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[Vlad RF]

The RoboForex partners promotion with cash prizes worth $1,000,000 continues!

Dear Clients and Partners,​

We remind you that all RoboForex partners can take part in our grand promotion and win cash prizes.

The distribution of 60 prizes from $1,000 to $15,000 is organised once a month to April 2024.

The winners will be decided by the market.

A system as transparent as possible - It's all up to stocks.

Join our grand promotion!

Become a Partner I want to take part!​

Sincerely,
The RoboForex Team

 

[RoboForex Contest]

Dear traders!

This week, a RoboForex project called ContestFX offers you the following demo competitions:

The 152nd competition of "Demo Forex" is approaching its end.
The 441st competition of "Week with CFD" has just started.
The 575th competition of "Trade Day" will start on 29.11.2023 at 12:00.
The 489th competition of "KingSize MT5" will start on 30.11.2023 at 20:00.

Becoming a participant of our competitions is easy - all you need to do is to register an account just once and then any of the contests you like will be available to you in just a couple of mouse clicks.

Join us!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Trade on Forex? Ultimate Guide for Beginners

Dear Clients and Partners,​

What are financial markets – exchange and Forex?

When an uninitiated reader encounters the collocation "financial market", they discern no difference between such terms as "stock market", "exchange", "Forex", "equity market", "bond market", "currency market", "derivative market", etc. So, I think there should be an explanation what the financial market really is. First of all, understand and remember that the financial market is not just a place for trading, but the entire system of the economic relations, which appeared in the process of exchanging different goods and recourses.

The financial market is an environment for mobilization and aggregation of capital, for loaning, exchanging currencies, and investing in the industrial sector. Balance of supply/demand for borrowed funds forms the global financial market. The global financial market can be classified according to types of goods that are traded. There are following types of financial markets:

• The currency market (Forex). The basic asset here is currencies, which are bought and sold by brokerage companies, banks, and investment funds.
• The stock market. This is the place where they trade securities (stocks, bonds, bills, derivatives).
• The commodity market. Among assets that are traded here are oil, metals, farm produce.
• The precious metals market is often considered as a part of the commodity market, but it should be classified as a separate market due to significant trade turnover growth. As a rule, precious metals often serve as safe haven assets.

Trading procedures on Forex

Since the Forex market is an OTC market, it doesn’t imply actually buying or selling currencies like they do in exchange offices.

A lot of people ask themselves a question: "How do I become a trader and start trading on financial markets?" Let’s try to track the career path of a future "big boy from Wall Street" step by step. Early stages in trading on Forex and other financial markets are pretty similar. Let’s take a closer look at this process by the example of the currency market.

First of all, a trader-to-be chooses a broker and decides on the trading platform they are going to use for trading. A variety of trading terminals available on the market allows to choose one that meets all their requirements and preferences. After choosing the platform, they have to decide on a trading account type. As a first step, it’s better to go for a standard demo account, which helps to learn how to open and close positions, place Stop Loss and Take Profit levels, and use charts and indicators.

Stop Loss is a protective order placed by a trader to limit possible losses in case of negative market situation. The order level is defined on basis of the current market situation, risks that a trader can afford, and their trading strategy.

Take Profit is an order to close a position when the instrument quotes reaches some specific price level. The order parameters are set by a trader based on their forecasts or according to their trading strategies. Take Profit orders can be placed not lonely at the position opening, but later as well. Also, there are methods of trading without Stop Loss and Take Profit levels, when a trader closes each deal manually after evaluating the current market situation.

How to trade on demo account?

Let’s assume that a trader chooses MetaTrader 4 terminal, opens a demo account with 10,000 virtual USD, and decides to trade EUR/USD positions of 1 lot. In this case, a trader opens positions using virtual money and if they lose it, no real financial losses will be incurred. Any trader has an opportunity to open several demo account with the same broker and trade any amount of virtual funds.

After that, it’s time to learn how to open positions. After opening the EUR/USD chart, a trader sees that the price may rise in the future (we’ll later discuss what reasons this conclusion is based upon). To open an order, we choose "New order" tab, specify the volume (by default, 1 lot), set Stop Loss and Take Profit levels, and add comment to the order if necessary.

Read more at R Blog - RoboForex

Sincerely,
RoboForex Team

 

[Vlad RF]

RoboForex receives "Best Trading Conditions" and "Best Partner Program" awards

Dear Clients and Partners,​

We are delighted to inform you that RoboForex has received awards in two prestigious nominations from influential media outlets. The company won the "Best Trading Conditions" title at the International Business Magazine Awards and the "Best Partner Program" accolade from the World Economic Magazine Awards.

