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In the arena of active trading, a wide range of participants strive to sustain profitability and achieve specific objectives. Whether one is trading equities, futures or currencies, competitors from around the globe implement nearly infinite strategies on a daily basis. One such approach to the marketplace is known as black-box trading. Black-box trading is a rules-based, fully automated method of engaging the financial markets. The term "black-box" alludes to the…
As an investor, it's important to fully comprehend gross domestic product (GDP) as a way to then fully understand how financial markets behave—and what that means for your strategy.
Effective leverage relates the amount of account equity and value of an asset involved in a transaction. It is calculated by dividing the total position size by account equity.
Reversal trading attempts to capture profit through identifying the exhaustion point of a trend in price action. Reversals are an inherently risky counter-trend form of trade.
Position trading is an intermediate-term strategy that involves remaining active in a market for weeks, months or years. It is a commitment of both time and capital.
What Is Swing Trading? Swing trading is one of the most popular disciplines applied to the financial markets. It is a short-term approach to the buying and selling of securities with the goal of achieving sustained profitability. Typically, a holding period of two to five days for open positions is implemented in the markets of futures, options, currencies and equities. The primary objective of swing trading is to capitalise on…
Breakout trading is a strategy implemented by market participants aimed at capitalising upon an upcoming trend or directional move in price. While there are many approaches that encourage trade execution in response to current price action, breakout trading promotes market entry through anticipating a forthcoming move. Breakout traders aspire to become active in the marketplace before, or very soon after, a strong trend in pricing begins. The philosophy behind selecting…
A plain vanilla swap is the exchange of periodic cash flows by two parties related to an asset or debt instrument. Learn more at FXCM.
Find out more about Asymmetric information and how it can help your trading strategy. Don't miss out on more trading tips at FXCM.
Horizontal levels are a valuable tool that technical analysts can use to predict price movements. Learn more about Horizontal Levels at FXCM.
Momentum trading is a technique where traders buy and sell according to the strength of recent price trends. Learn more about it from FXCM.
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