Forex is a global foreign exchange market and has a respectable share of the world markets. In the foreign exchange market, foreign currencies are bought and sold on the specified delivery date. The forex market has no specific address or headquarters. Forex is a global system of computerized trading in which there are huge financial flows. Forex, stocks, oil and metals are traded in the forex market. For this reason, alongside the commodity and stock markets, there is a 24/7 (excluding weekends and holidays) global forex market where trading takes place most of the time over the internet. The main participants in the foreign exchange market are primarily global central and commercial banks and companies related to import and export.
The forex market is a decentralized market where members are connected to each other. The development of modern means of communication led to the creation of a new type of trading, called long-distance trading, conducted using electronic trading systems, which are gradually replacing traditional trading over the telephone. In the foreign exchange market it is possible to buy a currency, for example the euro (EUR) against the Swiss franc (CHF) or the Japanese yen (JPY). Transactions and movements in foreign exchange determine the percentage of world currencies that are convertible. All currencies in circulation are represented in the market by floating exchange rates.
The trading volume in the forex market is amazing, with a daily return of up to $3 trillion per day, surpassing the trading volume in the stock market by about fifty times. Forex has grown in popularity over the past few years, and so today it has become a widespread and well-known profession. About 80% of the deals concluded are aimed at generating speculative income from the exchange rate differences. The Forex market is the most widespread among the existing trading platforms. Its participants have an opportunity to win big in a short period of time.
Normally, trading currencies requires initial capital since trading contracts have maximum liquidity. Therefore, in forex, there cannot be a situation where the counterparty is absent for a trade.
It is believed that the forex market is more popular than the stock market. However, this does not mean that trading Forex is easier than trading stocks, although there are some subtleties. In addition, the reason for this availability is also the low capital at the beginning mentioned above. Not everyone can get into the stock market; On the contrary, in Forex one can start trading by depositing a few dollars.
The broker provides the trader with the margin when it is needed. Of course, forex profit is not very high; However, the risk of losing everything is small.
escape strategy
The trader could collect 20 points per day, which means at least 400 points per month. According to this strategy, the currency needs to move a lot throughout the day and liquidity needs to be at its maximum level. The GBP/USD pair and the USD/CAD pair are the best pairs for this strategy. Trading should not take place until 12:30 GMT as the start of liquidity in the American session and there should be no economic news on the day. In the case of news, trades must be opened after the news is published. It is preferable for the trader to choose a trading period of 30 minutes, the Momentum indicator variable with the value 5, and the Simple Average indicator with a period of 20.
A candle that closes above SMA 20 and the momentum indicator is above the middle level represents a good entry point to buy. If the price falls below the moving average and the momentum indicator is below the middle level, that’s a good one Entry point for sales. After opening the deal and crossing the SMA 20 indicator, the deal should be closed. The stop loss and profit limit should be 20 pips. Since the frame is a bit short, it is better to use a trailing stop loss (from 1 pip). Choose another stop order at zero after the price has moved 10 pips. The developers of this 20 pips a day strategy believe that it is a good strategy for guaranteed profit if all the above conditions are met.
