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Showing posts from November, 2021

Why the US dollar is the world Currency

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 MAJOR CURRENCY PAIRS, ALL AGAINST US DOLLARS The seven most actively traded currency pairs in the forex market today, also known as major ones, all trade against the US dollar. This includes the following pairs, ranked by trading volume: • EU euro against US dollar: EUR/USD • US dollar against the Japanese yen: USD/JPY • British pound sterling against the US dollar: GBP/USD • US dollars against Swiss francs: USD/CHF • Australian dollar against the US dollar: AUD/USD • US dollar against the Canadian dollar: USD/CAD  • New Zealand dollar against the US dollar: NZD/USD As mentioned above, in its role as the world's largest reserve currency, the US dollar was the most traded currency in the past. The dollar is still important as more than 86% of all currency transactions are still pegged to the currency. Some major currency pairs and almost all minor currency pairs are listed with the US dollar as the base currency    Why the US dollar is the world Currency A global currency is a curr

Major Markets of Forex

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The currency market The currency market is also known as the Forex or FX market. Currently, it works with telecommunications technology and remains active 24 hours a day, allowing OTC transactions in individual currencies between two participants, each individual currency being its own markets, such as the USD market or the GBP market. The forex market also experiences a high volume of interbank transactions, which often determine the value of currencies. Currency markets emerged due to the need for traders to conduct international business. Currency markets remain the oldest financial markets and have a voice in global financial liquidity.  Which countries have the largest foreign exchange markets?  As with many established markets, some of the top entrants control significantly more volume than the rest of the list combined.  In the forex market, this largely belongs to the Group of 10, also known as G10 coins. These coins are listed according to market share:   United States Dollar

How to Apply Stop loss or Take Profit on Trades

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  What is Stop Loss?  A stop-loss order is placed by a trader on trade to limit the loss. As the name suggests, a Stop-loss order puts an end to the trade when it reaches the particular amount of loss determined by the trader. It helps investors to prevent large and uncontrollable losses.  Not using the Stop loss order while trading is something that is not recommended to any trader. Not using stop-loss can lead to uncontrollable losses and one may end up wiping out the entire account just in a short period of time.  Types of Stop-loss Orders.  Volatility Stop:   Although Volatility is an important aspect of trading, it can also lead to major losses in investment. Volatility refers to the change in price over a short period of time. Volatility stop-loss order triggers when there is a large price change in the investment being made. This leads to controllable losses and reduces the loss margin.    Time Stop:  As the name suggests, this type of stop loss ends the trade after a specific

Forex chart

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What is a Forex chart?  A currency chart graphically displays the historical behavior of relative price movement between currency pairs during different time periods. Technical analysts and daily traders will examine these charts to identify trends and various patterns that can indicate reversals, continuations, entry points, and exits. Many traders use forex charting software to determine the likely direction of a particular currency pair in conjunction with other technologies, such as predictive forecasting software and online trading, to gain an edge in the forex markets.   Chart Types Charts usually have several different display modes to show price. One method by which the price can be displayed is called Japanese candlesticks. Candlestick charts are the most common display method for displaying prices on a forex chart. There are theories about using candlestick patterns to predict price. Candlestick analysis is designed to provide an almost instantaneous measure of sentiment in t