Share Alfa-Facbook.jpg - 302 KB

-
Share Alfa-Facbook.jpg - 302 KB

Comments

Post a Comment

Popular posts from this blog

Beta Trading in Forex

-
Image
Beta Trading in Forex Introduction Every investment in the market will have two fundamental components - risk and return. These are measured by two statistical variables - beta and alpha. Alpha measures the risk of stock positions and the stock volatility relative to a market benchmark. In detail, beta in trading is a mathematical measure that helps the traders to define the relative risk profile of an investment. Beta was initially originated in the stock trading. In order to understand how well the beta works in  forex trading , it is essential to know how the beta coefficient helps investors to choose stocks that are moving against the overall market average. Beta coefficient The beta coefficient measures the relationship between a stock’s price and the volatility of the market. Beta coefficient β(x) = Slope of stock x / Slope of market average It can be considered that if the value of the beta coefficient is higher, the impact will be stronger. In detail, ...
Read more

Trade the Bullish and Bearish Rectangles

-
Image
Trade the Bullish and Bearish Rectangles Chart patterns have been the closest ally of day traders. You can easily slither out of a bad trading day with chart patterns for their easy-to-the-eye formation and evident profit margin. One such formation is the rectangle chart pattern. Of course, the price action doesn’t give us a perfect rectangle, but it can be predicted with the cues of the chart. Here is how the pattern works. Pattern Formation If the price bounces between a fixed range, the support, and the resistance become parallel to each other as a straight horizontal line. Support is the line below which the price finds it hard to slip, and resistance is the line above which the price action struggles to strive. Once they become parallel, they set up the fundamental for the rectangle. The line enclosing the left side is drawn at the starting of the fluctuation bounces, or to put it in simple terms, the line is drawn at the start of the horizontality of the support and re...
Read more

Importance of Understanding Margin and Leverage | Alfa Financials

-
Image
Importance of Understanding Margin and Leverage Margin and Leverage are important terms in forex trading . It is highly essential for all investors to understand these concepts thoroughly before setting out to trade in the currency market. By being ill-informed about these terms traders tend to either overtrade or undercapitalize their accounts. Leverage and margin criteria, laws & requisites vary among various brokerages and countries under operation. It is mandatory for investors to check with their respective brokerage firms for the specific rules that are applicable for their trading accounts. What is Leverage? One of the highest advantages of the currency markets is the one offered by trading leverage. Without the use of leverage, it would have been next to impossible for currency traders to accumulate sufficient capital to participate in the market that was earlier the sole prerogative for banks and financial institutions. Leverage is an essential aspect of the f...
Read more