When a trader has no usable/free margin, he or she is subject to a margin call. A larger amount of funding is needed for the account. It usually occurs when trading losses reduce the usable margin below an acceptable level determined by the...
The way time zones work also contributes to daily volatility. It's still Sunday night in Europe when it's Monday morning in Australia. European and American sessions are closed at this time. The markets are already open, but volatility remains low....
Overtrading and being in too many trades at once
Breakout trading employs a combination of technical and fundamental analysis to profit from an asset's price movements after it breaches historical support or resistance level. The most common chart patterns used during a breakout are ascending and...
The Forex market is a place where all currencies are traded. However, the volume of trade conducted in different currencies varies greatly. As a result, despite the fact that there are hundreds of currencies in the world, approximately two-thirds of...
Nonfarm payroll figures give economists an idea of how strong the labour market is. Non-farm payrolls are important for day traders because they act as a catalyst for volatility. As one of the most anticipated news announcements, the NFP has the...
Plus500, one of the leading trading platforms in the UK, is also the largest CFD supplier in Europe, particularly in the United Kingdom, Germany, and Spain. Plus500 allows investors of all skill levels to start trading CFDs for a variety of...
Your entry/exit strategy determines the difference between profits and losses. For example, you may believe that the value of a currency pair will rise, but if you wait too long to enter a trade, you will limit your potential profits. Finding an...
When exotic cross currency pairs are used, the risk is increased because these currencies have a large spread, requiring a trader to deposit more money in order to make some marginal profits. Many exotic currency economies are not very stable, as any...