What Factors Can Impact on the Forex Market?

As far as every Forex beginner knows the Forex financial market’s main purpose is to involve trading of different international currencies to get profits from the fluctuations which occur within the limits of the exchange rates between two international currencies which form a pair a trader chooses to buy or sell gaining money from such transactions. No wonder that Forex market moves so quickly and frequently because the changes within the exchange rates of certain currencies pairs happen all the time due to a number of reasons.

 
These reasons make trading at the Forex very inconsistent and vulnerable meaning you can whether earn a lot of money or lose everything at once simply because of unexpected changes which will affect the open trades and cause wrong decisions a trader can make. In a case you are going to stay in the profits than losing your money we advise you to read further in order to take into account certain outside the Forex market factors that influence on this financial marketplace no matter of your desire and a well planned trading strategy. 

So, what factors can make you whether a rich or a poor man at the Forex market?

1) Economic and Political News Reports

The most obvious factors which can impact on your trade positions are economic news concerning the Forex market on a global level. When a country which currency you chose as a base one in your currency pair releases the latest economical news these updates can whether negatively or positively impact on the exchange rates in general and on your open trades in particular. This factor should be foremost taken into account when you start planning your own Forex market trading strategy. The same concerns the latest political news a country releases.

2) The Housing Info



Such kind of information should be considered either. What does the housing information mean? For instance, each month the United States of America releases the info concerning houses which are under contract and which were sold. You should also find the information about how many houses were built every month. Using such a strong indicator you can figure out whether economy of a country is stable or not. If a country’s real estate market is ok, you can suppose that the economic condition of a country is good as well.



3) Interest Rates

Maybe you think them unimportant but in fact the worldwide interest rates provide a huge impact on the Forex market fluctuations because they influence foremost on the currency values. For example, in the USA the so-called Federal Reserve provides certain fixed interest rates on bank loans. And if they announce a change of the interest rates this fact impacts on the value currency (in this particular case – the USD). Consequently the changes in the value of a currency can cause changes of the Forex market exchange rates between different international currencies.
To conclude, we should say that these are the most obvious and important factors which impact on the Forex market and the exchange rates fluctuations. Lots of other not so important factors but still impacting on the Forex should be considered as well.
 

The Automated Forex Trading Systems Appliance

Experts advise to stick to the so called automated Forex trading systems because they can assist in figuring out the basics of the Forex market trading with minimum of money losses risks which are practically inevitable because even the months of practice and solid training won’t manage to teach you how to behave in every particular trading situation requiring as a rule quick and right decision.


Even the experienced traders are not always able to make such right decision and have to agree for failures. That is why all reasonable and experienced experts recommend starting from applying one of the automated Forex trading systems if you are a newbie and have only theoretical knowledge without months of practicing via Demo Accounts offered by your broker.

Let’s concentrate on the major functions and benefits you may get from appealing to one of such automated Forex trading systems. Foremost any automate Forex strategy embodies a form of trading in which the Forex transactions are not actually made by a trader himself in a manual way because they are provide via the means of the automated tools which are developed for proper performing of all orders set up by a trader from his trading account.
Besides by means of automated Forex trading systems a trader can track and follow the trend having an accurate info concerning historical data and Forex charts of the previous trading operations which can be very useful for developing a new profitable system and a trading plan. You as a trader will be free from 24-hour chasing ht latest news and trends because automated program can make all this dirty work instead of you and you will only check the accuracy of the given results. Just imagine how much time you will be able to save with one of reliable Forex robots which can be found within an y decent brokerage platform.

What factors can influence on the automated Forex trading systems?

In order to follow one of such automated Forex trading system a trader should know what factors impact on its work and choose the particular style or strategy which are numerous within the Forex market t use all benefit such automated software can offer to you. Pay heed to the following factors:

 

1) Leverage Factor

Within the Forex market terminology leverage denotes a concept of spending more financial means than you actually have and deposited on your trading account. Having a good leverage offer you can double your profits if your trades turn out to be successful or on the contrary can lose all your money from a trading account to cover the losses from failing trades. The leverage has to be determined from this point of view by the amount of money you can afford to risk to lose. It is tempting to risk more because in a case if you win you will get more profits but if your automated Forex trading systems are far from perfect for now limit your greed.

2) Personal Touch Impact

Your automated Forex trading systems have to be unique ones. Choose the indicators you personally find the most fitting your individual trading manner and never chase the others’ trading methods completely. It will be more reasonable to take the next features from all existing systems.

3) Stop-Loss Order Performance

Use stops which are fixed exit points in any trade put below the initial trade’s value. After reaching these points set by you the automated tool will perform selling and close the trade in order to avoid money losses.

Forex trading account - how to set up and use?

It is not a secret that a Forex trader provides all transactions with buying and selling currency pairs using online means, cooperation with Forex brokers and each of them also applies a Forex trading account: at first a demo account operating with virtual money to prepare for real time or live trading in the Forex market and then appealing to different types of FX trading accounts when supposing one is ready for risks dealing with losing or earning real money.

