What is Copytrading in Forex?

Are you interested in trading Forex, but don’t have the kind of experience and knowledge required to succeed? Well, if that is the case, then there is simply nothing for you to worry about!  The only thing that you now have to focus on is that of copy trading. So, what is copytrading all about? Well, when you get into copytrading, you basically start copying or mirroring the trades that are made by some of the most highly knowledgeable and experienced traders out there. This procedure is additionally known as MentorsCopy trading, and is largely being practiced in the Forex world. The best part about it is that it makes it possible for everyone involved to trade in a far more profitable manner. No matter how small or large scaled a trader it is that you are, you now get to trade just like a professional! When it comes to copy trading, it becomes possible for you to imitate trading strategies that are typically being conducted by highly experienced traders. The best part is that it isn’t just their individual trades that you can copy, but even their overall investment strategies too, thereby guaranteeing that you would be trading like a complete professional. All that it takes is a mere click of your mouse, and that would assign a particular percentage out of your account balance for the copying of a specific trader’s strategies. However, you can also choose to follow multiple traders simultaneously. Copy trading – is it like social trading? To be honest, yes, however, in copy trading, you interact with other financial traders instead of trading...

Using a Pip Value Calculator in Forex Trading

Pip value calculators allow you to calculate the single pip values for major currency pairs. These types of calculators are very simple and easy to use. There’s also many of these sorts of calculators on the internet for free too. You can use pip value calculators regardless of the sizes of the lots you trade, as well. Really, you don’t have to input anything in order to use a pip value calculator, as these kinds of calculators actually do everything for you – although some might require you to input the current prices of the particular currency pairs that you are interested in trading. However, the majority of pip value calculators grab the current prices of currency pairs for you, but the option is always there and you might not want to use the current prices for whatever reason, anyway. Of course if you trade non-standard lots, you will also want to input the actual size of the lots that you trade, so that the calculator can calculate accurate single pip values for the currency pairs that you are interested in trading, for you. Remember, some currency pairs will all have the same single pip values. The single pip values are all the same for: – EUR/USD, GBP/USD and AUD/USD – USD/JPY, EUR/JPY, GBP/JPY and AUD/JPY – EUR/USD, GBP/USD and AUD/USD – USD/JPY, EUR/JPY, GBP/JPY and AUD/JPY – USD/CHF, EUR/CHF and GBP/CHF – USD/CAD and EUR/CAD. Pip value calculators are useful and many Forex traders take advantage of them. Since there are many of them available on the internet for free. They aren’t completely necessary, but it’s good to know the...

Using a Profit Calculator in Forex Trading

One of the more simpler tools used by many Forex traders, is the profit calculator. These types of calculators allow you to calculate the amount of profit you will make with a specified trade. Of course these tools also calculate potential losses for you too, but Forex traders generally use these calculators to predict how much profit they will potentially make by placing a certain order. These kinds of calculators are very easy to use and are not complex at all. In order to use one of these sorts of calculators, all you are required to do is: 1. Select the currency that your account works in. 2. Select the currency pair that you wish to trade. 3. Enter the price at which you would enter the trade. 4. Select the action you would like to take (whether it be to buy or sell). 5. Enter the numbers of units (the size of the trade). 6. Enter the price at which you would exit the trade. After following the above steps, all you would need to do is submit the information. The calculator would then calculate the amount that you would earn through placing the order that you specified, expressed conveniently in terms of the currency that your account works in. For example, your account might work in USD. You might then want to sell EUR/USD once it reaches a value of 1.3, placing an order worth 100 units and closing your order once it reaches a value of 1. You would input all of this data into a Forex trading profit calculator and after submitting the data, the...

Using a Carry Trade Calculator in Forex Trading

Carry trade calculators are obviously used by Forex traders who use carry trading strategies. Carry trading is one of the most long-term Forex trading strategies. It involves taking advantage of differentials of interest rates between two different currencies. So if you were to get into this kind of trading, you would buy into one currency that is high yielding, in terms of another currency that is low yielding. This way, you will essentially be buying low and selling high. Some currency pairs are more popular than others in carry trading. One of the most popular currency pairs in carry trading, is AUD/JPY, because the Australian dollar has an interest rate that is high and the Japanese yen has an interest rate that is low. Because this type of trading is all about buying into high yielding currencies and selling off low yielding ones, the AUD/JPY currency pair is perfect. If you were going to use a carry trading strategy, you would firstly open up one of these types of calculators. You would then input the following information into the calculator: – The currency that your account works in (for example USD) – The currency pair that you are looking to trade (for example AUD/JPY) – The current price of that same currency pair (some tools will retrieve its current price automatically for you) – The duration of the trade (for example 60 days) – The number of units (the size of the trade) – The position you would like to take (whether it be to buy or sell). After you have entered all of the above information, you will...

Using an Exchange Rate History Tool in Forex Trading

Exchange rate history tools allow Forex traders and investors to find out how the prices of different currency pairs have moved over a specified time period. These tools can be all types of Forex traders and can be very useful. By using a historical exchange rate tool, you will be able to find out how the price(s) of the particular currency pair(s) that you are trading have moved over a time period that is relevant to your Forex trading strategy. For example, if you have a shorter-term currency trading strategy and you are trading GBP/USD, you might use a history rate tool to find out the GBP/USD currency pair’s price action over the past 7 days – or perhaps over the past 24 hours. Different history rate tools will present different possibilities. For example, one might only allow you to specify a time period of 7 days minimum, whereas others might allow you to look at the price actions of currency pairs over the past minute, or even over the past few seconds. Also, some of these sorts of tools will allow you to see the price actions of multiple currency pairs simultaneously. Historical currency pair price data can be useful, as it can allow Forex traders to discover trends and patterns, allowing them to spot more potentially profitable opportunities. This is why it can be very beneficial to use exchange rate history tools, particularly if you enjoy taking advantage of trends. If you use a longer-term Forex trading strategy, you will definitely want to take advantage of history rate tools; these types of tools should be taken advantage of by...

Using a Fibonacci Calculator in Forex Trading

A Fibonacci calculator can be used when trading currencies in the Forex market and it doesn’t matter what kind of Forex trader you are or what trading strategy you use, because anyone can use one of these types of calculators. These sorts of calculators will allow you to calculate both Fibonacci retracements and projections for currency pairs. A calculator of this type can be very powerful. If you can use one of these kinds of calculators effectively, you can make a lot of money in the currency market. Similar to other tools, Fibonacci calculators are free, fast, accurate and fairly simple to use after some practice. These types of calculators rely on mathematical formulas to accurately calculate Fibonacci retracements and projections. A Fibonacci calculator is used by Forex traders to come up with accurate predictions of the movements of currency pairs over a specified time period. In order to use a basic calculator of this kind, all you are required to do is input the past high and low prices of the currency pair you are working with. The tool should in fact do the rest for you, after you have entered this information. After you have entered this information, with the tool you will then perform basic subtraction and then multiply the difference to the known Fibonacci ratio. The known Fibonacci retracement percentages that you need to consider are as follows: 38.2%, 50% and 61.80%. The Fibonacci retracement that you are looking for will be the result of the product of the multiplied difference and the Fibonacci ratio. With the retracement you will be able to work out an accurate...