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Forex Profits

 Forex, FX and the Forex market are some common abbreviations for the Foreign Exchange market. Actually it is the largest financial market in the world, where money is sold and bought freely. In its present condition the Forex market was launched in the seventies, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from demand and supply. As far as the freedom from any external control and free competition are concerned, the Forex market is a perfect market.

With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication.

Questionable Forex Broker Practices Explained

A number of questionable forex broker practices can cause problems for a forex trader. As a result, you will probably want to do your best to ascertain in advance whether a forex broker has developed a reputation for engaging in these practices.
Some of the more problematic questionable forex broker practices are explained in the following sections.

Requotes

Requoting is the situation where your trading platform shows a trader a certain price and then when the trader goes to deal on it, the platform makes them wait.
The platform then shows a different price for the trader's approval that is usually worse than the original price the trader had selected to deal on.
While this might be a reasonable practice to protect the broker in a fast market, if requotes are common in relatively orderly markets, this issue can cost an active trader a substantial amount. Some brokers use this ploy constantly against their clients to line their pockets at their client's expense.
Accordingly, active traders should look for brokers that have a no requote policy on transactions done through their supported platforms.

Front Running

Front running involves a forex broker or dealer selling or buying ahead of a significant order or group of orders for their firm's account. For example, they might sell ahead of a sell order or buy ahead of a buy order.
While this may well result in a profit for the broker who can use the order(s) as an effective stop loss by filling the client(s), such a questionable broker practice might result in the order not being filled at all.
This is because the broker or dealer's front running trading activity puts pressure on the market that acts contrary to their client's best interest in having their order filled. Read more about front running forex orders.

Stop Hunting

Stop hunting entails the broker deliberately moving the forex market either in fact or just on their trading platform quotes.
A dishonorable forex broker might do this in order to be able to execute stop loss orders and thereby make a profit off of their clients' misfortune.

Excessive Slippage

Slippage occurs when an order, usually a stop loss, is not executed by a forex broker at the rate at which it was placed. Instead, the order is filled at a rate that is usually worse than originally intended by the trader.
Some order slippage might be acceptable in fast markets when exchange rates change rapidly, but in an orderly market they might represent yet another way for a forex broker to make extra money off of its clients.

Forbidden Strategy Clauses

Some forex brokers specifically forbid using their services for certain trading strategies in their terms and conditions. Beware of forex brokers with arcane trading rules, such as giving you a minimum time to hold a position or denying you to engage in scalping or to "pip hunt". "Pip hunting" describes any quick profit short-term trading strategy such as scalping.

If the trader then uses the broker's services for such forbidden purposes, perhaps because they did not read the fine print, the broker then seems to feel justified in confiscating any profits derived from the prohibited trading activity. Imagine that you deposit your money and you put them at risk and then such a broker might allow you to make a substantial profit before it confiscates the whole profit on the basis of the violation of their "pip hunting" rule.

Forex Scalping - Extensive Guide on How to Scalp Forex

Forex scalping is a popular method involving the quick opening and liquidation of positions. The term “quick” is imprecise, but it is generally meant to define a timeframe of about 3-5 minutes at most, while most scalpers will maintain their positions for as little as one minute.
The popularity of scalping is born of its perceived safety as a trading style. Many traders argue that since scalpers maintain their positions for a brief time period in comparison to regular traders, market exposure of a scalper is much shorter than that of a trend follower, or even a day trader, and consequently, the risk of large losses resulting from strong market moves is smaller. Indeed, it is possible to claim that the typical scalper cares only about the bid-ask spread, while concepts like trend, or range are not very significant to him. Although scalpers need ignore these market phenomena, they are under no obligation to trade them, because they concern themselves only with the brief periods of volatility created by them.

Is Forex Scalping for you?

Forex scalping is not a suitable strategy for every type of trader. The returns generated in each position opened by the scalper is usually small; but great profits are made as gains from each closed small position are combined. Scalpers do not like to take large risks, which means that they are willing to forgo great profit opportunities in return for the safety of small, but frequent gains. Consequently, the scalper needs to be a patient, diligent individual who is willing to wait as the fruits of his labors translate to great profits over time. An impulsive, excited character who seeks instant gratification and aims to “make it big” with each consecutive trade is unlikely to achieve anything but frustration while using this strategy.

The Essentials to Picking a Forex Robot

If you follow Forex in any way, you know that Forex robots have become wildly popular over the past few years. With the overabundance of Forex robot sales pitches, it is hard to find a robot that is actually successful. In this article, we will show you how to find the best Forex robot for your trading style, as well as what you need to know about your EA and what your realistic goals should be.

If you are looking to purchase a Forex robot, you are most likely looking to make a profit. This means different things to different people. You may be content making $50/week, or you may be seeking uch bigger money. The greater your risk tolerance, the greater the chance you will strike it big. At the same time, taking on more risk also means the chance to take bigger losses.

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Five Top Money Management Tips

Trading the forex market without safeguards can be like skydiving without a parachute. Anyone serious enough about trading would do well to incorporate money management techniques to their trading plan to protect their portfolio.
Nearly all successful traders use a money management strategy along with their regular trading plan, and if you have ever experienced a severe drawdown on your account, you probably do too.
Basically, having safeguards in place to protect your account to remain in business is far better than the alternative. What follows are some general guidelines for money management which can be incorporated into a trading plan.

Tip #1: Only Trade With Risk Capital

Trading currencies involves taking substantial risks, no matter how you look at it. Because of the free-floating currency market, currency trading has considerably more in common to gambling than investing.
As a result, putting funds at risk which you cannot afford to lose should never even be considered by a responsible forex trader. This includes money needed for key housing expenses such as your mortgage or rent payment, or the weekly food allowance necessary for your or your family's sustenance.
In general, traders do better by only trading forex with funds known as risk capital. Such money has been specifically designated for trading because it is expendable and therefore not needed for the basic essentials of living.