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xtreamforex26

xtreamforex26

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Verified
Dec 4, 2018
91
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142
Currency and Commodity Trading Correlation

Online trading is the biggest industry of today’s world. Forex trading alone moves trillions of dollars daily affecting whole economies. To trade Forex traders open an account with a Forex company and trade on currency pairs, but all Forex companies don’t only offer currencies for trading, almost all companies also offer commodities.

Commodities have been trading in one form or another since the beginning of civilization. Commodities are pretty much anything which can be delivered from point A to point B, and exists on an exchange.

Commodities are bought with currencies in the physical world, but through online trading they are treated the same as currencies, with bets being placed on their movements through Forex, Binary Options and stock exchange futures.

What some people may not pay attention to is the heavy affect each has on the other. Currencies are very heavily tied with commodities and the other way around. The Canadian dollar for example is directly correlated to oil prices due to exporting oil, so is the Japanese yen because Japan imports oil.
The Australian dollar and New Zealand dollar not only affect each other, but they are both correlated to gold and oil prices.

Unexpected changes in the ties between currencies and commodities can have a huge impact on traders who trade based on these relations.
For online traders there isn’t a huge difference between commodities and currencies, they all represent a virtual product around which trades take place.

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xtreamforex26

xtreamforex26

Member
Verified
Dec 4, 2018
91
8
Points
142
Dealing with Forex Customer Support

The mediator between you and your Forex account is your account manager, and the company's customer support team, here are insider tips on how to deal with customer support while trading with a company for an easy and pleasant process.

Opening an Account

When you first decide to open an account with a company, it is your chance to ask about the company and get to know it. The person you will be contacting is getting paid to introduce you to the company and make you feel comfortable. You should feel free to ask anything you need to call at any time and expect your questions answered. You should not feel guilty or uncomfortable for ''bothering'' the good people at the company for it is their job to help you.

You in turn should also be honest and helpful. If you are asked to provide documents you should make sure you have provided your documents before expecting your account to be open, and if the company specifies that it takes 24 or 48 hours for a procedure to take place, then you should be patient and not call to ask if something is done when the specified time hasn't passed, and lastly and most importantly if you decide that you do not wish to trade with the company after all then be honest and inform the person you are speaking with that you are no longer interested so they can stop bothering you and focus on other clients.

During Trading

When you have become a client of the company it is good to establish a friendly and comfortable relationship with your account manager. They want to be comfortable talking with you when any changes happen, or with advice and you want to feel comfortable reaching out to them when you need them, so it always helps to be friendly and nice but also stick to business talk during phone calls keeping in mind that your account manager is probably very busy with many clients and even if they'd like to have a chat with you they can't afford the time.

What not to ask

Although you should feel free to ask any questions to your account manager just remember that it is not their job to teach you Forex trading or any form of trading. If you are a complete new comer you can ask them to refer you to Forex education programs that the company or other web sites may offer.

Also remember that your account manager is by law not allowed to give you trading advice. If he/she does that they are liable to being sued if they give you the wrong advice and you lose your trade. Unless your account manager is licensed by a Forex regulatory authority to give trading advice then you cannot expect them to give you any.

Closing an Account

Whether you've been trading for a week or a year with a company if you get to the point where you've chosen to close down your account, you should be straight forward and inform your account manager. If you try to go around it you will have to face the worry of receiving another phone call asking if you will deposit, and your account manager will waste a lot of time trying to reach out to you believing you will eventually deposit.

Connect with XtreamForex and make your Trading strong. Our whole committed to provide superior Forex trading services with excellent results. For more detail Visit here: https://xtreamforex.com
 
xtreamforex26

xtreamforex26

Member
Verified
Dec 4, 2018
91
8
Points
142
Forex Hedging

When trading, all traders are trying to find the best way to minimize risk and increase profits, one way of doing that is through hedging.
Hedging is when the same trader opens two positions in the opposing directions. So the same trader will open one position going long on a currency pair, and another position going short on a currency pair.

While both positions are open the profit is at zero, but once traders decide the right time to close one or the other then they are ready to go either way (selling or buying) to make the profit.

Hedging is done mainly in foreign exchange trading, because it is flexible and allows the trader the right but not the obligation to buy or sell the currency pair at a particular exchange rate when the time feels right.

When traders choose to hedge they need to analyse the risk of their hedge, and the types of risk they are taking in the position they are opening, and if it is high or low. Then they need to decide how much they are willing to risk, decide on the most effective strategy and then implement and monitor the position.
There are different types of hedging, some much more complex than just direct hedging, and traders can take other approaches when necessary.
Some brokers do not allow direct hedging.

About XtreamForex

XtreamForex is one of the most reputable Forex and commodity Broker Company. XtreamForex Is provides superior forex trading services to all clients. Our company's vision is to grow to be a leading and reliable broker that takes pride in offering the most professional pricing and services to Forex Traders. We are building towards a successful, bright and secure future for our company and are committed to build long-term relationships with our clients.
 
xtreamforex26

xtreamforex26

Member
Verified
Dec 4, 2018
91
8
Points
142
Forex Scalping

Traders use many different forms of trading which they feel the most comfortable at, and help them make the best profits they can. Each trader depending on their strong points can find themselves working better and earning more when using a the method which suits them best.

Scalping is a well-known and commonly used form of trading which suits trader who wants to make large numbers of trades earning small profits each time. This happens by opening a trade, buying a currency pair, and closing it as soon as the smallest profit is made – usually between 3 to five minutes - completely evading risk even if the profit is too small to make a difference.

The main base of scalping is to make a lot of trades daily – can be up to over a hundred a day – and aim on never losing any money through those trades, but steadily keeps making small profit among small profit slowly building up a larger account.

The downside of scalping is that it requires large amounts of deposit, to be able to handle the amount of leverage which must be taken to make the short and small trades worthy. It also demands a lot more attention, as none of the positions can be losses, otherwise the other small trades will be imbalanced by losses and therefore become entirely useless. It takes clear and attentive concentration skills to achieve that.

Of course needless to say, Scalping is time consuming, and would take a trader who can commit to trading for hours on a daily basis in order to keep building up from the small profits made with each trade, therefore it would be very hard to keep up as a scalper if one is not already a full time trader.

Based on all these facts it makes sense to say that scalping is not for everybody. It is mainly popular due to the fact that it is technically risk free, because even when a loss is made it is small, and over time it depends on no losses being made, but no big profits either. A constant scalper would choose a safely earned small amount over the risk of a great profit opportunity.

An important aspect of scalping is to always keep consistency in trade sizes, if a trader uses erratic trade sizes while scalping; they are bound to lose a lot of money. If random sizes are chosen it is most likely that an oversized, leveraged loss will erase all the profits of a day’s work, defeating the whole principle of scalping. All trade sizes must be the same, making the amount of losses and gains equal, therefore keeping the trading strategy balanced.

It is also important to mention that scalping is a popular method to be applied on automated trading programs, due to the fact that it is time consuming and needs very specific and accurate decisions which can be very easily effected by emotions like excitement or greed.

The way programs work is by trades being placed through the trading day and the system is based on a set of signals derived from technical analysis charting tools that create a buy or sell decision, at the points which the trader has programmed to indicate the right buy or sell conditions.

Many people find scalping through programs effective and doable, because it does not require their immediate presence, or their constant attention.
Over all, to become a good scalper, attention, concentration and time are needed, with a lot of practice, and having the intuition to pull out at the right time, even when the profits are too small to seem worthy.

Read more: Start Forex Trading with Top Rated Online Forex Brokers - XtreamForex
 

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