With Equivolume, you can plot price and volume activity on a single graph, instead of having volume added as an indicator on the side. This tool draws the bars following their traded volume at a precise point in time (the wider the bar, the bigger the volume). That creates a clear visualization of the volume increase or decrease of an asset’s diagram. A very handy feature for those strategies whose key factor is volume. How to change your table into Equivolume
In the world of trading, it means you can access a larger portion of the market with a smaller deposit than you would be able to via traditional investing. This gives you the advantage of getting greater returns for a small up-front investment, though it is important to note that traders can be at risk of higher losses when using leverage. In finance, it is when you borrow money, to invest and make more money due to your increased buying power. Once you return what you borrowed, you are still left with more money than if you had just invested your own capital.
Leverage in finance pertains to the use of debt to buy assets. This is done in order to avoid using too much equity. The ratio of this debt to equity is the formula for leverage (debt/equity ratio) whereby the greater the proportion of debt, the higher the amount of leverage. If a company, investment or property is termed as "highly leveraged" it means that it has a greater proportion of debt than equity. When leveraged debt is used in such a way that the return generated is greater than the interest associated with it, then an investor is in a favourable position.

Consequently, you should consider the information in light of your objectives, financial situation and needs. CMC Markets Asia Pacific Pty Ltd ABN 11 100 058 213, AFSL No. 238054 (the derivative product issuer), CMC Markets Stockbroking Limited, Participant of the ASX Group (Australian Securities Exchange) and SSX (Sydney Stock Exchange) and Chi-X (Chi-X Australia), ABN 69 081 002 851, AFSL No. 246381 (the stockbroking services provider) provides the financial products and/or services. It's important for you to consider the relevant Product Disclosure Statement ('PDS') and any other relevant CMC Markets Documents before you decide whether or not to acquire any of the financial products. Our Financial Services Guide contains details of our fees and charges. All of these documents are available at cmcmarkets.com.au or you can call us on 1300 303 888.


You can choose between 1500 different assets: all Forex crosses (and their reverse too - see below), but also main commodities and indices. How to select your asset You can also directly type the asset in the search asset field. Note that you must put a slash between the two currencies of the pair. For example: USD/JPY and not USDJPY. How to type your asset
If you're just starting out with Forex trading, or if you're looking for new ideas, our FREE trading webinars are the best place to learn from professional trading experts. Receive step-by-step guides on how to use the best strategies and indicators, and receive expert opinion on the latest developments in the live markets. Click the banner below to register for FREE trading webinars!
You have plenty of options to draw on your graph, from lines (including trend channels) to arrows, going through rectangles, circles and much more. You can also write any text you want to add your particular notes and comments. Another available option to benefit from is the one that allows to configure the color of each of the drawing you put on the board, as well as the line weight (thin, regular or bold). How to draw on your diagram
We hope that this article has been useful to you, and that by now you have clearly understood the nature of gearing, how to calculate Forex leverage, and how it can be equally be useful or harmful to your trading strategy. It is important to state that leveraged Forex trading is quite a risky process, and your deposit can be lost quickly if you are trading using a large leverage. Do try to avoid any leveraged or highly leveraged trading before you have gained enough experience.
A single pound on Monday could get you 1.19 euros. On Tuesday, 1.20 euros. This tiny change may not seem like a big deal. But think of it on a bigger scale. A large international company may need to pay overseas employees. Imagine what that could do to the bottom line if, like in the example above, simply exchanging one currency for another costs you more depending on when you do it? These few pennies add up quickly. In both cases, you—as a traveler or a business owner—may want to hold your money until the forex exchange rate is more favorable.
To illustrate further, let's look at a typical USD/CAD (US dollar against Canadian dollar) trade. To buy or sell a 100,000 of USD/CAD without leverage would require the trader to put up $100,000 in account funds, the full value of the position. But with 50:1 leverage (or 2% margin required), for example, only $2,000 of the trader's funds would be required to open and maintain that $100,000 USD/CAD position.
Once you begin trading with a certain FX broker, you may want to modify the leverage available to you. This depends on the broker. With Admiral Markets you can use an industry standardised procedure that includes authenticating to the Trader's Room, selecting your account, and changing the leverage available. This action takes immediate effect, so be careful if you have open positions when you attempt to reduce your leverage.
New to the world of trading or Forex? Confused by different technical descriptions that seem to be used to describe the same things about financial markets? Want to learn how to trade Forex It is important to feel comfortable before you start trading with real money, as mistakes from misunderstanding basic execution concepts such as spread , leverage and position sizing can be very costly. This page will explain the key “hows” and “whys” such as the basic workings of the market, how to buy and sell Forex, and the meaning of leverage.
Between 2003 and the end of 2004, the AUD/USD currency pair offered a positive yield spread of 2.5%. Although this may seem very small, the return would become 25% with the use of 10:1 leverage. During that same time, the Australian dollar also rallied from 56 cents to close at 80 cents against the U.S. dollar, which represented a 42% appreciation in the currency pair. This means that if you were in this trade – and many hedge funds at the time were – you would have not only earned the positive yield, but you would have also seen tremendous capital gains in your underlying investment. 
From this we can see that the Forex leverage ratio strongly depends on the strategy that is going to be used. To give you a better overview, scalpers and breakout traders try to use as high a leverage as possible, as they usually look for quick trades. Positional traders often trade with low leverage or none at all. A desired leverage for a positional trader usually starts at 5:1 and goes up to about 20:1.
If you're feeling inspired to start trading, or this article has provided some extra insight to your existing trading knowledge, you may be pleased to know that Admiral Markets provides the ability to trade with Forex and CFDs on up to 80+ currencies, with the latest market updates and technical analysis provided for FREE! Click the banner below to open your live account today!

My details: (1) Entry @ 0.68310 (Sell Limit) (2) Stop loss @ 0.68370 (6 pips) (3) Target @ 0.68190 (18 pips) - Closing 90% - S/L @ break-even (4) R:R = 1:3 min. Stay tuned for the updates Follow and leave a like if you liked this idea and want to see more! *DISCLAIMER* This post is solely for educational purposes and does not constitute any form of investment...


FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosure. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. *Increasing leverage increases risk.
GBPJPY is the most confusing one in all the JPY-related pairs. It seems that very hard for it to rise up to last top on weekly chart. It closed with a weak warning bearish weekly signal last week. On this daily chart, it could drop down more after breaking through the blue short-term daily trend line. And the 3rd wave could drop down to next support which is also...

In the world of trading, it means you can access a larger portion of the market with a smaller deposit than you would be able to via traditional investing. This gives you the advantage of getting greater returns for a small up-front investment, though it is important to note that traders can be at risk of higher losses when using leverage. In finance, it is when you borrow money, to invest and make more money due to your increased buying power. Once you return what you borrowed, you are still left with more money than if you had just invested your own capital.


Founded in 2008, ForexLive.com is the premier forex trading news site offering interesting commentary, opinion and analysis for true FX trading professionals. Get the latest breaking foreign exchange trade news and current updates from active traders daily. ForexLive.com blog posts feature leading edge technical analysis charting tips, forex analysis, and currency pair trading tutorials. Find out how to take advantage of swings in global foreign exchange markets and see our real-time forex news analysis and reactions to central bank news, economic indicators and world events.
In the world of trading, it means you can access a larger portion of the market with a smaller deposit than you would be able to via traditional investing. This gives you the advantage of getting greater returns for a small up-front investment, though it is important to note that traders can be at risk of higher losses when using leverage. In finance, it is when you borrow money, to invest and make more money due to your increased buying power. Once you return what you borrowed, you are still left with more money than if you had just invested your own capital.
You have plenty of options to draw on your graph, from lines (including trend channels) to arrows, going through rectangles, circles and much more. You can also write any text you want to add your particular notes and comments. Another available option to benefit from is the one that allows to configure the color of each of the drawing you put on the board, as well as the line weight (thin, regular or bold). How to draw on your diagram

