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14/26
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The knowledge how the prices move in forex market is very important part of trader’s knowledge simply because of the fact that forex market is actually different to most of other markets and the majority of people are oblivious to this fact.
With stocks, for instance, the price you see on the chart or the quote board are the last price that the stock was physically traded and where a transaction was actually made. The last price two people actually bought and sold with each other so for the price to move or change someone has to physically buy or sell. There has to be an actual transaction, the price can't move without a transaction happening. In other markets it is real buying and selling pressure that moves the price and that's what makes sense and that's what we all think
In forex though it's not like that because the forex market is a bona fide auction market. The prices you see are the prices that someone is willing to buy or sell at. So just think of a normal auction where you may be trying to buy a painting. The prices start low and they gradually go higher and higher because people bid
the painting hasn't been sold the price moves and changes were there without any transa…
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hrustiashka avatar

Nice article

mcquak avatar
mcquak 18 May

hrustiashka   thanks for coming by

AAAnya avatar
AAAnya 19 May

Nice one!

mcquak avatar
mcquak 19 May

@AAAnya thkanks

Dominos avatar
Dominos 23 May

Nice article

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35/68
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What Is Forex?

The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in Euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into Euros. The same goes for traveling. A French tourist in Egypt can't pay in Euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the Euros for the local currency, in this case the Egyptian pound, at the current exchange rate.
What is the need of Forex?
The unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open …
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rupesh1984 avatar
rupesh1984 17 Jan.

nice job :)

Elani avatar
Elani 18 Jan.

and I should do some reading on trading today))))

TInna avatar
TInna 19 Jan.

Nice job!

brilliant avatar
brilliant 25 Jan.

many articles is attracted to the history of forex . every one of them is special

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4/31
Ranking
There is no mystery that the world is full of patterns and we're governed by them and the financial market are not exception of this rule. The time element such as the time of the day could also play a big role in how certain FX pairs may behave. There is an empirical research conducted by major institutions which suggest that there are strong evidence of a predictable time-of-day pattern in FX. This research was conducted by Angelo Ranaldo from SNB.
The main idea behind this article will be to turn a simple trading pattern backed up by an extensive empirical research into an automated trading system using the Visual JForex platform.
[list][/list]…
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Metal_Mind avatar
Metal_Mind 25 Apr.

Even though i disregard automated strategy i can say this is one excelent article , with a lot of details  and highly qualitative. Good luck !!!

Mani avatar
Mani 26 Apr.

good job

Faster avatar
Faster 26 Apr.

well done

Daytrader21 avatar

Metal_Mind  Automation has its advantage and disadvantage, it's up to the trader which route decide to goes.

demomailru avatar
demomailru 20 Feb.

"Click on Figure to Enlarge" does not enlarge images for some reason!

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12/45
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1.0 Brief Introduction
Dukascopy offers a wide range of tools, for free, that can help you tremendously and take your trading to the next level.
This article will help you to identify which tools may increase your strategy's success rate, especially an intraday trending strategy.
Since Forex is an over the counter market, which means there is no centralized market (like the NASDAQ or NYSE); there is no official info about volume or interest. Therefore, we'll have to estimate the liquidity by the spread and the price ticks. We'll assume that the bigger the broker is, higher is the correlation to the overall aggregated data (and Dukascopy is quite big).
2.0 Market requirements for an intraday trending strategy
If you're using an intraday trending strategy then you'll be needing a market that moves, otherwise you'll be stuck in a range and buy/sell into fake trades. By identifying if a market is moving and is liquid, you'll be able to avoid dead markets and keep out of bad trades.
With that in mind, we'll be looking at the following data in order to scan and choose an appropriate pair to trade:
[list][/list]…
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AlligatorEffect avatar

Thank you so much for all the support, everyone! I've just written a quick blog post with 2 more tips to help find intraday trending entries!

Violetameynell avatar

good work!

TaniaMilan avatar
TaniaMilan 12 Feb.

good job )))

CharmingRimma avatar

cool!

Natalia_Kisenko avatar

Well done!

