Wednesday, March 21, 2018

Spot Metals in Trading

To be a successful trader, you must have a competitive edge that separates you from other traders. Along with skills and education, experience is key when it comes to trading.

Many traders expand and diversify their portfolio by trading spot metals.

The more assets you have under your belt, the more your competitive advantage is increased. It is also important to know your trading objectives and risk profile before jumping into the world of spot metal trading.

Gold and silver are two of the most commonly traded commodities in the world. Similar to trading currency pairs, traders take long or short positions in gold or silver while at the same time, taking the opposite position in the US Dollar.

Trading spot metals involves speculating price movements of gold or silver in relation to the US Dollar.

Spot metals are traded via over-the-counter. There is no central market for trading spot gold and silver but the main centers are London, New York and Zurich.

Why trade spot metals?

There are several reasons why trading spot gold and silver is beneficial. Along with diversifying your trading portfolio, spot metal trading is advantageous in terms of hedging opportunities and it being a type of safe haven.

There is volatility in spot metals which in turn provide trading opportunities in rising and falling markets. Spot gold trading has become a popular asset to trade due to its greater price volatility. It is considered a 'safe-haven' investment. When there is high volatility, traders have the option to move funds to gold for safety measures against risk. It is also used as a hedge against inflation and financial crises caused by economic, political or social chaos.

Spot silver trading is ideal for traders who want to trade volatile assets but at the same time risk little capital. It is a more volatile and inexpensive version of gold.

Trading spot metals

A spot gold or silver quote is read and represented similarly to a Forex quote. Spot gold traded against the US dollar is represented as - XAU/USD. While spot silver traded against the US dollar is represented as - XAG/USD. Traders analyze market conditions and price history to predict how gold or silver performs in relation to the US dollar. There is no physical delivery of gold or silver involved.

Spot gold and silver quotes also include a BID and ASK price. Like Forex, the BID is the price at which you can sell, while the ASK is the price at which you can buy. The difference between the BID and ASK price is called SPREAD.

Factors affecting spot gold trading

There are a few of factors that can affect spot gold trading. Firstly, it is the US Dollar. If the US Dollar weakens, the price of gold will rise whereas if the US Dollar strengthens, the price of gold will drop. Jewelry is also an affecting factor. The consumption of gold in countries such as India, Italy, Turkey or China gives a significant influence on the price of gold. Trading volumes and demand increase of gold is now heightened since it is traded in exchanges and online like other financial products. This is also another factor affecting spot gold trading.

Gold and silver have always had a valuable status and today it's even become precious for traders and investors alike. Thanks to its many benefits, spot metals are being traded globally, giving traders the chance to become successful and profitable.

This site is centered around topics ranging from Forex currencies, day trading, stocks, mutual funds and other forms of investing. To know more about much talked about Forex Master Method Evolution trading system, don't forget to visit

Monday, March 19, 2018

What Are Pips and Spreads?

As you begin to learning about Forex trading, you're bound to come across many new terms. Two of the most commonly used Forex words are "pip" and "spread." These have unique definitions in relation to currency trading, and for beginners, we wanted to help you better understand what each of these terms mean.

What is a Pip?

In Forex trading, a pip - which is short for "price index point" - is a numerical value that represents the amount an exchange rate has changed over a period of time. So a currency pair gains or losses pips over time.

In the majority of currencies, pips are priced to four decimal points, meaning one pip is.0001 and two pips is.0002. So if you closed a trade in USD/CAD at 1.3320, after a 20-pip gain, the new value would be 1.3340.

Japanese yen, though, is an exception, as JPY is not priced to four decimal points. JPY is priced to two points. So a JPY currency pair, like USD/JPY, might be 122.50. In this scenario, one pip is.01 and two pips is.02.

Finally, some brokers offer fractional pip values out to 3 or 5 decimal points, which are referred to as pipettes. Pipettes are equivalent to 1/10 of one pip.