Guaranteed stop-loss order (GSLOs) work in a similar way to stop-loss orders, with the main difference being that a GSLO has the effect of placing an absolute limit on your potential losses on a particular trade, as it ensures that your trade is closed at the price you specify. For this benefit, there is a premium charge that is payable on execution of your order. This charge is displayed on the order ticket. We refund this premium in full if the GSLO is not triggered.
(Note that the leverage shown in Trades 2 and 3 is available for Professional clients only. A Professional client is a client who possesses the experience, knowledge and expertise to make their own investment decisions and properly assess the risks that these incur. In order to be considered to be Professional client, the client must comply with MiFID ll 2014/65/EU Annex ll requirements.)
We offer a tool to compare graphs so you can analyze the price history of two assets and analyze relative performance over a period of time. When you click on “Compare”, you can choose the second asset (currency, equity or index). The graph of both assets will be displayed in the same table, with the percentage of deviation in the left vertical axis. The starting point of both lines is zero. For a clearer view, it’s recommended to choose the “line” type. You can edit the color and weight of each currency. How to compare assets

If you're feeling inspired to start trading, or this article has provided some extra insight to your existing trading knowledge, you may be pleased to know that Admiral Markets provides the ability to trade with Forex and CFDs on up to 80+ currencies, with the latest market updates and technical analysis provided for FREE! Click the banner below to open your live account today!
To trade $100,000 of currency, with a margin of 1%, an investor will only have to deposit $1,000 into her or his margin account. The leverage provided on a trade like this is 100:1. Leverage of this size is significantly larger than the 2:1 leverage commonly provided on equities and the 15:1 leverage provided in the futures market. Although 100:1 leverage may seem extremely risky, the risk is significantly less when you consider that currency prices usually change by less than 1% during intraday trading (trading within one day). If currencies fluctuated as much as equities, brokers would not be able to provide as much leverage.
Our trading charts provide a complete picture of live currency, stocks and commodities price movements and underpin successful technical analysis. Identify patterns and trends and respond to price action more effectively by typing in your chosen asset and applying moving averages, Bollinger Bands and other technical indicators to enhance your trading.

The bottom line is that you want to pick carry trades that benefit not only from a positive and growing yield, but that also have the potential to appreciate in value. This is important because just as currency appreciation can increase the value of your carry trade earnings, currency depreciation can erase all of your carry trade gains – and then some. 


Since currencies are traded in pairs, it’s impractical and not very useful to draw a pure USD currency chart. Instead we have the option of drawing (or rather having the software plot for us) a chart of the USDJPY pair, or the AUDUSD pair, since it is only possible to quote a currency in terms of another. On the other hand, there are some forex charts that take weighted average of such currency pairs to derive an overall index for a currency. The famous USD index, is a good example.


In every foreign exchange transaction, you are simultaneously buying one currency and selling another. In effect, you are using the proceeds from the currency you sold to purchase the currency you are buying. Furthermore, every currency in the world comes attached with an interest rate set by the central bank of that currency's country. You are obligated to pay the interest on the currency that you have sold, but you also have the privilege of earning interest on the currency that you have bought. For example, let’s look at the New Zealand dollar/Japanese yen pair (NZD/JPY). Let’s assume that New Zealand has an interest rate of 8% and that Japan has an interest rate of 0.5% In the currency market, interest rates are calculated in basis points. A basis point is simply 1/100th of 1%. So, New Zealand rates are 800 basis points and Japanese rates are 50 basis points. If you decide to go long NZD/JPY you will earn 8% in annualized interest, but have to pay 0.5% for a net return of 7.5%, or 750 basis points.
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