What is best forex trading strategy?

What is best forex trading strategy?

Day trading refers to the process of trading currencies in one trading day. Although applicable in all markets, day trading strategy is mostly used in Forex. This trading approach advises you to open and close all trades within a single day. No position should stay open overnight to minimize the risk.

How does FX spot work?

A spot FX contract stipulates that the delivery of the underlying currencies occur promptly (usually 2 days) following the settlement date. The main difference between the contracts is when the trading price is determined and when the physical exchange of the currency pair occurs.

How do I learn to spot trade?

Steps to trading spot markets

1. Understand spot trading.
2. Learn why people trade spot (cash) markets.
3. Pick a spot market to trade.
4. Create a trading account and log in.
5. Find your spot trading opportunity.
6. Decide whether to go long or short.
7. Set your stops/limits and place your trade.
8. Monitor and close your position.

What is the most successful trading strategy?

Scalping is one of the most popular strategies. It involves selling almost immediately after a trade becomes profitable. The price target is whatever figure that translates into “you’ve made money on this deal.” Fading involves shorting stocks after rapid moves upward.

How can I get 50 pips a day?

Essential Rules when using the 50 pips a day strategy Wait for 7 a.m. GMT candlestick to close and immediately open buy stop order (2 pips above the high) and sell stop orders (2 pips below the low). The price will move towards high or low and activate one of the pending orders. Then, you may cancel the another order.

How is FX spot calculated?

Think of the spot rate as being x units of one currency equal to 1 unit of the other currency. In this case, think of the spot rate 1.1239 as “CAD 1.1239 = USD 1”. The currency that has the “1” in it is the ‘foreign’ and the other one is ‘domestic’.

What is a ‘spot trade’ in forex trading?

How Spot Trading Works. By definition, a spot Forex transaction or trade is an agreement by two parties to buy one currency and sell another currency at an agreed price for settlement on the spot date.

How does a FX spot transaction work?

A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called the spot exchange rate.

Which is the best indicator for FX trading?

The Bollinger bands are a volatility indicator invented by financial analyst John Bollinger. It is one of the best indicators for Forex trading out of the several volatility channel methods available for Forex traders. Bollinger Bands are among the most popularly used technical indicators.

Which trading platform is best for Forex trading?

The best Forex trading platforms: MetaTrader4, MetaTrader5, WebTerminal, and mobile versions. The best platform for Forex trading. LiteForex offers only the most popular trading platforms of the Forex market: MetaTrader4 and MetaTrader5.