Котировки Форекс On-line

Futures, futures options, and forex trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement prior to trading futures products, and the NFA booklet Trading Forex: What Investors Need to Know prior to trading forex products.

Futures and forex accounts are not protected by the Securities Investor Protection Corporation (SIPC).

Futures, futures options and forex trading services provided by Charles Schwab Futures and Forex LLC. Trading privileges subject to review and approval. Not all clients will qualify. Forex accounts are not available to residents of Ohio or Arizona.

Charles Schwab Futures and Forex LLC, a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member. Charles Schwab Futures and Forex LLC is a subsidiary of The Charles Schwab Corporation.

Use of portfolio margin involves unique and significant risks, including increased leverage, which increases the amount of potential loss, and shortened and stricter time frames for meeting deficiencies, which increase the risk of involuntary liquidation. Client, account, and position eligibility requirements exist and approval is not guaranteed.

Carefully read the Portfolio Margin Risk Disclosure Statement, Margin Handbook and Margin Disclosure Document for specific disclosures and more details. You may also contact TD Ameritrade at for copies.

It is the client’s obligation to evaluate the risks of portfolio margin when making investment decisions. TD Ameritrade reserves the right at its sole discretion to decline a client the use of portfolio margin.  In the event TD Ameritrade decides to terminate a client’s use of portfolio margin, the client’s account may be converted to the standard margin account.  The conversion of a portfolio margin account to a margin account may require the liquidation of positions.  

Market volatility, volume and system availability may delay account access and trade executions.

All investments involve risks, including the loss of principal invested. Past performance of a security does not guarantee future results or success.

TD Ameritrade was evaluated against 14 other online brokers in the eunic-brussels.eu Online Broker Review. The firm was rated #1 in the categories "Platforms & Tools" (11 years in a row), "Desktop Trading Platform: thinkorswim®" (10 years in a row), "Active Trading" (2 years in a row), "Options Trading," "Customer Service," and "Phone Support." TD Ameritrade was also rated Best in Class (within the top 5) for "Overall Broker" (12 years in a row), "Education" (11 years in a row), "Commissions & Fees" (2 years in a row), "Offering of Investments" (8 years in a row), "Beginners" (10 years in a row), "Mobile Trading Apps" (10 years in a row), "Ease of Use" (6 years in a row), "IRA Accounts" (3 years in a row), "Futures Trading" (3 years in a row), and "Research" (11 years in a row). Read the full article.

†Applies to US exchange listed stocks, ETFs, and options.  A $ per contract fee applies for options trades.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © Charles Schwab & Co., Inc. All rights reserved.

The foreign exchange market, also known as the forex (FX) or currency market, is the largest and most liquid market in the world. It represents the exchange of one nation’s currency for another, and is used for everything from travelers exchanging currencies to global financing. With over $ trillion  in currencies traded daily, the FX market impacts consumers in a global market, affecting the price of imported and exported goods. To put this in perspective, the five-day Average Daily Trading Volume (ADTV) for US stock and options traded daily is less than $ billion. While the forex market is huge, 75% of FX trading is conducted in the seven major currency pairs, six of which include the U.S. dollar (USD), with participants including governments, large international banks, regional banks, corporations, and individuals.

Foreign exchange trading continues 24 hours a day, with only the trading centers changing throughout the day. We’ll look at how the forex market works and what you need to know to trade in the financial world’s biggest and busiest arena. 

How to Trade Forex

Trading foreign exchange markets involves buying or selling one currency in exchange for another. The goal of trading is to profit from the changes in exchange rates between the two currencies. To trade forex, you will need to open a trading account with a broker that provides access to the FX market. After opening an account, you will need to deposit funds to use for trading. 

Once you have funds in your account, you can start trading by placing buy or sell orders for currency pairs. These orders can be placed through the broker's trading platform, which provides access to real-time pricing information and charts. To be successful in trading forex, you will need to develop a trading strategy that takes into account factors such as market conditions, news events, and chart analysis. Trades are sized in lots, with the standard lot representing , of the base currency (first of the pair). If you put a buy order in for USD/CAD, for example, you are betting on the U.S. dollar appreciating against the Canadian dollar, and this is considered a long position. If you put in a sell order for USD/CAD, you are betting on the Canadian dollar appreciating against the U.S. dollar, and it is a short position. 

Foreign exchange traders typically utilize technical analysis for their trading, and many also use fundamental analysis to gauge the relative strength of global economies. It is also important to manage your risk by using stop-loss orders and proper position sizing. Before placing a trade, you want to know your entry level as well as your exit points for taking profits or minimizing losses. Trading forex can be challenging, but with the right knowledge and discipline, it can be a rewarding and profitable experience.

Steps Required to Trade Forex 

Getting started trading forex is relatively straightforward. While there are some differences in opening a traditional stock trading account vs. a FX brokerage account, the overall steps are largely the same. 

