambling you don’t. Even a card game like poker can be played with both a gambler’s and a speculator’s mindset, usually with completely different results.
There are three basic ways to place bets: Martingale, anti-Martingale or speculative. “Speculation” comes from a Latin word
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In the Martingale strategy, you double your bet every time you lose and hope that the losing streak will eventually end and you will place a profitable bet, thereby making up for all your losses or even making a small profit.
Using the anti-Martingale strategy, every time you lose you halve your bets, but every time you win you double them. This theory assumes that you can take advantage of a winning streak and profit accordingly. Of course, for online traders, this is the better of the two strategies to adopt. It is always less risky to take losses quickly and add or increase your trade size when you win.
However, you should not enter into any transaction without first ascertaining the odds in your favor, and if this is not clearly possible, you should not enter into any transaction at all.
Therefore, the first rule of risk management is to calculate the chances of a trade being successful. To do this, you need to master both fundamental and technical analysis. You will need to understand the dynamics of the market you are trading in and also know where the likely psychological price trigger points are, a price chart will help you make your decision.
P2p Platforms Look To Bring Banks Into The Fold
Once the decision has been made to take over the deal, the next most important factor comes into play
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