Aman Forex Trading information

Buying and selling in trading explained When you place a trade, you are either ‘buying’ or ‘selling’ a financial instrument. There are buyers and sellers in every market. Here we discuss how their relationship works, and how it influences the markets. What do ‘buy’ and ‘sell’ mean in trading? When you open a ‘buy’ position, you are essentially buying an asset from the market. And when you close your position, you ‘sell’ it back to the market. Buyers – also known as bulls – believe an asset’s value is likely to rise. Sellers – or bears – generally think its value is set to fall. When you open a position with a broker or trading provider, you’ll be presented with two prices. If you want to trade at the buy price, which is slightly above the market price, you open a ‘long’ position. If you want to trade at the sell price – slightly below the market price – you open a ