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Forex Trading in Lithuania • Forex Strategies in 2020 Benzinga

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Forex Trading in Lithuania • Forex Strategies in 2020 Benzinga

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If you want to operate in a well regulated and straightforward retail forex market, you can do so from Lithuania. As a member of the European Union (EU), forex trading and broking activities in Lithuania are regulated through the EU’s European Securities and Markets Authority (ESMA), the Markets in Financial Instruments Directive II (MiFID II), the Markets in Financial Instruments and Amending Regulation (MiFIR) and the Central Bank of Lithuania itself. The country keeps an official list of the companies that have been given the privilege to do business within its borders. If a company is not listed, the country strongly recommends “not making use of its services.”

History.com – The euro replaced the Lithuanian lita as the official currency in 2015.

The Lithuanian government also took the time to produce an in-depth guide of warnings for retail forex traders, especially since most such traders lose money. The Bank of Lithuania advises that investors steer clear of opaque investments, do business only with properly licensed companies and steer away from “easy money” and no-risk proposals from brokers.

Get Started with Forex in Lithuania

There are plenty of resources available within Lithuania for the beginner currency trader. All traders are advised to look through the Central Bank of Lithuania’s website and follow the suggestions below for opening a forex trading account.

Connect to the web. The internet infrastructure in Lithuania is quite good in the country’s developed areas. Forex traders should be able to access sufficient affordable bandwidth to handle the trading platform, websites and trading tools that sophisticated forex traders may need to use.
Connect to your broker. Located in the Baltic area of Eastern Europe, Lithuania is a member of the European Union (EU). Forex brokers that accept Lithuanian clients must abide by the MiFID regulations of the EU. Pay close attention and stick to trading through major brokers that are overseen by a reputable regulatory agency and have a good online track record regarding dealing fairly with their clients.
Choose an appropriate account type. Most brokers offer several different account types. Choose one that best fits your initial deposit amount and trading needs.
Fund your trading account. To fund your trading account, you will typically need to transfer money from your bank through a bank wire, make a credit or debit card payment or use an electronic payment service provider such as PayPal or Skrill.
Connect your trading platform. You’ll need to download your broker’s proprietary trading platform or a 3rd-party trading platform your broker supports, such as MetaTrader or cTrader. Many forex brokers now offer a mobile trading option and a web-based platform that doesn’t require you to download software.
Make your first trade. Now you’re ready to make your forex trade. You may want to practice trading in a demo account first to test out your trading strategy before operating in a live account.

Lithuania Forex Trading Strategies

The way that you trade forex is unique to you. Be aware of how you react to stressful situations before committing large amounts of money to the market. Your personality will often determine what kind of trader you become. Take a look at the following profiles to see which one you match.

Day Trading

Day traders usually need to take advantage of market opportunities quickly. Typically they trade in and out of positions throughout the trading “day” or session, although the forex market trades around the clock from 5 p.m. Sunday EST to 5 p.m. Friday EST, so the forex day trader must select the session they trade in. The London, New York and Tokyo trading sessions are typically selected by day traders and each have time slots corresponding to the standard business hours in those key money centers. While day trading covers a wide variety of trading strategies, these traders typically close out all positions before the end of the trading session. This means that they hold a position for a few minutes or a few hours but not overnight.

Swing Trading

Swing traders aim to profit from trends, corrections and ranges in a currency pair to determine optimum entry and exit points for their trades. They generally watch technical momentum indicators for signals of a market reversal that they might profit from. Many swing traders also watch for chart patterns and key levels of support and resistance to appear on the chart of a currency pair’s exchange rate to inform their trading. Unlike day traders, swing traders often take positions overnight that can be held for days or weeks in some cases.

Position Trading

Position traders take the long view on the direction of a currency or pair against a basket of other currencies. For example, a position trader that has a bullish view on the U.S. dollar might sell the EU euro, the British pound sterling and the Japanese yen against the U.S. dollar to reflect their view. Position traders can patiently hold positions for months or even years depending on whether their view of a currency pair remains firm. Position traders typically trade less frequently than swing or day traders due to their long-term trading horizon, and they tend to be more focused on a currency pair’s fundamentals to inform their position-taking.

Forex Trading Example in Lithuania

The bid/ask spread for the EUR/USD currency pair currency stands at 1.1800/1.1805. You decide to take a long €45,000 position in the pair at 1.1805 to wait on a short-term move up. Your online broker allows you to use leverage of 30:1 in EUR/USD and requires you to have at least €1,500 in cash in your trading account as collateral in case you lose money.

After 15 hours, the EUR/USD bid/ask quote is 1.1825/1.1830. The exchange rate for the pair increased by 20 pips allowing you to sell out your position at 1.1825. You get (€45,000 x 0.0020) or $90. Had the market instead fallen by 20 pips, you would have lost that same amount of dollars.

Making Money with Forex in Lithuania

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There are a number of strategies and trading vehicles that you should know about when considering operating in the forex market, starting with those listed below.

