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Hello Forex Trader,

I just wanted to share with you my latest personal view on the GBP/AUD DAILY CHART (16th-Jan-2020) market analysis.


The currency pairs had been bouncing forming a formation of an inverted triangle which some technical analyst do call Megaphone triangle but it doesn’t matter whatever name you prefer to call it. what really matter is knowing the implication or possibility outcome of the formation.

Right from a LOWER-LOW carved from 30th-July-2019 with a formation of a bullish pin bar, the currency pairs had been rally up right since then. Price have been respecting our dynamic support trend-line to an HIGH-HIGHS in 16th-Dec-2019 whereby price was been rejected by an opposite of a bullish pin called bearish pin bar.

Price retested our dynamic support trend-line from 24th-Dec-2019 and 14th-Jan 2020. Technically viewing this action I can spot sigh of weakness for the pairs due to the short distance of retest between this retest of our dynamic support trend line and can be called clustering of price

If the trend is strong, price ought to have proceed to carve a new HIGH-HIGH before a retest of our dynamic support once again.

Alternatively I can spot a formation of an INSIDE-BAR which can constitute as a signal interest for buyers. Do remember horizontal key-level acts @1.90886 and a daily close above this level has high probability to trigger more momentum for the bull to retest previous HIGH-HIGH.

If the bull failed to defend the dynamic support trend-line, this may give signal of the bears coming in to move the currency pairs to retest horizontal key-level @1.85433.

Are you interested to see how I’m gonna trade this currency pairs?? Click here to see how I’m trading it 👉:https://bit.ly/2SL1h0L

Omoare Allen



Are you looking for where to purchase Bitcoins without hassles? If yes, then you should consider reading this post to know where and how to buy and sell virtual currencies at the best rates.

Coinipop is a platform that makes it faster and easier for crypto miners and traders to sell, purchase digital currencies such as Ethreum and Bitcoin.

About Coinipop

Coinipop is a marketplace that provides an ecosystem for people to trade cryptocurrencies. As a crypto exchange platform, Coinipop facilitates cryptocurrency transactions by making it relatively easier for you to buy and sell digital currencies at good prices.

Coinipop is owned by an Estonian form known as CRYPTO HOUSE OÜ. Also, it has obtained license and regulation from the Financial Intelligence Unit (“FIU”) to operate as a cryptocurrency exchange platform.

How Coinipop Works

Coinipop has been structured to make it quicker for people to venture into the cryptocurrency world. Hence, if you want to get your hands on cryptocurrencies to trade, you can consider purchasing them from Coinipop.

You can start using Coinipop for crypto transactions with just a few clicks. Here are the ways to get started.

1. Select A Level

Coinipop provides four levels namely: Bit Baby, Bit Grown-Up, Bit Fighter and Bit Royalty. Each of these levels allows you to purchase a specific volume of Bitcoins.

  • Bit Baby: 0 to 1,000.
  • Bit Grown: Up: 1,001 to 5,000.
  • Bit Fighter: 5,001 to 10,000.
  • Bit Royalty: 10,000 to 50,000.

Decide how much Bitcoins you want to purchase by selecting a level. 

2. Create Your Account On Coinipop

Next, visit the Coinipop website to create your account. It takes a few minutes to sign-up and create a Coinipop account. 

3. Uploading Your Documents On Coinipop

Coinipop would request for your identification documents such as an ID Card, Drivers’ license etc to verify your account.

Features of Coinipop

  • The Coinipop platform is safe and secure to use.
  • They are domiciled in Estonia and regulated by the Financial Intelligence Unit (“FIU”).
  • They provide multiple payment methods such as payment via credit card (VISA and MasterCard) and wire transfer.
  • They support the Ethereum and Bitcoin cryptocurrency.

Benefits of Coinipop

  1. Coinipop processes Bitcoin transactions quickly and it easy for you to purchase Bitcoins. 
  2. Cryptocurrencies are traded on Coinipop at the best exchange rates. 
  3. Coinipop allows you to get any amount of Bitcoin you wish. 
  4. You can contact the customer service in your country at any hour of the day.
  5. It is a legitimate cryptocurrency exchange platform that is regulated with the license number ‘FVR000256’.

Customer Support On Coinipop

Coinipop gives the best service to its clients with its reliable and responsive customer support team. You can contact technical Coinipop using the following methods:

  • Mail: [email protected]
  • Telephone: +44-20-8089-8122 (United Kingdom) and +372-602-8577 (Estonia).

Conclusion On Coinipop

As at the time of writing, Coinipop supports the Bitcoin and Ethereum cryptocurrencies only, with time, we will get to see more crypto tokens on this platform. 

If you are looking for a cryptocurrency platform to get trade Bitcoins, we recommend you to use Coinipop because they trade at the best market rates. 



Hello Forex Trader,

I just wanted to share with you my latest personal view on the BITCOIN DAILY CHART (07th-Jan-2020) market analysis.

Bitcoin king of cryptocurrency had been on a long term bearish trend right from late June 2019 and since then price have been bouncing in a falling wedge.


Technically price have higher probability of breaking to the upside whenever there’s such formation of price.

Now the questions are…

Will the bullish engulfing formation with its low wick @6352.07 act as a catalyst for bitcoin to breakout of the falling wedge right from late June 2019??

Will the bear defend the its boundary at dynamic resistance intersection @7540.96??

Right now bitcoin is still trading within the range and i will love to watch for signals @ either at dynamic resistance or support level..

To get access to my trading decisions on this currency click here now 👉:https://bit.ly/2SL1h0L

What do you think about this currency ?

Remember the comment box is all yours..👇

Trade well,
Allen @fxklex

Omoare Allen

USD/CHF 07-JAN-2019


Hello Forex Trader,

I just wanted to share with you my latest personal view on the USD/CHF WEEKLY CHART (07th-Jan-2020) market analysis.


On the weekly time frame we can see USD/CHF have been bouncing up and down inside an ascending channel. Price broke our dynamic support trend-line but still rejected at previous HIGH-LOW @0.96593

Right now this horizontal level which is active and repelling price upward is @0.96593

Now the questions are….

will the bears be able to pull price downward to break this potential support level??

Will the bull defend this zone by retesting our broken dynamic support which lies @ intersection of 0.98439 and move price back inside the channel?

Will the bears defend the dynamic broken support trend-line to now act as new dynamic resistance trend-line?

Well I will love to wait and see if the market will react accordingly to my TRADING STRATEGIES…

To get access to my trading decisions on this currency pairs click here now 👉:https://bit.ly/2SL1h0L

What do you think about this currency pairs?

Remember the comment box is all yours..👇

Trade well,
Allen @fxklex

Omoare Allen

EUR/JPY 06-JAN-2020


EUR/JPY have been bouncing in a narrow wedge and price seams to be respecting our dynamic support trend-line. I’m looking out for a strong reversal pattern to give a confirmation of the movement in a bull push up but take note that in a narrow wedge price have high tendency to breakout to the downside. Also I must ensure my trades decisions obey the 2R ratio

EUR/JPY 06-JAN-2020

We must therefore be extra careful with our decision makings at this zone and a breakout below may serve as a strong signal for the bears trying to move price more bearish although the trend is bearish on the long-term

Seeing a breakout below, I would love to see a retest of broken dynamic acting as a new dynamic resistance level.

What do you think about this currency pairs?

Remember the comment box is all yours..👇

Trade well,
Allen (CEO @fxklex)

Omoare Allen

How I made 70pips profit on USD/JPY

How I made 70pips profit on USD/JPY


Here is a video of a trade I took on USD/JPY, Risking 30pips for 70pips profit.. https://www.youtube.com/watch?v=CKjw9mhjSVg

The contents on this video is based on my personal opinion and not intented as a financial advice.

Do not forget to follow @fxklex


Telegram Signal Link: https://bit.ly/39AvXYO

Instagram: https://www.instagram.com/fxklex/

Fxklex Website: https://www.fxklex.com

Facebook: https://fb.me/fxklexpage

Twitter: https://www.twitter.com/fxklex

Recommended brokerage company for Beginners & Experienced traders: https://bit.ly/2NkwCTE



Hello Forex Trader,

I just wanted to share with you my latest and personal view on the EURAUD DAILY(2nd-Jan-2020) market analysis.

EUR/AUD DAILY 2nd-Jan-2020

EUR/AUD have been in a bouncing phase inside a symmetrical triangle for some months right from August of 2019. Also we can see the pairs gave a formation of an HEAD and SHOULDERS chart pattern which is technically signaling a bearish bias of the currency pairs

Horizontal resistance lies @1.63096 while potential support lies @1.59115. Our dynamic trend-line had been broken @1.60142 but the bears still have to clear off support which lies @1.59115 to give us a strong signal of the bears to re-expose next support which [email protected]

What do you think about this currency pairs?

Remember the comment box is all yours..👇

Trade well,
Allen @fxklex

Omoare Allen

How to choose the best trading products in IQ Option


There are a lot of products for you to choose in IQ Option. However, not many products are profitable. In this article, we will introduce you to some trading products that are the most potential for earning money.

Choose profitable products (pair of currency) in options trading

When trading options in IQ Option, there are 2 tabs for you to choose: (i) Binary and (ii) Digital. Most of the traders will choose Binary to trade because the products in this tab are more profitable.

Choosing profitable pairs of currency in IQ Option
Choosing profitable pairs of currency in IQ Option

Balancing profit in IQ Option is very important. It affects the amount in your account. For example, if winning probability is 60%, you will win 6 out of every 10 trades you make. If IQ Option pays you 60% of the investment for every won option, in the end you may still lose your money.
To make it more clearly, you invest 10$ in each trade for 10 options. You may make 36$ with 6 options. But you may also lose 40$ in just 4 options later, which means you lose 4$ in the end.
However, if the payout ratio is 70%, you have the opportunity to earn profit at the end of the day with 60% winning probability. If you invest 10$ in each trade for 10 options, you may earn 2$ in the end.
Conclusion: The higher payout ratio IQ Option offers, the more possibility you can earn a profit.

The fewer products you trade, the more profit you make

Trading options is a typical game of probability. There’s no way you can get a 100% probability of winning. You can only find a strategy that gives you the highest probability to win. Therefore, the more choices you have, the more reasons you want to open options. And it is easy to lose money in this case.

The fewer products you trade, the more profit you make
The fewer products you trade, the more profit you make

Another key to succeed in IQ Option is the ability to focus. When you have a lot of choices, you cannot focus and your strategy is no longer effective.
Conclusion: You should only trade 3 pairs of currency at most. You will concentrate better with only 3 choices and give better decisions in trading.

Choose popular pairs of currency

You should choose popular pairs of currency to trade, such as EUR; USD; AUD; JPY, etc. These are widely-used types of currency in the world. The price movement of those products is so obvious that you can spot trends and candlestick patterns for tradings.
If you choose unpopular currencies, price movement is often neutral and difficult to buy an option. Therefore, the probability of loss is high.

Don’t choose unpopular products to trade
Don’t choose unpopular products to trade

Choosing a suitable pair of currency for each trading time

Situation control is an important skill to ensure your success in IQ Option. Therefore, besides choosing profitable trading products, you have to know the profitable time to trade.
A good time to trade is when you can fully focus on one market. Experience of professional traders is avoiding dramatic fluctuation time (when there’s a lot of news affects your trading products). That is the time when price movement does not follow any pattern and price action is unpredictable. You may lose in every option you trade.

Choose the right time and right products to trade
Choose the right time and right products to trade

If you trade AUD and JPY in the Asian time zone, you will see price movement rises and falls dramatically. The same situation happens when you trade EUR in the European time zone.
Conclusion: There are two time zones that you can focus: 9 am – 11 am and 3 pm – 5 pm. When trading, just choose the pairs of currency that are not affected by market news. For example, in Asian time zone, you should trade EUR/USD and in European time zone, you should trade USD/JPY.

Recommendation for trading products in IQ Option

In all of my articles, I only mention 3 pairs of currency: EUR/USD, USD/JPY và AUD/USD. My trading time is from Monday to Friday, from morning until the afternoon in Vietnamese time (UTC +7).
At the same time, I only trade in profitable periods when the payout ratio rises to 70%. It is how I protect my account.
Leave your thought about this article and we will discuss together to improve our trading strategies.

Is Buxcoin Superior Than Bitcoin? – An Impartial Analysis


In terms of Market capitalization, there is no comparison between them as Bitcoin has a $132.9 Billion market cap today. Buxcoin seems superior when it comes to technology, purposes and transparency. (the above image highlighting key differences between them)

Buxcoin was Introduced in 2017 as a forex payment gateway to solve the financial transaction problems in forex business globally without any third party involvement such as PayPal or a bank. Buxcoin supply is limited to 500,000,000 coins which creates supply and demand, which is healthy for a store of value.

Technical Features and Utility of Buxcoin 

Bitcoin is fantastic, but the block size limit created a bottleneck, what’s the issue with that? The transaction fees are increasing too fast, and the processing of transactions is slow because transaction throughput is limited by the block size limit, so payments are delayed. I remember a few years ago, I waited like 3 hours to get my transaction (on my wallet). The bitcoin’s theoretical transaction throughput is 27 transactions/sec but is closer to is 3.3 and 7 transactions per second. Some proposals were made to improve this, though. You can buy anything with Bitcoin, everybody knows it: hardware, services, pizzas (we all know the famous example of the expensive pizza) and even art and real-estate.

Buxcoin, with its lightening transaction feature, can reach 7000 transactions per second, this eradicates bottleneck attack and engages millions of peers at a time. You can’t buy so many things with Buxcoin (compared to BTC), but the coin is rising, they even have their own exchange called Cashfinex, and you can use Buxcoin to trade on the FOREX and also have a leverage position with it! So, it might be a good thing for all the traders out there.


Decentralization of Buxcoin 

Alright, it’s not really a “technical fact,” but it’s an important point: Neither of them is governed by a central authority such as a team, government, or a financial institution. This means that no one can influence the price of the coins to any degree or have control over your coins as they please, as is often the case with your money with the government or taxes (the IRS gets paid firstly on your wages then they let you what’s left, same thing if you have to pay legal fees for any lawsuit).

Community of Buxcoin 

The Bitcoin community is huge and is the oldest one (even of their community is divided with all their forks), millions of users, and active forums and everything… but notice that Buxcoin have more than 100k people are involved in their community.


We all love Bitcoin, but it’s expensive right now, and the potential upside is limited. For example, even if you have money to buy one ($7500) and if you are lucky in the 10 months-2 years, it will reach a price of $15k you will only get an $7.5k profit (2 times your money).

With other altcoins and some promising projects like Buxcoin the potential upside is way better (I remember when I was investing in XVG at $0.004, and it went crazy 800%. It was unbelievable, and why it was possible? Because it was a cheaper coin. With Bitcoin, it would be impossible. So, stack up your coins and get some Buxcoin (a small stake for your portfolio).


What's Forex Trading (FXKLEX)
What's Forex Trading

What is Forex or Forex Trading? Possibly, this has to be one commonly asked questions of this century. On this page, I have dedicated my precious time to provide the right A-Z information for all you need to know about this subject.

What is Forex Trading?
What is Forex Trading?

Interested to learn more about FOREX?

Let’s get started!

Forex simply refers to a decentralised global market where investors, traders and institutions get to trade all the world’s currencies.

Forex can also be referred to as currency market or FX which is an abbreviation for Foreign exchange. It is a continuous process of exchanging or trading a particular currency in exchange for another.

The forex market is where all banks, financial institutions, brands and business organizations assemble to deal in currencies. 

With a daily trading volume of more than $6.6 trillion; thereby making FX market the largest liquid market in the world.

Trading activities are done on the interbank market, which is open for 24 hours in 5 working days of the week. 

Not even the stock market comes close to the forex market in terms of trading volume.

Believe it or not, you might have participated in the forex market without even knowing.

Hopefully the explanations above doesn’t look like something out of John Madden’s playbook. But in case it does, let me break it down.

Let’s say you are from Australia and you travelled to USA for the summer holidays, you’ll have to convert your local currency into American currency denomination, which is Pounds ($) USD.

When this transaction is completed, you have just participated in forex trading.

In the foreign exchange market, currencies are traded in pairs and they can be bought and sold through a dealer or a brokerage company.

Now that we understand the meaning of the forex market and how it’s been done, I have a test for you. What should be the definition of forex trading? I will give you some time to think about it…

Okay, I will give you a hint below😉…

Definition of Forex Trading

This refers to the process of buying and selling two currencies or more currencies with the sole objective of making a profit.

In the foreign exchange market, the price of a single currency is paired against the price of another currency.

As a trader, you have to trade one currency for another at a time (I mean you trade currency in pairs). A currency pair is a price quote of the exchange rate for two different currencies traded in FX markets and this is where your profit or loss lies.

Just like the stock market, your trade in the forex market should be based on the value of the currency (Exchange Rate). 

Therefore, the Forex market allows you to trade through the rise and fall of currency value.

Omoare Allen

If you assume or think that a certain currency will increase in value, you purchase it. Similarly, if you assume or think that a certain currency will decrease in value, you sell it off. This is how the forex market works!😁

The foreign exchange market is very large, it is easier to find a seller or buyer faster compared to other financial markets.

For instance, if South African government devalues its national currency to woo foreign investors to stake in the country’s economy, then your obligation as a forex trader is to study the movement of the currency. 

If you think the trend will continue downward, you can sell the South African Rands against another currency with higher value rate.

The more the South African Rands devalues against a currency with higher value rate, the higher your profits accumulate in the trade.

Still with me? OK, good!

Now that we have an understanding of what the Forex market and Forex trading is all about, let’s discuss on the currencies in the Forex market.


Currency Pairs in Foreign Exchange

Every forex trading transaction involves the buying and selling of two currencies. This is known as Currency pairs, they include a quote currency and a base currency.

The movement of currency pairs tells how well one currency performs against the other.

There are 3 forex currency pairs known as minors, majors and exotics.

What Are Major Currency Pairs In Forex Trading?

The major currency pairs are the most liquid and frequently traded currency pairs in the forex market. They also feature the U.S Dollar (USD) on one side.

One of the commonest currency pairs on the foreign exchange market is the EUR/USD. Below is a list of the major currency pairs in the world.

  • EUR/USD (Eurozone / United States).
  • USD/JPY (United States / Japan).
  • GBP/USD (United Kingdom / United States).
  • USD/CHF (United States/ Switzerland).
  • USD/CAD (United States / Canada).
  • AUD/USD (Australia / United States).
  • NZD/USD (New Zealand / United States).

The major currency pairs account for more than 85% of the trade volume of the foreign exchange market. Many forex traders opt for currency pairs with the U.S dollar over other currency pairs.

Why are these traders interested in currency paired against the American USD?

Typically, the major currency pairs have low volatility and high liquidity. They are related to stable, properly managed economies and this makes the US dollar as the world’s leading reserve currency.

What Are Minor Currency Pairs In Forex Trading?

Minor currency pairs are composed of major currencies which are not paired against the U.S Dollar. These currency pairs can also be called crosses or cross-currency pairs. 

Typically, they are less liquid and can be more volatile than the Major currency pairs. Examples of minor currency pairs are;

  • EUR/GBP (Eurozone / United Kingdom).
  • EUR/CHF (Eurozone / Switzerland).
  • AUD/NZD (Australia / New Zealand).
  • EUR/SEK (Eurozone / Sweden).
  • NZD/JPY (New Zealand / Japan).
  • GBP/CHF (United Kingdom / Switzerland).
  • GBP/CAD (United Kingdom / Canada).
  • AUD/CHF (Australia / Switzerland).
  • CAD/CHF (Canada / Switzerland).
  • NZD/CAD (New Zealand / Canada).

What Are Exotic Currency Pairs In Forex Trading?

Exotic currency pairs are known as currencies from smaller economics paired up with a major currency. 

Exotic currency pairs are the Hong Kong Dollar (HKD), Norwegian Krone (NOK), South African Rand (ZAR) and Thai Baht (THB).

Unlike the Majors and cross-currency pairs, exotics can be risky to trade as they are more volatile and liquid. 

They contain wider spreads and are very sensitive to sudden political, geographical and financial developments.

Exotic currency pairs are not frequently or heavily traded as the Majors and cross-currency pairs, this is why they attract massive transaction costs.

Not all forex brokers offer the exotic pairs on their trading platforms. However, some still offer them for interested traders.

The Exotic currency pairs are made up of an exotic currency and a major currency. Examples are;

  • USD/BRL (United States / Brazil).
  • USD/HKD (United States / Hong Kong).
  • USD/SAR (United States / Saudi Arabia).
  • USD/SGD (United States / Singapore).
  • USD/ZAR (United States / South Africa).
  • USD/THB (United States / Thailand).
  • USD/MXN (United States / Mexico).
  • USD/DKK (United States / Denmark).
  • USD/SEK (United States / Sweden).
  • USD/NOK (United States / Norway).
  • USD/RUB (United States / Russia).
  • USD/PLN (United States / Poland).

G10 Currencies

The G10 currencies are made up of top ten of the world’s most heavily traded currencies. Furthermore, these are the world’s most liquid currencies.

Its is unclear how the G10 currencies originated. However, its history can be traced to the G-10 countries who agreed to be involved in the IMF’s General Arrangements to Borrow (GAB).

The General Arrangements to Borrow (GAB) was established in 1962 as an agreement made between countries to pool resources together.

This was done to provide the International Monetary Fund (IMF) with more funds to magnify its lending capacity.

From time to time, people trade them in an open market with little or no impact on their own global exchange rates.

The G10 currencies are listed as follows;

United StatesAmerican dollarUSD
European UnioneuroEUR
United KingdompoundGBP
AustraliaAustralian dollarAUD
New ZealandNew Zealander dollarNZD
CanadaCanadian dollarCAD
NorwayNorwegian kroneNOK
DenmarkDanish kroneDKK

The Danish krone makes it G11 in some banking circles.


BRIICS is an abbreviation made for the five major emerging national economies. These rising national economies include the following countries: Brazil, Russia, India, Indonesia, China and South Africa.

Initially, these countries were four in number and were known as BRIC. The acronym “BRIC” was coined by Goldman Sachs as a nomenclature for the modern rising economies.

South AfricarandZAR

All the currencies discussed above might sound confusing for now, but it will soon make sense, I promise!😉

Now it’s time we discuss where the real action takes place and that’s our trading chart!

What Is Forex Chart In Forex Trading?

A Forex chart is a graphical interface that shows the historical records and the behavior of price movement between two currency pairs. 

This help forex traders to make a technical analysis of the historical behaviour of two currency pairs. 

And also, they can help the trader to make a forecast of the future price movement or trend.

READ ALSO: What To Know Before Trading The Financial Market

There are 3 common types of Forex charts. They are;

  • Line Chart.
  • Bar Chart.
  • Candlestick Chart.

What Is Line Chart In Forex Trading?

Under normal circumstances, the line chart is a comprehensive way of trading forex, especially for newbies, novices and beginners. 


In a line chart, a line is drawn from a particular closing price to another.

It allows you to identify the general price movement of a currency pair within a given time frame and determine the currency patterns.

What Is Bar Chart In Forex Trading?

The bar chart is the commonest tool used to know the contraction and expansion of price ranges. 

Typically, a bar chart displays the opening, closing, high and the low of the currency prices.


The top of the bar shows the highest paid price while the bottom of the bar indicates the lowest traded price within a period of time.

The actual bar showcases the currency pair’s overall trading range coupled with the horizontal lines on its sides which indicates the opening (left) and closing prices (right).

What Is Candlestick Chart In Forex Trading?

The candlestick chart is loved by many traders because of the wide range of information it exhibits. In the same vein, it can also be called the Japanese Candlestick Chart.

What is Forex Trading

This chart shows the low, high, opening and closing currency prices. A candlestick has 3 points which are made up of the open, close and the wicks.

The wicks indicate the high to the low range while the ‘real body‘ (wide section) tells traders if the closing price of a currency pair was higher or lower than the opening price.

When a candlestick is filled, it means that the currency pair closed lower than it opened. 

Similarly, when a candlestick is hollow, it portrays that the closing price is higher than its opening price.

I’m sure you are familiar with this kind of trading chart, aren’t you? Yes I definitely know you are!

How Does Forex Quotes Work?

In forex trading, you’re bound to come across terms like ‘Bid’ and ‘Ask’ prices. If you don’t know how these quotes work, you might end up being confused.

The ‘Bid’ price is the rate at which you purchase a currency while the ‘Ask’ price is the price you can sell the currency.

Again, when you purchase a currency, it is said to be a long trade. You’re buying this currency with the expectation that it will appreciate and increase in value. Consequently, you can sell it at a higher rate and make a huge profit on the difference.

In the same way, when you are selling a currency, your expectation is for the currency to fall in value. 

When this happens, you can buy the same currency again for a low price and make a profit based on the difference.

However, the number quoted for the prices are listed based on the current exchange rate of the currencies in the pair.

What are Forex CFDs?

As an enthusiast in forex trading, you must have seen ‘Forex CFDs’ on some forex trading platforms and websites.

There are 2 major ways for people to trade Forex. You can trade Forex by either of the following;

  • Using CFDs.
  • Spot Forex.

Spot Forex is the process of buying and selling a particular currency. For instance, you could buy the United States Dollars for the Euros.

When the value of the United States Dollar (USD) increases, then you exchange your Euros for the USD again.

As a result, you get to receive more amount of money compared to the amount you originally spent on the purchase of the currency.

Forex CFDs are known as Contract For Difference; they are used to represent the movement in the prices of financial assets and instruments.

Rather than trading large amounts of currency, you can pocket a huge profit on the price movements even without owning the financial asset.

CFDs are available on a variety of financial instruments like bonds, indices, shares, commodities and cryptocurrencies.

Forex CFDs gives you the liberty to trade on the price movements of these financial instruments without owning the

In every case, they allow you to trade on the price movements of these assets without owning the asset itself.

What is Leverage and How Does It Work in Forex Trading?

Forex CFDs doesn’t just allow you to access a wide range of financial markets.

They also allow forex traders to gain entry to a larger portion of the financial markets for them to maximize their profits.

CFDs provide leveraged access to financial markets. This means that a forex trader can access a larger portion of the market than what he/she could have gotten outright.

For instance, a trader can be provided with a leverage of up to 1:100, which means if $1,000 is invested by the trader and the leverage made available by the brokerage firm is 1:100.

Therefore; the total amount available for trading is $100,000.  😱

The most exciting fact about forex leverage is that the potential profit you can generate is as though you invested the asset outright. 😃

However, the risk is that you can make losses and these losses are proportionally magnified to the same range as potential profits.

Before you get to know how to execute trade in the forex market, It is important for you to know some key concepts in the Forex dictionary.

  • Spread: This is the difference between the ‘bid’ price and the ‘ask’ price of a currency pair. Normally, the spread of popular currency pairs are low ( Major currency pairs).

Those currency pairs that are not frequently traded tend to have higher spreads (Exotic currency pairs). Before you can make a successful and profitable trade from the forex market, the value of your currency pair must cross the spread.

  • Pip: Pip in the forex glossary refers to the base unit in the cost or price of currency pairs.

For example, if the bid price for the EUR/USD currency pair moves from 1.1660 to 1.1670, this shows a pip change of ten.

  • Margin: This is the total amount of funds in the forex trader’s account. Some traders who are insufficient of funds can open access to trade higher position size through the usage of  leverage or traders with high risk tolerance spirit seeking higher return on their investment.

Due to this reason, many CFD and forex brokers allow their clients to use leverage.

