Basics First: An Introduction to Forex Signals
If you are an ordinary independent investor, it’s unlikely that you have an in-depth knowledge of the foreign exchange (Forex or FX) market – and there’s a really good reason for that. Until recently, Forex was a trading market that was available only to large financial institutions, corporations, hedge funds, central banks and very wealthy individuals.
Currency pair shows the buying power of the quote currency against the base currency.
- Leverage: Borrowed capital used to increase an investment’s potential return
- Liquidity: How quickly an asset or security can be bought or sold without affecting the market price of the asset.
- Position: A trade that an investor currently holds open
- Spot Market: Market where contracts are effective immediately – goods are sold for cash with immediate delivery.
- Forward Market: Binding contract for over-the-counter (OTC) market, setting the price of financial instruments for future delivery.
- Futures Market: Participants buy and sell contracts for future delivery; this is an auction market.
Fluctuations in currency are tiny on a daily basis; often representing a change of 1% of less between currency pairs making FX trading one of the least volatile financial markets. Since the market is so stable, in order to increase the value of potential movements, traders rely on leverage as high as 250:1 to make the movements as meaningful as possible for currency traders.
Spot Market, Forwards and Futures Market
The base currency is found to the left of the slash, while the quote or counter currency is found to the right; with the base currency always being equal to one unit with the counter currency the equivalency in the other currency. Therefore, you can read this currency pair that US$1 can purchase 119.50 yen.
Introducing Forex Trading Signals
While foreign exchange trading can be incredibly lucrative, you need to utilize the most reliable forex tools available to you in order to save you spending hours of watching and waiting for possible entry and exit points. This is where FX signals can help, they are available for anyone who hasn’t quite got the time to deeply examine the market – allowing you to pre-set the limit-level and stop-levels for your trades. Pre-setting this information removes the limit to profit-making opportunities.
Example of how forex signals may look
Forex signals can help support your revenue opportunities and free up your time. They are essentially buy and sell indicators, used to let traders know about upcoming good entry or exit points in the market. There are a wide range of live forex signals generated by FX signal services who monitor the market – sending recommendations to the traders’ computers and cell phones indicating that a positive trade is available.
Main methods of receiving signals:
- Telegram Forex Signals App
Some of the different indicators used to generate signals include:
- SMA (Simple Moving Average)
- MACD (Moving Average Convergence Divergence): The 26-day exponential moving average (EMA) indicator is defined by the relationship between the 26-day EMA and the 12-day EMA, with the 9-day EMA serving as a “signal line” which acts as a trigger. forex signals providers
- Bollinger Bands: Tightening of a band’s width for a pair of specific currencies often precedes volatile exchange prices.
Choosing a Forex Signals Providers
Avoid missing out on a big opportunity by choosing a forex signals provider you trust.
There are a number of Forex signals providers to consider, many who are good for first-time investors.