Author: rcanessa - Page 54

Petrodollar

What is a petrodollar? A petrodollar is a dollar earned by a country with the sale of its oil to another country. The term Petrodollar was first used in 1973 by Ibrahim Oweis, professor of economics at Georgetown University. All OPEC (Organization of Petroleum Exporting Countries) sell crude in US dollars (USD), so that any country that wants to buy oil … Read more

RoboForex Review 2024 – Analysis of Forex Broker RoboForex

by rcanessa

RoboForex

– ECN/STP broker from Belize specialized in Forex and CFD

-It is a fully regulated broker

-Variable and tight spreads

Visit Broker Website

RoboForex – Broker Review

RoboForex Ltd is a NDD/STP/ECN Forex broker from Belice which offers the possibility to trade with currency pairs (Forex market), commodities like gold and silver, and Contracts For Difference through various trading platforms. This company provides a variety of services to its clients, including solutions of social trading, trading competitions, regular promotions for new and existing clients, various types of trading accounts, managed accounts, various trading platforms, and many more.

Currently, RoboForex is one of the most versatile and varied brokers in its services, as it not only offers trading accounts for the Forex market but also a platform for trading and investing in shares of the American stock market. This, along with the quality of its ECN execution, the possibility of opening an account and trading with low amounts, and other characteristics, make RoboForex an option that we must consider.

Real Interest Rate Differentials Model

by rcanessa

The Real Interest Rate Differentials Model indicates that movements in the price of currencies are determined by the levels of interest rates of the countries. Thus, the currencies of countries with high-interest rates should grow in value while the opposite should happen with nations whose interest rates are low.

As we will see below, this model is not able to explain all the movements in the currency market, although much of what happens in the Forex (and in other financial markets) is related directly and indirectly to interest rates.

Bases of the Model

Whenever a country raises its interest rates, international investors discover that the currency of that nation has a higher yield and therefore these investors start buying the currency. This theory was very successful in 2003 when the spreads of interest rates were quite close to the highest levels of the past years.

Interest Rate Parity Model

by rcanessa

The Model of Interest Rate Parity states that in the event that two different currencies have different interest rates, then that difference will be reflected in the premium or discount to the price in the future, in order to avoid arbitration without risks.

For example, if interest rates in the U.S. are 3% and the interest rates of Japan are 1%, then the U.S. dollar (USD) should depreciate against the Japanese yen (JPY) by 2% to avoid what is known as risk arbitrage. This price or future exchange rate is expressed in the price at future date (forward) indicated on the current date.

RoboForex Offers Free Coupons for MQL5 Signals Copytrading Service

by rcanessa

Free MQL5 Signals cuopons from RoboForex

For all traders interested in automated trading and copytrading, RoboForex is offering an interesting promotion during 2017. As of April 11, 2017, RoboForex Ltd with the support of MQL5.community (a service of MetaQuotes Software Corp., the creator of Metatrader 4 and Metatrader 5 platforms) will be carrying out a special offer for its customers, in which the company will award 2017 free coupons for the MQL5 Trading Signals copytrading service. Each of these coupons is valued at 40 USD.

-Period of validity of the offer: The promotion will be active until the 2017 free coupons expire. (At the time this article was written, there were 1935 coupons).

How to calculate the position size in Forex trading?

by rcanessa

Well, now that we know how to calculate the value of 1 pip, calculate the position size that will be used in a trade is really simple.

In this article we will not discuss about how much risk in a trade, which would be the subject of another article, so the first thing to calculate is the monetary amount you are willing to lose in the transaction.

Assuming for example that the size of our trading account is 2,000 EUR and we apply a monetary management in which we risk 1.5% of the account, it is easy to determine that the maximum loss we are willing to assume in a trade is 30 EUR (2000 EUR * 1.5%).

We assume also that the position opened will have a stop loss set in advance. Therefore, as the value of 1 pip is known, then would be easy to calculate the loss in the account in case the price reaches the stop loss for each contract involved in the transaction.

Let’s see some examples:

Indirect quotation and direct quotation in Forex

by rcanessa

Indirect quotes and direct quotes in Forex

What is an indirect quote?

Is the price of a currency pair expressed as amount of foreign currency per unit of domestic currency.

In other words, when an indirect quote is given, the exchange rate is expressed relative to a fixed amount of the national currency (1 unit), while the amount of foreign currency is variable.

For example, if we are in the United States, the indirect quote for the Canadian dollar would be 1.17 CAD = 1 USD, so the exchange rate of the indirect quotation is expressed as USD/CAD 1.17 because it is the expression that reports the amount of CAD per unit of USD which is the national currency (for 1 USD we can obtain 1.17 CAD). If we were in Canada the indirect quotation of the US dollar would be 0.85 USD = 1 CAD (CAD/USD 0.85 indicates that for 1 CAD, which is the national currency, we get 0.85 USD). As we can see, in an indirect quote the base currency of the currency pair is the national currency.

Forex Position Size Calculator

by rcanessa

A key aspect when an investor trades in financial markets like Forex is the application of appropriate monetary and risk management. This includes the use of an appropriate position size based on the total capital account, the risk level accepted by the trader, the level of leverage, the stop loss used, and the volatility of the instrument in which the … Read more

Demo Contest for cTrader accounts of OctaFX

by rcanessa

The Forex broker OctaFX (an ECN FX broker) offers a weekly trading competition for demo accounts using cTrader trading platform. It is a contest offering cash prizes to the top 5 places, ie the 5 traders that have the best performance for the duration of the competition. Because it is a competition for demo accounts, participants do not risk their money at any time and have the chance to practice their trading strategies and make money in the process.

-Duration of the competition: At the moment, competition takes place during every week and is valid for 2015 and 2016 or until OctaFX says otherwise.

Promotions of OctaFX for 2022

by rcanessa

During 2019 the Forex broker OctaFX (an ECN broker) offers a series of promotions for its customers, including bonuses for depositing funds and trading contests for demo accounts with cash prizes for the winners. For now, these promotions are valid throughout 2019-2022 and are available for all customers of the company, both new and existing.

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