Archive for the ‘Trading’ Category

Nintendo shares now available for trading

Tuesday, August 23rd, 2016

Dear Traders,

We are carefully monitoring trends in the forex market. If a situation requires, we expand the range of our services with new trading instruments.

pokemon

So, we have something new to offer, Nintendo shares. Japanese videogame developer gained in popularity immediately after launching its first mobile-gaming hit in July 2016. Pokemon Go is already dominating the list of top free apps on the App Store around the world. As a result, Nintendo shares leapt twice in value just in a week.

Nintendo shares surged on hope that the popular smartphone game would give the company a serious boost. Investors view Nintendo shares as lucrative investment.

From now on, you are also provided with access to CFDs on Nintendo shares. In a trading platform, they are recognized by the #NTDOY ticker symbol.

Hurry up to benefit from the new trading instrument! Share the news among your fellow traders!

Feel free to contact our customer support service to resolve any question about investment in Nintendo shares.

Kind regards, InstaForex

Swap-free accounts and carry trade strategy

Monday, July 1st, 2013
Swap-free accounts and carry trade strategy
The currency market gives a fair shot to earn as every trader is free to choose his niche and specialization. However, by mixing completely different strategies, it is possible to get an equally stable income. For instance, while some opt for medium- or long-term trading on swap-free accounts, others prefer a carry trade strategy.
Swap-free accounts ensure working on Forex without swaps (or commissions, in other words) which are either charged or credited by a broker for holding overnight positions. InstaForex, for example, renders this service for free. Swap-free accounts will perfectly suit the needs of long-term traders who choose the most volatile currency pairs with a negative swap.
Consequently, the traders can have their positions open for a long time, and they do not pay for it. But swap-free accounts are not credited with the annual interest on free margin (InstaForex guarantees 13% annual interest to active accounts).
The carry trade strategy implies making profit on the positive carry between the interest rates of the countries whose currencies you trade. The bigger the difference between the rates is, the bigger swap you will get for the position’s prolongation. AUD/JPY, NZD/JPY, and GBP/CHF are the most popular carry trade pairs. Besides, such exotic pairs as AUD/DKK and USD/MXN are also used in carry trading. A trader can calculate the returns of the carry trade pairs individually comparing the interest rates that are publicly available.
Substantial profit can be derived from the position’s prolongation for a week or more. Thus, the carry trade strategy is frequently employed by long-term traders. Commonly, positions are opened on Wednesday and carried over to Thursday – the swap is trebled for such an operation. Higher volatility and interest rate fluctuations are the main risks that can trigger a trend change and have a profound impact on the swap amount.
Therefore, it is up to you whether to enjoy swap-free trading or benefit from carry trade operations. By the way, it is possible to combine both strategies using different instruments.

The currency market gives a fair shot to earn as every trader is free to choose his niche and specialization. However, by mixing completely different strategies, it is possible to get an equally stable income. For instance, while some opt for medium- or long-term trading on swap-free accounts, others prefer a carry trade strategy.

Swap-free accounts ensure working on Forex without swaps (or commissions, in other words) which are either charged or credited by a broker for holding overnight positions. InstaForex, for example, renders this service for free. Swap-free accounts will perfectly suit the needs of long-term traders who choose the most volatile currency pairs with a negative swap.

Consequently, the traders can have their positions open for a long time, and they do not pay for it. But swap-free accounts are not credited with the annual interest on free margin (InstaForex guarantees 13% annual interest to active accounts).

The carry trade strategy implies making profit on the positive carry between the interest rates of the countries whose currencies you trade. The bigger the difference between the rates is, the bigger swap you will get for the position’s prolongation. AUD/JPY, NZD/JPY, and GBP/CHF are the most popular carry trade pairs. Besides, such exotic pairs as AUD/DKK and USD/MXN are also used in carry trading. A trader can calculate the returns of the carry trade pairs individually comparing the interest rates that are publicly available.