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4/21
Ranking

In this article, I'm going to talk about FX seasonality cycles and how they can improve your trading activity and why it should not be ignored. There is no mystery that the world is full of cycles and we're governed by them and the financial market are not exception of this rule. The majority of traders will either use technical analysis, fundamental analysis or a combination of both. But the seasonality cycles will bring in a new dimension in which you can analyse the market. The time element such as the time of the day, the day of the week, the month of the year could also play a big role in how certain FX pairs may behave. So when you focus your attention purely on price and time without the noise of indicators you may notice that some pattern shows up during certain time and this patterns are known as seasonality. Seasonality are a predictable change in price that repeats every day, week, month, year at the same period in time.
This seasonality cycles will only give you the tendency of an particular currency pair to bottom or top or rally or fall, at certain point in time. The seasonality is just an average so in this regard it's better not to use it in isolation but rather in…
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Daytrader21 avatar

Metal_Mind thanks for your insights @all thanks for your support

jezz avatar
jezz 29 Aug.

Seasonal trends are related to people habits. Even though money never sleeps, it does take some vacations, which can explain the seasonal trends. And the unreliability in post-break times can be related to late data of the industrial and similar activity during the 'low' times. I think :)

Daytrader21 avatar

jezz Long time since I've seen you around here.:) You're very much right about seasonal trends being related to people habits, that's one of the reason why I've become more interested in human psychology as well. It gives you another perspective of why people do certain things. I hope to see you more often commenting on my stuff:)

marius24 avatar
marius24 30 Aug.

one of the best article i have ever read in this contest. It seems that we have here a really good trader. Wish you to win this contest once again

psimmons63 avatar
psimmons63 12 Mar.

Very insightful article. I believe that seasonality gives traders the best edge in terms of technical indicators because its based on high probabilities. Do you cover any of the other majors?

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2/29
Ranking
Last month month I've been talking about some reasons why Forex Brokers are not hunting your stop and that blog post has become very popular and got a lot of interest among Dukascopy Community members, receiving only good feedback. In the first part of the article I'm going to cover this subject: "Does Your Broker Hunt Your Stop Loss" and in the second part I'm going to talk about what it really means stop
hunting
and how you can also profit from this action.
Does Your Broker Hunt Your Stop Loss?
Many aspiring new trader are very confused about this subject. You'll see this subject popping up on trading forums on a daily basis by novice traders who blame anyone else except themselves for their bad trades and losses. Many new traders and even traders who are in this business for years have this flawed idea that somehow your Broker hunts your SL order. So, Does your Broker hunt your stop loss?
The short answer to this question is : NO, they don't!
It's very risky for a Broker to push the market with artificial pricing to trigger your stop loss because they will be caught in very advantageous arbitrage opportunities and secondly they will have several legal repercussions and pena
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Daytrader21 avatar

@Likerty It is what it is. @Rokasltu I doubt there is anyone on the planet that can predict ANY movement:)

MyiDEA avatar
MyiDEA 21 Feb.

nice...

aslamhammad avatar

i think most of the charts that you attached were when the market was in range or during low volatility time, well anyways i liked your article...I think most people lose during ranging market times. Best time to enter is when your sure about a high fundamental impact on a particular pair :p....Can generate alot of pips during that time. The challenge for all traders is of keeping the pips, and to make them consistently :)

Daytrader21 avatar

@Aslamhammad you're right at that moment market condition was:Range, so yes you're right that most of the time you'll see this behaviour of stop hunting or false breakouts both ways, clearing both sides that's why when trading in a range better fade any move outside the average ATR of any pair

dobri avatar
dobri 14 Oct.

Vote where your current "stop-orders" are... Help making the "game" fairer...

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4/46
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As a professional trader it's important to know when and what instrument to trade, as well as knowing when not to trade and "sit on your hands". Preservation of capital during times of low profit probability is essential for a long term trading career. During this time of the year traders are likely to perform poorly as market conditions aren't good, and during this time traders must exercise discipline and cease trading. Christmas is a time for families and a relaxing time spent with loved ones. So do yourself a favor and take a break. The markets and opportunities will always be there when you get back. This may be the best trading decision you can make during this time and as well you can recharge your mental batteries for when you'll start trading again.
  • Why "Not Trading" is Important

Knowing when not to trade is as important as know when you should make a trade and experience traders know that trading during holiday time has is shortfalls. Many newbies, often fell the need to be in the market all the time even when market conditions aren't in traders favor, and trading during the Christmas time fall exactly in this category. For a newbie trader holiday trading can be ver
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nick21 avatar
nick21 18 Dec.

