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Tuesday, November 21, 2017

Some Important Tools to Trade in the Foreign Exchange Market

by Adam de Smith (writer), , July 29, 2016

There are a dozens of forex trading tools available in the market that you can use for your trading.

There are a dozens of forex trading tools available in the market that you can use for your trading. These tools are absolutely free of cost. Here in this article some of the reliable and practical tools are discussed.

Forex calculator:

The forex calculator is also known as forex volatility calculator. As a stagnant forex pair offers a little profit, the traders need to be sure about which pairs are volatile and what are the active trading hours. This is really tough for the traders to calculate the volatility of the pairs, as there are a dozens of currency pairs traded in the market. The forex volatility calculator is an essential tool that determines or calculates the volatility of 30 currency pairs by using historical data. The daily change in pips and percentage of each forex pair is also showed by this calculator by creating a nice table.

Forex Calendar:

·The forex calendar is similar to our daily calendar. It is said that the forex calendar is the key to success in the forex trading. This helps the traders to predict about the moves and fluctuations of the forex market, and this also helps them to know why this market is moving in a certain way. The forex calendar basically checks the market moving events like monthly jobless claims, factory orders and debt auctions. The forex brokers publish economic reports every week in this calendar.

Forex trading platform:

Forex trading platforms are the most essential tools in the forex trading. MetaTrader 4 or MT4 is the most popular platform among the traders as well as the brokers. Some brokers offer free MetaTrader 4 demo account to practice on it. This is especially beneficial for the traders, who are new on this trading. Some of the importance of the Forex trading tips shared by Easy Market:

    ·As most forex brokers offer you MT4, you can trade with any forex broker you choose.

    ·MT4 offers you completely automated trading.

    ·This platform enables you to trade on mobile.

    ·You have the right to write your own technical indicators.

    ·As MetaTrader demo account is available, you can simulate trade with it.

    ·Last but not least, it is absolutely free.

Currency correlation:

The permutations of different currencies are currency pairs. It is really vital to understand about the currency correlations, if you really want to trade with more than one pair.

    ·In case of hedging function, you should look for negative correlation.

    ·Zero correlation is required for diversifying.

    ·In case of increasing exposure, you should look for positive correlation.

    ·You need to pay attention to currency correlation; otherwise you might end up hedging your position without any realisation of it.



About the Writer

Adam de Smith is a writer for BrooWaha. For more information, visit the writer's website.
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