What spreads do retail brokers offer in forex?

Retail brokers are all the same, aren’t they?   It is usually not true when it comes to forex spread betting. While all retail brokers offer the standard market spreads on major currency pairs, there are often significant differences in offering other financial instruments.   It can help you tremendously when deciding which broker to adopt because you will be able to trade different instruments at much tighter spreads than many of your competitors.   Some firms have much more comprehensive offerings than others, so having tight spreads could prove very beneficial over time if you use any of these Continue Reading →

The Difference Between Forex and Commodity Trading

What’s the difference between commodity trading and forex trading, you ask? Commodity Trading It’s simply that commodities are agricultural products such as cocoa beans, pork bellies and rice. In contrast, forex or foreign exchange is the trade of any financial instrument that has monetary value.   Commodity traders deal in so-called commodities. These are raw materials that have a variety of different uses, such as oil or precious metals. Commodity traders work together with large companies to provide them with these raw materials.   A commodity trader will generally buy something when there is an abundant supply and then sell Continue Reading →

Options when Trading

Options are financial products giving you the ability to trade on a market’s future value. When an option is purchased, a premium is bought for rights to trade any market at set prices. This is to happen before the expiration date reaches. Options are also the same as futures in this regard. However, unlike futures, options do not come with a trade obligation, so you don’t have to if you don’t want to trade. For example, if gold sells at $1300 this entire week, and the price hits $1325, you can choose to exercise the options you have to purchase Continue Reading →

CFD Trading – Understanding The Risks Of CFDs

Contracts for differences (CFDs) are contracts between a buyer and a seller. The two parties agree to exchange the differences between the price of an underlying asset at the opening and closing of the contract. This is where the form of trade derives its name. CFDs are a type of derivative. This means they get their value from their underlying assets. So those who tease CFDs don’t trade any assets directly i.e. they don’t buy or sell the assets. They simply speculate on the price movements of the underlying assets. CFD contracts are usually settled in cash meaning that no Continue Reading →

CFD Trading Strategies

Trading CFDs is a relatively new activity gaining lots of interest among forex traders. CFDs are derivative products. Before entering into the trade, the trader must sign a contract between you and your CFD broker. The agreement allows the broker to pay the trader the opening position and the closing amount difference. CFD trading is a complex and highly leveraged product. However, it boosts your trading portfolio by investing minimal capital. Your work as the trader is to speculate on the market value of the price, while your broker does actual trading. One of the most attractive features of CFD Continue Reading →