DailyForex has all the resources that traders need to succeed, including comprehensive Forex reviews, daily Forex news and technical analysis for the major currency pairs. See how the right Forex reviews can help you master the currency markets! For example, if the EURUSD pair is traded at a buying price of 1.1123. To open a position of 100,000 units of the instrument, a trader needs €111,230 Euro, or $123,721.12 USD. However, thanks to leveraged trading, the trader will need only 0.25% of this position, i.e. €278.07 Euro, or $309.30 USD. The ability to leverage one's position is a great advantage which can magnify a trader's profits. However, one should always have in mind that losses can be magnified as well.
ECN - Electronic Communication Network: ECN brokers provide and display real-time order book information (featuring the orders that were processed and the prices offered by banks on the interbank market). They thereby improve market transparency by providing information to all market participants. ECN brokers usually make their money by charging a commission on the traded volume. With ECN brokers, all transactions are directly processed on the interbank market in No Dealing Desk mode.
Once a forex trader has opened an account, it may be tempting to take advantage of all the technical analysis tools offered by the trading platform. While many of these indicators are well-suited to the forex markets, it is important to remember to keep analysis techniques to a minimum in order for them to be effective. Using the same types of indicators - such as two volatilityindicators or two oscillators, for example - can become redundant and can even give opposing signals. This should be avoided.
In 2012 I refined the method even more and it was easier to ...