Did you know that Admiral Markets offers an enhanced version of Metatrader that boosts trading capabilities? Now you can trade with MetaTrader 4 and MetaTrader 5 with an advanced version of MetaTrader that offers excellent additional features such as the correlation matrix, which enables you to view and contrast various currency pairs in real-time, or the mini trader widget - which allows you to buy or sell via a small window while you continue with everything else you need to do.
The factors mentioned above can also cause a currency to decline. For example, the currency of a country with low inflation will generally rise because that country's purchasing power is higher relative to other currencies. Even natural disasters such as earthquakes or tsunamis, which put a strain on a nation’s economy, can have a negative impact on a currency.
Divergence is a tool that helps the traders to learn the price behavior of the currency. This analysis generates patterns that will help to predict the direction of movement of the currency rates. Divergence, a leading indicator, helps traders to significantly increase their profits. This is because the likelihood of trading in the right direction and at the right time increases if this indicator is used along with others such as Moving Averages, Stochastics, RSI, Support and Resistance levels, etc.
This strategy is employed by forex traders as a long-term plan to make the trades profitable. The indicator mainly uses the ‘Pullback’ and the ‘Trend’, both of which are fundamental in nature. In order to have a complete understanding as to how this strategy works, traders must be familiar with the more fundamental concept called ‘the trend’. It is very difficult to explain each individual price change and determine a pattern as there will be many of them. Traders need to look at the bigger picture in order to see trends. The three key Fibonacci numbers that traders should always remember are 0.382, 0.5, and 0.618. They should also keep in mind 0.764 and 0.236.
This forex trading strategy takes advantage of the momentum of the market that is currently prevalent. Any market sentiment is a sum total of all the traders’ prevalent sentiments. This ultimately results in the forex market moving in a specific direction. Market sentiment is a very important aspect and traders should learn to read or feel the same in order to successfully trade currencies. Sometimes it is easy to understand the sentiment, but some other it may not be very obvious.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Scalping - These are very short-lived trades, possibly held just for just a few minutes. A scalper seeks to quickly beat the bid/offer spread, and skim just a few points of profit before closing. This strategy typically uses tick charts, such as the ones that can be found in MetaTrader 4 Supreme Edition. This trading platform also offers some of the best forex indicators for scalping. In addition, the Forex-1 minute Trading Strategy can be considered an example of this trading style.
Foreign exchange (forex) or FX trading involves trading the prices of global currencies, and at City Index it is possible to trade on the prices of a huge range of global currencies. Currency trading allows you to speculate on the movement of one currency against another, and is traded in pairs, for example the Euro against the US Dollar (EUR/USD).
Highest profits are realized only when the best forex trading strategies are employed by the forex traders. There are many time tested forex strategies that can be used by serious traders. Whereas some of them are based on the effect of the current political and economic scenarios of a country, some others rely on charts and numbers that are based on past performances of the forex market. All the strategies that are explained briefly in this article have different levels of complexity. It is also important to note that whatever may be the strategy that the forex trader wants to apply, the best effects occur only when the trader has sufficient knowledge and experience in the field. This article aims to familiarize the readers with a few well-known forex trading strategies.
The ‘Elliot Wave Theory’, named after Ralph Elliot, is one of the oldest forex strategies. He analyzed the stock price data for around 70 years and found out that human psychology (emotions, fear and greed) drove the market and that it moved iteratively. This is to say that the market switches between optimistic and pessimistic modes. In this strategy, the motive phase unfurls in 5 steps.
This forex trading strategy takes advantage of the momentum of the market that is currently prevalent. Any market sentiment is a sum total of all the traders’ prevalent sentiments. This ultimately results in the forex market moving in a specific direction. Market sentiment is a very important aspect and traders should learn to read or feel the same in order to successfully trade currencies. Sometimes it is easy to understand the sentiment, but some other it may not be very obvious.
Political instability and poor economic performance can also have a negative impact on a currency. Politically stable countries with robust economic performance will always be more appealing to foreign investors, so these countries will draw investment away from countries characterised by more economic or political risk. Furthermore, a country showing a sharp decline in economic performance will experience a loss of confidence in its currency and a movement of capital to currencies of more economically steady countries. These are just two simple examples of what can affect foreign exchange rates and the kind of things traders consider when developing forex trading strategies.  
If you believe that a currency pair such as the Australian dollar will rise against the US Dollar you can place a buy trade on AUD/USD. If the prices rises, you will make a profit for every point that AUD appreciates against the USD. If the market falls, then you will make a loss for every point the price moves against you. Our trading platform tells you in real-time how much profit or loss you are making.
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High Risk Investment Warning: Trading FX/CFDs on margin carries a high level of risk, and may not be suitable for all investors. Leverage can work against you. Before deciding to trade FX/CFDs offered by FXCM Australia Pty. Limited ("FXCM AU" or "FXCM Australia") you should carefully consider your objectives, financial situation, needs, and level of experience. By trading, you could sustain a loss in excess of your deposited funds. Before trading FX/CFDs you should be aware of all the risks associated with trading FXCM products and read and consider the Financial Services Guide, Product Disclosure Statement, and Terms of Business issued by FXCM AU. FX/CFDs products are only suitable for those customers who fully understand the market risk. FXCM provides general advice that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. FXCM recommends you seek advice from a separate financial advisor. For any questions or to obtain a copy of any documents, contact FXCM at [email protected] FXCM AU is regulated by ASIC [AFSL 309763]. FXCM AU ACN: 121934432.
Some of these factors include political stability, interest rates, inflation, terms of trade, public debt and current account deficits. For example, in the case of interest rates, if rates are higher, lenders get a better return compared to those in a country with lower rates; therefore the higher rates attract foreign capital which causes the exchange rate to rise. This is one of the reasons forex traders may look to trade on interest rate announcements from central banks like the US Federal Reserve or the Bank of England.  
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Any nation’s central bank, adjusts the rates of interest from time to time in order to contain or curb the inflationary trends. This, in turn, has a definitive effect on the currency market and traders assume trading positions accordingly. The central bank of a country does not act as it is a solid body. The interest rate is increased or decreased based on the vote cast by the members of the monetary policy committee. The number of members monetary committee varies from one bank to another. If the interest rate is cut, there will be more money in circulation. This makes it cheaper. If the interest rate is hiked, its value increases.
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Economic data indicators and mood sentiment change often so stay informed by checking our forex economic calendar daily. FX currency pair movements happen quickly so get to know the daily and foreign exchange weekly economic calendar to anticipate market trends. Our real-time forex live news and analysis updates, commentary and articles can help you interpret the economic data news so you can take advantage of technical analysis patterns as they change with forex market sentiment. Stay familiar with the economic calendar and forex news from central banks, politics and local events that can affect country currency pairs you trade.

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Many forex traders start with a simple trading strategy. For example, they may notice that a specific currency pair tends to rebound from a particular support or resistance level. They may then decide to add other elements that improve the accuracy of these trading signals over time. For instance, they may require that the price rebound from a specific support level by a certain percentage or number of pips.
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