{"id":4093,"date":"2020-04-09T07:41:10","date_gmt":"2020-04-09T07:41:10","guid":{"rendered":"https:\/\/trade-malaysia-option.com\/dagangan-forex\/"},"modified":"2023-02-09T09:08:05","modified_gmt":"2023-02-09T09:08:05","slug":"dagangan-forex","status":"publish","type":"post","link":"https:\/\/trade-malaysia-option.com\/en\/dagangan-forex\/","title":{"rendered":"Forex trading"},"content":{"rendered":"<p><span>Forex trading (also &#8216;foreign exchange&#8217; or &#8216;FX&#8217;) is the buying and selling of one currency for another.\u00a0Trades are placed based on exchange rates listed over the counter (OTC) or exchange trading platforms.<\/span><\/p>\n<p><span>The market is the largest in the world, seeing more than $5 trillion in trades every day.\u00a0Forex can be traded five days a week, around the clock.\u00a0There is no central exchange for currencies, so they are traded around the world on various sources.<\/span><\/p>\n<p><span>In each currency pair, the first currency listed is the &#8216;base&#8217; currency, and the second the buy currency.\u00a0So with the EUR \/ USD price mentioned how many US dollars will be needed to buy 1 Euro.<\/span><\/p>\n<p><span>Almost any financial news, or global event, will affect the price of foreign currency exchange.\u00a0With markets available 24 hours a day and many brokers offering low commissions, tight spreads and high leverage, forex trading has become very popular with retail investors.\u00a0However, it is high risk, especially where leverage is involved.<\/span><\/p>\n<h2 id=\"top-5%c2%a0forex-brokers\" data-fontsize=\"39\" data-lineheight=\"39\">Top 5 Forex Brokers<\/h2>\n<aside>\n<div class=\"hidden-xs\">\n<table class=\"table table-striped table-condensed table-list\">\n<thead>\n<tr>\n<th><span>SURVEY<\/span><\/th>\n<th class=\"text-center\">MIN.\u00a0DEPOSIT<\/th>\n<th class=\"text-center\">BONUS<\/th>\n<th class=\"text-center\"><span>CONTROLLED<\/span><\/th>\n<th class=\"text-center hidden-sm\"><span>ASSESSMENT<\/span><\/th>\n<th><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><a title=\"Binary.com review\" href=\"https:\/\/translate.google.com\/website?sl=auto&amp;tl=bn&amp;hl=ru&amp;client=webapp&amp;u=https:\/\/www.binaryoptions.co.uk\/binary-com\"><img decoding=\"async\" src=\"https:\/\/www.binaryoptions.co.uk\/wp-content\/files_mf\/14728111961442574009Screenshot2015091811.11.52min.png\" alt=\"Binary.com review\" width=\"150\" \/><\/a><\/td>\n<td class=\"text-center\"><span>\u00a35<\/span><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center hidden-sm\"><span>95%<\/span><br \/>\n<span class=\"review-link\"><span>Reviews<\/span><\/span><\/td>\n<td><span class=\"btn btn-success btn-out\"><span>\u00bb Tour<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><a title=\"IQ Choice Study\" href=\"https:\/\/translate.google.com\/website?sl=auto&amp;tl=bn&amp;hl=ru&amp;client=webapp&amp;u=https:\/\/www.binaryoptions.co.uk\/iq-option\"><img decoding=\"async\" src=\"https:\/\/www.binaryoptions.co.uk\/wp-content\/files_mf\/1531125454IQOptionLogo150x50.png\" alt=\"IQ Choice Study\" width=\"150\" \/><\/a><\/td>\n<td class=\"text-center\"><span>\u00a310<\/span><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center hidden-sm\"><span>90%<\/span><br \/>\n<span class=\"review-link\"><span>Reviews<\/span><\/span><\/td>\n<td><span class=\"btn btn-success btn-out\"><span>\u00bb Tour<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><a title=\"OptionField Survey\" href=\"https:\/\/translate.google.com\/website?sl=auto&amp;tl=bn&amp;hl=ru&amp;client=webapp&amp;u=https:\/\/www.binaryoptions.co.uk\/optionfield\"><img decoding=\"async\" src=\"https:\/\/www.binaryoptions.co.uk\/wp-content\/files_mf\/1533587263Optionfield130x50.png\" alt=\"OptionField Survey\" width=\"150\" \/><\/a><\/td>\n<td class=\"text-center\"><span>\u00a35<\/span><\/td>\n<td class=\"text-center\"><span>Pro Account 75% + 10% CB<\/span><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center hidden-sm\"><span>89%<\/span><br \/>\n<span class=\"review-link\"><span>Reviews<\/span><\/span><\/td>\n<td><span class=\"btn btn-success btn-out\"><span>\u00bb Tour<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><a title=\"24Option Review\" href=\"https:\/\/translate.google.com\/website?sl=auto&amp;tl=bn&amp;hl=ru&amp;client=webapp&amp;u=https:\/\/www.binaryoptions.co.uk\/24option\"><img decoding=\"async\" src=\"https:\/\/www.binaryoptions.co.uk\/wp-content\/files_mf\/147332887424optionlogohigh.png\" alt=\"24Option Review\" width=\"150\" \/><\/a><\/td>\n<td class=\"text-center\"><span>\u00a3250<\/span><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center hidden-sm\"><span>88%<\/span><br \/>\n<span class=\"review-link\"><span>Reviews<\/span><\/span><\/td>\n<td><span class=\"btn btn-success btn-out\"><span>\u00bb Tour<\/span><\/span><\/td>\n<\/tr>\n<tr>\n<td><a title=\"BDSwiss study\" href=\"https:\/\/translate.google.com\/website?sl=auto&amp;tl=bn&amp;hl=ru&amp;client=webapp&amp;u=https:\/\/www.binaryoptions.co.uk\/bdswiss\"><img decoding=\"async\" src=\"https:\/\/www.binaryoptions.co.uk\/wp-content\/files_mf\/1491819495BDSwissLogomin.png\" alt=\"BDSwiss study\" width=\"150\" \/><\/a><\/td>\n<td class=\"text-center\"><span>\u00a310<\/span><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center\"><\/td>\n<td class=\"text-center hidden-sm\"><span>87%<\/span><br \/>\n<span class=\"review-link\"><span>Reviews<\/span><\/span><\/td>\n<td><span class=\"btn btn-success btn-out\"><span>\u00bb Tour<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/aside>\n<aside>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><span>How Forex Pairs Work<\/span><\/h2>\n<p><span>Forex pairs are the starting point for forex trading.\u00a0A &#8216;pair&#8217; is two currencies to be traded.\u00a0So a trader will buy one currency, use another.\u00a0So for example, with the GBP \/ USD pair.\u00a0Traders will buy pounds, using US dollars.<\/span><\/p>\n<p><span>When the price is quoted, they are always the second currency, buying the first.\u00a0So with EUR \/ GBP for example, the price quoted is the cost in pounds, to buy 1 Euro.\u00a0Note however, that the decimals will move, making the prices look a little strange to anyone used to changing currency for their vacation.\u00a0In the EUR\/GBP example, the current trading rate is 8454.8.\u00a0For vacation makers heading to Europe, that equates to 84.5 pence buying 1 Euro.<\/span><\/p>\n<p><span>The currency of the trading account is not important, the broker will change them as needed to enable the trader to buy or sell currency.\u00a0Retail forex trading is simply speculating on the movement of exchange rates between forex pairs.<\/span><\/p>\n<div>\n<div>\n<p><strong><span>Which are the main forex currency pairs?<\/span><\/strong><\/p>\n<\/div>\n<div><span>The major forex pairs all involve the US dollar;<\/span><\/div>\n<ul>\n<li>EUR \/ USD<\/li>\n<li>USD \/ JPY<\/li>\n<li>GBP \/ USD<\/li>\n<li>USD \/ CHF<\/li>\n<\/ul>\n<\/div>\n<p><span>Established pairs, traded in high volume and based on the US dollar, are known as &#8216;major&#8217; pairs.\u00a0In addition to these more traditional forex currency pairs, there are quickly becoming a wider range of currencies to trade \u2013 these are referred to as &#8216;minor&#8217; or &#8216;exotic&#8217; pairs.\u00a0Binary options brokers currently offer options between 40 and 50 different currency pairs from around the world.\u00a0The evolving market has added a new element to Forex trading.\u00a0These markets include areas such as South America and Asia.\u00a0A currency often represents market confidence in the overall economy of the area concerned.\u00a0Given the various factors that contribute to such an economy, it&#8217;s easy to see why prices fluctuate constantly.<\/span><\/p>\n<p><span>Small and exotic pairs however, see lower trading levels, which can affect volatility, but also availability at certain times.<\/span><\/p>\n<div>\n<div>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><a href=\"https:\/\/iqoption.com\/lp\/mobile-partner\/ru\/?aff=12245&amp;afftrack=&amp;clickid=\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\" alt=\"\" width=\"300\" height=\"72\" \/><\/a><\/h2>\n<p><strong><span>What are exotic forex pairs?<\/span><\/strong><\/p>\n<\/div>\n<div><span>Exotic pairs are usually so called because they combine one major currency, with a second emerging market or smaller currency, for example;<\/span><\/div>\n<ul>\n<li>TRY \u2013 Lira Turki<\/li>\n<li><span>NOK \u2013 Norwegian Krone<\/span><\/li>\n<li>SEK \u2013 Swedish Krone<\/li>\n<li><span>HKD \u2013 Hong Kong dollars<\/span><\/li>\n<\/ul>\n<\/div>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><span>What Affects the Forex Market?<\/span><\/h2>\n<p><span>So what affects the FX market?\u00a0<\/span><em><span>Pretty much everything<\/span><\/em><span>\u00a0\u00a0.\u00a0Almost every global news item can have an imaginable impact on currency prices.\u00a0For example, a drop in oil prices causes a corresponding drop in the value of the Russian ruble.\u00a0An economy that is heavily linked to oil will rise or fall with the value of the commodity.\u00a0There are additional factors to consider, but the example is clear.<\/span><\/p>\n<p><span>A more subtle example is the Indian rupee.\u00a0The new governor at the Reserve Bank of India boosted investor confidence in the recovery plan set for the Indian currency.\u00a0The confidence is reflected in the strong performance of the rupee.\u00a0While the Indian currency benefited directly, other Asian currencies also surged higher, with regional performance a factor helping both the Philippine peso and the Thai baht.<\/span><\/p>\n<p><span>Another example is foreign policy.\u00a0If a country like China to make an agreement with Russia through gas, both currencies can benefit.\u00a0If the market believes one trading partner has the better side of the deal then one currency can gain while the other suffers.\u00a0Traders can take a look at the upcoming foreign policy and invest accordingly.\u00a0These examples are some of the more obvious and larger market drivers, but illustrate the fact that forex is a very complex market.<\/span><\/p>\n<p><strong><span>Volatility in the Forex market<\/span><\/strong><\/p>\n<p><span>Uncertainty in the market usually leads to volatility.\u00a0The global economy is certainly volatile right now, which means there are plenty of opportunities for Forex traders.\u00a0Binary options provide an opportunity to profit from uncertainty.\u00a0The range of forex currencies available to trade through a binary options broker has never been greater and the right strategy, for the right currency, can prove very profitable.\u00a0Our review highlights brokers that focus on binary options exchange rates.<\/span><\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><span>Forex Market Opening Hours<\/span><\/h2>\n<p><span>Some beginners skip some of the forex basics and head straight for the strategy.\u00a0That can be a mistake, and lead to many lessons learned the hard way (losing trades).\u00a0One of those &#8216;basics&#8217;, is knowing the hours when certain markets will open.<\/span><\/p>\n<p><span>The open point exchange market is open 24 hours a day.\u00a0This is because banks and corporations open at different times around the world.\u00a0This demand provides liquidity to forex pairs.\u00a0But each hour of the day has a different bias based on what part of the world is open for business.\u00a0Understand the hours of the forex market, and the hourly trends, and you will be able to apply your strategy at the right time.<\/span><\/p>\n<p><strong><span>Forex Market Session<\/span><\/strong><\/p>\n<p><span>The main market is open at different times throughout the day.\u00a0Which market is open directly affects the liquidity and volatility of the forex pair.<\/span><\/p>\n<p><span>For example EURUSD is most liquid and volatile during the London and New York sessions, especially during the &#8220;overlap&#8221; period when London and New York are both trading.<\/span><\/p>\n<p><span>USDJPY typically has the most pullbacks when Tokyo first opens, and when New York opens a few hours later.<\/span><\/p>\n<p><span>A currency generally sees increased liquidity when one or more markets that are actively trading, or using, the currency are open for business.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><a href=\"https:\/\/iqoption.com\/lp\/mobile-partner\/ru\/?aff=12245&amp;afftrack=&amp;clickid=\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\" alt=\"\" width=\"300\" height=\"72\" \/><\/a><\/h2>\n<p>&nbsp;<\/p>\n<p><span>Here are the forex sessions based on GMT for Malaysian Traders:<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-2653\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/GMT-Forex-market-hours.png\" sizes=\"(max-width: 800px) 100vw, 800px\" srcset=\"https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/GMT-Forex-market-hours-200x49.