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Introduction

The most important aspect of Forex trading is having a working strategy and one of the most widely used rule is of diversification of the trading portfolio. Diversification of the trading portfolio means getting exposure to various currency pairs so that the trading result is not influenced by any single currency pair. As an example, a trader may trade ten different currency pairs at a time with the maximum loss per pair allowed of 0.5% of the global portfolio value. However in implementing this diversification strategy it is important to know various aspects of the different pairs like the pip value, overnight rate and margin for these have a great impact on the chosen strategy. The Dukascopy website has great Forex calculators that can be used for this purpose. This article looks at these forex calculators and how they can aid the trader in implementing their trading and risk management strategies.
How to get to the Forex Calculators

The Forex calculators are found in the “market info” section of the Dukascopy website . On the drop down menu that appears when you point the cursor to this section, click on the “Forex calculator” section as shown in steps in …
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Vlad73 avatar
Vlad73 26 Dec.

good article

Nastasiia_ avatar
Nastasiia_ 27 Dec.

Well done!

md1fk1 avatar
md1fk1 27 Dec.

well done

kish avatar
kish 28 Dec.

хорошая статья

klintons avatar
klintons 19 Jan.

Gut Artikel

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18/46
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The forex market is the largest financial market and can be accessed around the world, but even though there are many forex investors, only a few are really successful. Many traders fail for the same reason the failure in other asset classes. In addition, extreme leverage - the use of borrowed capital (collateral) to increase the potential return on investment - that is provided by the market, and a number of relatively small margin to trade currencies, denying traders the opportunity to make a lot of mistakes at low risk. Factors specific to currency trading can lead to some traders expect a return on investment greater than the market can offer, or to take more risks.
Certain errors may keep traders on their investment objectives. The following are some of the common pitfalls that can interfere with the forex trader:
1. Not Maintaining Discipline in conducting trade.
The biggest mistake that can be made by any trader is to let emotions control trading decisions. Being a successful forex trader means achieving a major victory after a while suffering from a lot of small losses. Experiencing many consecutive losses emotionally disturbing, and can test the patience and confidence of…
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Forexahollic avatar

Thank you, Anna :)

Likerty avatar
Likerty 25 Mar.

Man, you forgot to place some pictures..:) Thats a no-go in this contest...

Forexahollic avatar

Rather difficult to apply in the form of images. but thanks for the suggestion. :)

Airmike avatar
Airmike 25 Mar.

nice article

Forexahollic avatar

Thank you, Airmike :)

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29/47
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BackgroundWhen you start trading it is always a question on strategy. One could consider why close negative positions and decrease your balance. Why not to wait while position turns positive, close it and increase your balance instead. Seems quite good. But is it so? Possible strategyIt is quite clear that if you open one big position which takes all your margin and if market goes against you, it could take years while your position turns positive or it could never happen if you receive margin call. Of course there is possibility to continuously add additional funds and wait while market goes in your direction. But it could take long years. From statistical point of view it should happen sooner or later but from statistical point of view it also could take more time than human being could live on this planet! It seems not interesting perspective.Therefore another possibility comes to mind. To use small positions which takes little part of your margin and if market goes in your direction just close profitable position and if market goes against you open new position at some point with expectation to close this position when it turns profitable. If not - open one more position with …
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ilonalt avatar
ilonalt 8 July

interesting article; but is it really possible to trade with such a high risk... without stoplosses; positions should be positioned very well

Likerty avatar
Likerty 9 July

Welcome to the contest!:)

litsat avatar
litsat 10 July

good luck for you here :)

Atashi_Tada avatar

good luck

JudgeDredd avatar
JudgeDredd 19 July

Good explanation to dumb newbies who think that stop-loss is the Dr. Evil )))

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22/35
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I want to talk about an situation that majority of traders deal with,and that is the possible lines of credit and also margin use.I think one of the most important things to have among technical skills in trading that means a good strategy involving the margin use and also strategic points of buying and selling, is having a certain level of funds to trade .Why having funds is so important to be a successful trader in currency markets ?Because they provide the space need to your pairs to breed for example if you use 5% to 10% of your required margin and you have a account with like 100 000 Usd and you are a stable trader with a secure plan of trading that means never over-leverage your trades, and you have an realistic expectation of 5% to 20% of monthly profits, you will be making 10.000 to 20,000 per month and that is much comfortable in the markets because you make money that is enough for you to have a comfortable life and less stressed about possible profits .In my opinion currency trading can be much less risky than stocks and other type of assets, if you have a correct plan and that is because in general currencies don`t move more than 300 pips a day and the rebound way up or…
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captain avatar
captain 17 Jan.

You are right. Having a healthy amount of capital is important. Many institutional traders do not think in terms of risk per trade like us retail traders. They have lines of credit.

charmtrader avatar

Is most important ... Great that someone wrote about this... A+

CIAO avatar
CIAO 21 Jan.

money management is the key, including position sizing

ante777 avatar
ante777 21 Jan.

Good advice, thank you.

SpecialFX avatar
SpecialFX 24 Jan.

While I do agree with the article in general, there's one thing I don't agree with, when you say "realistic expectation of 5% to 20% monthly profits". Using the 20% figure, if the trader compounds it every month, after 12 months he would have a 792% increase in his capital. The only way someone will achieve those extreme returns is by using a lot of leverage, and consequentely having really big drawdowns. 5% may be realistic, more than that over a long period of time is only achievable my only a handful of traders. It's not realistic to expect to make 800% per year in the long run :)

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The Lure What comes to our minds when we think about forex? Money, enormous amount of money. We knows that forex is the largest financial market in the world with its $4 Trillion a day trade volume. Yes, that is why we plunge ourselves into the forex world, right? We want to make thousands, or even millions of dollar trading in this delicious foreign exchange market. Better still, forex brokers offer free trading line (leverage) up to 1:100 or even 1:500. Yes, we can trade 100 or 500 times the amount of our equity. This is the one! Perfect business, low setup cost with unlimited profit possibility.   Before We Start We do our homework. We read many good trading books. We study fundamental analysis, trying to grasp what that daunting economics data means. We study technical analysis, figuring out how to use and read many technical indicators and learn how to spot candle reversal and continuation patterns on charts. We open demo account, trading it for several weeks, and lose all the virtual money. We do not despair; we step back and analyze our trading mistakes. We refine our trading system and open another demo account. We trade it for s…
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LinnuxFX avatar
LinnuxFX 19 Sep.

Well done, nice article... good luck for the competition...

Livornese avatar
Livornese 19 Sep.

Like your article! Inspiring to be always at the top! One point from me!

quantum_fx avatar
quantum_fx 19 Sep.

I like your article! Keep writing!

alifari avatar
alifari 19 Sep.

Excellent Article +1

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