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What is a LOT Size in Forex Trading
Forex is commonly traded in specific amounts called Lot Sizes, also referred to as Position Sizes, which are simply the number of currency units you want to buy or sell. Like buying 1kg of butter, or a dozen eggs from your local supermarket, anything you buy or sell is determined by a unit of measurement. Just like gold is traded in Kg. or Ounces, and oil in barrels. Trading a single unit of a currency pair isn’t viable; this is where Lots come in. To trade currency pairs, you need to understand the concept of a Lot in Currency Trading. To define it simply, a Lot is a unit measuring a transaction amount. In several of our blog posts, including our most recent, Currency Trading and its 7 Pairs, we make mention of Pips, which refers to the change in the value of one currency in relation to another. A pip is usually the 4th decimal place, and therefore a very minute measure. – To be able to benefit significantly from these minute changes in the value of currencies, you need to trade relatively large amounts of a particular currency pair. Pips enable you to trade these very tiny movements in relatively large volumes referred to as Lots. On your trading platform, when you place a Buy or Sell order, these orders are placed in Lot sizes. In forex trading, Lots are subdivided into 4: Standard, Mini, Micro, and even Nano Lot sizes. A Standard Lot translates into 100,000 units of a currency; a Mini Lot, 10,000 units; a Micro Lot, 1,000 units; and a Nano Lot, 100 units. (Each being a 10th of the former). Some brokers show the currency quantity in Lots, while others show them in the actual currency units. This is intended to give you more control over your risk exposure. So for example, you could choose to buy 100,000 Lots in base currency GBP/USD- That is a standard Lot. Or you could buy a Micro Lot of 1,000 GBP. LOT SIZE Standard Lot: 100,000 UNITS Mini Lot: 10,000 UNITS Micro Lot: 1,000 UNITS Nano Lot: 100 UNITS Lot Size Forex Calculator 1. Calculate Your Risk: It is necessary to calculate your risk in terms of percentages before you can establish the right Lot size to use. Normally, it is suggested that traders adopt the 1 percent rule. This means that in the event that a trade is closed out at a loss, no more than one percent of your overall account balance should be at risk. 2.Set A Stop Loss: With any open position, a Stop Loss should be established to indicate the point at which a trader desires to quit a trade in the event that the market doesn’t move in their favor. There are nearly limitless ways Stops can be put. When placing orders, traders would typically use major lines of Support and Resistance as guiding lines. You can use Set A Price Action, Pivots, Fibonacci Ratios, and other approaches to determine these values. 3. Calculate The Pip Cost: It is necessary to calculate the pip cost for your trade as the final step in choosing a Lot size. The cost of a pip is the amount of money you will gain or lose for each pip. As the size of your Lot grows, so does the value of your pip. On the other hand, if you trade with a smaller Lot size, your profit or loss per pip will be reduced as well. The EUR/USD Pair Will Be Used in Our Example Below: For context, if you buy EUR/USD, you’re speculating, per your analysis, that the Euro will strengthen against the dollar. If the price quoted is 1.3000, this means you’ll exchange €1 for $1.3000. To put it differently, you’ll need $1.3000 to buy €1. So, if you wanted to trade standard Lots, this means that at the current price, you’ll need 130,000 units of the quoted currency (USD) to buy 100,000 units of the base currency (EUR). A Mini Lot size is one-tenth the size of a Standard Lot, meaning that a Mini Lot is worth 10,000 units of currency in forex trading. The size of a Mini Lot also means both the profit and loss effects are lower than with standard Lots. In our EUR/USD exchange rate of 1.3000, one Mini Lot of the base currency (EUR), will be 13,000 units. Meaning you’ll need 13,000 units of the quoted currency (USD) to buy 10,000 units of EUR. A Micro Lot size is one-tenth the size of a Mini Lot, which is 1,000 units of currency. Pip movements result in cash swings of 1 currency unit, e.g., €1. Again, in our EUR/USD example of 1.3000, a Micro Lot will be 1,300 units; meaning you’ll need 1,300 units of the quote currency (USD) to buy 1,000 units of EUR. Micro Lots also require less leverage, so a swing won’t have as much of a financial impact as compared to larger Lot sizes. A Nano Lot size is, you guessed it- one-tenth the size of a Micro Lot, which is equal to 100 units of currency. In effect, 1 Nano Lot of the base currency EUR will be 130 units, so you’ll need 130 units of the quoted currency USD for 100 units of EUR. The good news is although it’s relatively easy to calculate Lot sizes, you normally won’t need to calculate the Lot size yourself. A good trading platform, like Geldex, will calculate and tell you what you need to know. It will also be clear on what Lot sizes are available when placing a trade- whether Standard, Mini, Micro, or Nano. How to choose the Best Lot Size in Forex Trading After your choice of Forex Broker, a very important individual decision you will have to make when you begin currency trading is finding the Lot size that best balances opportunity and risk. The Lot size you trade directly impacts how much a market or pip move affects your account; for instance, a 100-pip move on a small trade