Low liquidity is olso on Monday,there are not news.Very interestind article D.

Mani avatar
Mani 19 Dec.

i like your article

FXdream avatar
FXdream 20 Dec.

nice+++

scramble avatar
scramble 24 Dec.

I'm for the "recharge" !

ilonalt avatar
ilonalt 26 Dec.

interesting :) good luck!

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32/47
Ranking
This new idea of a market (or bazaar, or exchange, or any other name it might go by) seems great to everyone. Everybody leaves the meeting and spends the rest of the week preparing for the big Saturday ahead of them. The sun rises Saturday morning and the town square is full of excited participants and the air is filled with the buzz of buying and selling. Many of these people will be doing plenty of both since they need to sell their items for florps and then buy the things they need with those florps. (I know, I know. Just stick with me here) Aaron Applegrower is eager as his first customer approaches and sees his basket full of apples. Of course, the first question is, “How much do you charge for an apple?” Again, remember that there’s no magical force dictating price: The power of pricing is in the hands of the two parties who are trying to exchange something. Up until this day, Aaron has always traded with Frank at the rate of 2 florps for 1 apple. That still seems reasonable enough and so that’s the price he quotes to this new customer, who is happy to pay that price. He only needs 1 apple for now, so he hands over 2 florps and gets his 1 apple. Aaron is the seller, this ne…
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Atashi_Tada avatar

I like your funny charts :)

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12/47
Ranking
Why does the price of anything change? Forget the fancy things we trade like currencies, stocks, or commodity futures, but why does anything change in price? In fact, back up one more step: Why does anything even have a price to begin with? If you haven't taken time to devote yourself to learning this topic, you're leaving a giant hole in your knowledge base. It means that you're currently attempting to make a profit from the change in price of something without even knowing why its price is changing. It will take some time to help explain this concept from the ground up, but it will be well worth your patience. To start, I'm going to take you back in time. It's a time where there are no computers, no phones, no communication devices of any kind. If you need to interact with somebody, you'll have to meet them face-to-face. Because of this, any exchange of goods or services (food, clothing, house cleaning, anything) has to be done directly from one individual to another and that has to happen in person.During this time, there are no such things as stocks, bonds, options, equities, or futures, and the only currency is called a “florp”. Florps are a universal currency used by everybod…
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LittleFishy avatar

Thanks for the support, guys! Part 2 will be out by Monday next week at the latest :)

LittleFishy avatar

And part 2 is up :)
http://www.dukascopy.com/fxcomm/fx-article-contest/?Market-Structure-Why-Other-People&action=read&id=1438

LittleFishy avatar

True, this is aimed to help build the important basic concepts, so it might be nothing new to someone who is already very knowledgeable. I will be leading this into how to use all of this information in a modern, fast-paced market, though. It just takes some time and needs to be broken up properly and introduced step-by-step.

Hopefully it was still a good read, though! :)

Belikewater avatar

Nice pics!.+1 If you comment on my trader cotest profile, I will aprecciate! http://www.dukascopy.com/tradercontest/?action=blog&trader=Belikewater

Atashi_Tada avatar

i love this article, well done!!

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7/35
Ranking
Stability in Chaos of EUR/USD Introduction FX markets are inherently unstable. Statisticians often say there are no stationary processes within the market – it is all random. Well, not so much. There are a few things stable in the sea of instability: Instability itself – which is great as this provides the opportunity to profitLiquidity Gaps – those are sharp movements down or up the price Let’s first look at what the liquidity gaps are in my definition and in my quantitative research. Liquidity gaps are sharp movements up or down the price on EUR/USD as is seen on a 10-minute timeframe. Sharp movements are one-directional movements larger than 11 pips in spread (absolute difference between Open Price and Close Price on a 10-minute price bar) with Open Price and Close Price deviating not more than 3 pips from the respective High and Low of the same bar. Visually, the liquidity gaps on a 10-minute time frame on EUR/USD will look similar to this: Image 1: Regular Mid-Size Liquidity Gap on Regular Trading Volume Without News Now the interesting fact is: 95% of those gaps (excluding news and extreme volume) will close within 3 trading days. The research has been based exclusive…
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SpecialFX avatar
SpecialFX 29 Jan.

