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Here’s What You Must Know About The Forex Market in 2020

Once upon a time in Antwerp, Belgium, there was a place where people gathered to trade the so-called “curretiers de change”. They also traded debts at that time, and that’s why we can call them the first brokers.

Once upon a time in Antwerp, Belgium, there was a place where people gathered to trade the so-called “curretiers de change”. They also traded debts at that time, and that’s why we can call them the first brokers.

Since then, times changed and we reached what are commonly known as Major Stock Markets, physical places situated around the world that are depicted in many Hollywood movies such as “Wall Street” or “The Wolf of Wall Street”.

Both movies are shot, it goes without saying, in the New York Stock Exchange, commonly known as Wall Street because of the homonymous street where it is located.

But not everybody knows that, as of today, there are financial markets which do not have a physical location like the one of the past or the actual one. Those markets are called OTC (“Over the Counter”) Markets and they are present exclusively online.

And that’s the “place” where Foreign Exchange Market is “located”.

If you are interested in this kind of market, you can check this interesting forex website.

Forex market and CFDs

Forex Exchange Market, commonly known as Forex or FX, is a decentralized OTC market that trades in foreign currencies.

These trades are obtained by trading a pair of currencies simultaneously and it is, right now, the largest market in the world in terms of trading volume.

It has many peculiar characteristics that makes it unique, such as:

  • a huge trading volume with an high liquidity
  • a significant geographical dispersion
  • the possibility of operating 24 hours a day
  • low margins of relative profit
  • the possibility of using a leverage to power-up profits and los margins

But its main way of trading consists in the use of a derivative financial product called CFD (Contract For Difference).

CFDs are financial instruments which are used not only on the FX market, but on basically every online trading platform. That is because thanks to It a trader has the chance of gaining profits not only by doing a direct investment in a financial asset, but by investing money on it in the long term or the short term, without actually buying it thanks to the CFDs.

With all that being said, CFD trading, and therefore FX trading is extremely volatile.

Risks related to this kind of trading are quite high, and they can jeopardize all of your investments in a blink of an eye if you don’t invest.

How To Invest In Forex Market

If you are interested in investing in the FX market, the easiest way to invest in this vibrant market is to open an account with an online broker.

Firstly, you will have to choose an online broker well-regulated in possession of all licenses needed to open operations in your territory, such as the CySEC license needed in Europe. If you don’t follow this golden rule, you will find yourself in a bad position where you can lose all your money in a scam or have legal problems. with local authorities.

Another key factor to be aware is related to account diversification.

For example, If you are a newbie of the foreign exchange market, or you just want to take confidence with the new trading platform, a good idea would be to open a demo account with the selected online broker.

Thanks to a demo account, you will receive a fake virtual balance to start operating in the market and see the effects of your actions without being worried of losing actual money.

Speaking of money, to conclude our article we want you to pay attention to other fees which is essential while doing FX trading.

We are speaking about the spread.

Before opening an actual account with a broker, do some research about the best spread fees among online brokers, but do not rely exclusively on them: some brokers show only a specific spread as “the best spread”, but it doesn’t mean that it will always be the same spread for every operation.

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Industry News

School4Trading Review – How to Spot Possible Forex Broker Fraud

School4trading Review

School4Trading Review – How to Spot Possible Forex Broker Fraud

In this School4trading Review, we will look at the features of the software, as well as the customer support. First, let us look at the interface. The design is simple and easy to navigate. It also provides a chatbot, which helps you to communicate with the broker. The customer service is warm and inviting, which is a hallmark of a good broker. In contrast, a fraudulent broker will use cold and impersonal customer support to lure people in.

Another problem with the system is that the login process is not always intuitive. You may have to retype your password several times to get in. Then, you may experience difficulties withdrawing your funds or accessing your account. In such cases, you might have to wait for days or even weeks before you can withdraw the money you’ve invested. This is not a good sign. It’s better to choose a different trading platform altogether.

If you’re having trouble logging in, you should also check the legitimacy of the broker. Whether the broker is licensed by a reliable regulatory body or closed down, you’ll want to be sure it’s legitimate. If the broker isn’t licensed by the right body, don’t trust him. You shouldn’t waste your time with an inexperienced company. This will only cause you problems in the long run.

The next factor that should be checked is the licensing. A legitimate broker will have a license from a high regulatory body. However, a broker without a license will be unreliable. Moreover, a reliable regulator will take away the license of a scam broker. As a result, a trustworthy School4Broker/Profittrade review should mention fees, account rules, and contract terms. A scam broker will be unable to operate legally.

Secondly, look for warning signs. The broker should be licensed and regulated by a reliable regulatory body. It should be regulated by a high level. If it doesn’t, it’s a scam. Lastly, it should have a website that lets you easily access your account. Moreover, you should not hesitate to check the contact information. If you find any information that seems suspicious, you should reconsider using the broker.

In summary, Forex trading isn’t easy, but it doesn’t have to be complicated. It’s not as difficult as it seems if you’ve heard about the program. You’ll learn everything about the basics and how to become a professional. But if you’re still unsure about whether this program is right for you, don’t hesitate to contact a school4trading’s website.

The most important thing to remember when it comes to Forex trading is that it’s not easy. While it’s important to have a strong background in trading, there are a number of factors that can affect your success. Having a proper plan is vital in the long run, because you will be trading with real money. And, the platform should be reliable. Otherwise, you’ll end up losing a lot of money.

As we’ve mentioned, Forex is not easy. Investing isn’t something you can do in the comfort of your own home. You need a proven system. There are no free trials, so you’ll have to find a way to do it yourself. This isn’t a scam, and it’s a great way to make money without any help. A Forex system can help you learn the intricacies of the market.

Although the process of learning Forex isn’t an easy one, it’s certainly not impossible. Fortunately, there are many people who are willing to take the time to learn how to trade. But, even the most experienced trader needs to be aware of the risks of the market. While Forex trading isn’t easy, it can be done with the right knowledge. The software’s user-friendly interface is key.

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Daily Financial News

Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

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Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

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