RoboForex - roboforex.com

[Vlad RF]

What You Need to Know to Make Money on the Stock Market?

Author: Andrey Goilov

Dear Clients and Partners,​

Financial markets are a completely different world. If one manages to get comfortable here and learn how to choose instruments to invest in, then in the future they can get access to the things that all people strive for – freedom, independence, and a chance to work for themselves. However, in order to achieve and get all of this, one must learn a lot and work hard on themselves and their emotions. When trading on the stock market, it is possible both to earn good money and lose some of your own funds in case of wrong choice of companies.

Why do I need to invest?

Unfortunately, if your money doesn’t work and just lies in a jar, it takes a beating because of the high inflation. If we invest money in a bank, in most cases the interests we receive barely cover the inflation, while the fall in your national currency exchange rate may put even such seemingly reliable ways of saving money in jeopardy. The real estate market is not always attractive as well.

As a matter of fact, the stock market is one of the most promising ways to get profit provided that you have seed money. This factor is very clearly described in a movie called “Limitless”. The main character takes a new nootropic, which makes his brains extremely powerful. Using these abilities, the character earns a pile of money in a very short period of time. and the stock market is exactly the place where he accomplishes it.

Where to start?

Nowadays, people trade online, that’s why the first thing you need is internet access.

1. Decide on the investment amount. It’s very important not to risk big sums of money, loss of which may radically change your life. Another thing is that one should not trade with borrowed funds. Many authors from Europe and the USA recommend to start trade with the sum you won’t regret to lose.
2. Choose a broker to buy and sell stocks through. A good article How to Choose a Forex Broker was earlier published in our blog.
3. Choose a trading strategy. The method you choose will tell you what stocks to buy or, like professional traders and investors say, provide signals for buying and selling financial instruments. For example, one can try strategies for beginners based on Moving Averages. It’s a simple but at the same time efficient tool for analyzing stocks; an important advantage here is trading towards the primary trend.

Mistakes that beginners make

There is an opinion that in order to become a real trader and get permanent income on the stock market, one must gain experience that will help to avoid making mistakes in the future. Needless to say, that in the early going traders tend to “go to pieces” and take on real risk. Experienced authors can recommend something here as well.

1. Trading towards the primary trend is one of the key rules. If the stock price rises, it is believed that they should be bought, while in case of decline it would be better to get rid of them.
2. Don’t trade if you don’t see fair opportunities for that. We are recommended to stick to the strategy, which we must choose before starting to trade. If the strategy doesn’t provide signals at the given moment, it makes good sense to patiently wait for such signals and only after that start making decisions whether to buy stocks or not.
3. Let your profit grow and close your loss-making deals. If the stock price rises and your profit increases with each day, don’t be in a hurry to sell them – on the contrary, you should wait until your profit goes higher. However, if you see that stocks generate losses instead of profit, it will be wise to sell them in order to avoid more significant losses.
4. Trade with protective stop orders. Before opening a position, you should in advance set the price, at which the positions will be closed with a loss. Anything can happen on the stock market, that’s why it’s very important to estimate risks you are willing to take.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Use Margin Calculator on Forex

Author: Victor Gryazin

Dear Clients and Partners,​

This article is devoted to margin on the Forex market: what it is necessary for, where to find it, and how to use a special calculator for margin on Forex.

What is margin

This term has several meanings. In business, margin is profit in percent minus expenses. In trading it means the money that an investor must deposit to the account of their broker or exchange to cover for credit risks.

Margin on Forex is finance used y a broker to cover for credit risks. Its size depends on the contract and leverage. In other words, margin is a necessary deposit for opening sustaining a position that allows for making trades with leverage for a larger sum than the trader has.

Margin crediting is provided by brokers so that traders with modest deposits could open substantial positions on Forex. Every broker has their own marginal requirements, and this issue should be cleared before the trader starts working with margin.