Step 1: Research and select a broker.  The first step is to find out which brokers will offer you a foreign exchange trading account. If your existing broker supports FX trading and you have an approved margin agreement, you can skip ahead and begin trading. If not, you’ll want to look at FX brokers and compare them in terms of platform capabilities, regulatory compliance, fees, margin rates, and customer support. Investopedia does a regular roundup of forex-focused brokers to consider, and there are also large, traditional brokers worth considering. Once you’ve identified a broker that fits your needs, opening a forex trading account is a fast and easy process.

Step 2: Open a forex trading account. To open an account, you need to provide personal information, including name, address, and tax ID number, and some financial background information. You will also have to answer some questions about your finances and investment goals as part of “know your client” compliance.

When you open a FX trading account, it will include the execution of a margin agreement, because currency trading includes leverage. An options agreement will be required to trade currency options, which can be accomplished through either over-the-counter (OTC) options offered by some of the forex brokers or exchange-traded options on currency futures. 

Step 3: Verify your identity. Your broker will confirm your identity through your passport, license, or national ID. A copy of a utility bill or bank statement will also assist with verifying your address. The broker requests the financial and tax information to comply with U.S. government laws and Commodity Futures Trading Commission (CFTC) rules. 

Once your account and margin agreements have been approved, you need to fund the account to start trading. It should be noted, however, that some of the leading online forex companies do not offer accounts to U.S. customers.

Step 4: Fund your forex account. Once your account has been approved, you need to fund it in order to begin trading. Some forex platforms allow you to begin trading with as little as $, which at the 2% margin (or leverage) available for some markets, allows for a position of $5, Funding is typically accomplished by ACH bank transfer, wire transfer, debit card (after verification), or check. 

Step 5: Research currencies and identify trading opportunities. Once the account is open and funded, forex traders typically choose the currency pairs they want to trade, then utilize technical analysis to determine their timing points and price levels for trade entry and exit. Like all markets, but especially leveraged markets like foreign exchange, trade size and trade management are very important to achieve the preservation of capital on losing trades and growth of capital on profitable ones. 

The overall financial condition of a country, including interest rates, plays into the value of a nation’s currency, so there is a place for fundamental analysis in currency trading. News and fundamental data releases can also have a large impact on currency values. Beyond fundamental considerations, however, technical analysis is a critical part of currency trading because of the often fast moving currency markets. Many traders focus exclusively on technical analysis to capitalize on the price action of the forex market, using common technical techniques such as trend lines, channels, breakouts, patterns, and support and resistance levels to identify trading opportunities in the foreign exchange markets.

Step 6: Size up your first forex trade. Before making their first FX trade, every trader needs to understand how much capital they have, as well as the specific leverage available to them for their chosen currency pair. Since leverage in forex trading can be as high as , it is critical to understand how much capital you will have at risk on any trade. The 1% rule for how much capital to risk on an individual trade is a good rule of thumb for new forex traders. This means you should only risk 1% or your total account value on a particular trade. Other traders may choose to use a 2% or even 5% rule for the amount of capital they will allocate to any particular trade. 

The amount you are willing to risk along with how far you are willing to let the market move against your position before taking a loss sets the parameters of the trade. You should also set a take profit point if you intend to systemize your trading, but with the downside risk contained, you always have the option of letting winning positions run. Once the trade parameters have been determined, you are ready to enter the order through your broker’s trading platform.

Step 7: Monitor and manage your position. Once the position has been established, the trader should have a clear understanding of their position and, through their research prior to trading, have clear exit points for either taking profits or taking a loss on their trade. Many traders will use a one-cancels-the-other (OCO) so that they will automatically take their profit or loss should either of these levels be reached, and cancel the remaining order. 

Compare The Best Forex Brokers

What You Need to Open a Forex Account 

To open a forex account with a broker, you simply need to provide you personal information and fund the account. 

Personal Information

• Account information: Brokers often prompt you to create an account as the first step of onboarding. This generally involves providing an email, creating a password, and verifying the account.
• Personal information: You will need to provide your full name, date of birth, and contact details including mailing address, email (if not already provided), and phone number.
• ID verification: You will need to provide a copy of government-issued ID, such as a driver’s license or passport, to verify your identity.
• Proof of address: You will need a bill or a bank statement that shows your name and address to confirm residency.
• Know your client information: You will be asked about your occupation, income, and investment information along with other questions to assess your financial situation, trading experience, and risk tolerance. 
• Financial information: Your bank account details may be requested for setting up funding via bank transfers. 

Minimum Deposits 

The minimum deposits for forex trading accounts can be quite low and may not even apply at all. Due to the role of leverage in forex trading, however, it is a good idea to have enough risk capital in the account to actually engage in meaningful trading. Even if you can open an account with a $0 minimum, trading with smaller account balances is difficult and can severely limit the range of price action you can handle on any one position. Although there is no hard and fast rule, a balance of $2, in risk capital is a good starting point for developing your FX trading skills.

