What is the foreign exchange market?

foreign exchange

The foreign exchange market is a powerful and influential financial market that has made international headlines in recent years due to various currency crises. There was the crisis of the Turkish lira (2018), the Venezuelan bolivar (2008, 2018) or the Argentine peso (2017-2018). But so-called “strong” currencies, such as the Swiss franc (2015, so-called “franc shock”) or the US dollar (July 15, 2008, $ 16,083 per € 1, “World Bank predicts end of dollar rule” 2) also came up violently under pressure. The foreign exchange market is better known under…

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What are contracts for difference (CFDs)

contracts for difference

If you look carefully at the websites of forex brokers, you will often come across the term CFD (or CFDs). This stands for ‘Contract (s) For Difference’. These contracts are often used to open and close your forex positions. What does that mean exactly? What are the consequences for you as a forex trader? And what else can you do with CFDs? You can read it in this article. What is a CFD? A contract for difference (CFD) is a derivative financial product. That is, its value is based on…

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New ESMA rules for forex and CFD trading

trading

This article is especially for traders who wants to trade in EuropeYou may have noticed that many brokers have recently significantly increased the required margin to open a forex trade. Or, to put it in other words: they have lowered the maximum leverage. This is the result of new rules from ESMA. These rules have been in force since August 1, 2018, and have major implications for forex traders. In this article we explain the new rules and discuss the consequences for you as an active investor. What is ESMA?ESMA…

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Money management, protect your investment capital

forex money management

One of the most important skills when investing in forex is good money management. This is essential to protect your assets and maximize your return. In this series of three articles we explain what money management is, why it is important and which money management strategies are suitable for starting forex investors. Money management is also known by other names: bankroll management, risk management or asset management. It all comes down to the same thing: making the best use of your investment capital to earn the most with forex in…

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The difference between cryptocurrency and forex trading

cryptocurrency

Cryptocurrencies is the theme of recent months. These digital coins such as Bitcoin, Ethereum and Ripple are based on blockchain technology. Due to the rapid price rise, cryptocurrencies have attracted many new investors to active trading. And many forex traders have started trading crypto currencies in addition to traditional currencies. Anyone who studies the market daily will soon see that the two products, forex and cryptocurrencies, behave very differently. That means that as an active trader you also have to make other decisions. In this article we discuss the differences…

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