Substantial profit can be derived from the position’s prolongation for a week or more. Thus, the carry trade strategy is frequently employed by long-term traders. Commonly, positions are opened on Wednesday and carried over to Thursday – the swap is trebled for such an operation. Higher volatility and interest rate fluctuations are the main risks that can trigger a trend change and have a profound impact on the swap amount.

Therefore, it is up to you whether to enjoy swap-free trading or benefit from carry trade operations. By the way, it is possible to combine both strategies using different instruments.

Do you need a trading plan?

Wednesday, February 20th, 2013

If you are serious about trading successfully on the international currency market, then you should work out a trading plan. Pay particular attention to it, as it is not just another chapter in a Forex trading guide book; on the contrary, it is a major trading tool.
If it seems the trading plan is useless and takes precious time, try not just to draw it up, but make corrections occasionally.
Statistics and statistical analysis are of great importance when trading on the Forex market.
Trading plan is a kind of statistics which reflects your actions in different circumstances. It is an algorithm of your work, which should be corrected due to market changes.
It is a trading plan that will help you to analyze situation promptly and take right decisions.

You should remember the basic stages in plan-making process:
1. Observe the economic news and collect relevant information.
2. Make a plan.
3. Keep to the trading plan.
4. Analyze you work according to the plan.
5. Correct the plan.

Trading is a job, a sort of business, and business without a plan will not bring fruitful results.

How to start trading stocks?

Wednesday, February 6th, 2013

Before answering this question, it is necessary to give definitions of the terms. Stock trading means buying and selling securities on stock exchanges. One of the purposes of the trades is gaining speculative profit. Today most of online trading on global stock markets is conducted by retail traders.

In order to trade stocks, a trader opens and replenishes his trading account with a brokerage company, which provides access to markets. A broker holds agreed commission from his client’s trading account for its services.

Depending on the size of the deposit, the expected schedule, and personality traits, a trade chooses and then tests his trading strategy on a demo account. It involves transactions of a given size on a particular stock market, with certain trading instruments and conditions of closing positions.

Trades on stocks are carried out on special software – trading platform, which sends the order to a broker to buy or sell an asset. A trading platform has all the necessary functions for trading. In addition, it enables you to track stock quotes and analyze the current market situation through various software applications (indicators, oscillators).

For successful stock trading you should understand the way financial markets function, have the skills of technical and fundamental analysis, as well as experience in demo account trading. Trading requires constant self-monitoring and self-improvement, but finally can result in a job satisfaction and a significant income.

Multiple time frames analysis

Tuesday, February 5th, 2013

Starting working on Forex every experienced trader came across the concept of multiple time frame analysis. One might look for the answer for such questions as “Which time frame is the best?”, “Which one is the most profitable?”, etc. In order to answer it, we should examine each of them.

Every time frame is designed to show the same information. The only distinguishing feature is the data provided in terms of different periods of time. In order to help you to choose the most appropriate, let us look at the most popular:

1 day;

1 hour;

5 minutes.

On the daily chart every bar represents one day; thus, changes on the chart will be observed once a day. On the 1-hour chart new bars appear every hour, providing trader with information. Bars on the 5-minute chart appear every five minutes, showing dynamically the current situation on the market.

In order to choose the most appropriate time frame, you should take into account several criteria: the period you will be working with the charts, profit, the amount of your deposit, and account management.

If you prefer a more moderate pace of work and you like to follow the changes of the chart every hour; if you consider that 1-hour chart is more reliable and it reflects precisely the price fluctuations as it does not show a great deal of that fuss about nothing that 5-minute chart contains, then 1-hour chart is ideally suited for you.

We may think over the other alternative. In case you have regular job and you do not have enough time to observe the situation or you think that changes which occur during the day do not influence the market on the whole, and it is better to analyze the final result in the evening; probably you want to participate in the trade at night making money work for you even when you sleep, consequently, it is better to use daily charts.

You have to choose the way you make money on Forex either participating in trading, using every chance, sitting in front of the monitor the whole day or making money relaxed observing price fluctuations from time to time and not breaking your daily routine.