Understand the Basics

In currency trading, the first currency listed is the base currency, and the second currency is the quote currency. For example:

USD/JPY

The USD/JPY currency pair is made up of the U.S. dollar as the base currency and the Japanese yen as the quote currency. The base currency is always one unit of currency, in this case, $1, and the quote currency is the figure that changes. In this example, $1 USD can buy Japanese yen. Throughout the day, this value will fluctuate up and down based on trading activity. 

Transacting in the most common currency pairs is typically very easy because these markets are very liquid, and have very narrow bid/offer spreads. Another important forex trading term is a pip, which is the smallest increment a market trades in. This is typically , although it is for USD/JPY. Spreads in FX are now so narrow that many of the currency pairs trade in tenths of a pip (out to a fifth decimal place; or a third for USD/JPY).

In EUR/USD (euro/U.S. dollar) trading, the euro is the base currency, and the quoted rate represents the dollars that each euro buys. Beyond these specialized terms, the foreign exchange market trades like other markets, where there are bids and offers for buying and selling that creates price action in the market. Like other markets, you also have access to trading orders, such as limit and stop loss orders, for entering, managing, and exiting positions.

In addition to outright trading of currencies, some forex brokers offer contracts for difference (CFD) for currencies and some commodities. These contracts allow traders to use significant leverage, up to , for trading currencies where there is no transfer of assets. Instead, they only settle the difference in value. That said, there are additional risks with contracts for differences that investors need to consider.

Options for Trading Forex

There are multiple options for trading foreign exchange. They include trading directly with a bank or financial services provider, trading currency futures listed on exchanges through a commodity trading account, and opening an account with a foreign exchange broker that essentially provides individual traders with access to the interbank market through its own platform.

Know the Risks

LIke any trading market, FX trading involves risk. Forex trading can be volatile, as markets can adjust very quickly to new information and news. While this is similar to many other markets, the market participants in forex also include central banks. With the largest banks making up a large share of the market, prices can fluctuate greatly during the day. Simply put, retail forex traders are small fish in a large ocean. While this volatility and price action appeals to many traders, the price swings involved also add to the risk of getting stopped out of positions and experiencing slippage on price fills. 

Moreover, leverage in currency trading is significantly greater than stocks, with some brokers offering up to leverage on more liquid currency pairs. This is significantly greater leverage than the leverage offered to stock traders that establish short positions. Leverage presents greater profitability to traders, but that opportunity also involves commensurate risk on losses. The supercharging effect of leverage makes trade selection, size, and position management very important for controlling risks. It should also be noted that less active currency pairs may have even more extreme moves due to having less liquidity. 

Types of Forex Markets 

The types of foreign exchange trading include spot, forward, and futures. 

Spot Forex Market 

Spot foreign exchange is the outright exchange of one currency for another at the time of the trade for a specific exchange rate. Spot FX trades typically settle with the actual exchange of currencies at the rate traded two days after the trade. There are some exceptions to the spot plus two-day settlement, most notably USD/CAD (US dollar vs. Canadian dollar) which settles one day after the trade date. When people are talking about the FX market, they are usually talking about the spot currency market. 

Forward Forex Market 

Forward foreign exchange represents a contract between two parties to exchange a set amount of one currency for a set amount of another currency on a specific date in the future. The difference in this future FX rate from the current spot rate is a function of interest rate differentials. While the specifics of forward forex trading are not standardized, the market provides users with the flexibility to hedge specific risk amounts over specific days. An example would be locking in the forward foreign exchange rate for a company that needs to meet a payroll for a specific amount on a specific date.

Counterparties trying to set a fair currency rate for the future will use the current spot exchange rate, then adjust it based on interest rate differentials for the time period of the transaction. This adjustment is made to compensate the participant with exposure to the currency that has the lower interest rate.

Futures Forex Market 

There are also exchange traded futures contracts, which are similar to forward foreign exchange, but have fixed contract terms and trade on regulated futures exchanges. Currency futures contracts in the US are based on one currency, and the contract is cash settled in US dollars. While these markets are standardized, they do not allow users to hedge specific date risks or amounts, all of which is possible in the forward forex market.

Factors to Consider When Opening a Forex Account 

There are a number of factors to consider when opening a foreign exchange account. Factors to consider include the commissions and fees charged, minimum investment amounts for both funding the account and position size, and the number of currency pairs available to trade. Other considerations include the research tools and trading platform, whether demo accounts are available for practice, and the quality of the broker’s customer service. 

Fees: Brokerage fees for foreign exchange trading are generally very reasonable. There are two primary payment methods. One is to pay brokerage on trades, which usually work as a rate on the notional amount traded and are tiered lower for higher trading volumes. The other primary method is no brokerage fee, but wider bid/offer spreads that price the brokers’ fees into the trading price. Whether you prefer to pay your fees as basis points on the trade size or through pricing spreads will likely depend on how actively you are trading and the average trade size.

Account minimums: Account minimums for foreign exchange brokerage are generally very low. Accounts can typically be opened without any money, and funding requirements can be as low as $ As mentioned previously, however, you will want more than $ in the account to really begin trading.

