EURO – The Official Eurozone Currency
The EURO is the official currency of the Eurozone and it consists of around 19 out of the total 28 member states of the EU. This includes well known countries like Belgium, Austria, Cyprus, Finland, Estonia, Germany, France, Ireland, Greece, Latvia, Italy, Malta, Luxembourg, Portugal, Holland, Spain, Slovakia and Slovenia. This currency is also used officially by the various institutions of the European Union and also four other European countries.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.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: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: