fearutre forex market

Many companies and financial institutions competing in the big field of securities "forex" trading in attracting new customers. And used in order to achieve so many different ways. And they rely mainly on advertising and marketing on the dazzling element bright and promises that should be on everyone Secretary confirm to others that many of them holds as much for good Not an exaggeration. Forex market without a doubt represents a golden opportunity for those who cares sufficiently strongly and is keen to learn for long enough so that it can progress and success as a reasonable time the bezel. We mean here the slow and deliberate progress and no progress which carries printed recklessness, impulsivity and joy large gains at the beginning. So we start in the forex market very well there are a number of things which are described should you even really encourages you to start this kind of distinctive trade.

Forex trading markets features 

and even encouraged people to start in the way of what should be fully aware of what are the qualities that carried him this way at all levels. The answer to the first question, which are features that it finds the person in Forex "Forex market" market, we will find that the first is distinctive and always available to make a profit opportunity. Forex market open global market is not bounded by any customs or tax or technical or logistical obstacles, so that it is open and very large securities market. In addition to the forex market it includes most of the international institutions and major banks, both the central government-owned banks, such as the Central Bank of the US Federal and the European Bank and the Central Bank of Japan and others, or private and investment banks scattered throughout the world, such as "NSGB" Barclays Bank and others. Add to that the size of the investment or trading in the forex market currently exceed $ 4 billion a day, a very large number expresses the size of this market and reflects the size of opportunities in which to achieve gains.

Advantages of the forex market on a personal level

 As for the benefits of the Forex market and trading in it on a personal level for those who traffic in it are many. Foremost among these is an extra income that is excellent, especially the medium term and long term source. As the field of forex trading a lot of time and effort does not need after passing the training and learning period Vda minutes a day is enough to make deals and trading currencies and to achieve gain. In addition to the trading in the forex market earns a person a lot of experiences, both personal and psychological, such as control of nerve pressure, and make the right decisions or the level of professional expertise in the field of Forex same experiences. There is an opportunity for those who learn more and become more experienced at the level that examines the outcome of his knowledge in many centers and specialized institutions yet to obtain a certificate documented so. An area that is considered modern in the world and thus the person has less chance competitive with other finds, as in the rest of the different areas.

forex tools

About Forex

You may have heard some information about forex but probably do not know what exactly is Forex. Forex is short of foreign exchange - and foreign exchange trading and thus make the investment, or speculation on the exchange rate or the national currency rate. The investor trading in stocks, commodities, corporate bonds, and the investor can guess the extent of fluctuations in foreign currency exchange rates.

Global Forex market consists of currency in each country, and are trading 24 hours a day, 5 days per week. Forex traders can take to work from anywhere, even from home. Because of time constraints with foreign exchange trading, which starts from 13:00 to 5:00 p.m. GMT. Currency rates moving up and down very quickly during this period, which creates both opportunities and risks.

Forex Basics is not complicated: you can buy a currency when they fall, then sell when the price rises to reap profits. You can also make a profit by selling high and then buying low. This is called short selling. It takes time and practice to learn how to predict these fluctuations in currency values ​​to become successful in forex trading. It can be for many of the indicators that affect the price of the particular currency and in respect of its value against other currencies - and the national economic outlook for political change.

Successful Forex trader knows to learn how to read these indicators. Traders knows many of the educational materials available on the Internet to develop their knowledge.

Usually seen as a significant foreign exchange risk for investors from the private sector but in the current economic climate, it has become a more attractive option. Forex is not for the faint-hearted, but the investor who owns a dowry and the right tools to know the reach and success in investing.

Forex has been built based on many more advantages than others in the types of investment. In the foreign exchange market, the investor can be prepared for influence in a way not possible in most other asset classes.

When you think of buying a home. , You determine the expected total home value, for example: between 10 to 20 per cent of the total value of the house. The rest of the funds may borrow from the bank. You can assume that you buy a house worth $ 100,000. And I have put a reserve of $ 20,000 and borrow the rest from the bank. Then suppose that the price of this house rose to $ 120,000 in six months, which is very possible in a rising market. Then you can sell the house and doubling your money.

Forex works in the same way - and even more so: with foreign exchange you can control the amount of money up to 500 times greater than the initial investment.

Forex has additional advantages over other types of financial instruments. Investors can enter the market with much smaller amounts of money, and could sell easily, and can be short-selling.

In the European Union, the Forex closely monitored and tightly regulated. Forex retail market is growing rapidly in the past few years and this in the financial field the fastest growing. And it is one of the reasons that help the IST program, which revolutionized the industry in the past few years of rapid growth. At present, the easier it is executing transactions - each person has access to the Internet and can buy and sell currencies within seconds at any time, anywhere.

understanding forex trade

What is Forex?

The word "Forex" means short, the foreign exchange market or the global stock of foreign money, which fits for the word "FOReign EXchange market" in English. And it is speculative by buying and selling of the major currencies, which holds the stake core operations in the forex market is the US Dollar (USD) (base currency) and the euro (EUR), British Pound (GBP) and Swiss franc (CHF) and Japanese yen (JPY).

And the buying and selling those currencies in US dollars or other currencies, including the so-called currency pairs and so against the US dollar or any currency against another currency in value. And it is considered speculative trading in the currency earn in the stock market, and also the most risky, because of the rapid fluctuations that are the currency of the upward trend to the downward trend, or vice versa. In addition to the currency market there are other types of exchanges are: gold and silver exchanges, Petroleum Exchange, shares and bonds, agricultural crops and the energy market. The currency exchanges are characterized by various indicators and technical analysis and news analysis and rapid access to profits.

The daily volume of currency trading in the Forex market to reach $ 3 trillion. And for comparison, the size of the New York Stock Exchange Activities of the shares does not exceed $ 300 billion per day, that is, it needs to be half a year for the New York Stock Exchange to reach the size of the currency market.

And I have a bond and future sales markets (Viuchr- FUTURE) fundamental difference and inadequate compared to the currency market: as they stop working at the end of the day and resume work with this morning. Naturally, if you are trading in the markets of Germany, for example, and there in America events with a large impact on the market, you may find the market at the beginning of his work significantly different from what I expected.

The forex market is not a market in the literal sense of the word, since it has no center and no exercise a certain place where trading. The trade practiced by calling teleconference and the Internet computer at one time among the hundreds of banks around the world. Alumblyonat hundreds of dollars are sold and purchased every few seconds, and this is what is called currency trading.

Forex Market combines four regional markets: Australian and Asian and European and American. And trading operations continue in it all the days of work, and the market operates around the clock 24 hours a day. And notes relative calm from 20:00 until 01:00 GMT, and is attributed to the closure of the New York Stock Exchange eighth in the evening and the start of the Tokyo Stock Exchange work at one in the morning.

The currency market is not about working hours because Almtjarh stock exchanges are among the banks that are located in different parts of the world. Exchange Rates and the large multiple changes, which helps to do some business operations in a single day. It is well known that the declines significant impact on the financial markets, which could lead to the collapse of stocks or bonds. The forex market Falling US dollar (for example) means that the rise of another currency and the price there is no collapse of markets such as stocks or bonds.

Established Forex market (FOREX) financial transactions between banks in 1971 when the transactions in global trade has shifted from the use of fixed values ​​of the currencies of the values ​​of the flotation. This will be the result of financial transactions carried out by agents and financial markets to convert a certain amount of money in the currency of one country's currency for another country, pre-agreed date for a particular value of a group. And it determines the price of the particular currency conversion for other currency simply: supply and demand convertible approved by both parties.

The volume of transactions in the global capital market in steady growth. This is linked to the great development of world trade and lift the ban on currency in many countries. That 80% of all transactions is a speculation in the currency market aimed at profiting from the differences in currency prices. This speculation attracts many participants from both financial organizations or individual investors.

As a result of the tremendous development in communications technology in the last two decades has changed the market itself to a large degree. The profession currency trader, which was surrounded by an aura of secrecy has become almost a mass. The trade in currencies, which until recently was limited to major banks monopolistic became accessible to everyone as a result of e-commerce. And even the largest banks in favor of trading as well as personal electronic transactions between two parties.

The aim of the Forex market as an area for the use of the possibilities of financial, mental and psychological person is not a stroke of luck. Some may succeed in that, but not for a long time. The key advantage of the currency market is that it's a place for the success of using intellectual possibilities.

A significant feature of the currency market is the balance of the property despite the fact that this seems strange. Everyone knows that the sudden decline of basic property of the financial market is. But the Forex market differs from the stock market in that it does not fall. When you lose stock value this be a collapse. But if, for example, the dollar collapsed, it just means that another currency has become Aqoa- example of the Japanese yen, which has become in a few months in 1998, the strongest for nearly quarter dollars. This has been the falling dollar for some days arrived at that period of tens of per cent. Despite the collapse of the market it did not happen and transactions continued as usual. In this confined to the stability of the currency market and the associated work. The currency is a very liquid commodity can be bought or sold at all times.

Currency market works all the time non-stop is not linked to specific hours of work of the Stock Exchange, the transactions are between banks located in different parts of the globe. The currency rate changes are significantly and several times be sufficient to carry out several operations each day. If you have a proven trading technology and guaranteed you can make them work area does not compare its effectiveness effectiveness of any other field. Therefore, we find the big banks acquire the most expensive equipment and used dozens of specialist trading in the various sections of the currency market.

The expenditures correspond to engage in this work is not great. And the fact that the needs of the work in this area who has studied primary and the acquisition of computer and buying information service and does not exceed the value of the insurance all together a few thousand dollars and this amount can not be invested seriously in any other area. With a massive supply of services in this area it is easy to find an experienced agent in the currency market. What remains after that depends on the store. We conclude from this that the success in this area depends on you personally, rather than in any other business.

The main thing for success in this market is not the size of the money that enters the market by as much as Permanent Hoturkaz Al market study, and understand Mikhanykyate and desires of the participants. This results in continuous improvement of the way you work and organize your trading. This did not happen to someone succeeded in the currency market is built on the top of all the money.

We've cut the global currency system a long way in thousandths of human history, but the changes that occur in today's most exciting and did not unthinkable one before. There are two basic alter define the new shape of the global system of currencies:

OIL TRADING ON FOREX

OIL TRADING ON FOREX

Blend crude oil

Brent (Brent Crude) - is a measure of oil, produced from the North Sea, whose name came from the field that the name had been drilled in 1970, and in fact crude oil Brent called Brent, his place is located between the coasts of Norway and Scotland, Brent is one of the most oil varieties , sold in major oil exchanges in the world, the price of oil Brent is the basis for the formation of the price since 1971 to about 40% of oil varieties around the world, especially for the oil Russia's Urals region, and West Texas oil and symbolized (WTI), and crude oil is described that it is heavy or light, depending on the extent of the density of water it, it is also determined by its quality according to the amount of sulfur it contains on, and we can say that Brent is a combination of "light with quality" is collected from several different fields of the North Sea, and there is derived Brent name as we mentioned before, the price of Brent crude rises much for OPEC compound, while WTI is a combination more "light and has a quality" of Brent crude, and the price is higher than Brent.

Urals - the crude oil contains (1.3% sulfur) and is a blend crude oil, the main producers of Urals oil are the following companies: «Rusneft», «Lukoil», «Surgutneftegaz», «Gazpromneft», «TNK-VR» and «Tatneft» . Russian oil price is determined by the resolution of the price of Brent crude. Russia is taking steps to upgrade the quality of oil Urals to exclude some types of oil, is the Western Siberian oil oil than acceptable quality abroad and is known as a class light commercial, in Russia are trading oil futures Urals in the stock exchange market.

WTI (West Texas Intermediate) - WTI is a combination more "subtle and has a quality" of Brent crude, and the higher price of Brent is produced from Texas (USA), its scale textures 40, the sulfur content is 0.4-0.5%. often used in the manufacture of gasoline and this is the reason for the intensity of demand for it, especially in the United States and China.

Participants in the crude oil market

Oil producers

Often crude oil reaches the market from oil extraction companies, those companies can be small or Ckmh institutions, it is reasonable that the impact of companies on the market depends on the volume of oil they extradite him, therefore, others on the market participants Ionnbhoa much of the activity of producers of gold.

Black gold trading and its relationship to the currency trading

Black gold trading and its relationship to the currency trading

Oil is one of the most ores liquidity and influential in the world economy and currency trading as the price of oil has always been one of the main indicators of the state of the global economy for many years, and is considered the oil is the basis of industrial life, states that have Tsttefid oil resources from higher oil prices , while the countries that import oil to meet its needs, they benefit from lower oil prices. The circulation of oil in the forex market from successful trades in recent years, the oil and energy are the biggest business in the world, and became the turnout had been greater because it is one of the tangible trading commodities in the exchange market, and we will talk in this article for oil trading in Souktdaol currencies.

How black gold trading in the forex market

The oil trade similar to trade currencies in a way of buying and selling where prices are shown per barrel against the US dollar, and you can trade directly via Tdaolalamlat platform where symbolizes oil symbol (oil), and these prices are moving the movement of supply and demand and are tied to the movement of the US dollar which facilitates the trading process, where traders can open, modify and close deals in the same way that they use when trading currencies, but there is the end of the contract period of the oil where oil is traded through the decades have a certain period to end and begin the process of a new trading. It is also necessary to find the right broker for the trading process to assist you in choosing your trading trading environment that suits you.

Factors that affect the trading price of black gold

There are many factors affecting oil trading price, the most important of supply and demand and news of global economic indicators, which in turn also affect the currency market, but there are large fluctuations in the price of oil, where the prices are very sensitive and there are sharp fluctuations between the trades, you should beware before you start trading oil .

Oil is traded in the forex market advantages

Ease of trading: The crude oil trading is similar to forex trading, there is no private oil trading terms.

High liquidity: where is considered one of the most important investments available in the world and the most actively traded.

High profit: where can Shortly price changes too This is an opportunity to achieve high profit. Investment

Disadvantages of oil trading in the forex market

High volatility of rates: the prices are very volatile, making it difficult to predict fluctuations may occur there fast prices rather than currencies.

Prices influenced by many factors: including wars and natural disasters and political events and others, leading to fluctuations in the trading price.

The Canadian dollar traded oil

Canada is one of the largest sources of energy and oil producers in the world and are exported large part to the outside and another part of the United States and because of this heavy reliance on Canadian oil, this has a significant impact on the Canadian dollar there is nothing significant correlation between crude oil prices and the Canadian dollar, and this policy has been followed some traders to make profits through this relationship.

Oil trading of trading lucrative somewhat longer a successful strategy and a great investment opportunity that can be followed in the forex market but there is a big risk to trade oil if there is no adequate knowledge of how to trade.

How oil trading in the forex market

How oil trading in the forex market

The oil trade, like other types of currency trading in regards to how to buy and sell, because prices are shown per barrel against the US dollar, which gives the possibility of trading directly through currency trading platform which symbolizes oil symbol (OIL), where it is like all other types of prices, oil prices fluctuate according to supply and demand base and that are largely coupled with the US dollar's movement mother who would facilitate the trading process in this genre, by virtue of opening ability, modify and even close deals on the same lines being followed when trading currencies, but it can be found some constraints, which is the period of the end of the oil contract, where oil is traded through the decades have a certain length to finish, as well as a specific period in order to start a new process of trading, in addition to the need to choose the right broker to process tradingWhich would help you in your trading by providing a trading environment that fit rolling environment that will help you achieve success.

Factors that affect the trading price of the black gold

Frankly speaking, we find that there are many factors that influence the oil trading price, and perhaps the most prominent and most supply base effect and demand, as well as news of global economic indicators, which can not be overlooked for the role, but there are large fluctuations in the price of oil as characterized these prices Balhassash than It makes them highly volatile and even before you start trading oil.

Crude oil trading

The Brent crude oil is trading crude oil classification, which is a diverse mix of extracted from the North Sea crude oil, as this is the user in determining the basic world price of oil standard, which compose almost about two-thirds of the global crude oil market, It should be noted that the pricing of most of the oil production coming from Europe, Africa and the Middle East, as well as up and coming from the west flows linked to the price of Brent crude, knowing that the core countries in Europe, imports in the current oil production from Russia time.

Since the year 2005 was crude oil is traded in the international exchange of electronic, as per the contract equivalent to the stock of 100 barrels of oil, which is priced in US dollars, but in the world of Forex it is crude oil traded in the form of contracts for differences, and that through the use of the same quantities on the "drums" which are priced are the other US dollar as currency basis (per croaker = 100 barrels), and by virtue of the global demand seen crude oil as a highly sensitive and volatile commodity, where they can rise paced dramatic kind of reaction due to circumstances economic and political as well as important and influential, and the biggest example of this is the recent civil wars that you know a group of countries which caused the decline in crude oil prices sharply from the level of US $ 90 to US $ 73 level almost in a very short period of time.Everyone is aware of the importance of providing ideal trading of crude oil and the conditions of the process, especially for the independent dealer, which pays some of the best companies Forex to provide services to its customers in order to provide the appropriate conditions such as crude oil British pound traded, in addition to the traditional dollar-pricing the US and not only that, but there are also by virtue of the importance acquired by oil trading for all investors who work in the market hard, and the desire to provide the best possible market conditions for the dealer, we find that the brokerage firms offer to their customers the possibility of a quick implementation with the least amount available of price differences, as well as the possibility of trading crude oil through multiple trading platforms, in addition to providing a balanced leverage characterized by exposure to low risk may reach (1% of the transaction value), without omission on a daily fundamental and technical of crude oil analysis and as well as flexibility in the fixed price differentials in crude oil trading using electronic communications network technology other tools and privileges that will plug into circulation

Oil trade

Oil trade

It considers electronic oil trade routes profit excellence, where individuals can now conclude trade deals after this was it limited to big companies and economic entities giant, prompting many to go into this matter and in particular that it is easy to analyze and predict the price levels, as well as profit bumper.

Crude oil is divided into more than a hundred species are Tsaiarham building over the purity and density and the percentage of impurities contained, generally, the Brent crude oil is the one who is often used as a benchmark for the pricing of global oil production, and consists of Brent crude from an oil blend of 15 field petroleum different, which are found in the area North Sea, and is considered Brent crude oil is more expensive types after WTI, which is extracted from the state of Texas, located in the United States of America.

Crude and West Texas is the type of light, which is more species in terms of purity, so it is sold at an average price higher than the OPEC basket of crude oil by about two dollars, and higher than Brent crude at around one dollar only to change.

It consists of OPEC basket of seven crudes are a mixture of light crudes and heavy again, the OPEC production of six ores of them, include: oil Arab Saudi Light, Dubai Fateh Emirati crude Desert Algerian, Bonny Light, Algerian, ore Minas Indonesian, raw Teachwana Venezuelan light, the crude seventh Atnottagh for OPEC crude is Aosmas Mexican.

In conclusion .. we should point out that the oil trade experts and specialists considered one of the easiest ways to e-commerce, as predictable price patterns with ease through the newspapers or news, or even the Internet, as well as recommendations on the amount paid for Mali cheap does not exceed a few dollars

Oil is traded in the forex market

Oil is one of the most raw material liquidity and influence in the world economy and especially on currency trading as the price of oil has been and remains the most key indicators that will express the state of the situation of the world economy for many years, because this article is the basis and backbone of the industry, by virtue of the countries that are available on the oil resources benefit from high oil prices, it is also affected by Bankhvadh, while the countries that rely on to cover their needs Astorad oil, it certainly will suffer inevitably will know of any rise in oil prices.

Since the recent years Arfa Iqbal traders on oil trading in the forex market for something that made him classified as a successful trading, by virtue of Petroleum and Energy considered the biggest business in the world, which affected the turnout, where became a trading continues to increase by virtue Ranked among the tangible trading goods box in exchange market, which prompted us to address this in our article to the subject of oil trading in the forex market in order to speak on two important points, namely how to oil trading in the forex market and the factors that affect it

What is innovation in forex trading?

What is innovation in Forex trading?

Extension is a process of closing the center or a trade open at a certain date in order to open it to the date of the next day, which is also known as the carry trade process, any Swap transaction or Forex trading to another value date centers, where it is in case of entering the open position the next day be charged extension, according to the company's intermediate terms and conditions agreed upon prior to the transaction, which will result in a discount or increase on the Forex trading account, where it depends on the currency in the pair trading as well as on whether the transaction is the sale or purchase of, and should be noted that the cost of the extension is the cost paid by rolling or take in the event of a deal left to one or more open for the next day which is not a commission fixed but vary from deal to another.

How is calculated extension in Forex trading?

The method used in the process of calculating the value of the extension, or what is known as fee extension is to rely on the interest rate between the two currencies in the user currency pair in the transaction, where the value will vary from deal to another and according to its kind Ferssom Swap Deal US dollar selling against the yen differ is not the fees in the purchase deal for a couple of the Canadian dollar against the Japanese yen, which indicates that the cost of the extension depends on the interest rates of the currencies in the extension period ie variable also, in the case he had a rolling deal to buy a particular currency pair when the first currency greater benefit of currency second, the brokerage firm will add to his account as Almsttmerfy Forex trading is happening in this case, the increase is not an opponent, and vice versa in case I had a rolling sale, but if the investor owns a deal to buy a particular currency pair which was interest on the first currency less of interest on the second currency, it will be debited from his account and vice versa in the case had a deal to sell to the same pair.

The importance of the extension in the circulation of the forex market

As we have stated repeatedly in previous articles, the Forex market differs from other financial markets in terms of trading method, as well as trading and the volume of transactions and the possibility of buying and selling time plus it contains many features that make it ranks leadership among financial and most liquid markets, However, in the other hand and at the same time is distinguished from other frequent moves and volatility, as it is assumed the follower of the Forex market trading to not lose sight of any of the matters relating to this market and in which we find, including the cost of the carry trade, which is one of the important things in the trading process and perhaps see some traders, especially novices were negligent about and commit some mistakes that could cost them a lot because of the lack of

What is Forex?

What is Forex?

Forex trading grew in the first trade and the exchange of currencies between economic entities giant, but later and with the advent of the Internet currency trading became available to small businesses, and even individuals.

Forex trading features several features not available in other markets, for example, is the leverage and to double the capital of the most important characteristic of this market, it is through this feature you can start your business with a small amount, its profit was not bad.

Also features this market highly liquid, giving a sort of tranquility and safety in this market for small entities, no room for a monopoly, or that the economic entities giant devour smaller entities .. Everyone at Forex equal trading, data and indicators issued for all without distinction or exception.

Featuring Forex trading simple, all Milesmk to start trading just a sum of money is simple, taking advantage of the leverage provided by the market property, as well as connect to the Internet .. Only then you are ready to start the conclusion of trading transactions through follow-up and monitor the movement of exchange rates and their volatility, whether up or downs.

Care should be taken when monitoring currency rates, in which it is determined the entry and exit points of the deal, with the help of determining the tendency and the results of the technical indicators .. and you and enter into a deal without confirmation of their feasibility, greed could cost heavy losses.

The currencies are traded in the form of pairs, the basic principle of Forex trading is that the high currency rate, must be followed by a decrease in other currency price .. dependent movement of prices in general the momentum and the amount of Forex trading as well as some economic news that may have a good Not effect in such matters.

And Forex trading is not great for him, everyone exhibition loss regardless of professionalism, and the rules do apply to professional by debutant, and any breach of these rules may lead to heavy financial losses .. It is imperative to successful risk management strategy, should be used to reduce loss order, with taking into account the lack of trading as the news or if the mental state of mind or the trader on is okay.

Finally .. you can make good profits from forex trading, provided that comply with the rules without exception or inaction.

MAM and PAMM Account Broker Comparison Chart

Trading the Forex requires great skills and indepth knowledge of the financial market. Unfortunately the statistics or ratio of successful traders to unsuccessful traders seems to be very high on the negative side. In order to bridge this gap, and also provide investment means for financial institutions and individuals, Brokers & experts came up with a concept that enables investors (traders) put together funds, which are managed (traded) by professional traders, and then the profits/loss is shared by a ratio formula. This is where PAMM Accounts or Managed Funds came in. Go straight to comparison chart

See: MAM & PAMM Account - 5 Reasons Why Its The Most Preferred Investment Option in Forex Trading

This arrangement gives the Manager access to a large pool of funds and gives less experienced clients a way to earn money on Forex and related markets without having to do the trading themselves. As a compensation for the successful trading the Manager receives a share of the profits earned by the Investor. 

Most brokers offer this service with different features and conditions. We have taken an indepth research to clearly display these features comparatively to enable investors take the best decision.

MAM & PAMM Account Comparison Chart

Broker	*Min Deposit	**No of Fund Managers	Protection	Client Type	Charges/Fees	Multi Selection	Currency Base
HotForex PAMM isit website for more details	$300	553	Investors decide the maximum acceptable level of loss that can be lost from their Investment account. Once that level is reached, all open trades are closed out of the control of the fund manager. PAMM Managers are required to invest their funds into the account in order to ensure shared risk and responsibility.	Individual Corporate Joint	Success Fee (varies) Penalty Fee (varies) 0 charges for deposits & withdrawal even at the daily rollover	Investors can select multiple fund managers	USD
MTrading MACI MACM MAMM visit website for more details	Flexible	-	System restricts managers to only perform trades within investors deposits not allowing withdrawing investors funds.	Individual	Profit Fee (varies) Volume Fee (varies) Commission 0.0020%*	Investors can open several accounts & connect them to several fund managers.	USD

Image (Business & Finance Related Word Cloud Background) courtesy of Sujin Jetkasettakorn / FreeDigitalPhotos.net

MAM & PAMM Account - 5 Reasons Why It's The Most Preferred Investment Option For Forex Trading

A lot of investors (traders) needlessly shouldn't have wrecked their accounts if only they knew a better option of Forex Trading. Forex PAMM account provides the best medium for investors (traders) who do not have the requisite knowledge to trade Forex. This articles presents 5 reasons why PAMM account is the most preferable investment option in Forex Trading.

A good thing about Forex Trading is the variety of investment options and instruments, an investor (trader) can invest in. Some of the major instruments are precious metals, commodities (CFDs), stocks, and of course currencies. In each of these instruments there are various options or ways an investor (trader) can invest and make profits from them. One of the options is PAMM Account.

Not all traders are experts, and not all experts are traders. Most often we see investors trying seriously hard to break even in Forex. While many get frustrated in endless search for the perfect robots and trading systems, others end up in the whirlpool of consistent failures. It might be surprising that quiet a few number of investors (traders) are aware of the PAMM option of Forex Trading, which is unknowingly one of the easiest ways and maybe safest way of investing in Forex. Probably why many traders ignore this option is because of a wrong notion and misunderstanding of how the PAMM concept works.

What is a PAMM Account

A PAMM otherwise known as a percent allocation management module is a special application that allows investors (traders) to invest their funds into a pool of funds being managed by a trader (money manager) who has been given a limited power of attorney to trade with the funds. A profit/loss or dividend ratio formular is applied to the pool of funds for the investors (traders) depending on the size of the deposit each investor brings into the managed account. It is very important to note that in most cases the trader who manages the account also has his/her fund in the pool of funds. This reduces the risks of recklessness or irresponsibility on the part of the trader since his/her funds is also at stake.


Virtually all Brokers have a PAMM account option as part of their investment options for investors. See our comparison table for Broker PAMM accounts.

Before we see reasons why it's a preferable option for investors (traders) let's see how it works.

For example lets say the following investors (traders) who are not too good at Forex trading decides to invest their funds into an account being managed by a trader who makes over 50% profit monthly.

John invests the sum of $250,000.00, Shane invests the sum of $50,000.00, Adams invests the sum of €55,000 and Chinedu invests the sum of £100,000.00. Due to the varied sums of deposits the ratio (profit/loss) is allocated according to size: John 22.5%, Shane 18.2%, Adams 20.3% & Chinedu 25.5%, while the remaining percentage (13.50%) goes to the trader managing the account. The sum total of the ratios must add up to 100%. In order to get a balanced ratio calculation, all deposits are converted to USD equivalent at the prevailing market rate.

If the money manager makes a profit of $120,000.00 then the percentage ratio (profit/loss) is applied in order to allocate the profits to each investor. John therefore gets $27,000.00, Shane gets $21,840.00, Adams get $24,360.00, Chinedu gets $30,600.00 while the money manager gets $16,200.00

Whatever amount of volume order placed by the manager of the account, the PAMM module automatically uses the percentage (ratio) to allocate the profit and loss on each investor's portfolio holding funds in the managed account. A commission fee is given to the money manager before the profits will be divided to the respective investors in line with the ratio (sharing) formula.

5 Reasons Why PAMM Account Is Most Preferred

1. Little or Zero Involvement
   One of the great benefits of PAMM account is that the investor (trader) does not need to do anything other than invest the fund and make withdrawals. The money manager takes care of the trading activities. This is beneficial for traders who have little knowledge in Forex but wants to invest in it.


2. Ability to Select From a Pool of Top Winning Traders
   Most Brokers do publish a table of ranked money managers where investors can easily choose which money manager to invest their funds with. Some Brokers like HotForex allow selection of multiple fund managers.


3. Flexibility of Withdrawals & Minimum Deposits
   An investor is not tied to durational contracts, although it makes sense to allow a full calendar month for easy operational purpose on the side of the fund manager. The benefit here is that you are free to pull out as you desire but after all necessary fees have been paid. Deposits are also becoming minimal and friendlier. See our Broker PAMM comparison chart.


4. Controlled Risk & Security
   Investors are allowed to set risk levels (i.e. the acceptable level of loss that can be lost from your investment account). Also some Brokers like HotForex require fund managers to include their funds in the pool of funds being managed by them in order to ensure responsibility and security of investors funds. In addition to this, the fund manager is restricted from withdrawing funds from the managed account. In reality he/she has no access to the funds in the managed account.


5. Real Time Reporting
   You can get real-time reports of the performance of your account depending on the features of your Broker you may be able to get alerts on phone and emails.

The above are the major reasons why the PAMM account is preferred as one of the best investment options in Forex Trading. Unfortunately only a few knows about this. Now you know please share with others. See our recommended Broker Comparison Chart on PAMM accounts.

We appreciate your comments.

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Popular Questions Traders Ask About News Trading

Forex news trading is very lucrative if not one of the most lucrative aspects of Forex trading if you have the requisite skills, tools and knowledge. I know a friend who only trades the US NFP, and makes a decent living out of it. Based from my experience just one good trade on a news event can be worth more than many trades taken through technical methods

See: Our News Trading Test Account Results For 2015 & Current Performance For 2016

We receive various inquiries and question from lots of traders on news trading. We've taken time to outline some of these questions with answers for everyone to learn.

No.1 - What Stop Loss Should I Use?

Ans: This question is quiet very difficult to answer because the impact of most news events are not static in nature and behaviour. Therefore you cannot come up with a definite stop loss value. However based on experience I most often utilize a special dynamic Support & Resistance Indicator to guide me in setting Stop Loss. See Part 2 of the series: How I Trade The News. 

Stop loss varies with the severity of news events. For example events like Interest Rates, Employment Change, & Press Conferences can be very volatile with huge spread widening prior to the news release. Hence in such cases stop loss should be set far apart with the guidance of a support and resistance indicator. I personally modify my orders keeping a safe distance from price until the news is released. In addition to this you can use trailing stops.

Another factor to consider when setting stop loss is your margin allowable limit and capital base. The rule which says not more than 20% of your margin or capital should be exposed or staked can be used. Also using 50pips and more (i.e. for 5 digit brokers) is an ideal value for stop loss. But it's better to modify it until the release is out.

No.2 - What's The Ideal Take Profit For News Trading?

Ans: Same thing applies here like above. You cannot

absolutely tell how far price would go after a news release. We've seen cases where the reaction of an event came out so strong that price went as fas as hundredths of pips, and in some cases very huge gaps in split seconds. An example was the Swiss Franc Capping Episode last year, which sent many brokers & financial institutions bankrupt. At the same time some events can come with mixed reactions though the deviations are met but the market reacts very dull and so take profits are not met. The principle here is set your Take Profit as far as possible while using trailing stops or trade management software to manage the profit all the way.

No.3 - Do I Stand A Better Chance Placing Orders Few Seconds Or Minutes To News Release?
Ans: No it is not always good. There are some specially designed EAs that has the capability to do so but the result would often lead to slippages, requotes, and orders not getting filled. The reason why this happens is that orders passes through a process before getting executed (filled), and the lengthier the process the more exposed to failed orders. In some cases orders goes through the broker to the liquidity provider and then back to the market or through the broker to the liquidity provider and then another liquidity provider until a price is matched then back to the broker or to the market. So before it goes through these trips, price has already moved on and then you get error messages like requotes or slippage (meaning the price you bidded is no longer available). However super auto click systems might be able to get your order in at super milliseconds but not all the time. Do not forget at certain news release, there's a very huge price feed demand all over the world and as such price feed servers can go haywire due to the surge thereby causing slippage.

No.4 - Why Do I Always Get Slippage Or Requotes? Is My Broker Playing Pranks?
Ans: Slippages occur when the price (order) you requested for is no longer available at the current market price, and then you are asked to requote (i.e. place it again with the available price). Actually some brokers might be responsible due to their type of operation (i.e. ECN, STP, or Market Maker). That is why it's advisable to trade with ECN or STP brokers. Another reason is because you placed an order few seconds or minutes to the news release. Within that period most price feed servers are overloaded and price must have moved ahead when you placed the order. However if you place your orders some minutes away from the news release like 10 minutes away and slippages always occurs then your broker needs to be checked.

No.5 - Deviation Was Met But Price Went The Wrong Way. What Happened?
Ans: This is a very strange occurrence and I've experienced it before. See this article that covers the best possible reasons why such occurs. When Deviation Goes Wrong  

No.6 - My Broker Blocks My EA or My EA Does Not Function The Way It Should During News Release!
Ans: In order to be sure where the problem is coming from follow this steps:

1. Contact your broker and inform them of the EA and how it operates. Please be honest with the details of the operation because certain EAs are not permissible with some brokers.
2. Check the journal tab and expert tab for further information that will show you internal functions and execution of the EA, which you can use to probe the EA & the broker.
3. Check the EA settings properly and carryout more checks with the developers to ensure you're using the right settings. In some cases i've noticed that traders more often tweak their EAs beyond the normal settings in order to get them produce "super" results.
4. Test the EA on another broker and observe obvious behaviors if any.

No.7 - I Need A Good News Trading EA
Ans: See the following:

1. Top 6 News Trading EA & Software Applications
2. 3 Crucial Tools & 3 Essential Basics For Successful News Trading

No.8 - Please Recommend A Broker With No Slippage & Low Spread For News Trading!
Ans: We generally shy away from making recommendations but we know how important this is. From our personal experience we recommend HotForex Broker. They have a special account for News Trading & Scalping EAs called Zero Spread Account. See more info: HotForex Zero Spread Account

No.9 - Which Timeframe Is Preferable For News Trading!
Ans: Preferably 30mins. It's easier to view candles and manage the trade. Stay away from smaller timeframes for news trading unless your manual trading strategy relies on smaller timeframes. However for EAs this is not necessary. You can use any timeframe and chart for EAs. They do not necessarily need it to work since the logic is inbuilt.


No.10 - Which Currency Pair Would Give Me More Profit In News Trading?
Ans: The impact of news events reflects on the currency tied (paired) with the country where the event is coming from. For example an event from the US would impact on its direct pairs like JPY, GBP, or NZD. However there are certain currency pairs that have higher spread and currency exchange value. These pairs generates more profits but the spreads can be high. An example of such pairs depending on the events are NZDCHF, USDCHF, GBPCHF, AUDCAD, XAUUSD, e.t.c. For more information on Currency pairs according to their values see: List of All Forex Currency Pairs According to Major Pairs, Exotic Pairs, & Precious Metals

You can subscribe or follow our news trading tips and guide for directions on currency pairs for each news event 
These are some of the most pressing questions we can deal with for now. Feel free to leave a question and we'll get it answered.

Happy News Trading.

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