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 200w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/GMT-Forex-market-hours-300x74.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 300w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/GMT-Forex-market-hours-400x99.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 400w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/GMT-Forex-market-hours-600x148.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 600w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/GMT-Forex-market-hours-768x189.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 768w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/GMT-Forex-market-hours.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 800w\" alt=\"\" width=\"800\" height=\"197\" \/><\/p>\n<p><span>Charts do not show every market in the world.\u00a0But what is shown is the main forex market.\u00a0The Canadian market opens while New York opens, and London overlaps with other European markets.<\/span><\/p>\n<p><span>Germany opens an hour before London;\u00a0Therefore, some consider that to be\u00a0\u00a0<\/span><em><span>open<\/span><\/em><span>\u00a0\u00a0, and not the beginning of the London session.\u00a0Volatility, on average, didn&#8217;t see much of an increase until the London open though.<\/span><\/p>\n<p><strong><span>Intra-Day Volatility<\/span><\/strong><\/p>\n<p><span>Those main sessions directly affect the volatility of currency pairs.\u00a0Hourly volume changes follow certain trends.\u00a0If your strategy is based on volatility or you use a trend strategy, focus on the time of day where price moves are the biggest.<\/span><\/p>\n<p><span>If you use more trading strategies, or prefer low volatility, trade during quiet hours.\u00a0Check where the chart shows the drop in hourly volatility.<\/span><\/p>\n<p><span>08:00 to 17:00 GMT provides the best trend opportunities, with 13:00 to 17:00 generally providing the biggest moves.<\/span><\/p>\n<p><span>Those looking for reduced volatility, or times more likely to be quiet, trade between 20:00 and 05:00 GMT.<\/span><\/p>\n<p><span>USDCHF is very similar to EURUSD in terms of hourly volatility structure, although USDCHF moves less daily and therefore the overall hourly volatility is a few pips less.<\/span><\/p>\n<p><span>NZDUSD has the same hourly volatility as AUDUSD, and both move about the same amount each day.<\/span><\/p>\n<p><strong><span>Conclusion Opening Time<\/span><\/strong><\/p>\n<p><span>Learning the basics, like what market sessions and hours mean to you as a trader, can help with strategy and timing.\u00a0No matter what time frame you&#8217;re trading, create a checklist that helps you determine what type of market you&#8217;re looking to trade.\u00a0Don&#8217;t try and &#8216;force&#8217; a trade.\u00a0This will also help with filtering trades and cash payments on good opportunities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><a href=\"https:\/\/iqoption.com\/lp\/mobile-partner\/ru\/?aff=12245&amp;afftrack=&amp;clickid=\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\" alt=\"\" width=\"300\" height=\"72\" \/><\/a><\/h2>\n<p>&nbsp;<\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><span>Forex Binary vs Options<\/span><\/h2>\n<p><span>The main advantage of Binary Options for Forex Trading is the defined and limited losses that can be imposed on any trade.\u00a0When you buy Binary Options you know in the beginning, what your maximum loss is.\u00a0It is defined by the cost of the option itself.\u00a0You can also determine your Forex trading loss by adding a Stop Loss order to your position, but two things can then come into play;<\/span><\/p>\n<ul>\n<li><span>A volatile price breakout against you where you plan to stop your loss after, for example, 30 pips, but you end up being stopped after more than 30, due to market volatility.<\/span><\/li>\n<li><span>Tempt to\u00a0\u00a0<\/span><em><span>move<\/span><\/em><span>\u00a0\u00a0your Stop Loss as the market closes because you feel the momentum will not last.\u00a0In the end this will cause you to lose more than you initially thought at risk in the trade.<\/span><\/li>\n<\/ul>\n<p><span>In other words, it can eliminate the need for disciplined risk management.\u00a0Often traders end up trading emotionally which will end up being a disaster.\u00a0With Binary Options your maximum loss is always fixed and there is no risk of losing more.<\/span><\/p>\n<p><span>This is also related to the concept of volatility, with Binary Options not really caring how the market moves as long as it ends up\u00a0\u00a0<\/span><em><span>in the money<\/span><\/em><span>\u00a0\u00a0at expiration, whereas having a Forex position often sees you taking losses due to high market volatility \u2013 to then see the price move back in your favor.<\/span><\/p>\n<p><span>Although both trading methods share many common characteristics, there are additional elements that set each one apart:<\/span><\/p>\n<ul>\n<li><span>Leverage.\u00a0Binary options are usually offered without leverage.\u00a0Traditional Forex often provides large &#8216;gearing&#8217;.\u00a0Leverage is a double-edged sword.\u00a0Some traders will demand the additional profit potential it provides, others will be concerned about the losses that leveraged trading may result in.<\/span><\/li>\n<li><span>Risk .\u00a0Risk and reward are clear to begin with with binary options.\u00a0The best and worst case scenarios are both known.\u00a0In more traditional forex, profit or loss may not be clear until the trade is closed.\u00a0Leverage magnifies this problem.<\/span><\/li>\n<li><span>Capital requirements.\u00a0Traditional forex requires more cash from the account than binary options.<\/span><\/li>\n<li><span>Flexibility.\u00a0Binary options can provide Touch and Range options in a simple way.\u00a0The same trading profile can be achieved with conventional forex trading, but it requires more thought on the part of the trader.<\/span><\/li>\n<li><span>Expiration of Fixed Period .\u00a0Forex traders can move in and out of trades without a definite end point on either of them.\u00a0Binaries require a specific expiration to be set at the start of the option.<\/span><\/li>\n<li><span>Monitoring.