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Showing posts with the label forex-trading

WHAT MOVES THE CURRENCY MARKET IN THE LONG TERM?

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WHAT MOVES THE CURRENCY MARKET IN THE LONG TERM? TECHNICAL ANALYSIS _____________________________________________________________ Prior to the mid-1980s, the FX market was primarily dominated by funda mental traders. However, with the rising popularity of technical analysis  and the advent of new technologies, the influence of technical trading on  the FX market has increased significantly. The availability of high lever age has led to an increased number of momentum or model funds, which  have become important participants in the FX market with the ability to  influence currency prices. Technical analysis focuses on the study of price movements. Techni cal analysts use historical currency data to forecast the direction of future  prices. The premise of technical analysis is that all current market informa tion is already reflected in the price of each currency; therefore, studying  price action is all that is required to make informed trading decisions. In  add

FOREIGN EXCHANGE- THE FASTEST-GROWING MARKET OF OUR TIME

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FOREIGN EXCHANGE- THE FASTEST-GROWING MARKET OF OUR TIME COMPARING THE FX MARKET  WITH FUTURES AND EQUITIES _____________________________________________________________ Traditionally FX has not been the most popular market to trade because  access to the foreign exchange market was primarily restricted to hedge  funds, Commodity Trading Advisors who manage large amounts of capital,  major corporations, and institutional investors due to regulation, capital  requirements, and technology. One of the primary reasons why the foreign  exchange market has traditionally been the market of choice for these large  players is because the risk that a trader takes is fully customizable. That is,  one trader could use a hundred times leverage while another may choose  to not be leveraged at all. However, in recent years many firms have opened  up the foreign exchange market to retail traders, providing leveraged trad ing as well as free instantaneous execution platforms, chart