Connect with us

Demo Trading

Forex Trading in Hungary • Forex Strategies • Benzinga

Hungary’s forex market continues to mature with its overall economy. The National Bank of Hungary (MNB) has taken a more active role in changing the public perception of foreign exchange. It has also created a secure environment for trading as one of the only central banks in Europe that is also an independent regulatory body.

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Hungary’s forex market continues to mature with its overall economy. The National Bank of Hungary (MNB) has taken a more active role in changing the public perception of foreign exchange. It has also created a secure environment for trading as one of the only central banks in Europe that is also an independent regulatory body.

Attribution: Wikimedia

Hungary also abides by the directives of the Markets in Financial Instruments Directive (MiFID) and the European Economic Area (EEA) Agreement. The result is that many unscrupulous brokers simply choose to steer clear of Hungary, making way for Hungarian forex investors to have solid connections to the market.

Get Started with Forex in Hungary

Hungary’s secure regulatory infrastructure does not relieve you of the responsibility to your own financial health. No regulatory system can catch everyone who is trying to commit fraud. Make sure that your personal financial infrastructure is solid so that you can trade knowing that you are protected.

  1. Internet: Connecting to the internet should be a relatively simple process if you live in the more developed areas of Hungary. Make sure that your connection is solid and private — it is best not to trade over public connections.
  2. Broker: The MiFID, EEA and MNB all regulate forex brokers that are doing business in Hungary. This is a start, but you also need a broker that provides services beyond the minimum officially required. Integration into your personal financial system and good customer service are also very important.
  3. Bank: Brokers that are in compliance with Hungary’s strict standards must keep your money separate from theirs. They must also provide a certain level of security for your deposits and withdrawals. You can check a broker’s terms of service to see exactly what you should get. Don’t be afraid to pay higher fees for better service, especially if you plan on using margin.
  4. Funding: Once you have vetted your broker and tested your bank connection, you should feel confident to fund your investment account through your attached bank or credit card. Some brokers are also integrated with popular fintech apps.
  5. Interface: Your trading interface should provide you an intuitive landscape from which to make your trades. It should be streamlined to add no latency to your software chain. It should also work well with your preferred device, whether that is a desktop setup or a smartphone.
  6. Trading: You can now start investing in the forex market safely. You should probably begin with your broker’s demo account (the account that trades with fake money).

Hungarian Forex Trading Strategies

Your personality is vitally important when learning how to trade forex. If you do not have the patience for position trading, you may like day trading more, or vice versa.

Day Trading

Your internet connection and broker play a huge part in your success as a day trader. Because of the speed and frequency of trades in this space, day traders need to consume information in real time and have access to an uninterrupted feed. Make sure that your broker can do this without slowing down your execution. You may have to exit a trade within seconds of entering it and you can’t do this if you are experiencing downtime or buffering.

Swing Trading

Swing traders are masters of the hourly and daily price charts. They don’t trade with an extremely high frequency like day traders, but they may keep many investments open at one time. Swing traders may have to let a position develop over days or weeks. News that affects the price of a currency does not always take effect immediately, but the swing trader is an expert on how certain news will affect a currency pair.

Positional Investing

Positional investors are the investors who buy and hold for long periods of time. The irregularities between price and value show themselves over months or years, so investments based on this may take that long to develop. Charts, indicators and news cycles are not as important to this type of investor. If you like translating the political relationships between countries into economics, then position trading may be for you.

Forex Trading Example in Hungary

0.0032/0.0036 is the price right now for the HUF/USD currency pair. Because you think this bid/ask spread is low, you order Ft1,250,000 with your broker. The margin rate on HUF/USD is 5.33%. You can control an Ft1,250,000 investment with $226.53 cash in your account. 

After 6 hours, the HUF/USD price is 0.0040/0.0044. This is a 4-point move that makes you a total profit of (Ft1,250,000 x 0.0040) – (Ft1,250,000 x 0.0036), or $500.

Making Money with Forex in Hungary

Attribution: Netcials

Now that you are trading according to your personality, you can move into the day to day strategies that will make money in the forex market.

  • Short selling: Short sellers sell weak currencies against strong ones and profit when the weaker currency falls in value.
  • CFDs: Contracts for differences let you follow the price of a currency without owning it.
  • Binary options: Most options track currency prices directly, but binary options offer only a yes or no scenario.

Best Online Forex Brokers in Hungary

There are plenty of forex brokers that are regulated through the MNB, but this is just a minimum standard. Make sure that your chosen broker provides you with the ability to move money and answer your questions quickly.