  • Leverage: Leverage is said to be the capital prepared by a Forex brokerage company to support and bolster the trading volume of their clients.

It is very common to see Forex brokers offering leverage to its Forex traders.

For instance, if a forex broker provides you with a leverage of up to 1:100, it simply means that for every $1 you have in your trading account, you can place a trade worth up to $100. This is a typical amount of leverage offered on a standard lot account.

Imagine you have a margin (Fund) of $1000 in your trading account and you have access to trade $100,000 worth of a currency pair. Cool isn’t it?😇

However, it isn’t as cool as it sounds. Although leverage allows you to increase your initial capital investment, it can increase your losses as well.

If you are new to forex, I recommend you to trade steadily and gradually.

In-fact, I advise inexperienced or beginners not to risk more than 2% to 5% of their equity in my trading courses.

Which means if you have $1000 funds in your trading account do not risk more than $20 to $50 summation on all your total active trades.

You can kick-start your trading career using lower position size (1%-5%) until you are fit to trade higher position size in the market.

How To Make A Forex Trade

Forex trade is based on the speculation of value of two currencies. The most traded currency pair in the foreign exchange market is the EUR/USD.

The EUR/USD currency pairing nickname is Fiber while GBP/USD currency pairing nickname is Cable. 

On the other hand, the first currency by the left hand side is the counter currency (EUR, GBP) while the second currency at the right hand side is the base currency (USD).

When a price is quoted for this currency pair, it means how much a EURO or GBP  is worth in the U.S Dollars. 

Vividly, you can always see the two prices displayed as one is a buy price (bidding price) and the other is the sell price (Asking price).

If you should click on the buy or sell button, you are either buying or selling the initial currency in the pair.

For instance, you can trade the currency pair ‘EUR/USD’. If you think the Euro will increase in value and compete well against the U.S Dollar, you buy the EUR.

Since the Euro is the first currency in the pair and you are sure it will go up, then purchase EUR/USD.

If your thought is based on the fact that the Euro will drop in value against the United States Dollar, you sell EUR/USD.

If the ‘BUY’ price for the EUR/USD is 0.70643 and the ‘SELL’ price is 0.70640, then the spread is 0.3 pips.

The trade can either favour you or be against you. When you cover the spread, you’ll be able to make a loss or generate a profit on your trade.

Are There Risks In Forex Trading?

Honestly, every business carries its own risk; Therefore trading currencies in the forex market can be complicated, complex and risky. 

In the interbank market, there are many financial institutions such as banks trading against each other globally. 

This market has diverse degrees of regulation and many forex instruments are not designed in a standard manner.

In the interbank market, financial institutions are to set, receive credit risk and sovereign risk. 

Also, they have designed internal procedures and mechanisms to ensure that they remain safe.

Typically, the interbank market is comprised of participating banks making offers and bids for each currency.

Under this trading condition, the pricing mechanism of the interbank market is strictly based on supply and demand.

Again, due to the large trade volume within this marketplace, some traders will find it challenging to control the price of a currency.

This has helped to increase the much-needed transparency for investors to deal in the interbank market.

Additionally, there are implications of financial risk when retail traders transact with forex brokers which are not fully regulated.

These semi-unregulated forex brokers can even trade against their own customers or even re-quote their prices and this move will backfire on their customers.

Conclusion On Forex Trading

Forex provides a wide variety of opportunities and benefits for people to grow their finances.

A lot of traders have received a significant return on investment by trading in the foreign exchange market.

Furthermore, the forex market is a branch of the financial markets that helps you achieve financial freedom. 

If you are looking for the best channel to invest your resources, you should definitely try out the foreign exchange market.

I’ve covered the most important information about Forex Trading in this overview and I believe that you have been able to deduce the Forex market from this article.

As time goes on, I will provide more forex trading insights and tips for you.

Now it’s your turn🤗

what got you interested in Forex trading and are you willing to trade Forex for living or as an additional source of income?

The comment box is all yours …😉

READ ALSO: What To Know Before Trading The Financial Market

USD - United States Dollar
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