The idea of margin trading on Forex is that cash is not supplied factually. Trading implies making a profit on growth or falling of a currency pair. All trades in margin trading are two-sided: if a contact opens for buying, it is closed with a sale, and vice versa. As a result, the trader either makes a profit or suffers a loss.

Formula for calculating margin

The formula for calculating margin necessary for opening a position looks as follows:

Required margin = [(Base currency) / (Account currency)] * Position volume / Leverage

Where:

• Base currency is the currency of the trading operation; it is number one in the abbreviation of the currency pair.
• Account currency is the currency of the trader’s account.
• Position volume is the volume of the trading position in the base currency.
• Leverage is the size of the leverage used.

Example of calculating margin by formula

Imagine a trader needs to know what margin they need in USD to open a position sized 0.5 lot in GBP/USD with leverage 1:100.

The current GBP/USD quote is 1.15 USD, which means the ratio of the base currency GBP to the account currency USD is 1.15. A standard lot on Forex is 100,000 units of the base currency.

Let us use the formula:

1.15 * 100000 * 0.5 / 100 = 575

This means that to open such a position the trader needs 575 USD on their account.

How to use margin calculator

All calculations of margin have long become automatic, which means the trader does not need to manually count it by the formula. There is a useful and comfortable instrument for it called margin calculator.

This universal instrument is also known as trading calculator, Forex margin calculator, and leverage calculator. It will be useful for market beginners and experts alike.

With this instrument traders can calculate parameters of trades online and choose the most efficient strategies before opening a position. As an example let us take a look at the Trading Calculator by RoboForex that can be found on the official website.

The calculator has four main input parameters:

• Ticker of the currency pair
• Lot size
• Leverage size
• Account currency

After the trader fills in the boxes and clicks Calculate, they get detailed information about the planned trade (according to the account type):

• Size of the margin required for opening the position
• Cost of changing 1 point of quotes by the position
• Spread size (the difference between the buy and sell prices)
• Swop (rollover) size for long and short positions – the sum that is deposited/withdrawn for transferring the position to the next trading day

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project will continue with the following competitions:

The 138th competition of "Demo Forex" has crossed its "Equator".
The 379th competition of "Week with CFD" has just started.
The 513th competition of "Trade Day" will start on 21.09.2022 at 12:00.
The 427th competition of "KingSize MT5" will start on 22.09.2022 at 20:00.

Let us remind you that winners of our demo contests receive prize funds to their real accounts, and they can use them to perform trading operations on the Forex market.

Good luck to all traders!

Sincerely,
RoboForex Contest

 

[RoboForex Contest]

Dear traders!

This week, the RoboForex company's project called ContestFX offers you the following competitions:

The 138th competition of "Demo Forex" is reaching its end.
The 380th competition of "Week with CFD" has started today.
At 12:00, 28 September 2022, starts the 514th competition of "Trade Day".
At 20:00, 29 September 2022, starts the 428th competition of "KingSize MT5".

No complicated actions are required for participation in our contests - you need to go through a simple procedure for registering an account on our website, after which you'll get access to any of the competitions you like in just a couple of mouse clicks.

We are waiting for everyone to register and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

What is Forex? Introduction to the Foreign Exchange Market

Author: Dmitriy Gurkovskiy

Dear Clients and Partners,​

What is Forex?

Forex exchange market (name derived from FOReign EXchange) is an international market meant for broker companies, banks and investment funds trading currencies. Currency exchange market formed in the 70-s when the financial world passed from the gold standard to free currency pricing. The market works on the basis of free conversion of currencies without state interference and guarantees freedom of such transactions. At the same time, there is a number of rules and restrictions regulating relationship between traders and brokers.

Sometimes one might hear Forex called monetary exchange; however, this is wrong. Forex is an international non-stock exchange without a particular place for trading. One can trade via the Internet or using a telephone. Market players can make currency transaction from any spot on the globe. So long that Forex is a non-stock exchange, transactions may go without registration.