Account Minimum

$100 USD (or equivalent)

Pairs Offered

69

Account Minimum

100 of your selected base currency

Pairs Offered

80+

Account Minimum

100 of your selected base currency

Pairs Offered

80+

1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account
Account Minimum

$50 USD

Pairs Offered

47

Account Minimum

$50 USD

Pairs Offered

47

1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
Account Minimum

100 EURO

Pairs Offered

50+

Account Minimum

100 EURO

Pairs Offered

50+

1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

Forex Terminology

Forex shorthand is a way that market investors communicate with one another easily. Here are some of the most important terms.

  • Pip: $0.0001, shorthand for “percentage in point”
  • Lot size: Your order size
  • Orders: The way you describe your buy or sell in the market
  • Calls: A contract to control a future currency order

A Culture of Investing

Hungary has a reputation for investing, and its government seems as though it wants to create more investors in the future. If you are trading forex from Hungary, you have the advantage of a strong regulatory body and a solid currency. Build your personal financial infrastructure carefully, and you will be in a strong starting position to trade.

If you are looking for up to date information and the latest strategies for the forex market, bookmark this website and check back often.

Continue Reading
Advertisement

Broker news

Donald Trump blasts ‘fools’ who oppose good Russian ties

US President-elect Donald Trump has posted a progression of tweets censuring the individuals who contradict great relations with Russia as “‘dumb’ individuals, or nitwits”.

Mr Trump promised to work with Russia “to comprehend a portion of the numerous… squeezing issues and issues of the WORLD!”

His remarks came after an insight report said Russia’s leader had attempted to help a Trump race triumph.

Mr Trump said Democrats were to be faulted for “gross carelessness” in permitting their servers to be hacked.

In a progression of tweets on Saturday, Mr Trump said that having a decent association with Russia was “no terrible thing” and that “lone “idiotic” individuals, or simpletons, would believe that it is awful!”

He included that Russia would regard the US increasingly when he was president

Continue Reading

Broker news

Bulls and Bears Took on More Currency Exposure in Week Through January

he most striking improvement among theoretical situating toward the finish of a year ago and the primary session of 2017 is not that modification were little. There was just a single gross theoretical position modification of more than 10k contracts. With sterling apparently not able to maintain even humble upticks, the bears added 13.1k contracts to the gross short position, lifting it to 120.2k contracts.

Or maybe, it is eminent that examiners for the most part added to positions, long and short, as opposed to close positions at the very end of the year. Examiners added to net long outside cash prospects positions, aside from in the Japanese yen and Swiss franc where 2.6k and 2.5k contracts were exchanged separately. Examiners likewise added to gross short positions. Here there was just a single exemption, the Japanese yen. Despite the fact that the dollar shut comprehensively higher in front of the end of the week, every one of the monetary forms we track here, spare the Mexican peso, picked up against the dollar in the three sessions since the finish of the CFTC reporting period.

Every once in a while it is helpful to review why many market members take a gander at the theoretical situating in the cash fates advertise. It is not that the outside trade is essentially a prospects showcase. It is principally an over-the-counter market in which every day turnover midpoints in abundance of $5 trillion a day.

Trade exchanged monetary forms and alternatives represented around 3% of the normal day by day turnover as indicated by the BIS study. Be that as it may, past reviews have discovered some contemporaneous connection between’s market heading and net position changes. We think it additionally offers knowledge into a specific market section of pattern supporters and energy brokers. It is not by any means the only device, yet one of a few data sources.

One ramifications of this is albeit theoretical positions in the money fates market are moderately extensive, it is still little contrasted and the money showcase. Along these lines, it is difficult to see the genuine essentialness of a record vast position, as though there is some market top. At some point, examiners are not driving the costs, possibly there is another fragment, national banks, enterprises, as well as genuine cash that is more essential at any given minute.

We invest some energy taking a gander at gross positions instead of just net theoretical positions, which is the more customary approach. We think a more granular look is frequently fundamental. There is a distinction between short-covering, for instance, and new purchasing, however it appears to be identical in the net. Additionally, the gross position is the place the introduction is not the net position. A net position of zero does not mean the market is nonpartisan. Net positions could be huge, which implies a short press or a negative stun could in any case troublesome. The positions that must be balanced are captured in the gross measure not the net figure.

We find numerous customers are likewise keen on theoretical situating in the US Treasuries and oil. The net and gross short theoretical Treasury position has swelled to new records. The bears added 23.8k contracts to the as of now record net short position, lifting it to 616.2k contracts. The bulls attempted to pick a base and added about 20k contracts to the gross long position, which now remains at 471.2k contracts. These modification prompted to a 3.8k contract increment in the net short position to 344.9k contracts.

The bulls delayed in the oil prospects toward the finish of 2016. They exchanged short of what one thousand contracts, leaving 608.1k gross in length contracts. The bears added 4.1k contracts to the gross short position, giving them 168k. These conformities trimmed the net long position by very nearly 5k contracts to 440.1k.