Number and quality of supported markets: Some brokers support up to currency pairs, but there is a great difference in liquidity in the various markets. The top seven most actively traded currency pairs represent 75% of all FX trading, and these markets are very active. Once you get beyond these currency pairs, there is a wide difference in liquidity. Traders can access less actively traded pairs by creating positions using the U.S. dollar as the pivot. As most currencies have a U.S. dollar pair, you can take up offsetting positions to create a synthetic currency pair. There would be an available market for this much less active currency pair, but the spreads would be wider and there would not be nearly as much liquidity in this market. 

Research tools: Research tools, such as the quality of technical analysis and fundamental news, are also important factors for a foreign exchange trader. How fast these tools populate data becomes very important for trading fast-moving currency markets. Equally important, whether these tools integrate smoothly into the trading platform can make a difference in the trading experience. Some of the best interfaces allow for smooth indicator overlays and trading directly from charts. Some traders may want to be able to integrate their current charting or third-party analytical tools into their chosen platform for currency trading, so that is another potential consideration.

Demo account: Demo accounts are a great way to become familiar with trading a particular market on a broker’s platform. Traders new to forex trading would be smart to choose a broker with demo trading so they can learn how to place orders and manage positions effectively without having to commit capital first. Demo accounts allow users to become comfortable with the platform and its various tools prior to trading for their own account. 

Customer service: While many forex traders are comfortable using the trading platform of their chosen FX broker, newer customers may want to consider the quality of customer service offered by their broker. Some are quicker to answer the phone, and others less so. Brokers may also have automated assistance and chat functionality to assist customers. 

FAQs

Live Forex and CFD Charts - Data & Tools

Live Charts (Euro / US dollar)

How to read a chart?

Charts visually display past and current price data. There are various types of charts like the line chart, the bars chart or the most popular one, the candlesticks chart.

The live line chart displays the closing price for any given timeframe. So, if you open a line chart and you want to see the price on a 1-hour timeframe, then you will see a line that connects the closing price every hour.

The live bars chart shows not only the closing price but also the high and the low that the price reached on any given timeframe. So, if you open for example a 1-hour bars chart, you will see the open price of the bar (the segment on the left), the closing price (the segment on the right), the highest price reached in that timeframe (which will be above the open price) and the lowest price reached in that timeframe (which will be below the open price).

If the bar closes above the open price, then you will see it as green and if it closes below the open price, you will see it as red. Note that you can choose any colour you want for your charts, but the green and red are generally the most used ones because they visually show if the bar closed positive compared to the open price (green) or negative (red).

The candlesticks live chart is the most popular one and you will see it everywhere in the financial world. It’s basically an evolution of the bars chart and it makes it even easier to look at the price. It shows the same data as the bars chart, that is the open, the highest, the lowest and the closing price, but instead of being displayed in the form of bars that can be hard to look at, it’s in the form of candlesticks.

You have the body of the candlestick that shows the open and the closing price and the wicks showing the highest and the lowest price reached on the timeframe you selected. When the closing price is above the open price you will see a green candle and when it’s below the open price it will be red. As previously mentioned, you can use any colour you prefer for the candlesticks.

The last thing you need to know about charts is that they are plotted on two axes. The horizontal axis shows you the time and the vertical axis shows you the price. The price always goes to the right, and you look left when you want to see past price data. When the price is rising it’s called a bullish price action and when the price is falling it’s called a bearish price action.

What time frames should I use on my live charts?

When you open a price chart there are multiple timeframes you can choose from that range from 1 minute to even monthly. The most popular timeframes are the 5 minutes, the 15 minutes, the 1 hour, the 4 hour, the daily, the weekly and the monthly. What timeframe to use depends on you and on the type of trading opportunities you want to take.

Let’s say for example you want to take short term trades, in this case you want to look at faster timeframes like the 5 minutes, the 15 minutes or the 1 hour charts. This is because you will see the price action more in real time than let’s say a weekly timeframe. If you are someone that doesn’t have time to look at such fast timeframes or you are just someone who wants to take more long term trades, then timeframes from 1 hour to daily would be a better choice.

Generally, the lower time frames are noisier because you will see the price react to different daily drivers like news, rumours, economic data, central bank speeches, reports, geopolitical developments and so on. Most of those drivers may not be important for the market in the bigger picture, but in the short term they may cause the price to spike here and there. This doesn’t mean you can’t trade those events, but you should be more wary and nimble.

On the other hand, the higher time frames are less prone to such noisy price action because it takes more time for a candlestick to close. This fact kind of smoothens the price action and lets the trader to focus more on the bigger picture without getting distracted by spikes or daily ups and downs that may induce to some emotional mistake like entering a trade just because the price starts to move in a certain direction quickly and you don’t want to miss the move.

How to use a chart to identify a trend?

In technical analysis a trend is identified by a series of swing highs and swing lows. In an uptrend the price makes higher highs (swing high) and higher lows (swing low) while in a downtrend the price prints lower lows (swing low) and lower highs (swing high).