Calculating Pip Value

When we talk about currency pairs, we might say that USD/CAD has gained 20 pips over a certain period. But what is the monetary value of those 20 pips? This requires some basic calculations, but the math is pretty straightforward. To determine the pip value, you'll need the:

Currency pair
Size of trade
Closing exchange rate

So for example, if you closed a $100,000 GBP/USD trade at 1.5188 after a 20-pip gain, you would calculate the pip value by first determining the number of U.S. dollars each pip represents. In this case, the equation is 100,000x.0001 or each USD equals 10 pips. Then, you would calculate the price per pip in GBP using the closing exchange rate - or 10/1.5188 = 6.58 GBP per pip. Finally, calculate the value in GBP the currency pair has changed to determine profit or loss - in this example, it would be 20x6.58= 131.60 GBP.

What is Spread?

In Forex lingo, the "spread" refers the difference between the buy and sell prices for the currency which are set by brokers. These values are often referred as the "bid" and "ask" price, and in the simplest terms, these are the prices that brokers are offering to buy and sell currencies to a trader.

Brokers always offer lower bid prices than ask prices, because this is where the broker makes money. So for example, the bid/ask prices for EUR/USD might be 1.0757 and 1.0761; the currency pair is said to have a 4-pip spread. That means if you entered into a trade and immediately liquidated that trade at the same exchange rate, you would record a loss and lose money. In general, close spreads are better for traders, because it's easier for a trade to become profitable. For example, if the spread of a pair was 55 pips, a 20-pip gain would lose the trader money; but if the same pair had a 4-pip spread, that trader would be up 16 pips after closing the trade.

This site is centered around topics ranging from Forex currencies, day trading, stocks, mutual funds and other forms of investing. To know more about much talked about Forex Master Method Evolution trading system, don't forget to visit

Understanding Forex Currency Pairs

In Forex trading, the two currencies being traded make up a currency pair, and there are many different pairs that Forex day traders can trade. Traders can choose "major pairs," "crosses," and "exotics," and there are pairs that are common like EUR/USD (euros and U.S. dollars) and much less common like USD/MXN (U.S. dollars and Mexican pesos).

For starters, though, let's take a look at what a currency pair consists of. Currency pairs are made up of a base currency (the first) and a counter currency (the second). In the EUR/USD currency pair, EUR is the base currency and USD is the counter currency. If the exchange rate of a pair is rising, the base currency is rising in value relative to the counter currency. When the exchange rate falls, the opposite is happening.

Additionally, when we look at exchange rates, the rate is the amount of the counter currency needed to buy 1 of the base currency. For example, if GBP/USD is priced at 1.5000, it would take 1.5 U.S. dollars to buy 1 British pound.

What are the Major Currency Pairs?

It's widely assumed that there are four major currency pairs, although some say there are 6 or 7 "majors." These four pairs drive the most action in the Forex market, and they are the most heavily traded. That means there is tons of trade volume and liquidity in each of these pairs, and therefore, the behavior of these pairs is more predictable.

The four major pairs include:

- "Euro" - EUR/USD (euros and U.S. dollars)
- "Cable" - GBP/USD (British pounds and U.S. dollars)
- "Gopher" - USD/JPY (U.S. dollars and Japanese yen)
- "Swissie" - USD/CHF (U.S. dollars and Swish francs)

Of these four, the "Euro" tends to be the most popular trading pair. The reason: The U.S. and European Union are the two largest economies in the world, they are the most widely held currencies, and this pair is the most widely traded. Yet, all four feature massive volume and they are all heavily traded.

In general, many of the major currencies make similar movements in the markets. For example, EUR/USD and GBP/USD tend to move in a similar direction; if one is falling, the other will likely be falling. That's not always true, but it happens quite frequently. Thusly, a trader would likely not hold similar position in these currency pairs, as it would double up their risk. USD/CHF, though, has a negative correlation with GBP/USD and EUR/USD; that means as EUR/USD rises, USD/CHF falls and vice versa. These are not rules, but generalities. So they may not apply in all circumstances.

Additionally, several commodity currencies including the Australian, New Zealand and Canadian dollar may also be considered major currency pairs. These pairs are AUD/USD, NZD/USD, and USD/CAD. Gold and silver are also commodities and are paired with the U.S. dollar: XAG/USD and XAU/USD.

