What is Forex?
How Do You Trade Forex?
Now, it's time to learn HOW to rake in the moolah!
When Can You Trade Forex?
Now that you know who participates in the forex market, it's time to learn when you can trade!
Who Trades Forex?
From money exchangers, to banks, to hedge fund managers, to local Joes like your Uncle Pete - everybody participates in the forex market!
Why Trade Forex?
Want to know some reasons why traders love the forex market? Read on to find out what makes it so attractive!
Margin Trading 101: Understand How Your Margin Account Works
A beginner's guide on how margin trading works. If you skip these lessons, you will quickly obliterate your trading account. Guaranteed.
- What is Margin Trading?
- What is Balance?
- What is Unrealized P/L and Floating P/L?
- What is Margin?
- What is Used Margin?
- What is Equity?
- What is Free Margin?
- What is Margin Level?
- What is a Margin Call Level?
- What is a Stop Out Level?
- Trading Scenario: Margin Call Level at 100% and No Separate Stop Out Level
- Trading Scenario: Margin Call Level at 100% and Stop Out Level at 50%
- Trading Scenario: What Happens If You Trade With Just $100?
- Warning: Different Forex Brokers Have Different Margin Call and Stop Out Levels
- The Relationship Between Margin and Leverage
- Margin Jargon Cheat Sheet
When Can You Trade Forex: New York Session
New York is the second largest Forex market place, first being London. The New York or the US
session attracts a significant number of forex traders owing to the ever-growing demand for its
currency US dollar or USD.
New York sessions start when the London market place has almost finished its lunch break. As
soon as the Forex’s US sessions open at 8:00 AM EST or 1:00 PM GMT, the major currency pips
start moving with big steps. This can be attributed to the fact that when the US traders start
rolling their quotes, their European counterparts are already engaged in the process causing
overlapping of the two markets resulting in highest volatility and liquidity.
The most favorable time to start forex trading in the New York session is as soon as the session
opens. Once the New York session reaches lunch break, the European market gets closed and
the liquidity and volatility take a hit and begin to die down. So, it’s advisable to make trades
before the lunch hour focusing on the most economic updates and news.
Considering the fact that around 80-85% of the forex trading involves USD, being an early bird is
what this session asks for. Fridays are the days with least mobility in pips as both the European
and Asian markets remain mum forcing the US traders to close their shop after a half day. The
most traded currency pair in the US session is USD and EUR.