Questions frequently asked by clients & partners and answered by out team of expert brokers & professional economists.

Essentially, swing trading is somewhere between day trading and trend trading, in that it rides trends that are on average, weeks long, as opposed to within one day or over the course of several years. A swing trade is effective during bear and bull markets, but not during cautious, flat-lining periods between. Positive and negative economic news and events have a greater impact on the direction of an asset’s price during the general upward or downward trajectory that benefits swing traders. This makes swing trading an easier method to understand than others.

Swapping currency involves exchanging one unit for another unit of a different currency. These contracts are mainly used to manage business expenses through companies that operate in many currencies, and to avoid any possible risk of changing financials due to the exchange rate.

FX swaps offer benefits to companies that have contracted suppliers and are paying monthly amounts in foreign currencies, since the cost remains the same regardless of the exchange rate. In the event of a change

Essentially, options provide the contract holder with the right to exercise their position whenever they choose – but not the requirement. Call options allow you to purchase a currency pair at a set price prior to the option’s expiration. Put options let you sell the option before it expires.

Contracts do not guarantee holders will receive actual currency, however as derivatives, movement in an underlying asset is valuable.

Charts that display data over a long time period using visual cues are known as candlestick charts. A chart represents the changes in price over time through a number of candle icons. The icons indicate hourly, daily, or other time quantities.
Traders can determine whether the overall period was positive or negative based on the candles’ body and color: the starting and ending price, the price range for a certain period, and the color of the candles.

There are many advantages to trading futures, and the most significant of them is flexibility. Futures have a wide range of trades for experienced investors to choose from, so there is a strategy for every scenario.

A majority of Futures markets are also open 24/7. Their commissions are also very low, aside from being extremely liquid.

EFEXFX supports all the trading platforms it provides, including the mobile trader, web trader, standard platform, and all of the MetaTrader 4 versions, so you can place orders with special features such as stop losses and take profits in any of those platforms.

Options contracts differ from futures contracts primarily in their closing conditions. Options are aptly named since the holder has the option to buy or sell a specific asset. Typically, a future contract holder is required to deliver an asset at a future time.

The ability to predict the future direction of an asset increases with adequate data on price and volume, as well as a thorough understanding of the whole topic.
The past is a much better predictor of the future than nothing at all. A trader’s chances of success can be increased by performing technical analysis properly.

Leverage can be utilized in options contracts. Therefore, when compared with outright buying the shares themselves, a trader can control exactly the same amount of equity. They react in the same way as specified in the contracts. A trader can diversify with the remaining funds to reduce risk.

Making consistent profits through day trading is not easy, but by working hard, conducting thorough research, and knowing the best trading strategies you can achieve it.urning consistent profits through day trading is not a simple task, but with some hard work, comprehensive research, and thorough knowledge of trading strategies, it is entirely possible.

The single most important factor driving stock prices is investor sentiment. Stocks are best sold short when they are about to drop in price, but why are prices falling?
Investors may sell a stock when they perceive their main revenue streams are under threat by competition, when the company reports poor sales for the quarter, or if the interest rate rises, creating an opportunity for shorting.