Below you will find a review of pros and cons of the most common type of a Forex trading account plenty of traders choose all over the world - the standard FX trading account. There are also not so popular but applied managed trading accounts, as well as mini and demo accounts for new Forex traders.

Explaining a standard Forex trading account

It stands for the most common and widely used trading account applied by Forex traders. It has such label because allows its owner to gain an access to standard lots of any currency every of which is worth about 100 thousands USD. Many beginners suppose that one needs to invest real 100 thousand dollars in order to start live trading at forex market. Those common rules of leverage and margin (usually 100 to 1 in Forex trading) denote that you need to put only one thousand of bucks down to this margin Forex trading account to get 1 standard lot necessary for such Forex trading. Ask any FX expert and he/she will prove this fact because most of traders work for years using advantages of this type of a FX trading account. However, only an experienced and full-time as well as successful and rich trader can expect to understand all nuances while using such account for FX trading.

Speaking about advantages of a standard trading account we should name the most obvious ones:

- servicing: due to the fact the standard Forex account needs an investment of the adequate initial capital from FX traders into trading process to get an access to full lots plenty of Forex brokers have to provide outstanding services and conduct improvements to draw attention of rich and private investors. You can expect to get the best service using the standard FX trading account.

- gaining potential: each pip here is worth about ten dollars or higher and in a case positions moves according to your strategy and natural Forex fluctuations by one hundred pips during one day your gain can increase up to one thousand dollars. Any other type of a Forex trading account can't boast such potential when it concerns a possible gain.

However, even the sun has it spots and a standard Forex account is not an exception. The most common cons of its usage are:

- requirements for capital: as it was mentioned above the most important issue is to find an initial sum of money should be no less than one thousands of dollars while many brokers start their rates for a standard Forex account from tow or even thousands of USD. So prepare to invest such money and also be ready to lose them as well.

- losses potential is also high: you may win a lot or may lose it all. Only really experienced traders can expect to use a standard FX trading account and risk one thousand of real dollars expecting and forecasting that 100 pips won't move against them during one trading day.

Learn to Compare MetaTrader 4 Forex Brokers

In a case you are not quite aware of this fact, Forex brokers or brokerage organizations as well as online brokerage platforms are different but in spite of the obvious dissimilarities they have a lot in common and that is why it is hard sometimes for a newbie to define what Forex broker to choose among all those offers a beginner can find in the Web. Let’s try to figure out together.

Due to the popularity of the Forex exchange market there appear lots of brokerage platforms which serve as middle-men between investors and traders or simply give an independent trader a chance to use automated software for proving one’s operations. Such services are in a high demand because more and more traders begin to understand all advantages of such automated Forex brokers services.

In the following article we try to explain how you can separate the wheat from the chaff while choosing to what MetaTrader 4 Forex broker to appeal. If you don’t know MetaTrader 4 is the hugest and probably the most popular platform for traders, brokers (independent persons and organizations) and investors in the Web. Its advantages and opportunities are very profitable and you can become sure in this by visiting the official website. Well, because one of such high demand lots of brokerage organizations offer services for MetaTrader 4 participants and clients. If you belong to this category as well, here are few tips how to select among the existing MetaTrader 4 Forex brokers:

1) Pay attention to a brokerage organization’s reputation

If we are talking about online MetaTrader 4 Forex brokers the reputation is the key factor to which you should pay heed. You see, only a reputable Forex broker can become your future trustworthy organization where you can invest your money or rely on while using its services and tools. The reputation of all existing Forex brokers in this industry can be easily checked up by the initial research you should definitely fulfill. You may start from checking the records they store in the National Futures Association where you may find the most objective analysis of the quality and services offered by all Forex brokers or brokerage organizations registered in the USA. Appeal to the experienced Forex traders at different forums and message boards or social networks where people gather to discuss this or that Forex brokerage organization. To conclude, use all available ways to find out about a background of a Forex broker you are going to appeal to.

2) Liquidity of a Forex brokerage organization is important as well.

In order to become a successful trader a person collaborating with this or that Forex brokers organization has to be confident in the fast execution of his/her orders within a certain brokerage platform. If a broker can perform all the transactions in a fast way it can offer a high level of liquidity as well. How to define what level of liquidity a Forex broker can offer? Check if a brokers’ online platform can propose Electronic Communication Networks (ECN) service which offers electronic matches of buyers and sellers provided in an automatic way. In a case it can offer such service, you may appeal to such brokerage organization fearlessly because it means a broker has strong levels of liquidity.

3) Spreads should be taken into account either.

FX brokers do not get a fee because their compensation is in spreads – the difference between the Bid-Ask prices of every transaction you conduct by means of their brokerage platform. If you are planning to trade every day then it will be reasonable to look for among Forex brokers with low spreads to reduce in such way all your transaction costs.

Surely, not all just these factors should be considered while choosing among MetaTrader 4 brokers but still even such basics can help you to select a decent broker for your successful trading at the Forex market.