Though Forex players do not have to worry about the place of trading, their work still depends greatly on trading hours which vary in different parts of the world: in Asia-Pacific, in Europe and in North America.

Starting 1989 Bank for International Settlements (BIS) carries out a thorough analysis of the market every 3 years. Data shows that the daily turnover of Forex was 1.5 trillion USD in the year 2000 and reached 4.0 trillion USD 10 years later. BIS experts forecast the growth of Forex daily turnover up to 10 trillion USD by 2020. Part of this volume is provided by margin trading which implies contracting for sums substantially bigger than the actual capital of one transactor. Regardless of nature and the purposes of transactions, a large daily turnover guarantees high liquidity of the market. Another fact is that roughly 75% of transactions on Forex are conducted by American banks.

Forex Market Characteristics

The international exchange market Forex is of one of the most numerous types of financial markets existing at present. At the same time it is one of the largest markets. As other markets do, it attracts traders and investors offering them an opportunity to make a profit on the difference in exchange rates or just to exchange one currency for another. Every person making an exchange operation via a mobile bank application automatically becomes part of the scheme which connects the participants through various information systems and gives them access to currency exchange operations Monday to Friday 24 hours a day.

Forex has a number of advantages distinguishing it from other market types.

Availability

To become a Forex player and get an opportunity to make a profit on the difference in exchange rates, one has to open a trading account in a company providing such services. Then one has just to replenish their account and start trading. It is worth remembering that successful trading requires some experience and certain knowledge of chart analysis. However, almost any person can integrate rather easily into trader community.

Leverage

When buying or selling currencies a trader does not need to have a deposit covering the price of the whole contract. A leverage will help enhance one’s financial potential, because it allows for transaction amounting to much bigger sums than the trader possesses. On the one hand, this is an opportunity to earn a substantial profit with a modest sum on the account; on the other hand, risks grow accordingly. Thus, the risks are to be thoroughly studied and controlled. More information you can find in our posts What is Leverage and How to Trade with Leverage.

High volatility

Volatility means any changes in the price of an instrument. Forex is a market of high volatility. Exchange rates are particularly quick to change, and a trader’s aim is to make a profit on their volatility. That is why the bigger the changes are, the bigger is the trader’s profit, regardless of whether a currency is growing or falling in price, the latter phenomenon being yet another characteristic of the market. The truth is that traders can equally make a profit out of rises and out of falls of currencies. That is why high volatility together with leverage provides an excellent opportunity for earning money. However, risks are to be taken into account.

Forex market players

International inter-bank market Forex is a non-stock trading platform. In other words, the platform does not exist physically. All operations take place on the Net. Presently, major Forex players are national Central banks of different countries.

Most influential ones are the European Central Bank and the Federal Reserve System. Central banks of other countries also influence the volatility of currencies, their aim being prevention of steep surges in prices.

Commercial banks are also present on Forex. They can hardly influence monetary and credit policy of major players; however, they significantly enhance the liquidity on the market. Commercial banks make speculative influence, constantly manipulating exchange rates in order to make a profit and making lots of transactions. Commercial banks make profit out of spread which is the difference between buying and selling rates.

Apart from banks, other Forex players are brokers, broker companies and dealing services which contribute a lot to currency price formation as agents. What is more, they give access to the inter-bank market to individual traders and investors; trading via broker and dealing companies, individuals make the largest part of transactions on the market.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex received two major awards in two nominations

Dear Clients and Partners,​

Our team is constantly working on improving investment solutions and trading platforms to provide the company’s clients with the most comfortable conditions available in financial markets. We are therefore proud to be, once again, highly appreciated by the professional community of the industry.

RoboForex received two prestigious awards

The R StocksTrader platform developed by RoboForex was recognised as the "Best Multi Asset Trading Platform (LatAm)" according to the Global Banking & Finance Awards. Moreover, our investment platform CopyFX received the "Best Investment Products (Global)" award from the Global Brands Magazine Awards.

