Day Trading 101: What Are Forex Orders?
As you begin to learn the fundamentals of Forex trading, you’ll need to learn what an order is. In day trading, Forex orders are used by traders to enter and exit the market, and they help provide controls over how trades are placed. There are many different types. Some orders are rules-based, enabling a trader to enter the market when prices are at specific levels, while others enable traders to enter or exit the market at the current price. There are five types that are almost universally offered by brokers, as well as some lesser known trade orders. Beginning day traders must learn how each trade order works and the situations in which each order should be used. Here’s a look at the five most common:Forex Trading: Are You A Mean Reversion or Trend Following Trader?
Forex trading is a popular way of investing money. There are various strategies for Forex trading. One strategy is briefly discussed here.Forex Trading: Understanding Currency Pairs
In Forex trading, the two currencies being traded make up a currency pair, and there are many different pairs that Forex day traders can trade. Traders can choose “major pairs,” “crosses,” and “exotics,” and there are pairs that are common like EUR/USD (euros and U.S. dollars) and much less common like USD/MXN (U.S. dollars and Mexican pesos).Forex Strategy: What Is Range Trading?
The value of a currency pair doesn’t trend in one direction; there is no uptrend or downtrend. Rather, the currency pair has specific fluctuations over a week or day that are fairly predictable. Simply put, the currency pair’s value zigzags between a high and low. Range trading is a Forex strategy that takes advantage of these regular fluctuations. For example, a range trader first determines a range, and then might buy into a currency pair at the low end of the range and sell when the currency pair reaches the high end of the range. A reverse trader can also short the range, buying in at the high value and selling at the low value.Learn Forex: What Is Scalping in Day Trading?
Many Forex day traders refer to themselves as “scalpers.” But what exactly is scalping in the Forex market? Here’s a quick look. You might be familiar with the term scalper. Ticket scalpers, for example, purchase tickets at face value, and then turn around and quickly sell them for slightly more to turn a fast profit. In foreign currency trading, the idea is similar. Forex scalpers make many quick, short-term trades throughout the day with the goal of capturing a few pips in profit off of each trade. Typically, Forex scalpers stay in positions for very short time-frames, as little as a minute and no longer than five. The key to profiting is volume. Using this trading style, scalpers open dozens or more positions each day, because they’re just scalping a few pips off of each trade. The more trades: The more pips they capture.5 Differences Between Forex and Stock Trading
One of the biggest misconceptions about foreign currency exchange is that it’s just like trading stocks. That couldn’t be further from the truth. Although these two types of trading share similarities in process, the stock and Forex markets are much different, and each market has its own unique quirks. If you’re entering Forex trading with a background in equities, it’s important to recognize these differences. The reason: Due to these differences, the trading styles for stocks and foreign currency are very different. Here’s a quick look at some of these major differences:Forex Trading: Day-Trading Chart Types
Charts are one of the most widely used tools by traders to analyze price movement. Yet, there are many different types, and in general, traders tend to stick with a specific chart type to conduct their technical analysis. In general, charts there are three major types of Forex charts: Bar charts, candlestick charts, and line charts. Plus, the data is also represented by time-frame. For example, you can choose to look at data during many different time-frames, including:Online Forex Trading – A Great Way To Make Money
The online Forex market, also known as the FX market or FX trading, remains one of the fastest paced markets. In this market, individuals make money by trading one currency for another and so on. For example, one US dollar may be worth 1.5 pounds of silver, which is used as the currency many countries of the United Kingdom. So, if an individual were interested in trading one for another, they would ultimately have more money. They could then take this and trade it for another currency and so on.