Very interesting study, but what kind of stop-loss do you use with such a strategy? It must be pretty wide, if you are expecting the price to eventually reverse within 3 days? :)

Vasyl avatar
Vasyl 29 Jan.

thanks quadro

Vasyl avatar
Vasyl 29 Jan.

SpecialFX - that is what I mean - if you do trend following on big volume, it is less risky. And deciding when to short - is something I would like to improve myself - definitely too dangerous on high leverage. Right now the short one is to 1.3175 from 1.3460, so the liquidity drawdown is around 300 pip

imaddima avatar
imaddima 20 Mar.

very good article

MuhammadAdil avatar

I learned this approach a few days back from a webinar recording of Chris Lori. Nobrainertrades also described this theory very well. Nice article. I think this approach of liquidity gap trading should be talked about more on how to trade this phenomenon of market.

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13/43
Ranking
Introduction Dukascopy Bank SA is the best retail forex broker. There are many reasons why this is so. In this article, I will present seven of those reasons. You may wish to agree with me or not. Although many clients of Dukascopy Bank SA are not necessarily retail traders, for the purpose of this article, we will focus only on retail clients. For obvious reasons, I shall not provide names of the competition although the article is tilted towards a comparison between other forex brokers and Dukascopy Bank SA. I will now proceed to discuss the seven reasons why Dukascopy Bank SA is the best retail forex broker. For the purpose of this article, I have chosen to abbreviate Dukascopy Bank SA to DBSA. 1) Liquidity – how large is the market? In any market, a large volume of a product translates into competitive pricing. In the world’s largest market, i.e. the forex market – a retail broker who offers large amount of liquidity will invariably provide competitive pricing. The higher the liquidity, the more likely that your orders will be filled. Now, when it comes to liquidity, few retail brokers can hold a candle to DBSA. With its SWFX technology, DBSA has beaten the competition …
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SpecialFX avatar
SpecialFX 11 Dec.

I dont know about being the best Forex broker, because I only have experience with about half a dozen, but they are my favorite :) The platform is not perfect though, the fact that daily candles are created at 00:00GMT and not at the official 17:00 NY time really bugs me...its not a major problem all things considered, but it interferes with my strategy.

captain avatar
captain 12 Dec.

Thank you SpecialFX for your comments. Some brokers create daily candles according to the official 17:00 NY time; others according to 00:00 local time of the location of the broker's server; others at 00:00 local time of the user/trader. Personally I prefer the 00:00GMT as a rather neutral benchmark bearing in mind that the market is a 24hr market and Greenwhich Meridian provides the reference framework for reckoning time around the planet. Sorry about the interference with your strategy.

ZHOU avatar
ZHOU 16 Dec.

挺好的

captain avatar
captain 24 Dec.

Zhou, I wish I could understand what you have written - are you in a position to translate into English?

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19/30
Ranking
Theory goes like this:Scalping forex market can be very profitable. The win rate can be as high as 85-95%. That is the main reason that brokers (with few exceptions) do not like scalpers. How to determine the exceptions? Each trader should ask the broker. Do you trade against your clients? And just by the answer, you should know what is going on behind the scene. And if the answer is, oh we have 2000 members, we earn the money through spread, makes me think they are trading against clients. If their answer is, we are not market makers, makes me think they are not trading against their clients. Enough about that, reality in forex is, if everybody would be winning, where would the money come from. Money is not falling from the sky, someone needs to loose in order for someone to take profit. That is the reality. Big fish seek liquidity through BIG media. How many times we saw big news that the market will go there or is here etc… But the reality is that big players seek liquidity through media providers and/or vise-versa. Usually at the points where the market rebounds we saw big signs in the past. Some brokers publish daily signals, should I care? No way! You should not care. Some…
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SpecialFX avatar
SpecialFX 16 Nov.