Trade in R StocksTrader
Best Multi Asset Trading Platform (LatAm)

The R StocksTrader platform satisfies the requirements and demands of the most sophisticated investors.

• Easy start
  Start investing with just 100 USD.
  
  
• 12,000+ instruments
  US Stocks, Forex, ETFs, CFDs on stocks, and other popular exchange-traded and OTC assets.
  
  
• Best trading solution
  Unique platform with personal customization and a wide range of trading opportunities, algorithmic strategy builder.

Invest in Top Traders with CopyFX
Best Investment Products (Global)

The company's clients can copy successful traders’ transactions with competitive conditions on the CopyFX platform.

• Thousands of participants
  Join a huge community of Traders and Investors.
  
  
• Multifunctional control
  Control every stage of your investments and allocation of funds.
  
  
• A wide range of platforms
  Trade via the most popular terminals MetaTrader 4/5, as well as via the exclusive multi-asset R StocksTrader platform.

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project will continue, as usual, with the following competitions on demo accounts:

The 139th competition of "Demo Forex" and the 381st competition of "Week with CFD" have just started.
The 515th competition of "Trade Day" will start on 05.10.2022 at 12:00.
The 429th competition of "KingSize MT5" will start on 06.10.2022 at 20:00.

If you manage to demonstrate your trading skills and become one of the winners of any of our contests, you will be rewarded with funds on a real trading account, which will allow you to earn in the Forex market without investing your own financial savings as an initial deposit.

Don't miss your chance!

Sincerely,
RoboForex Contest

 

[Vlad RF]

Is It Important to Plan Budget

Author: Victor Gryazin

Dear Clients and Partners,​

What is Forex?

In this article, we will touch upon the issue of budget: what it is, what it is used for and how to plan it. Moreover, we will try to explain why a well-planned budget is such important for work with finance. Also, we will show you the advantages of an accurate budget.

Why budget is important

Budget is a financial plan for a certain timeframe that accounts for planned income and expenses. As a rule, a budget is drafted for a month or year.

Planning a budget implies a detailed list of expenses that gives a clear understanding of what can and has to be left out for your financial goals to be reached faster.

Explaining the importance of budget, we should at once enumerate its advantages. Firstly, a budget helps to manage your monthly expenses, makes you more disciplined, gets you ready for overcoming some crises, and stops you from making unwise financial decisions.

What is the goal of budget

Your budget demonstrates how much money a country, company, family, or person has and how much is to be spent on obligatory expenses. It must be noted that a budget is not a list of monthly earnings and spending; even such a table would be useful, though it will not help in reaching financial stability.

The goal of a budget is planning expenses and earnings over a certain time and then comparing your plan to what you actually got. This comparison and analysis of your statistics answers the basic questions:

• What have you spent your money on, and was it that necessary?
• Why your actual expenses have exceeded your plan and on what goods and services?
• How to follow your financial plan more accurately?
• What to do to minimise negative deviations of your budget from your plan?

What types of budget there are

A budget can be equally planned for a country and an individual who wants more order in their expenses. This document must fully represent the state of finance of a family or company. This means that the plan must include absolutely all sources of income and types of spending. The information must be true, valid, and full.

The process of financial planning is called budgeting and belongs to one of the following types:

• Personal budgeting is creating a budget for an individual for distributing income on spending, savings, and paying off debts. It accounts for previous expenses and debts. For example, a job is a source of income, while communal payments and rent are expenses. Here, we can also single out the category of assets: property, investments, and other savings or valuables that create a potential reserve for a budget deficit.
• Corporate budgeting is making a financial forecast for the nearest future that unites prospective income and expenses of various departments. It is the key element of integrated business planning. The process of corporate budgeting normally calls for a lot of effort, involving several employees. The final decision if left for the financial director.