\u00a0Binary options can be left to mature at expiration, with no additional risk.\u00a0Forex trading needs to be monitored as there are sharp price movements that may trigger losses or similar.\u00a0Binaries will of course, be traded along as well, so some traders may prefer to monitor binary positions as well.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><a href=\"https:\/\/iqoption.com\/lp\/mobile-partner\/ru\/?aff=12245&amp;afftrack=&amp;clickid=\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\" alt=\"\" width=\"300\" height=\"72\" \/><\/a><\/h2>\n<p><strong><span>Trade Speed<\/span><\/strong><\/p>\n<p><span>Binary Options allow very short expiration times.\u00a0Claims can only be found in a few minutes, even in a moment the period of sixty-two years is over.\u00a0In forex, it is very rare that the market will move enough for you to close your position in minutes let alone sixty seconds.\u00a0Since payouts for Binary Options range from 75% to 90% you can buy an option for say, \u00a3200 and receive a profit of between \u00a3150 and \u00a3180 after just a few minutes.<\/span><\/p>\n<p><strong><span>Distance to Target<\/span><\/strong><\/p>\n<p><span>With Forex trading, you enter a position with the goal of a price level that reaches a certain target that will inevitably be far from the current price.\u00a0Binary Options allow the target price, the strike, to be in the\u00a0\u00a0<\/span><em><span>money<\/span><\/em><span>\u00a0\u00a0, creating a higher chance of the Option being\u00a0\u00a0<\/span><em><span>in the money<\/span><\/em><span>\u00a0\u00a0at expiration.\u00a0With the forex target price potentially far from the current market price, a larger price move is required to gain the same level of profit.<\/span><\/p>\n<p><span>In Forex if the current market price for EUR \/ USD is 1.1200 you enter a trade with the idea of \u200b\u200bthe market going up or down, say 20 pips, whereas in Binary Options the strike price will be the current market price of 1.1200 and your option must be\u00a0\u00a0<\/span><em><span>above<\/span><\/em><span>\u00a0\u00a0or\u00a0\u00a0<\/span><em><span>below<\/span><\/em><span>\u00a0\u00a0that price even if it&#8217;s only 1 pip for you to cash out.<\/span><\/p>\n<p><strong><span>Advantages of Forex<\/span><\/strong><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-2259\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net.jpg\" sizes=\"(max-width: 1500px) 100vw, 1500px\" srcset=\"https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net-200x113.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 200w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net-300x169.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 300w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net-400x225.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 400w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net-600x338.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 600w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net-768x432.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 768w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net-800x450.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 800w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net-1024x576.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 1024w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net-1200x675.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 1200w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/kriptovalyuta-neo-investirovat-ili-net.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 1500w\" alt=\"\" width=\"1500\" height=\"844\" \/><\/p>\n<p><span>The biggest disadvantage when trading Binary Options is the required win rate.\u00a0In Forex trading if you use the risk \/ reward ratio correctly then your individual profits will usually be higher than your losses.\u00a0This is because you need to enter each trade with a higher Target profit than the Stop Loss, for example 35 pips against 25. This means that even if you are only 50% of the time you need to be, your winning Trades will make more than your losing trades.<\/span><\/p>\n<p><span>This concept does not work for Binary options and it is easy to see why.\u00a0With a payout of about 75-90%, traders must win\u00a0\u00a0<\/span><em><span>more<\/span><\/em><span>\u00a0\u00a0than 50% of their trades to be profitable.\u00a0With each individual trade, more funds are at risk, than will be won if the option is out of the money.\u00a0In this scenario, you need to earn more than 50% of the time to return the total profit.<\/span><\/p>\n<p><span>Also, with binary trading there is no real secondary market.\u00a0Once you have bought an option, you may want to exit the position before expiration \u2013 you may be trying to minimize your losses or maximize your profits if you think the market is changing.\u00a0Therefore, you may find yourself wanting to sell the option you bought.\u00a0To do that, you only have the option to sell it at the price the broker, where you bought the option, displays to you.<\/span><\/p>\n<p><span>Although you can have multiple accounts with different Binary Options brokers and compare the price of the option you want to buy before actually buying, once you are in a trade, if you want to exit it, that is\u00a0\u00a0<\/span><em><span>closing the trade before it expires<\/span><\/em><span>\u00a0\u00a0, you have no choice but to do it at the price displayed by the broker.\u00a0In Forex of course the market is priced for free at any time and you know you will get a fair market price to exit your trade and not a broker price.<\/span><\/p>\n<p><strong><span>To summarize the binary options vs Forex debate<\/span><\/strong><\/p>\n<p><span>Which trading option is the best which is the most profitable market to trade?\u00a0Binary options or Forex?\u00a0This really depends on your own commitment in terms of hours a day in front of the screen and discipline in risk management.<\/span><\/p>\n<p><span>With Binary Options you may not need to be in front of a screen for hours a day to constantly follow the market as is required when trading Forex.\u00a0You can take your position and wait for the outcome confident that your maximum liability is the cost of the option.\u00a0You don&#8217;t have to worry about maintaining your stop loss, it is fixed at the price you paid for the option and cannot be changed.