What is swing trading?
Swing trading takes its place somewhere between day trading and trend trading, in that swing trades ride trends that are on average, weeks long, rather than within a single day or over the course of several years.
Swing trading is effective in a bear or bull market, and not in the cautious, flat-lining times in between. During the general upwards or downwards trajectory that benefits swing traders, positive or negative economic news and events have a clearer influence on an asset's direction, making swing trading a method that is easier to grasp than others.
What is an Fx swap?
An FX swap is an agreement to exchange a body of one currency for the same total value in another currency.
The use of this type of contract is mainly to manage business expenses by companies that operate in many currencies, and to avoid risk of changing financials due to the exchange rate.
A company with a contracted supplier and an agreement to pay monthly sums in a foreign currency benefits from an FX swap, as their cost remains unchanged regardless of the exchange rate.
Without a swap agreement, the same company may find themselves paying at a premium if the exchange rate is altered.
What are Fx options?
Options are contracts that give the right, but not the requirement, to the contract holder to exercise his or her position at any time.
A call option is the right to buy a currency pair, for instance, at a set price before the option expires, while a put is the right to sell.
The contract does not mean the holder has actual currency, but as a derivative, the movement of an underlying asset is in itself valuable.
How can analysis of candlestick charts facilitate investing success?
A candlestick chart is a graph of an asset over a specific time period which contains various visual cues that easily display data.
The chart is made of many candle icons representing an asset's changing price over time, with each representing an hour, a day or other quantities of time.
The candles' body, wick and color tell traders important facts like starting price, ending price, and price range for a time period as well as whether the overall period was positive or negative.
What are the benefits of futures trading?
There are many advantages to trading futures, the biggest of which is flexibility. The many different kinds of trades available to open mean that there is a strategy to fit every scenario, making futures a top choice among experienced investors.
Additionally, most futures markets are open 24/7 and besides being extremely liquid, have very low commissions.
Can pending orders be set up in all of the trading platforms?
Yes, orders with special functions like stop loss and take profit can be placed in any of the available trading platforms supported by Alvexo, including the mobile trader, web trader, standard platform and all versions of the MetaTrader 4.
What is the difference between options and futures?
The main difference between futures and options contracts are the conditions inherent in the contract's closing. Options are aptly named because during the life of the contract the holder has the option to execute a buy or a sell on a specific asset, while for futures a contract holder is obligated to deliver the named asset at a time in the future.
How can the use of technical analysis reduce risk?
With enough past data on prices and volume and a thorough understanding of it all, the likelihood that your future expectations for the direction of the asset in question are correct increases.
Past performance is a better indicator of future patterns than none at all, and if technical analysis is completed in a proper manner it can greatly increase a trader's chance of success.
Can stock options be used to reduce risk?
Because options contracts are able to benefit from leverage, a trader can technically control the same amount of equity for a much lower price when compared with outright buying the shares themselves.
These shares outlined in the contracts react the same way, and with the remaining funds, a trader can diversify to reduce risk.
How can I learn more about day trading?
Turning consistent profits through day trading is not a simple task, but with a bit of hard work, a lot of research and a thorough knowledge of trading strategies, it is entirely possible.
To learn more about the strategies employed by successful day traders, visit our post on the matter here: Day Trading Strategies
What are the best conditions to short a stock?
To understand shorting, one must first understand the main driver of stock price: investor sentiment. The best time to short a stock is when price is about to go down, obviously, but what causes price to fall?
When investors see that the main revenue streams of a company are threatened by competition, when a company is expected to release a quarterly report showing poor sales, or when negative macroeconomic events like an increasing interest rate occur that could cause investors to sell, creating good shorting opportunities.