2022-12-22 08:39

Forex trading is popular because it’s easy to enter and requires low capital to start. But being easy to start doesn't mean it’s easy to master forex trading! Here are the 5 common mistakes that all forex beginners need to watch out for and avoid! Never do any research Taking more risks than you can afford Trading with emotions Not placing limits Spent too much money to trade, even if you're new 1. Never do any research Forex is affected by a lot of factors. They are also trading 24 hours a day, seven days a week, which means there is always something going on that moves the market. Hence, adequate research is important before engaging in a trade. You need to be aware of any upcoming events that may impact your trading, and anticipate how these events may impact the overall market as well. No worries, you can follow the latest news & blogs on the VC plus website to get the latest updates on the market! 2. Taking more risks than you can afford Another common mistake made by new traders is not setting a budget on how much capital you’ll be using for trading. This is a huge mistake as you should always avoid risking a huge portion of your savings. This happens not only in forex trading but in any sort of investment as well. It is a must to set a budget to trade, and never use more than that! Another way to decrease your risk is to refer to MTdesk backtest results of trading strategies based on historical data before you initiate your trade. (information includes winning rate, volatility, risk reward ratio, average exit duration day and etc) Sign up and get backtest results with just 1 click. (free) 3. Trading with emotions Trading with emotions is commonly known as revenge trading. Many traders are victims of this, especially when they just lost a trade. If you let personal feelings and emotions influence your decisions in trading, most of the time it will only cause more pain and losses to you. The common scenarios that are caused by emotions are selling low and buying high. If this behavior goes unchecked, it will be difficult to achieve any profits for trading in the long term. Capture trading signals with just 1 click on VC Plus! (free) As you can see in the image, a trader who trades rationally and follows the sell signal would exit early to avoid the downtrend. 4. Not placing limits Forex market operates 24 hours, but you’re not. You can’t follow your orders every second. Stop and limit orders allow you to enter and exit the market automatically when it reaches a specific price point. This allows you to place orders at prices you want without having to monitor them every second, it also sets as an automatic exit point for your trades. Here’s how you set stop loss and take profit in VC Plus. 5. Spent too much money to trade, even if you’re new Because of the potential for profit, some new traders may be tempted to trade large sums of money. This impulsive behavior will put you at high risk, especially if you are new to trading, leading to some people losing money quickly and blaming the market. You can try out a demo trading account first, then after opening a live trading account with real money, trade in small amounts first to get a feel for it. The more time you spend on trading, the more experienced you will become, and the easier it will be to maximize your profit from any trading opportunities! Practice is the key to success! Try out the virtual/demo account at VC Plus. (free sign-up) Click here to sign up for free and grab your *$100 welcome credit now! *T&C applies.

2022-12-07 04:22

There are a number of reasons why forex can be an appealing market, even for inexperienced traders. The forex market gives you easy access to the global market, and traders only need a small deposit to participate. Below is a quick guide for newbies who want to start trading forex! 1) Understand how the forex market operates Before you start trading forex, you should understand how the forex market operates first, as it’s slightly different from stocks or futures. The forex market is open 24 hours a day in different parts of the world. And instead of trading on a central exchange, Forex is traded through a network of banks. This is referred to as an over-the-counter (OTC) market. One of the common ways for individual persons to start trading is via forex Contract for difference (CFD). 2) Open an account You’ll need a forex account with a leveraged trading provider to start trading forex. Leveraged trading will allow you to kickstart your trading journey even with smaller capital. You can open a Forex account with VC Plus within minutes. (No minimum deposit or fees to open account) Open a forex account with VC Plus VC Plus is a trustworthy one-stop web-based platform, members of FINTRAC 3) Try out virtual accounts For beginner traders, you can use a virtual account to practice your trades in VC Plus. A virtual account will provide fake capital for you to practice your trade safety without actually using your real money. VC Plus provides virtual accounts for you to practice your trades! 4) Create a trading plan, choose a trading strategy It’s important to have a trading plan before you trade, as it will be a guiding path for you when you trade. An example of a trading plan includes: what is your target price to take profit or stop loss point in this trade? Choosing a trading strategy is also important, trading strategy is a systematic method for trading, it’s created based on certain rules and criteria. Examples of trading strategies are EMA 5 Crossover, Turtle Strategy, MACD and RSI, and many more. Referring to trading strategies will let you win more consistently in trading, as it will guide you when is the buy or sell timing, and you won’t feel lost of don’t know when to sell or buy when trading forex. Trading strategies might sound difficult to understand at first, but there are platforms like VC Plus which have trading strategies that can automatically generate buy and sell signals for you in just 1 click, use it to your advantage and win more trades in forex! Discover more about VC Plus VC plus is a one-stop trading platform that has automated trading signals generated based on trading strategies. 5) It’s time to trade Once you’re done preparing, it’s time to trade! Click the green buy button to open a long position, or the red sell button to open a short position. (on VC Plus) Monitor the profit/loss of your position in the ‘Portfolio’ tab on the left of VC Plus. Once you decide it's time to close your position, simply place the trade in the opposite of the one you opened previously. Final note Remember that don’t feel down if you lost your first few trades, identify what went wrong with the trade instead and learn from the mistake! Always refer to trading strategies when you’re trading forex to help you win more trades! VC Plus provides trading strategies that can auto-generate buy and sell signals! Open a free forex account with VC Plus