<\/span><\/p>\n<p><span>One thing that both markets have in common is the analysis required to make trading decisions.\u00a0Any market you will be trading in you will always be looking at Fundamentals and\/or Technical Analysis.\u00a0For both markets, you need to hone your analytical skills and create a profitable trading plan or strategy.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><a href=\"https:\/\/iqoption.com\/lp\/mobile-partner\/ru\/?aff=12245&amp;afftrack=&amp;clickid=\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\" alt=\"\" width=\"300\" height=\"72\" \/><\/a><\/h2>\n<p>&nbsp;<\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><span>The Basics of Binary Options Forex Trading<\/span><\/h2>\n<p><em><span>Here, a professional trader, and founder of a money management and trading advisory firm, shares his thoughts on the basics of forex binary options trading and the system he personally uses.\u00a0<\/span><\/em><\/p>\n<p><span>The strategy below is not a secret but it is also not known either.\u00a0That simplicity is the reason for its success.<\/span><\/p>\n<p><strong>EUR \/ USD<\/strong><\/p>\n<p><span>The currency pair I am announcing is the EUR \/ USD pair.\u00a0This is because it is the most volatile \u2013 but also predictable \u2013 of the foreign exchange pairs.\u00a0It remains the most traded pair since the opening of the Forex market to retail investors.\u00a0Daily numbers have been increasing since the early days.\u00a0EUR\/USD is also a pair used by financial firms to hedge against market changes.<\/span><\/p>\n<p><span>A frequent crop issue on binary options forums, is the amount of different strategies discussed or offered.\u00a0The majority of traders think that the more complex the system, the more profitable it is.\u00a0When these forex strategies fail, the system is blamed.\u00a0The real issue however, is behind the screen.\u00a0No strategy will adapt to changing market conditions;\u00a0traders must adapt.<\/span><\/p>\n<p><span>Many will argue that this strategy will not work in certain market conditions.\u00a0However, is the market is binary;\u00a0prices will only go up or down.\u00a0The startup market doesn&#8217;t actually exist.\u00a0Any system has the same goal \u2013 to detect the best entry and exit points for any given trade.<\/span><\/p>\n<p><span>For example: Experienced traders will detect support and resistance levels easily.\u00a0A beginner might not.\u00a0The same beginner investor might use a strategy using:<\/span><\/p>\n<ul>\n<li><span>stochastic,<\/span><\/li>\n<li>MACD<\/li>\n<li>RSI \u2026<\/li>\n<\/ul>\n<p><span>\u2026 but what they fail to see, is that these pointers give him the same entry point used by experienced traders.<\/span><\/p>\n<blockquote><p><em><span>When trading forex binary options, spotting the best entry points and knowing the next price move is key.<\/span><\/em><\/p><\/blockquote>\n<p><span>Note: The following are personal opinions and strategies that I personally use.\u00a0Everything should be read carefully.\u00a0Don&#8217;t jump into high-risk methods without fully understanding how the strategy works.\u00a0Consider trading with a demo account before risking real money.\u00a0Be prepared to pass trades if something gets in your way.\u00a0Don&#8217;t force trades where there aren&#8217;t any, opportunities will come.<\/span><\/p>\n<p><strong><span>Forex Basics<\/span><\/strong><\/p>\n<p><span>The first point is to offer an explanation of the forex market in general: Currency exchange is governed by the laws of supply and demand.<\/span><\/p>\n<p><span>Here is a hypothetical example: Apple (a US-based corporation) sells 1 million mobile phones across Europe, at a price of 500 euros per product.\u00a0EUR (\u20ac) is the base currency.\u00a0They use HSBC for clearing, so these funds are received there.\u00a0However \u2013 Apple reports in dollars, and their administrative account is with BOA.<\/span><\/p>\n<p><span>So Apple made \u20ac500m sitting in an HSBC account in Luxembourg.\u00a0The funds now need to flow into their BOA account and be converted to USD.<\/span><\/p>\n<p><span>They now have to exchange currency.\u00a0Transfer orders come on Tuesday at 4pm UK time.\u00a0It will not be transferred immediately.\u00a0Banks will collect all their USD orders at night.\u00a0This may have been up to a month ago.<\/span><\/p>\n<p><span>The UER \/ USD pair traded on Wednesday morning at 6 GMT at 1.27000.\u00a0So Apple&#8217;s account with BOA will receive 635 million USD at 8am EST.\u00a0This order is set at 1.27000.\u00a0How do banks \u2013 or retail investors \u2013 make money from these transactions?<\/span><\/p>\n<p><strong><span>How Investors Profit?<\/span><\/strong><\/p>\n<p><span>BOA will obviously get a commission from Apple, but what about HSBC?<\/span><\/p>\n<p><span>At 8am GMT \u2013 the opening of the London Market, liquidity was 380 million euros.\u00a0The price is 1.27010.\u00a0So 500 million euros is equivalent to 635 050 000 USD.\u00a0Currently, the market cannot handle this trade.<\/span><\/p>\n<p><span>Extending the hypothetical example, here is how the market is viewed.\u00a0The Euro outlook is bullish.\u00a0Asian markets rose overnight.\u00a0The US fiscal cliff is getting resolved.\u00a0Millions of investors and retail stores take BUY orders and place stops 10 pips below the current price.\u00a0There is now a liquidity exposure of 300 million euros plus current liquidity of 380 million euros.\u00a0Total liquidity then, in USD on the market at the moment is (1.27010) 482 638 000 USD and 381 030 000 USD is pending (equivalent to stops).<\/span><\/p>\n<p><strong><span>Currency exchange<\/span><\/strong><\/p>\n<p><span>Market data shows that stop at 1.26910.\u00a0Therefore, at 8.15 am GMT, the order came to SELL available liquidity (840 Million Euro sell order).\u00a0The effect of this is to push the price to 1.26905.\u00a0Now, the bank&#8217;s BUY order is triggered.\u00a0Other retail investors are now placing new buy orders to cover their losses.<\/span><\/p>\n<p><span>The price is 1.27099.\u00a0Here, we may exit our BUY position gradually (assuming we follow the bank trades).\u00a0Because the trend still looks strong, people buy our orders.\u00a0On the chart this may be indicated by a green candle that is getting smaller in size after an upward trend.