The 4 types of forex traders
As extensively discussed in several of our previous articles, in addition to fundamental analysis, Forex Trading Investment requires you to learn the elements of analyzing forex charts; and staying disciplined. Having said that, it helps to chart out your own Trading Plan, and stay focused as much as possible, on that. The online forex market attracts different types of Traders, all of whom operate with distinct trading strategies, relying on various techniques to predict and speculate in the market. Various trading techniques adopted by different types of forex traders are mainly based on the knowledge of the forex market and the trading strategy that fits their goals and personality types. In this article, we present and discuss the features of the 4 main types of Forex Traders you will find on the market. DAY TRADERS This is arguably the most common type of trader there is. As their name implies, Day Traders, or Intraday Traders, as they’re also called, operate on a day-to-day basis. This type of Trader opens and closes trades throughout the course of the day. In general terms, they operate with price action characteristics to buy, sell and hold trade positions. They tap into the price movements that occur within a day or a particular trading session; A currency’s price volatility and average day range, are elements that Day Traders take seriously. Thus, before a Day Trader initiates a trade, it’s essential that the pair in question have sufficient price movement. Since trading is established on the grounds of entering and exiting a trade position at a fast rate, volume and liquidity is very crucial. In effect, pairs with a small daily range or volume won’t be of much interest to Day Traders. For Fundamental analysis, this category of traders focuses on events that are likely to cause short-term market moves. They are typically very knowledgeable and highly skilled in the market they choose to invest in. They employ a variety of techniques and make trading decisions quickly to ensure their success. To avoid the risk of slippage and overnight funding costs, Day Traders close out all their positions at the end of every day, leaving no positions running overnight. If you have a good grasp of price analysis and enough time on your hands to analyze the forex market and charts when the market opens, monitoring it throughout the day, you will find Day trading suitable. Major Elements of Day Traders, Aside from Closing All Positions at The End of The Day Include: Engaging In High-Volume Trading Ability To Focus on Technical Patterns A Focus on Quick Turnover Rate Pairing Volatile Currencies Which Can Show Large Movements Within Short Time Fram Trading Through Day Averages and Characteristics Rather Than Long-Term Strategies The success of the Day Trader depends on establishing how to trade and having a good operation and risk management plan in place. Since trading occurs within a short span of time, the ability to make quick decisions is of the essence. POSITION TRADERS On the opposite end of the spectrum from Day Traders, are Position Traders. This type of trading investment is long-term where you can take and hold positions over a period of several months, or even years. Unlike Day Traders, Position Traders are less interested in short-term price fluctuations, and rather pay attention to weekly and monthly price action analysis. Although they combine both fundamental and technical analyses, Position Traders often adhere more strictly to fundamental analysis, while technical charts are a tool to help determine the best entry and exit points. When trading stocks for instance, Position Traders will pay more attention to earning reports, stock splits, reorganizations and acquisitions, looking out for associated opportunities. The Distinguishing Features of Position Traders Include: Holding Fewer Trade Positions (Sometimes Only a Handful A Year) Making Decisions by Taking Economic Models, Governments, And Interest Rates into Account Working Across Major Currencies, As Well As Favorites of Emerging Markets Seeking To Capture the Bulk of a Position’s Movement in The Hope That It Will Appreciate Over Time Focusing More on Fundamental Analysis On the positive side, Position Trading makes lower demands on a trader’s time, as compared to other trading investment styles; many Position Traders work on not more than 10 positions over a year, giving them enough time to develop other aspects of their portfolio. The draw-down, on the other hand, is that Position Traders tend to rely on a bet that a certain trend will continue, and when it doesn’t, the risk of long-term capital losses can be huge. SWING TRADERS Somewhere in between Day and Position Traders are Swing Traders, who make a profit investing in trading by holding a position anywhere from overnight to several weeks. While Position Traders hold trading positions over a longer period, Swing Traders hold their trades over the medium term; This involves price swings and holding their trades over the course of several weeks. As their name suggests, these traders buy when the market begins to swing upwards, and sell when this price swing halts, stops, or tops out. Swing Traders make use of fundamental analysis, the intrinsic value of a pair, price trends, patterns, and technical analysis to search for financial instruments with short-term price momentum. The goal of this type of trading investment is to trade on large price moves daily by spending longer time frames (weeks to months) monitoring the pair in question. If you do not have all the time to analyze forex charts in as detailed a manner throughout the day, but only for a couple of hours, this trading strategy may be most ideal for you. Swing Traders Operate with The Following Principles: A Focus on Global Trends Rather Than Daily Fluctuations A Blended Approach to Fundamental and Chart Patterns Analyses; They’ll Look at Macroeconomics as Well As Daily Trends A Focus on Short-Term Price Momentum to Capitalize on Upward Swin Placing More Positions in Liquid Currency Pairs Like the Pound and the Dollar Capturing High and Low Extremes