Trade with the industry leader and experience the advantages of being a RoboForex client

Start trading​

Become a RoboForex partner
and earn up to 84% with the Partner programme’s best conditions

• Instant partner commission
  Earn up to 70% commission under the Partner programme
• Loyalty programme
  Receive up to 20% of the total partner commission as extra profit
• 24/7 Support
  RoboForex Support is available 24/7 to assist you
• No Payout Limits
  There are no restrictions on the maximum payments per month or per client
• Convenient payouts
  The commission is automatically transferred to your account on a daily basis

Use our interactive Affiliate Calculator to estimate your potential profit.

Become a Partner​

Sincerely,
The RoboForex Team

 

[Vlad RF]

S&P 500 Forecast for 2024: Can the Index Hit 5,000?

Dear Clients and Partners,​

On 29 November 2023, we looked at the popular stock index S&P 500 (US500), examining global economic factors influencing it and potential investment and trading strategies. Based on technical analysis, we assessed the current situation on the index chart and explored analysts' forecasts for 2024.

Overview of the S&P 500

The S&P 500 is one of the world’s most widely used stock indices, comprising 500 of the largest companies traded on US stock exchanges. It was created on 4 March 1957 by Standard and Poor’s, now known as S&P Global Inc.

Companies in the index basket represent various economic sectors and industries, making the S&P 500 a crucial gauge for assessing the US stock market.

The S&P 500 eligibility criteria

• Market capitalisation is greater than or equal to 14.5 billion USD
• At least 50% of shares should be available for public trading
• Stocks should be traded on the NYSE or NASDAQ
• The company should have a primary listing on a US stock exchange, comply with US securities laws, and generate at least 50% of its income in the US
• Operations for the last four quarters should be profitable

The list of the S&P 500 companies is revised every quarter. If, for any reason, a corporation no longer meets the above criteria, it is replaced with another company.

Looking back: the S&P 500 performance in recent years

According to TradeThatSwing, the average annual return for the S&P 500 from September 1973 to September 2023 inclusive is 10.75% if unadjusted for inflation and 6.59% if adjusted for inflation. From 1998 to 2022 inclusive, the maximum index return of 30% was recorded at the end of 2013. The minimum value for the same period was seen at the end of 2008, standing at −38%.

The average annual return for the S&P 500 from September 2018 to September 2023 inclusive reached 10.49% if unadjusted and 7.28% if adjusted for inflation. It can be assumed that the index value could have been higher if stock performance in 2020 were not characterised by the high volatility caused by the COVID-19 pandemic. In addition, it was negatively affected by both a bearish market and a high inflation level in 2022.

Global economic factors influencing the S&P 500

• The Federal Reserve’s monetary policy. Interest rate changes may impact borrowing costs for companies, affecting profits and investment decisions
• Global economic growth. This usually has a positive impact on companies’ profits and contributes to index growth
• Exchange rates. The strengthening of the US dollar may adversely affect profits of US companies with a significant share of global operations
• Corporate reporting. Positive quarterly and annual reports may drive up stocks of the S&P 500 companies, creating favourable conditions for index growth
• Important political events in the country. For example, tax reforms or regulation changes may have a substantial effect on the stock market, and hence the index
• Energy source prices. Changes in oil and gas prices may affect the energy sector, and index quotes

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

What is CFD and Its Difference from a Real Asset?

Dear Clients and Partners,​

Are there any beginners, who haven’t asked themselves a question what a CFD is and how it is different from a real asset? Let’s go deeper in these terms and try to determine which one of them is more interesting and easier-to-use for both beginners of stock exchange markets and experienced investors.

What is CFD?

First of all, one should know what CFD stands for. CFD means a Contract for Difference. As a matter of fact, it is an instrument traders can use for trading or speculating in price differences, but without buying a base asset, stocks, metals, or commodities.

Trading on the stock market

Now, let’s compare trading stocks and CFDs. In order to participate in trading stocks, a trader has to open an account. In this case, the leverage value will be 1:20, at most. This, in its turn, means that traders with small deposits will have limited opportunities for trading.

Usually the minimum contract size on stock exchange markets is 1 lot, which is 100 stocks. For those, who would like to use smaller contract sizes, in R StocksTrader, the multiasset trading platform the minimal contract size is 0.01 lots - 1 stock. The maximum contract size is limited only by the amount of funds on a trader’s account or the number of traded stocks. It’s quite easy to calculate how much money a trader requires for trading, if, for example, a stock of one popular social network costs 181 USD. Margin requirements for 1 lot (100 stocks) will be 181 * 100 = 18,100 USD.

With small deposits, there will be no opportunities for opening this position. But this is just one of the many examples. However, on stock exchange markets one can find stocks at the price from 0.01 USD, that’s why there are a lot of options for trading even if there is insufficient money for expensive stocks. Apart from this, one should take into account the platform expenses (so called monthly fee) and the commission to be paid to a broker for every opened and closed positions (on average, a trader will spend on this about 4,000 USD a year). Holding positions overnight is free at some of the brokers, but some of them make traders fulfill some certain conditions.