<\/span><\/p>\n<p><strong><span>Trading Results<\/span><\/strong><\/p>\n<p><span>So the market liquidity increases to 380 + 300 = 680 million euros.\u00a0We exited at 1.27099 for a gain of 9.9 pips (from 1.27000).\u00a0Once leverage is considered \u2013 and the sheer scale of these trades \u2013 huge sums of money have just changed hands.\u00a0Banks (and retail investors) both use leverage to make huge profits from such moves.<\/span><\/p>\n<p><span>This is just an example.\u00a0Actually a huge trading volume (4 trillion USD daily).\u00a0There are many traders, market makers and stakeholders in this market, but the example is to show you how FX works, and this is important when analyzing support and resistance (SR) levels and trends.<\/span><\/p>\n<p><span>This level is determined by the larger players.\u00a0They also hold firm as retail investors step in and use them.\u00a0The smart money cycle occurs in 3 price cycles.\u00a0We then see a short-term channel where price is stuck for a little bit of accumulated strength.<\/span><\/p>\n<p><strong>Sistem Forex \u2013 Fibonacci<\/strong><\/p>\n<p><span>These price cycles are not random.\u00a0They are in order.\u00a0This sequence is defined by a set of numbers called Fibonacci numbers.<\/span><\/p>\n<p><span>Fibonacci numbers were not developed for trading.\u00a0They occur throughout the natural world, where many biological systems can be described in terms of Fibonacci-like sequences.<\/span><\/p>\n<p><span>Major forex traders (including banks) do not use indicators such as RSI, CCI or MACD.\u00a0They use a system based on Fibonacci numbers.<\/span><\/p>\n<p><span>Combining Fibonacci with accurate price channel calculations and information on how other people trade, you have a profitable trading strategy for forex.<\/span><\/p>\n<p><strong><span>Forex Using Binaries?<\/span><\/strong><\/p>\n<p><span>Why should you consider all this when trading binary options?\u00a0Unlike foreign exchange, you need to be more frequent.\u00a0You need to identify direction, not step size.<\/span><\/p>\n<p><span>During today&#8217;s trading, there will be no large trades shown above.\u00a0I want bag (and pip) price movements, so I need to use something that finds price cycles and reversals.\u00a0For binary forex (and day fx trading places) I use 3 indicators with very accurate functions.<\/span><\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><span>Forex Relationships<\/span><\/h2>\n<p><span>Forex relationships are the main tool.\u00a0If you don&#8217;t know what they have \u2013 It might have ruined your trading.\u00a0Correlation shows which pairs move together.\u00a0Also, it determines those who move in the opposite direction.\u00a0No less important, it will show which pairs are not related.<\/span><\/p>\n<p><span>This all helps to judge which trades we should take.\u00a0It can reduce risk, and also provide additional business opportunities that are not obvious on the price chart.<\/span><\/p>\n<p><strong><span>How to Read Exchange Correlation<\/span><\/strong><\/p>\n<p><span>Correlation is usually displayed with values \u200b\u200bfrom -100 to 100. A value of -100 (\u00a0\u00a0<\/span><em><span>inverse<\/span><\/em><span>\u00a0correlation \u00a0) indicates two forex pairs that move exactly opposite each other.\u00a0If one goes up, the other goes down and vice versa.\u00a0The number 100 means that two forex pairs are moving together.\u00a0If one goes up, the others go up too.\u00a0Likewise, if someone falls, so will it.\u00a0Numbers at the extremes of the spectrum are sparse \u2013 but the closer the number is to -100 or 100, the stronger the correlation.<\/span><\/p>\n<p><span>So the figure above \u2013 \/ + 70 is a correlation that needs attention.\u00a0Anything over \u2013 \/ + 80 is a\u00a0\u00a0<\/span><em><span>strong<\/span><\/em><span>\u00a0correlation \u00a0.\u00a0Consider the GBP\/USD and EUR\/USD crossovers above.\u00a0It gives a figure between GBP\/USD and EUR\/USD of 89.6.\u00a0This shows a strong correlation.<\/span><\/p>\n<p><span>Next, judge USD\/CHF with EUR\/USD.\u00a0It shows that the correlation between the two pairs is -95.4.\u00a0\u00a0This shows a very strong\u00a0<\/span><em><span>inverse<\/span><\/em><span>\u00a0correlation\u00a0 .\u00a0When EUR\/USD goes up, USD\/CHF goes down, and vice versa.<\/span><\/p>\n<p><span>With many pairs, there is no relevant correlation.\u00a0Where the value (positive or negative) is less than 60, the correlation is not very strong.\u00a0Anything around 0 indicates no correlation between pairs at all.\u00a0For example, NZD \/ USD and EUR \/ USD pairs.\u00a0The correlation here is -1.7.\u00a0This means that there is no visible correlation, on a daily basis, between these pairs.\u00a0In other words, the rise or fall of NZD\/USD tells us\u00a0\u00a0<\/span><em><span>absolutely nothing<\/span><\/em><span>\u00a0\u00a0about what EUR\/USD might do.<\/span><\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><a href=\"https:\/\/iqoption.com\/lp\/mobile-partner\/ru\/?aff=12245&amp;afftrack=&amp;clickid=\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\" alt=\"\" width=\"300\" height=\"72\" \/><\/a><\/h2>\n<p><strong><span>Correlation Flood<\/span><\/strong><\/p>\n<p><span>Correlation tables are created and updated based on time frames, daily and weekly tables.\u00a0All of these timeframes provide valuable information depending on the timeframe you are trading.\u00a0For short-term trading, hourly and daily correlations will be most important.\u00a0Numbers change, so don&#8217;t take the above as gospel.<\/span><\/p>\n<p><strong><span>Why does Forex Goal happen?<\/span><\/strong><\/p>\n<p><span>There are many reasons to care about forex correlation.\u00a0The biggest reason I monitor them is to control risk.\u00a0For example, a trader may think that trading multiple pairs has offered them diversification.\u00a0Just by knowing the pairwise correlation, can this be guaranteed?<\/span><\/p>\n<p><span>If you go long (buy calls) in EUR\/USD, GBP\/USD and sell (buy puts) USD\/CHF you have basically taken 3 very similar positions.\u00a0If someone moves towards you, they will probably move against you.\u00a0The risk has tripled.\u00a0If leverage is also used, the risk is huge.<\/span><\/p>\n<p><span>Another reason why forex correlations are important, is that they can give you trades that you might not see.\u00a0For example, you believe the EUR will appreciate against the USD (ie EUR \/ USD will rise).