2022-11-07 01:09

Understanding the basics in Forex Market - Spreads The spread in forex trading refers to the difference between the bid (sell) price and a currency pair's ask (buy) price. The spread is a small cost charged by some brokers and is built into the bid and ask prices of currency pairs. Brokers using spread as charges normally do not have separate commission fees, giving them the name - No Commission Brokers. How to measure spread in forex trading? The spread is measured in pips, which is the smallest unit of price movement for a currency pair. In general, a pip means the fourth decimal place of the price of a currency pair (except for JPY, where a pip refers to the second decimal place). Here’s an example of a 2 pip spread for the EUR/USD currency pair. How to calculate spread costs? To calculate how much the spread costs, you just need to multiply the spread value (in pip) and the number of lots you’re trading by the cost per pip. Spread value x Number of lots x cost per pip = Spread costs Continuing from the above example, if you are buying a standard lot of EUR/USD currency pair, with a 2 pip spread, with the cost per pip of $10, your spread cost can be calculated as below: Spread value x Number of lots x cost per pip = Spread costs 2 Pips (spread value) x 1 (standard lot) x $10 (cost per pip) = $20 (spread costs) If you’re buying 5 standard lots of EUR/USD, with the same spread value, your spread costs will be calculated as below: 2 Pips x 5 x $10 = $100 If you’re buying 5 standard lots of GBP/USD, with a spread value of 2.2 pips, your spread costs will be calculated as below: 2.2 Pips x 5 x $10 = $110 Note that the spread costs will increase when your lot size or spread value increases. Similarly, when your lot size or spread value decreases, the costs of the spread will decrease as well. What affects the spread value? Spread can be affected by various factors in the market. In general, the major currency pairs will have a tighter spread value compared to emerging market currency pairs. Other than the types of currency pairs, liquidity and volatility in a market will affect the spread value as well. A market with lower liquidity and higher volatility will lead to a wider spread value. Vice versa, a market with higher liquidity and lower volatility will lead to a tighter spread. When there is an overlap of major forex market sessions, the spread value will be tighter as well. Types of spreads Spread in forex trading refers to the difference between a currency pair's bid and ask price. It is a small cost charged by some brokers and is built into the bid and ask prices of currency pairs. Forex brokers offered 2 types of spreads: Fixed spreads and Floating spreads. In this article, we will outline the differences between these two types of spreads. Fixed spread A fixed spread is the amount of spread fixed by a broker and will not change regardless of the market conditions. Regardless of whether the market is volatile or not, the amount of spread for the currency pair will remain the same according to the amount that the broker has fixed. Pros and Cons of Fixed Spread The advantage of a fixed spread is that it makes transaction cost more predictable. Traders can easily calculate the cost for each of their transactions. Besides, with a fixed spread, volatility and liquidity in the market will not affect the spread value. As mentioned earlier, high volatility with low liquidity will normally cause spreads to widen. In such a situation, traders trading with a fixed spread pricing may still enjoy the same transaction cost fixed by their brokers (which is normally lower than the floating spread pricing in high volatility situations). The disadvantage with fixed spread is that requote and slippage may occur. Requote refers to when your broker requests you to accept a new price due to price changes in the market and Slippage refers to when your order was executed at a price different from the intended price. During high volatility and low liquidity situation, requote and slippage may occur more often than usual with fixed spread brokers. Furthermore, fixed spread brokers may charge a commission on top of the spread charge for certain currency pairs. This will increase the cost of trading. Floating spread Contrary, a floating spread (also known as a variable spread) will change according to market conditions. The floating spreads will widen or tighten based on the supply and demand of the overall market. Pros and Cons of Floating Spread With floating spreads, the advantage is that there is no requote issue, and slippage issues are less likely to happen. This is because spreads are already quoted according to the market price movement. Furthermore, in a market that is less volatile and has high liquidity, traders usually get to enjoy a tighter spread with floating spread pricing compared to fixed spread pricing. Brokers who charge floating spreads generally do not charge commission as well. The disadvantage of floating spreads is that the transaction costs vary for every trade. It makes calculating the transaction costs more difficult. At times of high volatility and low liquidity, the floating spreads will widen to reflect the changes in the market, which can lead to higher execution costs for traders. Hence, with floating spreads, it is also important to keep an eye on any announcement or event that may cause higher market volatility. Fixed Spread vs Floating Spread in table For a summary of how fixed spread and floating spread differ, you can refer to the table of comparison below: Fixed Spread Floating Spread Could face requotes No risk of requotes More likely to be exposed to slippage Slippage is less likely to happen Transaction costs are predictable and consistent Transaction costs fluctuate with market sentiment Spread value remains at the fixed value regardless of the market’s supply and demand Spread can tighten and widen rapidly according to the market’s supply and demand Broker may charge commission on top of spreads The broker normally do not charge a commission How to choose? Fixed spread and floating spread have their advantages and disadvantages. Choosing one over another will depend on a trader’s trading strategy. In general, traders with smaller capital, who trade less often and are less sensitive to the intraday market movement will benefit from fixed spread pricing. Traders with larger capital often trade during peak market hours (when spreads are tightest) and are more sensitive to the intraday market movement will find floating spreads better for them. Traders who want to avoid requotes and fast trade execution will also prefer floating spreads. VCPlus like many other forex brokers uses floating spreads to allow traders to execute trades quickly. The spread range with VCPlus for major currency pairs is as low as 1.5 pips. They also have a cap of a maximum of 8 pip spread. Get started now by opening an account. Conclusion Spreads in forex trading refer to the difference between a currency pair's bid and ask (buy) price. It is a small cost charged by some brokers. There are 2 types of spread offered by brokers in the forex market: fixed spread and floating spread. When opening a trading account with a broker, traders must be clear on which type of spreads the broker offers and choose according to their trading strategies.