Why it is profitable to plan budget

Budgeting allows for balancing out your income and expenses and reaching your financial goals. The latter ones may be as ambitious as buying real estate, or more modest, like buying a smarphone. A budget will provide more accurate information about how to reach your goals fast.

Another reason for thinking about a family budget is creating a reserve for some emergency. It is recommended to save no less than 10% of your monthly income for a money airbag. It should last you 3-6 months in case you lose your source of income. This is one of the main rules taught on financial literacy courses.

Tracking all your expenses helps to find some possible sources of saving. And even is it seems that you have saved little today, imagine how this sum may grow with time if you stick to the plan.

Bottom line

A budget allows for tracking your income and expenses easily and in detail. A budget is the base for financial success and safety. It also helps to make difficult financial decisions.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project is waiting for you in the following competitions:

The 139th competition of "Demo Forex" is gaining momentum.
The 382nd competition of "Week with CFD" has just kicked off.
The 516th competition of "Trade Day" will start on 12.10.2022 at 12:00.
The 430th competition of "KingSize MT5" will start on 13.10.2022 at 20:00.

Let us remind you that becoming a participant in our contests is very easy - you will have to go through a simple account registration procedure on our website and then you'll get access to any of the competitions you like in just a couple of mouse clicks.

Good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Trade in Forex if You Already Have a Job

Author: Dmitriy Gurkovskiy

Dear Clients and Partners,​

This article is devoted to an issue that has always been topical for many traders: how to combine trading and employment? What does one need it for, and what can help one find time for trading if they are short of it?

Why would one combine trading and some other job?

Trading in financial markets and employment, such as office work, are, in fact, compatible. Not all traders in For example or other financial markets can just quit their jobs and focus on trading. First hand, this is true for beginners: one might need years to study all aspects of trading and start making a stable profit in the market.

Forex trading has never been simple, and only experts make money there consistently. To become a Forex pro, one needs to learn first, then practice hard, and then beat their emotions and stick to some discipline. All this requires time and finance. Not at all every beginner has a substantial capital that will let them stay unemployed, pay for their studies, and withstand initial losses for several years.

This is why combining employment and trading is so vital for many. Some stable income allows to pay one's bills and accumulate skills gradually. This said, combining job and trading is not easy because one's time that they can devote to trading is rather limited.

What allows combining employment and Forex trading?

I would single out several main ways of combining employment and trading. One's choice will depend, naturally, on their type of employment.

• The trader works from home and has a constant Internet access, which allows checking charts several times a day;
• The trader works part-time and can spend the rest of their free time on trading;
• The trader only uses the mobile app at lunch.

Preparing a trading plan

A trading plan contain's the trader's ideas prepared beforehand. They plan promising trades based on their trading strategy. With a consistent plan, one does not need to monitor quotations constantly; they only need to wait for trading signals to appear in the area as specified in the plan.

I recommend analyzing the market and charts of your instrument before your day starts. Single out appealing trading ideas and create a trading plan. Then simply stick to it. You can open positions by pending orders or set up alerts that will notify you of the price reaching the values specified in the plan.

Setting up alerts

Alerts are good helpers to traders. An alert warns the trader of different market events. They are either sound alerts or text. This function helps the trader remain in course of market events even if they are busy doing some other job.

Alerts are available in various popular trading terminals and mobile apps. Apart from standard alerts, traders may use different expert advisors and indicators that have their own embedded alerts, i.e. they also notify the trader of a trading signal appearing by the specified algorithm so that the trader could decide whether to open a position or not.

Trading at a session at hand

Forex works 24h on weekdays. Hence, depending on their local time, the trader can fully use one out of three trading sessions: Asian, European, or American. We exclude the Pacific one because it is a hard trading option due to small movements.

In the European and American sessions, almost any instrument will do, both positional trading and scalping. If you have the Asian session available, pay more attention to active currencies, such as the yen, the Australian dollar, the New Zealand dollar. Always study the peculiarities of the currencies and influencing factors.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team