\u00a0You look at the charts and don&#8217;t see great trade setups.\u00a0Since you know that GBP\/USD usually moves with EUR\/USD (based on the current correlation), you can also check GBP\/USD to see if there is a better trade.<\/span><\/p>\n<p><span>You may also want to see if there is a trade set to go short (buy puts) in USD\/CHF as it usually moves in the opposite direction of EUR\/USD.\u00a0A high correlation (positive to negative) gives you an alternative trade;\u00a0choose the one that has the best trade.<\/span><\/p>\n<p><strong><span>Confirm trade<\/span><\/strong><\/p>\n<p><span>I also like to use forex correlation to confirm trades.\u00a0When looking for forex pairs with a high correlation, I will use one pair to confirm trades on the other side.\u00a0For example, if EUR\/USD goes up, and I want to go long (buy a call), I also want to see GBP\/USD go up.\u00a0Since this pair is highly correlated they need to move together.\u00a0When they don&#8217;t, it warns me that maybe I need to take a closer look at my trades.\u00a0This doesn&#8217;t mean I won&#8217;t take trades.\u00a0This relationship changes and the two couples never move perfectly in harmony.\u00a0It means I better have a very good reason to take the trade (as you always should).<\/span><\/p>\n<p><span>Correlation can be a tricky statistical topic.\u00a0Hopefully this introduction gives you enough concepts to do a little homework on your own.\u00a0Check for frequent correlations to be aware of relationships between forex pairs that may affect your trading.<\/span><\/p>\n<p><span>Use correlation data to control risk, find opportunities and filter trades.\u00a0If you have trouble seeing how the correlation works, try looking up the numbers in the correlation table and then pull up a price chart of the two forex pairs in question.\u00a0Notice how the pairs move relative to each other;\u00a0doing this will help establish a general understanding of the correlation.<\/span><\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><span>Swing Trading \u2013 Definition and Examples<\/span><\/h2>\n<p><img decoding=\"async\" class=\"size-full wp-image-2652\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1.jpg\" sizes=\"(max-width: 2188px) 100vw, 2188px\" srcset=\"https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-200x126.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 200w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-300x188.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 300w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-320x202.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 320w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-400x251.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 400w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-600x377.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 600w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-700x441.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 700w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-768x482.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 768w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-800x502.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 800w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-1024x643.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 1024w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-1200x754.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 1200w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1-1536x965.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 1536w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/ThinkstockPhotos-480794790-1.jpg?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 2188w\" alt=\"\" width=\"2188\" height=\"1374\" \/><\/p>\n<p><em><span>&#8220;Swing&#8221; trades are usually trades that are open for one to five days.\u00a0A trader is trying to follow the price momentum of an asset, usually within a defined trend channel.<\/span><\/em><\/p>\n<p><span>The idea of \u200b\u200b&#8221;swing trading&#8221; originates from the stock market and is a type of trading strategy followed mostly by retail traders.\u00a0The reason is that it is difficult for institutional traders to place positions of the type of size they need without moving the market.<\/span><\/p>\n<p><span>This is not necessarily true for the Forex market as the Major pairs are all very liquid, and there is a vast interbank market.\u00a0Traditionally the trading position swings itself in terms of time period between day traders and medium term investors or traders.\u00a0Day traders will hold positions for a few seconds or hours at most while medium-term investors can hold positions for weeks.<\/span><\/p>\n<p><span>However, the forex market is a very different kind of ball game.\u00a0Even in the most raging bull trend or the most violent trend, you can still see the day&#8217;s price action has gone through several highs and lows, rather than heading in one direction for the entire day.<\/span><\/p>\n<p><span>Swing traders in the Forex market can also be day traders, trying to take advantage of downward and reverse price momentum.\u00a0Their mission is to enter the market while the momentum is rising to the upside but to exit the moment the market turns downward again.<\/span><\/p>\n<p><strong><span>What is the analysis behind the Swing strategy?<\/span><\/strong><\/p>\n<p><span>Swing traders, also due to their short holding periods, are not very interested in fundamentals and are mainly focused on technical analysis.\u00a0It could be something as simple as a 3-day moving average crossover strategy, tweaked to enter and exit the initial position.\u00a0Or a more complicated mix of various technical indicators that emphasize each other.<\/span><\/p>\n<p><span>However, the intention is the same, to get early when the momentum changes and to turn the position around when the market returns.\u00a0Therefore, this strategy works best when the market is oriented in a horizontal direction instead of up or down.\u00a0The Forex market has many changes even when the market has a clear trend, but trying to sell in a strong bull market early enough to catch the swing may prove painful.<\/span><\/p>\n<p><span>Determine the right market<\/span><\/p>\n<p><span>Determining whether the market is currently suitable, within a given time frame is critical to the success of this strategy.