The importance of timeframes
In this lesson, we will discuss candlestick charts, although the same principles also apply to bar charts. A candlestick can represent a range of time periods such as 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, 1 day, 1 week or 1 month. These timeframes are available in our trading platform, […]
Types of Charts
Today we will discuss the various types of charts and how to identify. Each chart type comprises two axes, with the vertical axis indicating the value of the trading instrument and the horizontal axis representing time. On our trading platform, there are three chart types. 1. Line chart: this consists of a simple line connecting […]
Introduction To Technical Analysis
What is technical analysis? Technical analysis is the study of historical price action to forecast future price trends through the use of charts. Market action includes: price, volume and open interest. Technical analysis can be used for short-term, medium-term and long-term trading. Technical analysts use various theories, charting tools, and indicators to develop trading rules […]
Buying and Selling Currencies
In forex trading, all transactions involve two different currencies, and traders speculate on the price movement of one currency pair against another. Although trading is possible in almost all currencies in the forex market, the majors are most commonly traded. Traders can profit by speculating whether a currency’s value will appreciate or depreciate in relation […]
Understanding Currency Pairs
A currency pair is a quotation of two different currencies, where one is quoted against another. Currencies are listed in pairs such as EUR/USD or USD/JPY, where the first currency is known as the base currency and the second as the quote currency. One of the most commonly traded currency pairs is the EUR/USD pair, […]
The Forex Market
What sets the forex market apart is its decentralised structure. Unlike traditional exchanges, forex trading takes place over-the-counter (OTC) through online transactions between global traders instead of via a centralised exchange. With an average daily trading volume of $6.6 trillion (2019), the forex market is one of the world’s largest and most liquid financial market. […]
How Forex Trading Works
The forex (foreign exchange or FX) market is a global marketplace where individuals, corporations, and central banks exchange national currencies at an agreed price. When you travel abroad, it’s common to make forex transactions. While a lot of foreign exchange is done for practical reasons, the main purpose of most currency conversion is profit generation. […]
Other Key Definitions
In this lesson, we’ll have a look at other key definitions. 1. BALANCE: This represents the amount of money you have in your trading account. Unrealised profit or losses are ignored. For example, if you have USD 5000 in your account and USD 200 unrealised losses from open trades, your balance remains USD 5000. 2. […]
Bid, Ask, Spread and Swap
Today we will discuss the significance of the bid price, the ask price, the spread and swap. When you start using a trading platform, you will notice that exchange rates are quoted in two prices. The first price in a currency pair is the bid price. It is the price at which the broker is […]
Pending Orders
Today, we will analyse the subcategories of pending orders. There are four types of pending orders to enter the market. Buy Stop: This is a pending order to buy at a price that is higher than the current market price. For example, if EUR/USD is currently trading at 1.1110, a buy stop would be a […]