Short selling: Taking a position in which you have net sold the base currency in a currency pair because you think its exchange rate will decline. For example, if you want to go short the EUR/USD currency pair, you would establish a trading position in which you have sold the euro against the U.S. dollar. If you instead want to buy the euro against the dollar, then you could go long the EUR/USD currency pair.
CFDs: Contracts for difference (CFDs) consist of contracts whose value depends on that of underlying assets and which lets traders avoid taking positions in the underlying market itself. Some online brokers let you trade forex CFDs, as well as CFDs on other assets like stocks, indexes and commodities.
Binary options: Binary options consist of exotic derivative contracts that give the holder the opportunity to pay a fixed premium in exchange for a fixed payout if some specific market condition occurs on or before the option expires. The European Securities Market Authority, the regulator for financial markets in the EU, put in place “product intervention measures” that effectively ban brokers based in the EU from offering binary options trading to residents. As a result of these changes, traders based in Lithuania looking to trade binary options will probably need to find a binary options broker based outside of the EU.

Best Online Forex Brokers in Lithuania

Forex traders in Lithuania and the EU have access to some of the best online forex brokers in the business. The retail forex market is well regulated and trading opportunities are numerous. Choose from among brokers that are licensed by reputable regulatory bodies to avoid losing your margin deposit to fraud.

Forex Terminology

It makes sense for most traders to learn the basic jargon of the currency marketplace before starting to operate in the market.

Pip: Stands for “percentage in point” and is the minimum movement in an exchange rate of a particular currency pair. Corresponds to a shift of 0.0001 for most pairs.
Lot size: A standardized unit for trading. The standard lot size at most online forex brokers is 100,000 base currency units.
Orders: Instructions to a broker that detail the specifics of a trade you want to make so that they can execute it on your behalf.
Calls: Derivative option contracts that give you the choice to buy an asset at a specific price on or before a future expiration date, although you don’t have the obligation to do so. Puts, on the other hand, give you the right to sell an asset. Because of the nature of currency pairs, where the underlying asset consists of an exchange of currencies, currency options are all both calls and puts.

Is Trading Forex from Lithuania for You?

The Lithuanian economy is growing steadily, in part because of its inclusion in the Eurozone, and residents of the country have the security of using a major currency like the euro. Forex trading is available to residents of Lithuania, so you should be able to find an online broker who will take you on as a client.

While learning how to trade forex may seem relatively easy, profitably trading forex currency pairs can take a lifetime to master, so trading in a demo account to develop a consistently profitable trading strategy makes sense before putting real money at risk. For more information about forex trading, bookmark our website. We pride ourselves on bringing you actionable and up-to-date advice relevant to forex traders.

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Forex Trading Knowledge Questions and Answers

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Forex Trading Knowledge Questions and Answers

What Is A Demo Account?

Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.

Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.

How Does A Demo Account Work?

Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.

A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.

How to Open A Demo Account?

In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.

Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.

Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.

You will obtain login details after registering with a trading program. You will be able to open an account.

How Long Do Demo Accounts Last?

Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.

Why Is It Necessary to Open A Demo Account?

What Are Advantages of A Demo Accounts?

Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.

A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.

Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.

The Differences Between Demo & Live Accounts

A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.

However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk is more accessible when dealing with virtual money than when trading with actual money.

Can I have Multiple Forex Demo Accounts?

You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.

If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.

There are brokers who will only allow you to open one account of each type per email address.

As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.

In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.

In any case, you should practise on a demo account until you are really proficient.

Is A Demo Trading Account Free?

Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.

How to Choose Forex Accounts?

Different accounts have different settings. Before you open a trading account, you should answer the following questions:

How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.

What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.

Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.

Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.

Can I Take Money Out of a Demo Account?

Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.

As a result, any profits you would have made would be ineligible for withdrawal.

Forex Trading Knowledge Questions and Answers

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AvaTrade introducing 3 new crypto pairs

AvaTrade introducing 3 new crypto pairs – updating 3 others

AvaTrade has yet again improved their cryptocurrency trading offering.

AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.

These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.

Asset	Typical Spread	Leverage	Margin	Min Nominal Trade Size
NEOUSD	1.5% Over-market	2:01	50%	10
EOSUSD	2% Over-market	2:01	50%	10
MIOTAUSD	1.5% Over-market	2:01	50%	10

To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:

Asset	Old Symbol	New Symbol
RIPPLE	XRP	XRPUSD
ETHEREUM	ETH	ETHUSD
LITECOIN	LTC_Mini	LTCUSD

These new pairs have also been available since July 1st,

The trading conditions for each one is identical to those of the older respective assets they replace.

Effective immediately, new positions are only available on the new pairs.

Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.

Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.

as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.

Visit Avatrade NOW

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Neteller Launches Cryptocurrency Exchange Service

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Neteller Launches Cryptocurrency Exchange Service

Neteller one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.

They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.

Neteller and Cryptocurrencies

Neteller is a service which is operated by Paysafe Financial Services Ltd.,

paysafe

founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.

Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.

But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.

So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.

As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.

It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.

Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)

We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.

Conditions for buying and selling cryptocurrencies through Neteller

The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller

The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.

When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available

The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.

The fee rises to 3 percent for wallets with other default currencies.

Neteller | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?

At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.

The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.

Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill) announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

We could now see that this was like their test run on this concept.

We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.

We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think