Crosses and Exotics: Other Types of Currency Pairs

Traders may want to diversify their trades and move away from the major currency pairs. Crosses and exotics offer that opportunity. Crosses are currency pairs in which neither currency is the U.S. dollar, and there are several benefits to trading crosses.

First, traders can avoid speculating on the movement of the USD. This strategy might be useful if major U.S. economic news is expected like a jobs report or interest rate changes, both of which can create volatility in the market. Additionally, the crosses tend to have stronger trends due to diverging interest rate expectations and other economic factors. This enables more accurate trend trading. Common cross pairs include:


Finally, there are also "exotic" pairs to choose. These are the currency of a developed country paired with that of an emerging country. It's much less common for traders to speculate in the exotic pairs for several reasons. First, these pairs are much volatile making it more difficult to predict price movement. Additionally, the spread tends to be much larger. With major pairs, the spread may be as little as 2-5 pips; the spread for exotic pairs, though, may be as large as 50 pips or more. This makes it much more difficult for a day trader to profit. A few example exotic pairs include USD/BRL (U.S. dollars and Brazilian reals) and USD/MXN (U.S. dollars and Mexican pesos).

This site is centered around topics ranging from Forex currencies, day trading, stocks, mutual funds and other forms of investing. To know more about much talked about Forex Master Method Evolution trading system, don't forget to visit

Sunday, March 11, 2018

What Is Range Trading?

The value of a currency pair doesn't trend in one direction; there is no uptrend or downtrend. Rather, the currency pair has specific fluctuations over a week or day that are fairly predictable. Simply put, the currency pair's value zigzags between a high and low.

Range trading is a Forex strategy that takes advantage of these regular fluctuations. For example, a range trader first determines a range, and then might buy into a currency pair at the low end of the range and sell when the currency pair reaches the high end of the range. A reverse trader can also short the range, buying in at the high value and selling at the low value.

To begin, a range trade must first analyze the currency pair. The majority of currency pairs have somewhat predictable swings throughout specific periods of time - it may be over a 4-hour window, 24 hours, or a week. Your technical analysis will give you a better idea of the average time between a high and low. Plus, to determine the range, you must find the currency's signal and resistance prices.

The signal is the current floor for the currency pair, while the resistance is the current ceiling. So for example, if you were examining a GBP/USD pair that fluctuated between 1.5000 and 1.4950; 1.5000 would be the resistance price and 1.4950 would be the signal price. And there would be a 50-pip range for this pair.

Setting Up a Range Trading Strategy

Once the range has been determined - in our example the range is 1.5000 to 1.4950 - you can think about entering and/or exiting trades for the specific currency. With this strategy, the trader would set an entry order for the signal price of 1.4950, and the trader would make a trade at the low end of the range.

Secondly, the trader would set a sell order for the top end of the range, the resistance price of 1.5000. Plus, there's also the possibility of short selling the range, by entering at the high point and selling at the low point.

Using trading software, these orders can be automated based on specific rules. Of course, the currency pair will likely trend out of this range, either above or below. Because of this, it's beneficial for traders to use stop orders above and below the sell or buy order points.

What Are the Benefits of Trend Trading?

One of the biggest advantages of range trading is making profits in a sideways-moving market. Often, day traders prefer to trade trends, as there is greater profit potential with larger movements in one direction.

Yet, although the profit potential in range trading might not be as significant, it does allow traders to profit when currencies aren't trending in one direction, which is happens quite frequently in the Foreign Exchange markets. The general assumption is that 80% of the time the markets trade within a range, rather than trending in one direction.

Another advantage is the simplicity. Once a range has been determined, the trader can set specific entry and exit points. The process is fairly straightforward. Additionally, compared to trend trading, the risk/reward parameters of range trading are much more defined.

This site is centered around topics ranging from Forex currencies, day trading, stocks, mutual funds and other forms of investing. To know more about much talked about Forex Master Method Evolution trading system, don't forget to visit

Tuesday, February 27, 2018

Nicola Delic's Forex Master Levels - Scam Or Does it Work?