Market volatility and how to handle it in forex trading
You’ll often hear it said that the forex market is the most liquid financial market in the world, and indeed, it is. Liquidity refers to how active a market is, which in Online Forex Trading, is determined by the number of active traders and the volumes they are trading. We discussed this at length in our article – “The Benefits of Online Forex Trading”. As financial centers around the world open and close throughout the day, liquidity fluctuates, having a direct and major effect on Market volatility. Periods of volatility are inevitable in any market, and forex is no exception, which can tend to frustrate new traders; for this reason, understanding market volatility in forex, as you begin to trade, is very necessary. You might see a currency pair’s price as high or low as it can get before buying or selling, but the very nature of volatility means that it could go up or down even further, and when you’re dealing with prices that change by the minute, timing is critical. In this article, we discuss the ways by which one can determine market volatility, as well as the five strategies that can be used both to preserve your capital, and hopefully profit from rising and falling market volatility. Market volatility, in simple terms, refers to the price fluctuations of assets. In Forex Trading, it refers to the frequency and extent of currency price changes- either up or down. When the price of a currency pair fluctuates rapidly, widely up or down, it is said to have high volatility. On the other hand, low volatility refers to relatively stable currency pair prices, with slow or small changes in value over time. It is therefore essential to take note of how volatile a currency pair is before entering a trade. Value fluctuation of assets over time is a normal feature of every market; be it stocks or currency pairs. However, often in Online Forex Trading, price fluctuations can become a lot wilder than usual, varying greatly from its mean position, as many Traders buy and sell at different prices. Market volatility in Forex Trading, as indicated above, is characterized by wide ranges in price, high volumes, and more trading in a particular direction. A deeper analysis of volatility – both Historical Volatility and Implied Volatility – using the most common market volatility formulae – Bollinger Bands; The VIX; Average True Range (ATR); Relative Strength Index (RSI); and established Support and Resistance Levels – further suggests that there is a higher probability of a falling market when volatility is high, while lower volatility is more common in rising markets. Experienced Traders who Invest in Forex Trading over the long term, know that given the interconnected nature of the online forex market, volatility can be experienced at any time; Smooth-Trending or Range-Bound Markets can be interrupted by sharp shocks and unwanted or unexpected periods of volatility. Warren Buffet is quoted as having once said “Look at market fluctuations (Volatility) as your friend, rather than your enemy”. There are numerous factors that cause volatility in markets; these include sudden announcements from Central Banks, Country-Specific Economic News, Company news, unexpected production/earning results, and general market sentiments. HOW TO HANDLE VOLATILITY IN FOREX TRADING 1- Educate Yourself and Get Knowledge of Market Sentiments The importance of Education in Forex can never be overemphasized. With Online Forex Trading, there’s ALWAYS room to improve on your knowledge. You need to do your research and constantly review your trades, both when it appears difficult and when trading seems easy. In one of our earlier blog posts- Why Education and Training in Online Trading is A Must Before Trading Forex – we discussed at length the importance of acquiring and mastering the skill set needed for online forex trading, and how to make use of Fundamental and Technical Analyses. It’s an essential skill to master and requires a Trader to look into Market Volatility News in forex, including the various releases put out by governments, central banks, and other major players of the Forex Market. To get a head start in the market, you should keep up with market volatility news and your forex calendar, and educate yourself on how the market responds before and after news releases. 