It may look easy from the chart above but not only the swing highs and swing lows can be subjective, but you can also find different trends on different timeframes. For example, you may have an uptrend on a 5 minutes chart but a downtrend on a 1 hour chart. Generally, the higher timeframe is regarded as stronger than the lower one. So, if you have a downtrend on a 1 hour chart and an uptrend on a 5 minutes chart, technical analysts will look at signs of the uptrend on a 5 minutes chart fading before calling a resumption of the higher timeframe downtrend.

Another way technical analysts identify trends on charts is via moving averages. A moving average is a technical indicator that smooths out the price action and plots a constantly updated average price with a line. If for example you want to use a 50 period moving average, then the indicator will take the previous 50 closing prices and divide by 50 to get the average price. Every time there’s a new closing price the indicator will update the average price and so on giving you a line of average prices.

The most popular moving averages are the EMA20 (exponential moving average of the last 20 bars), followed by SMA (Simple moving average) of 20, 50, the and period moving averages. When the price is above the moving average then it is said to be in an uptrend, and when it’s below the moving average, it is said to be in a downtrend. So, you can either just look at the swing highs and swing lows by eye, use the moving averages or combine both methods to better identify different trends.

How to use indicators?

Indicators can help technical analysts to better navigate the noise in the markets. Technical indicators take data from the price and, depending on the indicator, they can show if the price is trending or ranging, if it’s too much stretched to one side or if the momentum is fading.

Indicators should not be used on their own but as an extra confluence to the overall analysis. The most popular indicators are the moving averages and the oscillators like the RSI or MACD. They serve different purposes, but the ultimate goal is to better make sense of the price action.

Moving averages are used to identify trends and to provide dynamic support and resistance for the price. For example, if the price is above a moving average, then it is said to be in an uptrend and generally the technical analyst will look at possible points on the chart where the price may pullback to and then bounce off of. Most often it’s the moving average itself that can provide support for the price.

Oscillators are used to identify momentum and possible turning points. The most used ones are the RSI and the MACD. The Relative Strength Index (RSI) tries to gauge the strength or weakness of the price based on a formula. The RSI is measured on a scale from 0 to and a default period of 14 most recent closing prices.

The RSI is also said to be in overbought or oversold territory whether it crosses the 70 or 30 levels respectively on the scale. The idea behind it is that the price can’t sustain the momentum at such extreme levels and, even if it doesn’t mean a change in trend, the price may be bound to a pullback so a trader may want to wait before entering at such extreme levels or even take a counter-trend trade.

The Moving Average Convergence/Divergence (MACD) is used to gauge the price momentum and trend. The MACD is composed of three indicators: the MACD line, the signal line and the histogram. The signal line is a faster moving average compared to the MACD line and it’s used with the MACD line to gauge the trend direction when the two lines cross to the upside or downside.

When the MACD line crosses the Signal line to the upside it can indicate the beginning of an uptrend momentum and when it crosses the Signal line to the downside it may signal the start of a downtrend momentum. The histogram visually displays the magnitude of the distance between the MACD line and the signal line. The histogram can signal overbought or oversold conditions when the two lines diverge too much.

When the histogram rises well above the baseline at 0, the price momentum may fade a bit as it becomes overstretched and prone to a pullback and vice versa when the histogram falls too much below the 0 baseline.

Popular chart patterns

A chart pattern is a recognizable configuration of price movement that is identified using a series of trendlines or support and resistance levels. Chart patterns can signal reversals or continuation of trends.

There are many timeframes that can be used and there can be many patterns at any given time that can make all the process confusing. You should look at chart patterns as if they were a reflection of current market sentiment/momentum. If you see, for example, price consolidating after a bull run caused by a fundamental catalyst giving you a flag pattern, you know that that can signal a further bullish momentum once the flag gets broken.

Chart patterns can help a technical analyst to identify possible future price moves. Remember though that patterns will rarely look like textbook examples, because there’s a lot of noise in the market and you will often see spikes or “ugly” price behaviour that may make spotting patterns harder for you, so always be open-minded and don’t follow strict rigid rules like a robot, you always have to adapt.

DOUBLE TOP/BOTTOM CHART PATTERN

Double tops or bottoms can signal areas where the market has made two unsuccessful attempts to break through. Double tops look like an “M”, while double bottoms look like a “W”. You can even find triple tops or triple bottoms that have the same psychology behind them as for double tops and bottoms. These patterns are considered reversal patterns, meaning that the price upon successful completion of the pattern goes the opposite way reversing the previous trend.

Generally, once the price breaks the neckline it confirms the pattern and it can either continue on its way or come back to the neckline for a retest and then continue again the new trend. Sometimes the price may even hover near the neckline before making the real move.

HEAD AND SHOULDERS CHART PATTERN

The head and shoulders pattern signals a weakening momentum where price cannot sustain a further push to the upside breaking the previous high or low and just drops through the neckline. The base created by the previous swing (blue line) is called “the neckline” and once broken it “confirms” the validity of the H&S pattern.

