Alfa Financials

Important Terms in Forex Trading The Forex industry uses a lot of forex-specific vocabulary. To help you out, we’ve compiled a few terms that are the most common or are the most important to know when getting involved in Forex. Bearish or Bear Market: When there is an expectation that the market will go down, and the price will decrease. For example, saying “USD/JPY is bearish” means you expect that the dollar to become weaker against the yen. Bullish or Bull Market The opposite of a bearish market. A Bull market is where there is an expectation that the market will go up. For example, saying “gold will trend bullish” means you expect that the price of gold will rise. Clearing The process of settling a trade. Often used with day trading when positions are closed at the end of the day. The word ‘closed’ is used for the trades that are closed throughout the day. For example, “I’ve cleared all my trades” compared to “I’ve closed my buy on swissie.”...

Achieve Your Financial Goals With Futures Trading Trading, in general, is defined as the process of  buying and selling stocks  in the market. Futures trading deals with the trading of derivatives, an asset or financial instrument that derives its value from the price movement of an underlying entity. In simple terms, it enables buyers and sellers to exchange a commodity or goods for a preset amount of money in the future. Futures traders are placed in any of the two groups:  Hedgers  and  Speculators . Hedgers  - Who are involved in the underlying asset (producers and consumers). Speculators  - Who prognosticates market moves and opens derivative contracts for profits (position traders, day traders, and swing traders) It is simple to start and achieve your finance-oriented goals through  futures trading . In spite of having a unique financial goal, the ultimate cause for anyone to involve in the futures trading can be categorized...

What is Forex Trading? Forex trading, which stands for foreign exchange trading, is the conversion of one currency into another. It involves the simultaneous buying of one currency and selling of another.  Forex trading  takes place on the Forex Market where all participants buy and sell currencies; participants that include central and commercial banks, companies, hedge funds, brokers, and retail clients. In trading, you will be presented with 2 prices, the sell price and buy price. At any given moment, the sell price will always be lower than the buy price. For any person to make profit in the forex market there are only 2 ways: either the person takes a buy order and waits for the price to increase so he can sell back at a higher price, or he takes a sell order and waits for the buy price to decrease so he can buy back at a lower price. If you buy, the sell price must increase above the price at which you bought to make profit. If you sell, the buy price must decrease b...

Introduction Trading is now making people earn more when they have the required skill of playing by knowing trading ethics. The core step needed in trading is planning. You must be well planned before starting a trade. Most people have a plan before the trade, But it must be specific from which you can achieve. In short, a plan must be a depiction of your goal. Analysis of why The foremost thing a plan must include is why you must do this trading business. You must have entered the  forex trading platform  with a motive, remember it every time you enter the trade. Your motive is primary  in your trading plan. The rest of the planning steps can be aligned automatically according to your goal. The common reason people choose trading is to be financially independent. Some might have different goals, but everything falls under financial independence. Make it a priority in your trading plan. Professionals suggest having an emotional connection ...

Introduction The buying and selling of financial assets with short term price fluctuations are called day trading. This process happens online by speculating the price. Day trading starts and ends in a single day, and mostly it takes place in foreign exchange markets like forex market and the stock market. The people who opt for day trading are usually well educated and have an abundance of money to play in the trading market. There are some methodologies which a day trader needs to follow to become a profitable trader. Focus on a single market Beginners may end up using many markets to obtain profit. Sometimes this may not lead to any profits; instead, it makes you a jack of all trades, but master of nothing. Focus on a single market until you become experienced in a single market, and then you can try more markets if you are confident that you can make it happen. Practice before the real account When you c...

Introduction A Currency Futures contract is trading the currencies and selling or buying it in an agreed rate at a future date. Currency futures trading is not a new type of trading. It is the same as other futures trading. Currency futures originated in one of the largest market in the world, the Chicago Mercantile Exchange, in the year 1972. Currency Futures Trading Currency futures trading is one of the standardized trades which occurs in exchange. Based on the volume and speculations, the price of the futures either rise or decrease, the value of futures price changes from the value of futures contract. In Currency futures trading, the popular currency pairs are, EUR/USD (The Euro to US Dollar currency future), GBP/USD (The British Pound), CHF/USD (The Swiss Franc), AUD/USD (The Australian Dollar), CAD/USD (The Canadian Dollar), RP/GBP (The Euro to British pound currency future), RF (The Euro to Franc currency future).  These are the popul...

