Margin Trading – Safer Choice than Stocks Trading

As we all know, there are many different investment targets in the world. It can be felt that risks are different when trading different symbols . Many people believe that margin trading (CFDs like foreign exchange pairs) is a high-risk variety. Is that true? This article categorizes the risks of common trading methods (including foreign exchange transactions), which would be helpful for amateur traders.

Level 1 – Trades that do not require a stop loss.

Generally speaking, we cannot trade without taking risks, and the probability of success of a transaction is often not 100%. In order to prevent losing all their money, more…

Key mark for Euro passed

Europe

EURUSD

The important support for EURUSD at 1.05 was broken this week. This happened due to more optimistic than expected forecasts for economy and further course of interest rate’s hike. In September, markets and the Fed Reserve had something we may call consensus for expectations of two hikes in 2017, but in December more hawks appeared, and eventually they await for three hikes. This goes along with Trump’s promises to boost economy growth by means of taxes and public expenses. Since the real divergence between monetary policies of ECB and the Federal Reserve became a driver of EURUSD drop below 1.05, the more…

Dollar won back its part, Euro’s turn now

EURUSD

Dollar was defending itself last week. Growth impulse after Trump’s rally was losing its power. The potential for dollar growth on the higher chances for the rate raising by the Fed Reserve won back (they are sure 100% about December rate increase) even with the gap, since they include 50% chances for two more raising in 2017. Meanwhile, stock markets continued to grow on the expectations of public spending increase, and did not consider the policy tightening as a threat for upwards movement. On Thursday and Friday the market gave a formal reason for dollar selling, which used dollar bears quite more…

They bought back Dollar on weak Payrolls

USA

EURUSD

During last week, trading was focused around expectations of labor market news from the USA. The officials can change earlier access to some information, so they were waiting for the strong employment data. Hesitations about it appeared along with the release of the US PMI. The index dropped below 50, reflecting lack of activity in August. Car sales as well could not bring some joy, so dollar was under pressure and EURUSD returned to the area 1.1200. For the previous four days the pair crept down to 1.1100, but could not to break it lower. Weekly unemployment claims as well supported more…

Either Yellen or oil will reverse the market

Janet Yellen

EURUSD

This week EURUSD was one step away from the important resistance area – 1.14. Bulls were feeling lack of informational reason to push the pair against that level – no important news were released on Friday both from the USA and Eurozone. Even not taking this physiological level, the Dollar’s retreat looks more like capitulation. Market participants are more and more confident about the feeling that Fed reserve will not tighten the policy this year, especially in September. Meanwhile Fed officials, conversely, say more often that they should not exclude such event. Minutes of July FOMC meeting eventually caused the wave more…