Archive for the ‘Forex Definitions’ Category

Pending Orders in Forex Trading

The concept of the pending orders can seem somewhat complicated to the new Forex traders. The way they are used or why they are used at all isn’t that obvious compared to the standard trading orders. Pending orders help traders to automate the process of trading and remain in the market, while being not in front of their Forex terminals. There are 4 basic types of pending orders and 2 derived types (which are quite [...]

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Drawdown and Risk/Reward Ratio: The Danger of a Losing Streak

Drawdown and risk/reward ratio are two parameters to always keep in mind when trading forex, as they indicate your risk factor for your open trades in a very precise and clear way.

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Forex Definitions: Stop Loss, Take Profit and Trailing Stop Orders

In the world of currency investing, the three terms “stop loss”, “take profit” and “trailing stop” are widely used, since they are the best known kind of limit orders that are used to close a trade under specific conditions, allowing the investor to greatly reduce its risk exposure and trade with more serenity.

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Types of Charts in Forex: Line, Bar and Japanese Candlestick Charts

In forex like in many other areas of the investing world, there are mainly three ways of indicating market movements and prices: line, bar and candlestick graphs are the tools that make it easy for you to understand the behaviour of any given pair during a certain timeframe.

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How Moving Averages Work: Simple, Exponential and Weighted Moving Average in Forex

In technical analysis, moving averages are mathematically derived indexes that play a fundamental role as effective momentum indicators, helping the trader spotting and confirming a newly started trend in any given currency pair.

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