I do not agree with the initial sentences, scalping can be profitable, but for the vast majority of traders it is not. The shorter the time frame the harder it is to make money in the markets. The problem with brokers is not that traders make a lot of money, but the fact that sometimes brokers cannot hedge the clients positions effectively with their liquidity providers, if the trades last only a few seconds, it has little to do with win rates :)

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3/41
Ranking
We've all been there, you put on a trade and it shows you
some profit, then all of a sudden the spread widens considerably and your
stop-loss is hit, causing you to lose money. A few seconds later the spread
goes back to normal and the price quickly resumes its previous (profitable)
trend, but you no longer have a trade on.
Or you've placed a buy stop order to open a new position if
the price reaches x, it is triggered when the spread widens, but as soon as the volatility subsides the price returns to where it was before the chaos
started, ie. much lower than x, so you now have a losing trade on your hands.
                                    This trader lost a lot of money due to widening spreads...This article will show you how to avoid having
an opening or closing order prematurely filled, due to the spread widening
during important news or off market hours, using the different order types
provided by Dukascopy. ► Why do spreads widen/tighten?In a well-functioning financial market, where prices are
dictated by various market participants (and not by a single entity/market
maker), instruments do not have fixed bid/ask spreads. Usually, the higher the
liquidity, the lower the vola…
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SpecialFX avatar
SpecialFX 16 Aug.

But what happens if the price is 1.1971/72, some news comes out and the spread temporarily widens to 1.1961/82? Your stop would be filled at 1.1961. If you use the orders I recommend your stop will only be activated if the market actually reaches the price you indicated, because the more the spreads widen the less likely it is for the order to be filled. With the other orders the position can be filled at ''non-market'' prices during short periods of high volatility, because the more the spreads widen the more likely it is for the order to be filled :)

Myprox4x avatar
Myprox4x 20 Aug.

I learned few things from your article +1

scramble avatar
scramble 20 Aug.

yes right! indeed better follow your suggestions when using buy/sell stop orders or limit orders. can help a lot when market spikes!

MrSami avatar
MrSami 29 Aug.

nice.. good work.

berkek avatar
berkek 26 Mar.

This is by far the best article I have read in the community posts. Thanks for sharing.

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12/65
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The main objective for my writing this article is to clearly inform you about the opportunities in the field of the Forex market. The Forex market — what do you understand by these two words? Before continuing, I want to remove a myth from everyone’s mind and that points to the discrimination between trading and investing. For the purpose of my clarification, I will refer to Al Thomas, President of Williamsburg Investment Company, who indicated in his writing, "If it doesn't go up, don't buy it". He did emphasize on the word ‘buy’. He also wrote, "Everyone who invests is a trader, only the time period is different." I took his words seriously after I was a victim of the fall down in the field of stock market in 2000.So at present, we shall talk about the features of currency trading concerning the stock and commodity trading and also compare them.Liquidity — The main working force for any kind of market is the liquidity of money and when it comes to the Forex market, it is the most financial market in not only a single country but the world which trades around 1.9 trillion dollars everyday. Because of the commodities market’s trading around 440 billion dollars a day and the US sto…
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Farhana avatar
Farhana 26 Nov.

its realiable...

Mithi avatar
Mithi 26 Nov.

its nice

Sadia avatar
Sadia 29 Nov.

thanks

Omar_faruk avatar
Omar_faruk 29 Nov.

good topic. helpful. thanks

tumiamar avatar
tumiamar 29 Nov.

found it informative. Thanks for your writing.

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18/108
Ranking
Why are we trading FX? Is it just because of the low transaction cost? Is it because the FX manager area used to be unregulated?Nope. Here's why we trade it. Here's why no investment manager can not afford not to invest in FX as a source of uncorrelated alpha.FX is the largest market in the world. It trades more than 4.000 billion USD per day. It's liquid, the amount of market participants is high, there is a natural trading demand (from corporates, individuals, businesses that need to buy other currencies), it's easy to price/value.FX has been a cash cow in investment banking for decades. Investment banks have had always FX prop and FX flow trading and it is a core element of investment banking. In Asset Management FX it's only something to hedge, to control exposure, to be aware of the risk – rarely traditional asset managers see FX as a core source for yield. Strangely only few managers have discovered FX investment products as a source for uncorrelated yields....yet. Today fixed income rarely lives up to the asset-liability-management (ALM) requirements (approx. 4% p.a.), equities are too volatile and the returns are too unstable, alternatives are often illiquid and hard to pri…
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ritesh avatar
ritesh 12 Oct.

Nicely written, quite detailed and informative article. Nice on bro, keep more coming. Best of luck and +1

Barney avatar
Barney 19 Oct.

nice job

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