Corporate actions

In case of trading stocks, there are both expenses and some positive moments. For example, cash dividends, because a trader acts as a shareholder with the right to vote at the company’s meetings (for this, a trader has to fulfill some certain conditions). However, in most cases, trading is speculative and has no goals to receive dividends or to take part in shareholder meetings.

One should know that there are some restrictions in trading. Not all stocks are available for credit sale; sometimes, there is no access to open a short position, especially if a trader hasn’t got this asset.

Trading CFDs

Now it’s time to talk about Contracts for Difference. In this case, brokers usually provides bigger leverage values than for trading stocks. Everyone decides for themselves whether it’s good or bad, but increased leverage values allow traders to expand the list of available trading instruments.

An opportunity to trade, both buy and sell, without any restrictions. If a trader buys some trading instrument, but the instrument price falls contrary to expectations, CFDs offers an opportunity of hedging. Trading Contracts for Difference doesn’t imply buying/selling a base asset. Quotes of CFDs and base assets are usually the same, but sometimes there may be 1-2 pips difference due to the internet connection speed. CFDs can be traded through “Forex” terminals, which are usually provided for free. However, trading hours for both CFDs and base assets are the same. The minimum contract size for CFDs, unlike stocks, is 0.1 lots, while the maximum size is limited only by opportunities traders have.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

How to Trade with Leverage

Dear Clients and Partners,​

What is Leverage

Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading. On Forex, you can easily find brokers offering up to 2000:1 leverage, and there's one that claims to offer unlimited leverage to its clients. In the stock market, meanwhile, you'd barely come across a broker that offers over 20:1 leverage.

Leverage in Forex

Leverage got especially popular in Forex, as it is less volatile, and one needs to have their funds leveraged in order to boost the performance, and, subsequently, the profits. The EUR/USD, for instance, moved just 1.10% in May, which would have returned you a 1.10% profit without leverage (1:1). Over the same period, Tesla yielded 14% profit to the shareholders. This way, once the Forex brokers stop offering leverage, the gains in the market will get ridiculously small for the retail traders, and those will have to move the money elsewhere.

How to Get Leverage

A broker will grant you leverage once you deposit your own funds on your account with that broker. Those funds are called margin, and they act as collateral for the loan money you get from the broker. Every broker has its own minimum deposit limit; in many cases, it is as little as $10. Some even don't require any: you just get a welcome bonus, 'free money' that acts as margin.

Leverage and Expenses

When trading with a broker, you as a trader always have to pay commissions on every trade you make. The commission or fee may be priced in spread or may be paid apart. Besides, when rolling a position overnight, you will have to pay the swap. Without leverage, those fees can be barely seen in the statement, but when you do use leverage, they become a few times larger. Let's assume you open a USD/JPY trade with a 1:1 leverage and a $1,000 deposit. With the smallest lot size, 0.01, and a spread of 1.90 pips, you get a ridiculous $0.17 fee. Once you have moved to a 100:1 leverage, however, you will be able to open a 1-lot position, and, considering this, the fee will increase to as much as $17.48. Thus, larger leverage leads to larger expenses.

Advantages of Leverage

Leverage is so much popular in Forex because, without it, you won't earn as much in Forex as in stock market over a certain time frame. Leverage increases the capital you can operate, thus boosting your performance and ROI. Look at the above example: suppose you opened a EUR/USD trade on May 1 and closed it on may 31; this would have yielded you 1.10% profit. With Tesla, you would have earned nearly 14 times more. That's why, if you don't use leverage in Forex, you don't want to trade Forex at all!

Leverage Risks

Unfortunately, not every trade results in profit. Sometimes, you will certainly have losing trades, and in this case the leverage will magnify your losses. Say, you went long on EUR/USD with a $1.200 deposit, the price is 1.1200, and your lot size is 0.01 (micro lot), each pip thus costing $0.10. Then the price fell to 1.190, and in case you decide to close your position, your loss will be as little as one dollar! With 100:1 leverage, this would be a different story. You would have most likely gone one lot, and a 10-pip fall will now cost you as much as $100. Your profit and loss size, therefore, is strictly bound to the leverage size; with more leverage, you earn more and you lose also more!

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

Types of Financial Instruments

Dear Clients and Partners,​

On financial markets, no matter when, while working there or just getting to know them, investors will surely face such things as financial instruments. What are they? We’ll paint it in details.

Financial instruments

Financial instruments imply a wide range of terms and definitions. It’s very easy to see how numerous they are: they include a category of banking tools, a group of market assets, and a lot of other financial operations that many people have heard of, but only few have really seen and used them.

All financial instruments can be roughly divided into two main groups: the first group is available to everyone without any exceptions, while the second one requires particular knowledge and skills. As a result, the first group will contain credits, loans, bank deposits, and leasing.

