CBK Exchange Rates

Trade the most popular forex pairs like EUR/USD, GBP/USD and EUR/GBP at Plus500. Use our advanced trading tools to protect your profits and limit losses. Investors in foreign stocks seek to remove exchange rate fluctuations from the investment equation. According to Aaron Fennell, a futures specialist with ScotiaMcLeod in Toronto, this makes financial sense for individuals who own several hundred thousand dollars worth of foreign stocks. This is a textbook case of currency hedging. For example, a $500,000 U.S. stock portfolio could be perfectly hedged by buying five Canadian dollar futures contracts. To maintain the hedge, as the contracts expire, they would be rolled over into new contracts.

With over $3 trillion 1 in average daily turnover, the foreign exchange market (forex or FX for short) is five times the size of the U.S. futures market, making it the largest market in the world. Surprisingly, this market is unfamiliar terrain for most individual traders and investors until the popularization of Internet trading a few years ago. Forex was primarily the domain of large financial institutions, multinational corporations, and hedge funds However, times have changed: the U.S. Dollar (USD) recently fell to record lows, and everyone, from car dealers to bartenders, is waking up to the impact of currencies.

Forex traders who have used robots in the past suggest that traders learn enough about the workings of the EA program so that they can place the trades themselves and not through a broker. This will provide them with a sense that they are in control of their money and are not leaving it in the hands of a broker. This may not lead to profits but it will eliminate the feeling of being taken in by a fraudulent Forex robot scam.

It means that your profit is a potential loss for the market-making broker, and for this reason the efforts of these brokers are usually clear - to degrade your trading and lead you to loss-making results. A fair market maker can hedge profitable clients' positions on the interbank market, but this rarely happens.

Look at Trading Technologies for example. A North American company that has been around for over 20 years and one of the most widely known and used trading platforms on the market, yet nowhere close to percentage market share as MT4 per capita of traders.

Of course there are other factors that make people lose the money trading. Greed, fear, and other psychological factors affect the way you trade and they are all used by the broker's software. As the notice says, you must not believe in any case the price they are showing you in your platform or the indicators.

Written by Rachael Shores in online trading on Fri 28 July 2017.