\u00a0You need to consider the time you are trading, in the Forex market exchange happens in a relatively short period of time.\u00a0Therefore, it is necessary to stick to the time horizon you are trading to determine if the market is trading flat.\u00a0A sideways market is defined when the high and low do not cross the previous high and low, giving rise to a channel known as another chart pattern.<\/span><\/p>\n<p><span>The shorter the time period the smaller the difference between highs and lows, or the shorter the price action channel.\u00a0For day charts, you can expect most majors to drift from trends that have between 2% and 6% wide channels.\u00a0For comparison, if you look at the channel hour chart it might be more like 0.5% to 1.5%.\u00a0Often sideways markets in less than a day can move in very tight ranges as the market consolidates new levels.<\/span><\/p>\n<p><span>Let&#8217;s look at some examples<\/span><br \/>\n<img decoding=\"async\" class=\"aligncenter size-full wp-image-2323\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/Technical-Indicators-1-1024x461-1.png\" sizes=\"(max-width: 1024px) 100vw, 1024px\" srcset=\"https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/Technical-Indicators-1-1024x461-1-200x90.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 200w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/Technical-Indicators-1-1024x461-1-300x135.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 300w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/Technical-Indicators-1-1024x461-1-400x180.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 400w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/Technical-Indicators-1-1024x461-1-600x270.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 600w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/Technical-Indicators-1-1024x461-1-768x346.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 768w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/Technical-Indicators-1-1024x461-1-800x360.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 800w,https:\/\/malaysia--option-com.translate.goog\/wp-content\/uploads\/2020\/04\/Technical-Indicators-1-1024x461-1.png?_x_tr_sl=auto&amp;_x_tr_tl=bn&amp;_x_tr_hl=ru&amp;_x_tr_pto=wapp 1024w\" alt=\"\" width=\"1024\" height=\"461\" \/><\/p>\n<p><span>The hourly candlestick chart in the first image is for USDCHF.\u00a0As we can see, the pair went through a rather tight price range of around 45 pips, between 0.98800 and 0.9925.\u00a0The blue triangle that runs from May 19th 06:00 am GMT to May 24th 03:00 pm GMT, highlights how the channeled price action remains throughout that period.\u00a0The swing trader then tries to go short or sell at points A, C, and E and go long or buy at points B, D, and F.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><a href=\"https:\/\/iqoption.com\/lp\/mobile-partner\/ru\/?aff=12245&amp;afftrack=&amp;clickid=\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\" alt=\"\" width=\"300\" height=\"72\" \/><\/a><\/h2>\n<p><span>In swing trading, there is no time frame;\u00a0This strategy consists of going long or short continuously.\u00a0Therefore, there is no close and wait period, which can be useful when the market moves you allowing you to return to the market at a better price than you exited.\u00a0However, it can be painful if the trend is sharp and persistent.<\/span><\/p>\n<p><span>Therefore, it is necessary to identify the breakdown of horizontal price movements, and the development of increasing momentum in one direction.\u00a0From the chart above, it looks like the channel pattern has been broken.\u00a0Three of the last four bars have closed above the blue square which should raise a red flag to swing traders.\u00a0The sideways action is unlikely to turn into a new uptrend.\u00a0However, the fact that the price moves above its channel should be done carefully.\u00a0It will have to wait and see if the market has now found new momentum or just a higher top to the channel.<\/span><\/p>\n<p><span>The hourly chart in the second image, for EURGBP, shows how the price action moves from one lateral channel in the green rectangle to another lateral channel at a lower level in the pink rectangle.\u00a0As the price moves from point 1 to point 2, it may be tempting to open a short position at point 2 with the view that a new bear trend is underway.\u00a0Only to find that price is now headed back higher again and trading in a range.<\/span><\/p>\n<p><span>Finally caution should be used as always, but even if you are not a swing trader identifying a tilted market will help not get stuck in the swing.\u00a0Correct identification of the market regime will allow you to avoid buying when the market will decline, or selling when the market will retrace.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2 data-fontsize=\"39\" data-lineheight=\"39\"><a href=\"https:\/\/iqoption.com\/lp\/mobile-partner\/ru\/?aff=12245&amp;afftrack=&amp;clickid=\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/trade-malaysia-option.com\/wp-content\/uploads\/2020\/04\/iqoption.png\" alt=\"\" width=\"300\" height=\"72\" \/><\/a><\/h2>\n<p>&nbsp;<\/p>\n<\/aside>\n","protected":false},"excerpt":{"rendered":"<p>Forex trading (also &#8216;foreign exchange&#8217; or &#8216;FX&#8217;) is the buying and selling of one currency for another.\u00a0Trades are placed based on exchange rates listed over the counter (OTC) or exchange trading platforms. The market is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[101],"tags":[],"class_list":["post-4093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-forex-en"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/posts\/4093"}],"collection":[{"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/comments?post=4093"}],"version-history":[{"count":2,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/posts\/4093\/revisions"}],"predecessor-version":[{"id":4095,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/posts\/4093\/revisions\/4095"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/media\/3716"}],"wp:attachment":[{"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/media?parent=4093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/categories?post=4093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trade-malaysia-option.com\/en\/wp-json\/wp\/v2\/tags?post=4093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}