Once the price breaks the neckline it can either continue in the new direction or come back for a retest of the neckline before continuing again.

TRIANGLES CHART PATTERN

Triangles are continuation patterns. Triangles signal a consolidation due to indecision or lack of fundamental drivers in the market. A symmetrical triangle can be broken on either side and it can help showing where the price wants to go. A descending triangle generally breaks to the downside as the price keeps pushing against the support and then breaches it.

An ascending triangle usually breaks to the upside as the price tries multiple times to break the resistance and eventually succeeds. Note though that even descending and ascending triangles can break on either side. Beware not to be too carried away by the price action when spotting triangles as they can be prone to spikes that look like false breaks.

FLAGS CHART PATTERN

Flags are a short-term consolidation type of pattern and generally they signal a continuation of the underlying trend. The price generally makes the first impulsive move and then goes into a slow consolidation that looks like a flag. Once the price breaks out of the flag it starts to run.

WEDGE CHART PATTERN

Wedges signal a weakening momentum. They are considered a reversal pattern. The psychology behind it is that the price keeps on pushing in a certain direction but with less and less strength and at some point it just can’t sustain it anymore and goes in the other direction.

How to become a better chart analyst!

A good technical analyst thinks in probabilities. When you make your chart analysis using the tools you have learnt, you should always have more possible outcomes. A chart doesn’t tell you where the prices will go, but it can show you different scenarios that may play out based on your analysis. For example, if you see the price at a support level you know that the price may either bounce from it or break down and keep falling. You have two possible outcomes, and you can prepare for both of them.

If you see that the price has come to a spot where there are multiple technical tools suggesting a bounce from there, then you know that you have higher probabilities that the price indeed bounces from there, but if it doesn’t then it means that the momentum is so strong that not even such a good spot can hold the price. It tells you that it’s more probable now that the price continues up because it had the strength to break that strong spot.

Being a good chart analyst requires knowledge, experience, and open mindedness. Your job is to manage risk, and this implies being aware of different situations in order to better prepare for each scenario. This kind of planning will increase your chances of success and your skills as a chart analyst.

Technical Analysis Examples? We got ‘em!

Last but not least, a good way is to follow the eunic-brussels.eu Technical Analysis section where we analyze currencies, stocks, crypto, futures (Nasdaq, Russell, S&P, Dow Jones) commodities and other asset classes. This could be a good way for practical learning as well as get some trade education and possible ideas (always trade at your own risk).

Forex (FX): How Trading in the Foreign Exchange Market Works

What Is the Forex or FX?

The foreign exchange market, commonly referred to as the Forex or FX, is the global marketplace for the trading of one nation's currency for another.

The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands every day. It has no centralized location, and no government authority oversees it.

Rather, the forex is an electronic network of banks, brokerages, institutional investors, and individual traders (mostly trading through brokerages or banks).

Key Takeaways

• The forex is a global marketplace for exchanging national currencies.
• Foreign exchange venues comprise the largest securities market in the world by nominal value, with trillions of dollars changing hands each day.
• Foreign exchange trading uses currency pairs, priced in terms of one versus the other.
• Forwards and futures are another way to participate in the forex market.

Understanding the Forex

The Forex market determines the day-to-day value, or the exchange rate, of most of the world's currencies. If a traveler exchanges dollars for euros at an exchange kiosk or a bank, the number of euros will be based on the current forex rate. If imported French cheese suddenly costs more at the grocery, it may well mean that euros have increased in value against the U.S. dollar in forex trading.

Forex traders seek to profit from the continual fluctuations of currency values. For example, a trader may anticipate that the British pound will strengthen in value. The trader will exchange U.S. dollars for British pounds. If the pound then strengthens, the trader can do the transaction in reverse, getting more dollars for the pounds.

Currency Pairs

In forex trading, currencies are listed in pairs, such as USD/CAD, EUR/USD, or USD/JPY. These represent the U.S. dollar (USD) versus the Canadian dollar (CAD), the euro (EUR) versus the USD, and the USD versus the Japanese yen (JPY).

There will also be a price associated with each pair, such as If this is the USD/CAD pair, it means that it costs CAD to buy one USD. If the price increases to , then it now costs CAD to buy one USD. The USD has increased in value against the CAD, so it now costs more CAD to buy one USD.

In the forex market, currencies trade in lots, called micro, mini, and standard lots. A micro lot is 1, worth of a given currency, a mini lot is 10,, and a standard lot is , Trades take place in set blocks of currency. For example, a trader can exchange seven micro lots (7,), three mini lots (30,), or 75 standard lots (7,,).

Trading volume in the forex market is generally very large. Trading in the foreign exchange markets averaged $ trillion worth per day in April , according to the Bank for International Settlements. 

The largest trading centers are London, New York, Singapore, Hong Kong, and Tokyo.