Forex Master Levels is one of the most popular forex trading robots in the world today. It was created by Nicola Delic, a veteran trader, and has been used by thousands of people around the world. Nicola claims that his software can help anyone make a lot of money on the currency trading market. He claims it can work for anyone, even people who have no knowledge of the Forex Market.

So the big question remains: Is Forex Master Levels a scam or does it work?

Forex Master Levels isn't a scam, but Nicola Delic did exaggerate on what his software can do.

It's true that this software can trade automatically for you and that it has helped many people make more money trading currency, but it's not without it's flaws.

First of all, you need to know that if you have zero understanding in Forex trading than you should wait awhile before using this software. You have to have a firm grasp of how the Forex market operates in order to be able to understand how this software works.

Second of all, it's not a plug it in and forget it system. You do need to spend some time periodically to check on your trading and fine tune it a bit.

Third, you won't be able to make money with FML on the same day that you get it. It takes some time to set up and more time to really understand how this software works. I recommend trading for 2 weeks with demo accounts and only them starting to trade real money. This will make sure you know exactly how the software works.

Above all, don't stop educating yourself on the market. Learn new strategies and keep informed of world developments. Forex Master Levels is a tool, but you need to be informed enough to make it work for you in the optimal way.

To read more about this course, click here: Forex Master Levels Review

Forex Master Levels Reviews - The Pros and Cons of FML

The Forex Master Levels by Nicola Delic is one of the most popular online forex trading courses in the world today. But what is the true nature of this course? What are the pros and cons of FML (short for Forex Master Levels)?

Forex Master Levels Pros

- This is a course which is based on online video tutorials, making it very easy to follow. You can access the tutorials whenever it is convenient for you and learn at your own pace

- FML is a multi level course, meaning that it can help newbies, intermediaries, and veteran traders alike to make more money

- FML is very comprehensive

- This course has helped many people to increase their understanding of the market and to make more money in currency trading.

- Affordable. This course costs a fraction of what offline courses cost.

- Comes with a money back guarantee, so your purchase is safe. You can try out the strategies in the course with a dummy account and only later use real money.


- This course will take time to master. There is a great deal of in depth material to go over and you will need to be determined in order to learn and apply everything. If you're looking for a get rich quick scheme, this isn't it. It takes commitment to succeed.

- This is a forex strategies course, and not a software. You can of course use it with a trading software which will make you an even more potent trader.

It is totally up to you to make the most of the Forex Master Levels course by Nicola Delic. Take it seriously and it can make you serious money.

To read more about this course, click here: Forex Master Levels Review

Forex Master Levels Review - Is Nicola Delic For Real?

Forex Master Levels is an online currency trading course which was created by Nicola Delic. It's one of the more popular forex trading courses in the world today. But does this course actually work? And who is it good for?

The first point in this Forex Master Levels review is to tell you exactly what this program is: a series of online video tutorials which show you step by step what the Forex market is about, give you an in depth understanding of market terms, and show you trading strategies to increase your profits. The videos are arranged in such a way that you can access them whenever you want and learn at your own pace.

Forex Master Levels is a course for all levels of traders. Of course, the more you know about the market before hand, the faster you can go over the first few lessons. The point is that if you're a newbie in forex trading, you can rest assured that this course can teach you everything from the basics. Even if you've traded before, you can still learn some powerful strategies from this course.

Can this course help you to make more money on currency trading? The answer is a definite yes, but it won't happen overnight. To truly succeed in any market or niche, you need to know how it works, the rules, the terms, and the language of the market. This takes time and learning. What the Forex Master Levels course by Nicola Delic can do is help you shorten your learning curve so that you'll be able to make more money on the Forex market faster than you would otherwise.

You will need to be committed to watching the video tutorials of the course and to practice what it teaches you. However, if you do that, the you will certainly become more of an expert in currency trading and be better able to make more money faster.

To read more about this course, click here: Forex Master Levels Review