Explained for beginners: the Different Types of Trading Orders

When engaging in the world of trading, it is essential to understand the various types of trading orders available to investors. These orders enable traders to execute their desired transactions with precision and control. Among the most commonly used trading orders are market orders, limit orders, and stop-loss orders. In addition to these three, there are several other order types that cater to specific trading strategies and objectives. This article aims to provide a comprehensive overview of these different order types, empowering traders with the knowledge to make informed decisions.

Explained for beginners: Forex market types

The forex market is the largest financial market in the world, with an estimated daily turnover of over $6 trillion. It is a decentralized global marketplace for trading foreign currencies, and it is open 24 hours a day, five days a week. Forex trading involves buying and selling different currencies in pairs, with the aim of making a profit from the changes in exchange rates.

Explained for beginners: Forex quotation

Forex, or foreign exchange, is the world's largest financial market. It involves trading currencies from different countries, and it operates 24 hours a day, five days a week. If you are interested in participating in the forex market, it is important to understand how to read forex quotations.

Explained for beginners: Forex trading “volume”

Forex trading is a popular investment opportunity that allows traders to buy and sell currencies from different countries. One of the most important factors that traders need to consider when analyzing the forex market is trading volume. In this article, we will explain what forex trading volume is, why it is important, and how it affects forex trading.

Explained for beginners: Careless trading in forex trading

Forex trading is one of the most popular investment options available today. The market is enormous, fast-paced, and offers traders a plethora of opportunities to make a profit. However, with the high potential returns come high risks, and careless trading can be a significant pitfall for inexperienced traders. In this article, we will discuss what careless trading is, the disadvantages of it, and how to avoid it.

Explained for beginners: Bank orders forex

The forex market is decentralized, but it is still regulated by banks. Four major banks, Deutsche Bank, JP Morgan Chase, UBS, Citigroup, and HSBC, participate in day-to-day forex trading and more than 50% of the daily trading volume is done through these banks. Interbank forex is where the highest single volumes of forex trading take place. Banks engage in forex to balance their equity or their inventories according to market status and market futures. They engage in a deal with another bank, deals quite easily crossing the millions threshold to offset their positions according to the market. There are two platforms which interbank traders use, Reuters Dealing and EBS.

Explained for beginners: Time management in forex trading

Forex trading is a complex activity that requires traders to have a thorough understanding of various factors that can influence the market, including economic data releases, geopolitical events, and trading sessions. Time management is an essential aspect of successful Forex trading because it can significantly impact a trader's profitability.

How to avoid the most common mistakes made by forex traders?

The world of foreign exchange trading can be quite daunting, especially for beginners. It is important to remember that trading always involves some level of risk and loss, but this doesn't mean that one cannot minimize those losses. In this article, we will examine the most common mistakes made by traders and analyze how to avoid them to achieve success in forex trading.

Explained for beginners: black swan theory

The term "black swan" refers to an unexpected and rare event that has a significant impact on financial markets. The concept was popularized by Nassim Nicholas Taleb in his book "The Black Swan: The Impact of the Highly Improbable".

Explained for beginners: Stop loss

Stop loss is a risk management strategy used by traders in the financial market to limit their potential losses. It is an order placed with a broker to automatically sell a security if it drops to a certain price. The stop-loss order is a way for traders to protect their investment and limit their losses in case the market moves against them.

Explained for beginners: Market value

Market value is a term used to describe the current price at which a particular asset or security can be bought or sold in an open market. In other words, it is the price that a willing buyer and a willing seller agree upon for a particular item.

Explained for beginners: Commonly traded financial instruments

Financial markets offer a wide range of instruments for traders to choose from, making it challenging to determine where to begin. To help traders, it is essential to understand the basic features that most traders seek when selecting an instrument.

Explained for beginners: The Purchasing Managers Index (PMI)

The Purchasing Managers Index (PMI) is an economic indicator that measures the activity level of purchasing managers in the manufacturing and services sectors of an economy. It is based on a monthly survey of purchasing managers who are asked to report on various aspects of their business, such as new orders, production, employment, supplier deliveries, and inventories. The PMI is widely used by investors, analysts, and policymakers as a tool for forecasting economic growth, inflation, and interest rates. It can also help businesses to identify trends in their industry and adjust their strategies accordingly. The PMI is published by various organizations, including the Institute for Supply Management (ISM) in the United States and Markit Economics in Europe and Asia.

Explained for beginners: Commodity currencies

Commodity currencies are currencies that tend to be strongly influenced by the prices of commodities such as oil, gas, metals, and agricultural products. These currencies are typically the currencies of countries that are major exporters of these commodities, and as such, their value is closely tied to the performance of their respective commodity markets.

Explained for beginners: Stop Loss

Stop loss is a risk management tool used by investors and traders to limit their potential losses in a trade or investment. It is an order placed with a broker or trading platform to automatically sell or buy a security if it reaches a certain price point. The stop loss order is triggered if the security's price falls below or rises above a specified level, which is known as the stop loss price.