2- Learn to Manage your Risk and Focus on Small Trades It’s of absolute necessity that you understand the risk involved with every trade you take. Knowing the potential returns on each trade by having a good idea of all the possible Entries and Exits, forces you to systemically visualize and compare your trades. As a Trader, you should constantly uphold certainty over risk; When market volatility is high, it is advised to reduce your leverage and position sizes. During volatile markets, you could also place smaller trades, thus committing less capital per trade. You can also repeat trades that work for you; picking one side to trade, and trading on that side until it stops working for you. Low volatility markets, in particular, may not offer the most ideal or most profitable trading conditions, as it’s not certain which direction the market is moving in. The best thing you could do in a low-volatility market is to consider taking a pause from trading until a clear direction is seen, or until you can determine clear Range-bound conditions to utilize your range-bound strategy. 3- Apply Volatility Risk Measures to Your Orders in Advance In one of our previous articles – Facts to Know About the Most Successful Traders in Africa– we talked about how important it is to use a Stop Loss, as this is an indication of the exact amount of risk you are willing to take on a trade even before you enter it. You can also consider using Long-Term Averages to reduce the chances of a price spike when volatility is high, instead of using Moving Averages to set levels. With low-volatility markets do not expect to make huge orders; Instead, focus on small order sizes with
The Benefits of Online Forex Trading in Africa
With financial markets becoming accessible to more and more people, Forex Trading Opportunities have grown exponentially over the past two decades. Online Foreign Exchange Trading, commonly known as FX Trading, refers to the practice of buying and selling currency values with the aim of making a profit. Being a global market, FX Trading is conducted all over the world, with New York, London, Tokyo, and Hong Kong serving as the major financial hubs with the largest markets. Having previously been a preserve mainly of large financial institutions such as banks, multi-national corporations, and the wealthy few, Online FX Trading has become increasingly popular with many who have internet access and a fair knowledge of the basics of FX Trading, owing to its relatively easy entry requirements and suitability for beginners. Although retail online forex trading has for a long time been considered a secondary source of income, many who have treated it as a primary source of income, have gained financial freedom by participating in it, given that a 9 to 5 job alone, most often than not, does not offer us the financial stability and freedom we desire. Although a 9 to 5 may offer you some job security, that doesn’t seem to be holding much ground in this post-pandemic economic situation we’re faced with now. In this article, we discuss the benefits of trading forex in Africa, both for individuals and for their respective countries as a whole. 1. A LARGE AND GLOBAL MARKET TRADEABLE 24-HOURS-A-DAY The sheer size and scale of the online Forex market sits at the top of the list when it comes to the benefits of online trading. As the world’s largest financial market, about $6 trillion on average, is exchanged daily. At ALL hours of the day, traders in every part of the world, are buying and selling currency pairs, making forex a truly global marketplace, with a very wide scope of profitability. In our very first article, How to Make Money from Forex in Ghana, we indicated the fact that, unlike other financial or capital markets, the forex market does not need a physical location to operate from, but rather, operates via an electronic network of corporations, banks, and individuals engaged in trading one currency for another. This makes it possible and convenient for forex markets to operate 24 hours a day, 5 days a week, across different time zones and financial centers. What makes this possible is the overlap in trading times of major sessions. Where most stock exchanges are open from 9am-4pm (depending on the country from where it operates), the FX Market operates continuously from the start of the week on Monday morning in New Zealand, till Friday afternoon New York time when it closes. Since it operates this way, the online FX market is not subject to any centralized exchange system; As long as there’s a market open somewhere in the world, you can trade. This is great news for those who want to start off trading on a part-time basis. 2. FLEXIBILITY AND WIDE RANGE OF CURRENCY PAIRS The very first point serves as an excellent springboard for another benefit of trading forex in Africa, which is the ability to participate in trading activities from anywhere on the globe. As already stated above, with market sessions, one is not limited to traditional office hours. Thanks to technological advancements, you don’t need to be tied to a desk, staring at six screens of charts to gain a decent handle on the market. With the additional element of a wide range of currency pairs to trade in, there is the flexibility to trade in your chosen currency pair at your own preferred time. Due to the flexibility Forex trading offers, a lot more people with regular jobs are choosing online day trading as an additional source of income. If you trade online full-time, you get to set your own hours and be your own boss. You can work from the comfort of your home, making profitable trades, while giving you leverage to spend time with your family and loved ones. Given this opportunity, you’re able to make time for other priorities, which a regular job may not fully allow you to. You can work even when you’re on a trip to some Island; all you need is a smart device with a good internet connection. That is the beauty of forex trading – the ability to make money while on the move, anywhere, anytime. 