Trading in the Foreign Exchange Market

The Forex market is open 24 hours a day, five days a week around the globe. 

Historically, foreign exchange market participation was for governments, large companies, and hedge funds. In today's world, trading currencies is as easy as a click of a mouse and accessibility is not an issue. Many investment companies allow individuals to open accounts and trade currencies through their platforms.

This is not like a trip to a foreign exchange kiosk. The process is entirely electronic with no physical exchange of money from one hand to another.

Rather, traders are taking a position in a specific currency in the hope that there will be some upward movement and strength in the currency that they're buying (or weakness if they're selling) so that they can make a profit. 

Forex Market vs. Other Markets

There are some fundamental differences between foreign exchange and other markets.

First of all, there are fewer rules, which means investors aren't held to strict standards or regulations like those in the stock, futures, and options markets. There are no clearing houses and no central bodies that oversee the forex market.

Second, since trades don't take place on a traditional exchange, there are fewer fees or commissions like those on other markets.

Next, there's no cutoff as to when you can and cannot trade. Because the market is open 24 hours a day, you can trade at any time.

Finally, because it's such a liquid market, you can get in and out whenever you want and you can buy as much currency as you can afford.

Types of Forex Transactions

Forex traders transact in one of three distinct marketplaces: the spot, the forward, or the futures market. To find the best entry and exit point for a trade, they will use a variety of analysis techniques.

The Forex Spot Market

The spot market is the most straightforward of the Forex markets. The spot rate is the current exchange rate. A transaction in the spot market is an agreement to trade one currency for another currency at the prevailing spot rate.

Spot transactions for most currencies are finalized in two business days. The major exception is the U.S. dollar versus the Canadian dollar, which settles on the next business day.

The price is established on the trade date, but money is exchanged on the value date.

Role of the U.S. Dollar

The U.S. dollar is the most actively traded currency. The most common pairs are the USD versus the euro, Japanese yen, British pound, and Australian dollar.

Trading pairs that do not include the dollar are referred to as crosses. The most common crosses are the euro versus the pound and the euro versus the yen.

The spot market can be very volatile. Movement in the short term is dominated by technical trading, which bases trading decisions on a currency's direction and speed of movement. Longer-term changes in a currency's value are driven by fundamental factors such as a nation's interest rates and economic growth.

The Forex Forward Market

A forward trade is any trade that settles further in the future than a spot transaction. The forward price is a combination of the spot rate plus or minus forward points that represent the interest rate differential between the two currencies.

Most forward trades have a maturity of less than a year in the future but a longer term is possible. As in the spot market, the price is set on the transaction date but money is exchanged on the maturity date.

A forward contract is tailor-made to the requirements of the counterparties. They can be for any amount and settle on any date that is not a weekend or holiday in one of the countries.

Forex Futures

Unlike the rest of the foreign exchange market, forex futures are traded on an established exchange, primarily the Chicago Mercantile Exchange.

Forex futures are derivative contracts in which a buyer and a seller agree to a transaction at a set date and price.

This type of transaction is often used by companies that do much of their business abroad and therefore want to hedge against a severe hit from currency fluctuations. It also is subject to speculative trading.

Example of a Forex Trade

A trader thinks that the European Central Bank (ECB) will be easing its monetary policy in the coming months as the Eurozone’s economy slows. As a result, the trader bets that the euro will fall against the U.S. dollar and sells short €, at an exchange rate of Over the next several weeks the ECB signals that it may indeed ease its monetary policy. That causes the exchange rate for the euro to fall to versus the dollar. This creates a profit for the trader of $5,

By shorting €,, the trader took in $, for the short sale. When the euro fell, and the trader covered the short, it cost the trader only $, to repurchase the currency. The difference between the money received on the short sale and the buy to cover it is the profit.

Had the euro strengthened versus the dollar, it would have resulted in a loss.

Pros and Cons of Forex

Pros

The forex was once the exclusive province of banks and other financial institutions. The internet has blasted the doors wide open.

Entry costs are low and the marketplace is open around the clock. There are many choices of forex trading platforms, including some that cater to beginners. There also are online forex trading courses that teach the basics.

Cons

Those financial institutions and the traders who work for them are still there, alongside the neophytes working from home. They have deep pockets, sophisticated software that tracks currency price movements, and teams of analysts to examine the economic factors that make currency rates move.

Currency trading is a fast-moving, volatile arena, quickly impacted by changes in global events. It's a risky business and can be made riskier by the use of leverage to increase the size of bets.

It's an easy way to lose money fast. Anyone willing to jump into Forex should get the necessary training in advance and start slowly with a minimal stake.

Pros and Cons of Forex

Pros

• Accessible to individual investors through online trading platforms.

• Open 24 hours a day world-wide.

• Relatively light regulation or oversight.

Cons

• Dominated by professionals and institutions with deep pockets.

• Volatile prices subject to sudden swings based on news.

• Relatively steep learning curve for newcomers.