2022-10-27 02:18

What Is Forex Market? The foreign exchange market is where currencies are traded. Currencies are important because they allow us to buy goods and services locally and internationally. To engage in foreign trade and commercial activities, foreign currency must be exchanged. Forex market has been around for centuries. Forex trading was initially difficult for individual investors to trade, before the widespread availability of the Internet. And now thanks to the internet, most individuals can now access the exchange market directly through banks or brokers. Individual traders can even control huge trades with small account balances because most online brokers and dealers offer high leverage with different forex market types. Many individuals have found massive success via trading forex, but for beginners, we recommend you don’t rush into forex trading without a basic understanding first! Let’s discover the pros and cons of forex trading to prepare you for the exciting trading journey! Pros of forex trading 1. Potential for quick returns The liquidity is high and the foreign currency market is always shifting quickly. This allows traders to have the potential for quick returns when paired up with high leverage like 1:400 maximum leverage on VC Plus. The forex market may produce faster returns than other markets such as the stock market because traders may have to wait longer for an increase in asset values to push the stock price. This benefits traders of the forex market since it lowers the opportunity cost for traders by moving quickly. 2. Easy to start Traders can set up a Forex account on the internet and within a few clicks to start trading. Most brokers offer online trading like VC Plus provides a true one-stop web platform that includes advanced chart features for you to start trading forex. 3. Leverage for higher returns Leveraging your trades can be the difference between a modest and a huge profit. In comparison to most other markets, the foreign exchange market has a higher supply of leveraged resources. Such as the 1:400 maximum leverage on VC Plus which allows you to start with small capital and still end up with higher profits. 4. 24 hours market Forex market opens 24 hours a day on weekdays but closed on weekends. It opens at 5 pm on Sunday New York City local time and closes at 5 pm on Friday. And trading resumes again after 48 hours to start a new week. This means you are not restricted to trading within a certain hour on weekdays like the stock market, and you can schedule your time to trade according to your liking. Cons of forex trading 1. Volatility All markets, including the foreign currency market, are prone to volatility. The unanticipated severe volatility will affect your trading plan especially if you’re a short-term forex trader. 2. Messy regulations The foreign exchange market does not always have strict regulatory monitoring and transactions are not always carried out on organised exchanges. As a result, before opening an account, traders need to conduct a throughout check on their broker's reputation, regulations, and license. Always check their license and regulation before trading. VC Plus is a true one-stop web-based platform, regulated by FINTRAC 3. High leverage = high risk Yes, we all know that high leverage provides you with a higher return, but it’s the same as putting you at higher risk if you don't know what you’re doing. Factors that will reduce your risk in trading forex include an understanding of leverage, a trading plan, a capital allocation strategy, and good emotional control. Joining free online classes will also help you to gain more forex knowledge and boost your confidence in trading. VC Plus has weekly free forex classes led by experienced forex traders on MQ Demy Visit MQ Demy How to Start Trading Forex 1. Understanding the basics Although not difficult, Forex trading is a unique skill that requires specific understanding. For example, the drivers of currency price movements are different from the stock market, and foreign exchange trading is more leveraged than stocks. You can follow our VC Plus i3investor as we have frequent educational blogs about forex trading. VC Plus i3investor 2. Set up an account You will need a forex trading account for forex trading. Open an account with VC Plus today and grab a guaranteed USD100$ Welcome Bonus (T&C apply) Open a trading account with VC Plus USD100$ Welcome Bonus Info 3. Practice with virtual accounts. For beginner traders, you can use a virtual account to practice your trades in VC Plus. A virtual account will provide fake capital for you to practice your trade safety without actually using your real money. 4. Have a trading plan While the timing and market forecasts are not always achievable, developing a trading plan is still important to help you stay on track with your trading journey. It will help you to focus on your trading objectives, and help you to trade with discipline. You should be able to trade regularly, control your emotions, and even refine your trading approach with the assistance of a trading plan. 5. Learn from free Forex classes There are many free forex classes and videos available on the internet that can help you to gain more forex knowledge. VC Plus also has weekly free forex classes led by experienced forex traders. Join the live streams to learn forex trading from the experts! Visit MQ Demy Start your trading journey with VC Plus today. And grab your guaranteed USD100$ Welcome Bonus! Open a trading account with VC Plus USD100$ Welcome Bonus Info VC Plus is a web-based trading platform, built for passionate traders. It’s a true one-stop web platform that is trusted worldwide.