3. ACCESSIBLE AND BEGINNER FRIENDLY Yes, you read right. The Online Forex market can be beginner friendly if you make the commitment to acquiring the knowledge and equipping yourself with the required tools. First-Time traders who can only afford to make smaller investments can easily enter the forex market. Trading with the Best Forex Broker grants you access to real-time market pricing, news, price charts, tools, and strategies. As mentioned earlier, accessibility is one of the biggest advantages of forex trading; Compared to other capital markets, it does not require a large initial investment, making it easy to enter, and accounting for its popularity among beginner and even hobbyist traders. As a beginner, a good forex broker offers you a range of educational sources and Demo Accounts allowing you to practice and hone your skills on the market without the risk of losing real money. Demo Accounts essentially offer you a “Try-Before-Purchase” test run. They give you the opportunity to get used to a trading platform, familiarize yourself with market movements, and develop a risk management strategy, all without making any financial commitments, in a simulated live trading environment. It’s critical to bear in mind, however, that regardless of your investment capital, Knowledge and skill are the bedrock of successful profitable FX Trading. 4. HIGH LIQUIDITY Online Trading benefits include High Liquidity. In capital markets or trading terms, Liquidity refers to the ease with which an asset can be bought or sold. Combined with the high volumes and 24-Hour-a-Day activity, the global scale of
Geldex Marks 1st Anniversary with Digital Finance Training for over 300 Tertiary Students
Geldex Invest, a multi-regulated broker entity, as part of its 1st anniversary commemoration, has embarked on a campaign to train over 300 undergraduates from selected universities in ‘Digital Finance’. The four selected universities to benefit from the initiative are the Koforidua Technical University, Valley View, Ghana Telecommunication University, and the University of Ghana, with some students already enjoying the hands-on training. Geldex believes that it is important the youth are included in decision-making and given appreciative opportunities for work, training, and to innovate. It intends to train these 300 undergraduates on the capital market, and the need to indulge and explore career and financial paths in forex trading. The capital market, especially the foreign exchange market, is the most liquid market on earth. Global Gross Domestic Product (GDP) of the forex market in 2019 amounted to roughly US$142trillion, with the entire worth of the market standing at US$2.4quadrillion, and with over 170 currencies being traded. This was reported by the Bank of International Settlement. The population of sub-Saharan Africa is projected to double by 2050, as indicated by the United Nations and currently, 60 percent of the population is under the age of 25, making Africa the world’s youngest continent. The burgeoning youth population is both an opportunity and a challenge for the continent. Internet, digital penetration, and engagements of African youth increased from 24.4 percent in 2018 to 90 percent in 2020 indicated by ITU Digital world (Child Online Protection Organisation). But most of the activities online by the youth are not very productive even though great career and financial opportunities abound online. Such a high number of young people is an opportunity for the continent’s growth, but only if these new generations are fully empowered and trained to realise their best potential. The United Nations estimates that 16 million young Africans are facing unemployment. On average, 11 million young people join the African labour market each year, yet the continent generates only 3.7 million jobs annually, a gap too wide to be ignored. It is to this effect that Geldex Invest, a multi-regulated broker, as part of its 1st commemoration is embarking on this Digital Finance programme for the youth. The International Market Analysis Research and Consulting (IMARC) group predicts a compound annual growth rate of six percent for the forex industry in the next five years. The industry is green in Africa, especially in Ghana – the more reason why there is need to study and train to bridge the educational and capacity gap in the hope of future opportunities. Geldex Invest has made its mark in the African Financial industry with its operations in this short time. The official sponsor of the African Financial Traders awards 2021, in collaboration with Women in Forex Ghana, under her initiative ‘The Elevate Ghana Forex Project’, has trained over 400 youths in forex education across four regions since the beginning of the year, 2022, and continues to impart financial literacy into the youth. The goal is to adequately equip the youth with the skill set that is relevant in this pandemic era for a better livelihood, gear the youth toward productive online engagements, and reduce cybercrime while helping government’s policy to reduce unemployment.