Continue Reading

Broker news

3 ways to profit in the ‘year of the dollar’

In December, the Federal Reserve raised loan fees for the second time since the Great Recession and included the desire of a 2017 financing cost climb to its gauge. Furthermore, only a couple days prior, the abundantly anticipated minutes from the most recent Fed meeting demonstrated the most hawkish tone from the national bank in two years.

In the meantime, Europe has been dove into political turmoil after a year ago’s Brexit vote and the later abdication of Italy’s leader. Somewhere else, the Bank of Japan proceeds down the way of negative rates and forceful security purchasing.

Put it all together, and it isn’t astounding that the U.S. Dollar Index is up against 14-year highs.

Speculators may have missed so much discussion on account of babble about the Dow Jones Industrial Average at the end of the day almost hitting 20,000. Be that as it may, paying little respect to your assignment to stocks or your venture skyline, this sort of huge picture incline in the dollar implies right now is an ideal opportunity to position your portfolio to benefit and, maybe most critical, to keep away from a portion of the pitfalls that can originate from a solid local cash.

Here are a couple ideas dollar exchanges ought to consider:

Residential plays over multinationals

There’s a considerable measure of seek after shopper stocks in 2017 on account of an enhancing work market and any desires for a jolt under a GOP-controlled Congress and President Donald Trump. In any case, remember that not all retailers are made equivalent especially those with abroad operations that are adversely affected by the wide dissimilarity in monetary standards at this moment.

For example, retailer Wal-Mart Stores Inc.(WMT) said troublesome money trade rates shaved very nearly 2.5% off profit for each partake in the second quarter of 2016. On the other hand consider that in the monetary final quarter of 2016, athletic attire goliath Nike Inc.(NKE) saw its income development cut down the middle because of forex weights, from 12% year-over-year in consistent cash measures to only 6% including real money changes.

To take advantage of the “reflation” exchange that numerous financial specialists are counts on in 2017, you need to represent the headwinds that a solid dollar are making for multinationals at this moment. The most ideal approach to do that is to consider customer plays that do by far most of their business here in the U.S. – for example, Foot Locker Inc.(FL), which has been an uncommon splendid spot in retail throughout the most recent couple of years.

Supported money ETFs

Obviously, in the event that you need a steady portfolio, you can’t just purchase just local centered values. Geographic expansion is similarly as imperative as enhancement crosswise over parts and resource classes. Such a large number of financial specialists keep on holding worldwide plays in light of a legitimate concern for a balanced portfolio, regardless of the possibility that it implies battling a daunting struggle as a result of a solid dollar.

The uplifting news, notwithstanding, is that you don’t need to leave yourself to torment through a solid dollar and a powerless euro when you put resources into Europe. Nor do you need to stress over the yen-dollar conversion standard when you put resources into Japan. That is on account of there’s an entire group of cash supported ETFs to permit financial specialists to put their cash in outside business sectors yet keep away from forex issues.

Consider that Japan’s Nikkei 225 file is up around 25% from its July 2016 lows. The WisdomTree Japan Hedged Equity Fund(DXJ) is up 35% in a similar period on account of assurance from forex issues and a somewhat better-performing rundown of stocks – while the non-supported iShares MSCI Japan ETF(EWJ) is up only 10% in a similar period because of battling a difficult task against a solid dollar.

In the event that you need to differentiate your portfolio comprehensively, you ought to consider supported assets that incorporate the Japan-centered DXJ, the WisdomTree Europe Hedged Equity Fund(HEDJ) to play Europe or the iShares money Hedged MSCI EAFE ETF (HEFA) for developing markets.

Dollar list ETF

In the event that you are searching for an immediate play on a rising dollar as opposed to putting resources into stocks, figuring out how to exchange remote trade can appear like an overwhelming undertaking. Gratefully, there’s the PowerShares DB US Dollar Index Bullish Fund(UUP).

This ETF is attached to the U.S. Dollar Index, which is a measure of the greenback against a wicker container of other worldwide monetary standards including the yen and the euro. It’s a straight money play, however that doesn’t make it straightforward or hazard free. In the event that the dollar debilitates, you’ll lose cash similarly as though you’re putting resources into a stock that has fallen on difficult circumstances. Furthermore, obviously, PowerShares takes a little cut of your speculations en route that indicates 0.8% yearly, or $80 a year on each $10,000 contributed.

Still, in the event that you need to conjecture on the dollar or support against a solid U.S. cash keeping down other worldwide ventures on your rundown, it’s maybe the least demanding approach to do as such for generally financial specialists.

Continue Reading

Trending