2022-10-26 10:11

The forex market is actually one of the largest markets in the world. Everyone living in the global village consciously or unconsciously participates in the forex market, travels abroad to exchange foreign currency, holds foreign currencies, and waits for it to appreciate, etc. All this is part of the investment/speculation form of forex. Nowadays, some internationally famous forex trading platforms not only offer forex trading but also have many additional services, such as professional customer service teams and extensive online teaching resources to help beginners understand forex trading. As a result, online forex trading is becoming more and more popular among investors. Now, lets us know what is the 6 reason to trade in Forex:- Earn extra income Learning forex trading is the best choice for office workers who have free time after work and want to use this time to earn extra income. Forex traders can learn additional financial/economic knowledge besides self-selected trading hours (flexible hours). The market is available all-day The forex market is open 24 hours a day, except for weekends, as the market is open in different parts of the world from 5 pm EST on Sunday to 4 pm EST on Friday. Since the market operates according to different international time zones, forex trading can take place over a 24-hour period. Forex trading starts daily with the Australasian region, followed by Europe and North America. When the market of one region closes, another one opens or has already opened and continues trading on the forex market. Start with a minimum of capital Forex is a form of leveraged trading so that traders can start with a minimum amount of capital. Traders can take advantage of limited resources to maximize returns by using forex trading. The largest financial market in the world The forex market is the largest financial market in the world. The average daily trading volume is $6.6 trillion, exceeding any country's stock market by a dozen times. Due to the high volume, the foreign exchange market is doomed to have its potential opportunity. Traders can go long or short in the market. In the forex market, traders can take long positions (buy first and then sell) or short positions (sell first and then buy). In this way, traders can increase their chances of making a profit by selling short when prices are falling. In other words, there is an opportunity to make money regardless of whether prices rise or fall. Moreover, two-way trading gives traders the opportunity to apply several different trading strategies. Fair and transparent financial market The foreign exchange market is influenced by international macro factors such as politics, military, economy, supply and demand, as well as interest rates set by the central bank of each country, the stock market, the economic environment and economic data, political decisions, various political factors and important events. These factors cannot be controlled by any one investor or group. Investors in foreign exchange transactions are spread all over the world. Moreover, foreign exchange rates are quoted according to the conditions of the international foreign exchange market and international conventions. It is difficult to obtain inside information and engage in insider trading, and the market is difficult to manipulate. In addition, the global foreign exchange market has a huge transaction volume. Individual price manipulation is difficult, and investors can trade in a fair environment. Want to begin your forex journey? Click here to open a trading account with VC Plus. VC Plus provides a demo account, therefore you can try it before you begin your real trade!