fx_trader

How forex hedging works?

Forex hedging is a trading strategy that traders use to insure their trades against any big losses they might incur. Hedging in speculative trading is not something new. In fact, traders use hedging all the time, using derivatives. For example, if you owned a stock but you expect the price could fall, then you can hedge this position. A...

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How algorithmic trading works?

Algorithmic trading systems utilizes highly complex statistical models and mathematical calculations in setting and placing orders in the financial market. Institutional investors use algorithmic trading due to the large development and research costs. Institutional investors are known to place very large orders in the market. Everyone in the market knows that when there is a large order, it can...

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What is High Frequency Trading and how does it work?

High Frequency Trading, or HFT is becoming a hot topic these days.You may have heard about this in movies or in discussions on TV. High Frequency Trading is defined as measuring the holding of a particular security in a matter of milliseconds. It may last up to a few seconds or hours. HFT is achieved by analyzing trends in...

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Forex leverage and margin explained

Leverage and margin are two concepts that are interrelated and something which traders come across ever so often. Leverage in forex, allows traders to borrow a higher investment amount using a fraction of the amount required. In other words, leverage is used in forex to magnify your investment capital, which in turn can put the trader at a better edge...

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How are Forex orders executed?

Forex orders execution is something traders may not pay much attention too. In fact, for most traders, trading is confined to technical and or fundamental analysis. Trade execution doesn’t really rank that high when it comes to outlining the most important aspects in trading. Knowing what happens when you place a forex order can give you  far better insights...

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