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Why should one invest in the stock market? Actually, there are several reasons to do so, including low costs and a wealth of different vehicles explored in this article.
The realisation of long-term profitability is the primary goal of every trader and investor. There are many different philosophies regarding the "correct" way to achieve this objective, a vast majority of which involve minimising losses while maximising returns. Perhaps the most basic method of defining capital allocation is through the use of a risk vs reward ratio. Calculating Risk Vs Reward The risk vs reward ratio (R/R) is a direct…
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…
The stochastic oscillator examines the closing price of a security in relation to its trading range for a specified period. Its development is credited to Dr. George Lane.
Since the dawn of trade and exchange, people have been compelled to speculate upon the future value of nearly everything under the sun. Formulating an educated guess of what something will be worth next week, month or year remains one of mankind's favourite pastimes. The modern global derivatives market provides individuals an avenue by which to profit from successful prognostication. Derivatives products based upon traditional underlying assets such as commodities,…
Online trading has many pros and cons. Market access, available leverage and overall convenience are often offset by a high failure rate.
There are a number of traditional and creative ways to make money in the stock market for traders willing to get to know available trading strategies.
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.
Although similar in objective, trading and investing are unique disciplines. Duration, frequency and mechanics are key differences separating the approaches.
Foreign exchange positions held overnight may earn or pay rollover interest charges, sometimes significantly increasing the profit or cost of a position.
When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging commissions at the open and close of a trade, and adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.