Credits and loans

Credits and loans are the most widespread financial instruments for citizens. The only thing that may really compete with them is a bank deposit. A credit is an operation when a lender grants money to a borrower at a certain interest. The money, of course, is subject to return according to the agreement. As the years go by, global lending terms are getting “milder”, because banks are competing to retain customers, thus offering them better conditions. However, in developing economies it doesn’t work this way: in most cases, the rate on credit is a primary source of banks’ revenue.

Bank deposits

Bank deposits are another widespread financial instrument, which doesn’t imply any in-depth knowledge. In this case, a bank acts as a borrower and pays interests to a lender (an individual) for using their money after a specified period of time is over. The deposit rate is calculated based on the value of the country’s key interest rate, but sometimes there are other possible options.

Leasing

Leasing is a more complicated financial instrument, but it’s quite available for citizens. Leasing agreements have 3 parties: after concluding an agreement, a lessor gets a long-term asset, a lessee undertakes an obligation to pay money on account of debt repayment, while a distributor of a property or equipment sell their products.

Now let’s talk about the second group of financial instruments, which is related to trading on financial markets and speculations of different types. In this case, speculations mean investment in high-risk assets with a possibility of a large income.

Stocks and bonds

So, what are stocks and bonds? A stock is an ownership share. After buying stocks on financial stock exchanges, an owner is guaranteed the right to receive dividends. A bond is an issued security similar to a stock, but with the attached right to receive its nominal value or money, or their equivalent within the time specified. A bond is a debt security. When it comes to risk, stocks are considered more risky financial instrument, while bonds – more conservative.

Futures

Then come derivative instruments. In other words, these are assets that are based on a basic concept, but the instruments themselves are pretty specific tools. Futures are derivative financial instruments based on the SPA of an asset (stocks, good, etc.), and when entering into the agreement parties agree only on the price and the delivery date. Other parameters are usually quite standard and defined by specifications. Futures are trade offers, which are traded on the market on a regular basis.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of the Christmas and New Year holidays

Dear Clients and Partners,​

We are informing you about the upcoming adjustments to the trading schedule during the Christmas and New Year holidays.

This schedule is intended for informational purposes only and may be subject to further amendments.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on DE40Cash

• 25 December 2023 – no trading
• 26 December 2023 – no trading
• 1 January 2024 – no trading

Schedule for trading on CFDs on US stocks

• 24 December 2023 – trading stops at 7:00 PM server time
• 25 December 2023 – no trading
• 1 January 2024 – no trading

Schedule for trading on CFDs on US futures

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading

Schedule for trading on CFDs on Metals, CFDs on Oil, and CFDs on US indices

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading
• 2 January 2024 – trading starts at 10:00 AM server time

Schedule for trading on other instruments

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading
• 2 January 2024 – trading starts at 10:00 AM server time

R StocksTrader platform

Schedule for trading on GER40

• 25 December 2023 – no trading
• 26 December 2023 – no trading
• 1 January 2024 – no trading

Schedule for trading on US stocks, CFDs on US stocks, ETFs, and CFDs on ETFs

• 24 December 2023 – trading stops at 7:00 PM server time
• 25 December 2023 – no trading
• 1 January 2024 – no trading

Schedule for trading on CFDs on Metals, CFDs on Oil, and CFDs on US indices

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading
• 2 January 2024 – trading starts at 10:00 AM server time

Schedule for trading on CFDs on US futures

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading

Schedule for trading on CFDs on EU and UK stocks and indices

• 25 December 2023 – no trading
• 26 December 2023 – no trading
• 29 December 2023 – no trading on CFDs on DE and UK stocks
• 1 January 2024 – no trading

Schedule for trading on other instruments

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading
• 2 January 2024 – trading starts at 10:00 AM server time

Please take note of the above amendments to the trading schedule as you plan your trading activity.

Sincerely,
The RoboForex Team

 

[Vlad RF]

Join the grand promotion for Partners with a total prize pool of $1,000,000

Dear Clients and Partners,​

Let us remind you that all RoboForex partners can participate in our grand promotion and win cash prizes.

RoboForex Partner Promotion Overview:

• RoboForex's most significant promotion of the year for partners.
• Every month, 60 winners have the chance to earn up to $15,000 for their outstanding results.

RoboForex Partner Programme

• Strong industry-leading partner program with high commissions to attract clients for your growth.
• From June 2023 to March 2024, all RoboForex Partners are eligible to win cash prizes through automatic monthly coupon distribution during this promotion.

Winning Criteria

• The market will determine the winners.
• 60 winners determined by the closest mathematical match of coupon numbers to selected stock combinations' closing prices on the first Friday of each month.

Earn with RoboForex and receive prizes!

Become a Super Partner!​

Sincerely,
The RoboForex Team