Why consider forex trading as your next investment move
A hard reality of our current situation is that at the time of writing this article, if you did a dollar conversion of your salary in Ghana as of January 2022, it’s safe to say you’ve been hit with a 50% salary cut, if not more; and it won’t stop there. Troubled? You should be. If you’re reading this article, you’re most likely particularly interested in Online Forex Trading, or are simply like many looking for an alternative investment. As the world teeters on the brink of economic catastrophe, with economists anticipating another global economic recession a little over 10 years after we came out of one, institutional investors, businesses, households and everyday people are frantically searching for alternative investments. Forex investment has a lot to offer all kinds of traders, from beginners to professional traders; and in this article Geldex explores the five most compelling reasons why you must consider Online Forex Trading as your next investment move. Global Economic Hedge With Global economic activity experiencing a broad-based and sharper-than-expected slowdown, inflation has been higher than expected in the aftermath of lingering effects from the COVID-19 pandemic, Russia’s invasion of Ukraine, the rising cost of living, and tightening financial situations. These are all weighing heavily, especially in the face of global growth being projected to slow from 6.0% in 2021 to 2.7% in 2023 – a record low since 2001. This comes with attendant inflation – forecast to rise from 4.7% in 2021 to 8.8% by the end of 2022. The IMF has warned: “The worst is yet to come, and for many people 2023 will feel like a recession”. As Ghana engages in Debt Restructuring with the International Monetary Fund, government securities, including Treasury bills and bonds – previously regarded as an all-safe, risk-free investments – are most likely to lose a large aspect of that safety and protection from risk. Now more than ever, in the present economic situation Forex Investment has become an absolute necessity to guard against financial shocks, missing out on high-potential opportunities, and to hedge against inflation. The currency market allows you to invest in Forex by trading currencies based on how you perceive their relative values will change over a period of time. Depending on which direction you believe a particular currency is headed, you can speculate or project both ways; either long or short. After having gained enough experience, you can allocate your risk across the currencies of several countries; allowing you to profit from changing global macroeconomic conditions. A level playing field Online Forex Trading was previously reserved for multi-national corporations, banks, financial institutions, and very wealthy investors. With prevalence of the Internet and technological advancements, Forex trading companies and proprietary currency trading platforms, this investment opportunity is now open to everyone willing to invest. The same technologies that have made online forex trading possible are the same ones that have made information freely available. In addition, unlike other capital markets, the news that drives currency prices is available to everyone on a real-time basis. Unlike stocks, bonds and even commodities which can many times be influenced by proprietary information held by insiders and key stakeholders of those assets, control of the currency market is much less centralized – and thus far less influenced by insider information, if ever. This aspect of online forex trading makes it one of the most transparent markets for trading. Knowledge is indeed power, and today’s information technology provides it in abundance. The speed at which technological advancements have ensured news travels across the globe means that someone investing in Forex can monitor their open positions from anywhere on the globe, and can react just as swiftly as a professional trading from the very centre of it in New York, London or Tokyo. Resources previously available only to large financial institutions are now open to all who may be interested in Forex investment. This means you can do your own analysis of events that influence a country’s economic health and actual monetary flow, which are the elements driving and impacting currency valuations. Thus, the online forex trading market cannot be controlled by one person or a few individuals and institutions. Considering how incredibly complex the online forex market can be, coupled with the myriad of influences (both macro and micro) they are subject to, everyday people investing in Forex are now better-positioned than they have ever been to take advantage of information and use it to manage their capital profitably. Volatility In simple terms, volatility refers to the price fluctuations of assets. It measures the difference between the opening and closing prices over a period of time. When looking to invest, many people tend to gravitate toward more stable options – such as the Real estate market, which is largely viewed as a solid investment market. But who says volatility has to be a bad thing? In actual fact, when a market moves frequently it creates an avenue for many opportunities to make strong gains within a relatively short period of time. Warren Buffet was once quoted as saying: “Look at market fluctuations (volatility) as a friend, rather than an enemy”. The volatility of currencies is influenced by a number of factors, including but not limited to: The economic stability of a particular country Global economic happenings as a whole Political news, events and policies (e.g., interest rate fluctuations, currency revaluations, political upheavals, trading sanctions, monetary policy changes, trade deficits, tax changes, import restrictions, etc.) Trade deals, etc. On any given day, Forex markets can move between 50-100 pips on a major currency pairing, allowing investors to cash-in on poor-performing assets or seize upon potential opportunities that present themselves. Regulation Forex Market regulations refer to the rules, laws and guidelines that Forex Trading Companies or brokers operating within the Online FX Trading space must abide by. They extend to the continuous oversight and enforcement of these rules. Forex Investment is well regulated by several bodies across the globe – including CYSEC (Cyprus Securities and
