The Major Moves of Forex Trade
When financial world has some major announcements, it is only then when big moves or changes occur. These can be announcement of interest rates or employment figures.
If you still have not decided whether to step into forex trade, you need to have plenty of information regarding all the processes and how it works. You need to be aware of all the major moves that are involved in the trade so that you can better understand the forex trade.
When Major Markets are Open:
You can trade around the clock during the week those who were bound to work during the daytime hours for trading get a lot of freedom this way. As different countries happen to be on the different time zones, this tends to be quite convenient for traders. New York and London happen to be the major players so when these major markets are open like US, UK and Asia (Japanese) markets you will see movement in price.
During Major Announcements:
Price movements tend to be large during such times.
Traders are concerned regarding slippage and sometimes it occurs if the price you wished to exit or enter at is different from the price you eventually started with. In some of the scenarios, this could also affect you and your forex trading. And as the market closes on the weekends, there is quite a lot going on Monday mornings. This is where the importance of stop losses comes in.
With Major Currency Pairs:
You will come across many currency pairs in forex trading but the main four ones you need to know completely are called the major currency pairs. These include GBP and USD, USD and JPY, EUR and USD and USD CHF. Now there are no commissions associated with trading forex, and you will get to make more profits and keep the money that you earn. You will have the expense of rollover fees if you fail to get rid of the trades before the day ends. There is less liquidity generally with exotic pairs.
The entire economy is affected when there are any huge moves and you could hope to see some large price movements. So prepare yourself and do not be surprised if the result happens to be from 50 to 100 pips in a very short time period. You shall be able to make some effective profits from the changes in the price in forex trading. You will make money as they increase and buy at a lower price when they drop.
There is some risk involved in forex trading but it could be profitable for you whether you are trading with automated forex trading robots or manual. Do some research and find the system that works just right for you. Only then you will be confident enough knowing that your investments shall make more money compared to the money you lose. You will need some time to grasp all of the basics and concepts of the forex trading systems so you should learn all about the currencies.