Forex Terms

There are a number of terms that are used by Forex traders. Here are some of the basics.

Going long: Buying a currency on the belief that its value will increase in a matter of hours. Then it can be sold for a profit.

Going short: Selling a currency on the belief that its value will decrease. It can then be repurchased at a lower price.

Currency pair: Every Forex transaction is an exchange of one currency for another. A currency pair quote looks like this: USD/GBP = $ In this example, the U.S. dollar is the base currency, and the British pound is the quote currency. A trader who wishes to buy British pounds will pay $ for each.

The ask: The price the trader will pay to buy a currency pair.

The bid: The price the trader will pay to sell a currency pair.

The spread: The difference between the buying price and the selling price.

Major Currency Codes on the Forex

Just seven currency pairs represent the majority of trades on the Forex. They are:

EUR/USD (Euro/U.S. dollar)

USD/JPY (U.S. dollar/Japanese yen)

GBP/USD (British pound/U.S. dollar)

AUD/USD (Australian dollar/U.S. dollar)

USD/CAD (U.S. dollar/Canadian dollar)

USD/CHF (U.S. dollar/Swiss franc)

NZD/USD (New Zealand dollar/U.S. dollar)

How Big Is the Forex Market?

The daily trading volume on the forex market dwarfs that of the stock and bond markets.

According to the latest triennial survey conducted by the Bank for International Settlements (BIS), trading in foreign exchange markets averaged $ trillion per day in  By contrast, the total notional value of U.S. equity markets on Dec. 31, , was approximately $ billion.

What Is Foreign Exchange Trading?

When you're making trades in the forex market, you're buying the currency of one nation and simultaneously selling the currency of another nation.

There's no physical exchange of money. Traders are taking a position in a specific currency, with the hope that it will gain in value relative to the other currency.

How Does the Forex Market Differ From Other Markets?

The Forex is a decentralized market. It has no physical existence and no owner or management.

There are no clearing houses or central bodies to oversee the forex. That means traders aren't held to strict standards or regulations, as are seen in the stock, futures, or options markets.

It also means there are fewer fees and commissions to pay.

The Bottom Line

The forex, or FX, is the global marketplace for the exchange of currencies. As such, it determines the value of one currency against another in the real world.

Forex prices determine the amount of money a traveler gets when exchanging one currency for another. Forex prices also influence global trade, as companies buying or selling across borders must take currency fluctuations into account when determining their costs. Inevitably, the forex has an impact on consumer prices, as global exchange rates increase or lower the prices of imported components.

Dukascopy Bank SA

Dukascopy offers its free Live Forex Chart, a user-friendly widget for analyzing Forex, Commodities (oil, gas, etc), precious metals (gold, silver etc), stocks, ETFs, indices, crypto, and bonds markets. The live Forex chart widget can be inserted in any web site free of charge and accessed from various PCs via a login.

Unlike others, the chart widget can be greatly useful for not only full-time traders but also beginners.

Choose more than “60 indicators” available, and use the intuitive charting options with the “Candle,” “Line,” or “Bar” charts. Be able to see the current market “News” on the spot, choose the “Tick” settings, and elevate your analysis in minutes. Real-time quotes and continuously updated data are available! Get started!

FAQ

E​xness (SC) Ltd ​is a Securities Dealer registered in Seychelles with registration number and authorised by the Financial Services Authority (FSA) with licence number SD The registered office of E​xness (SC) Ltd is at 9A CT House, 2nd floor, Providence, Mahe, Seychelles.

Exness B.V. is a Securities Intermediary registered in Curaçao with registration number (0) and authorised by the Central Bank of Curaçao and Sint Maarten (CBCS) with licence number LSI. The registered office of Exness B.V. is at Emancipatie Boulevard Dominico F. “Don” Martina 31, Curaçao.

Exness (VG) Ltd is authorised by the Financial Services Commission (FSC) in BVI with registration number and investment business licence number SIBA/L/20/ The registered office of Exness (VG) Ltd is at Trinity Chambers, P.O. Box , Road Town, Tortola, BVI.

The entities above are duly authorized to operate under the Exness brand and trademarks.

Risk Warning: Our services relate to complex derivative products which are traded outside an exchange. These products come with a high risk of losing money rapidly due to leverage and thus are not appropriate for all investors. Under no circumstances shall Exness have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from, or relating to any investing activity. Learn more.

The entities above do not offer services to residents of certain jurisdictions including the USA, Iran, North Korea, Europe, the United Kingdom and others. 

The information on this website does not constitute investment advice or a recommendation or a solicitation to engage in any investment activity.

The information on this website may only be copied with the express written permission of Exness.

Exness complies with the Payment Card Industry Data Security Standard (PCI DSS) to ensure your security and privacy. We conduct regular vulnerability scans and penetration tests in accordance with the PCI DSS requirements for our business model.

¹At Exness, 95% of withdrawals are processed instantly (under 1 minute). Once your funds leave our custody, it's up to your chosen payment provider to process the funds and credit your account.