INTRODUCTION Forex is a financial market which is used by many people all over the world in a day to day life. In other words, it is a gathering of people where buyers and sellers are involved. It allows people to make a profit regularly. Forex is not a platform to become rich in a single day. It takes more of your time and needs in-depth knowledge about trading. The below-mentioned points are necessary for any trader to survive in trading by reducing the loss. PREPARATION Assess yourself, get to know you in every aspect. Set goals and change your mindset accordingly. Be mentally prepared for any situation of the trade. Set entry and exit signals and make that signal easily visible during the trade.Knowing what to do and how to make a safe move in any market condition is a part of preparation. DEMO ACCOUNT Forex is a platform where you can get into it very easily with the help of a  forex demo account . The demo account is useful when you are a beginner; you can prac...

INTRODUCTION In pairs trading, traders can make profits with ease. People in trading wanted to make money with less loss. Here is pairs trading, which benefits the trader to trade with ease. People involved in trading who wanted to make money with less loss can opt for pairs trading. Accurate historical modelling and the proper interpretation of results can help to identify the positively correlated pairs. Pairs identifying and fundamental research gives you the best benefit in pairs trading. PROFITABLE PAIRS OF TRADE The market researchers have a name, Quants. It is running by the coordination held between the companies and the trading vehicle to acquire a successful trade. Quantitative analysis is used by the market researchers to earn a profitable trading strategy. With the help of the strategy, pairs trade, Morgan Stanley once struck gold. By the result of this, many used this and acquired profitable trading. Even the Institutional investors and proprietary trading des...

Number One Mistake to Avoid in Forex Trading Forex trading is a high leverage game where even the tiniest mistakes could result in losses. Losses are an inevitable part of trading but losing money by making mistakes is something that is within your control. You cannot afford to make mistakes while trading because you may not have a second chance to fix what has already gone wrong. But, what if there is one factor that may extremely save some time and forestall mistakes? Forex traders never take the effort to analyze & understand what a stop loss is and how important it is for their trading career. What is a Stop Loss? If the word “Stop-Loss” had a proposition, it would be “The Barricade to Disaster”. Stop Losses are designed to limit losses especially when you have a position open and the market goes against you. Consider an example. Let’s say you’ve bought a stock at $40 per share and you set your stop loss to $38. If the mar...

Energy Trading allows for the investment in energy products like crude oil, heating oil, gasoline and natural gas. The Energies market is highly volatile and trading in energy assets is always exciting due to the huge impact that global events have on supply. As the consumption of energy assets increase around the globe there is a rise in the values too. Energy assets, particularly oil's huge demand for fuel and industrial purposes per se make it one of the most important commodities worldwide check for  online commodity trading in UAE . Owing to various economic and political factors there is a continuous shift in the supply and demand for oil. And owing to these movements in oil prices there is never a dearth of opportunities for investors to make profits. Energies are a popular choice for investors and provide an excellent chance to expand your trading portfolio besides hedging your exposure to the currency markets. Energy Trading happens in exchanges and also outside of ...

Understanding how currency pairs work lays the groundwork for currency or forex trading through retail brokers. Currencies are always expressed in pairs, one currency value vis-a-vis another. No single currency pair can trade independently from the others, they are all interconnected. You always buy one currency and sell another while making a forex transaction. The beginners can try a forex demo account for trading in any currency and depending on the currency rates and market fluctuations you can post profits. For instance, when you buy USD-EUR, you pay a Euro to buy USD. If the US dollar rises vis-a-vis the Euro then you sell Euro to buy USD and make a profit. The first currency of any given currency pair is called the base currency and the latter is called the quote currency. The US dollar is the primary currency and is at the centre of all transactions in the currency market. All currency pairs are dependent on it directly or indirectly. Thus, the health of the US econo...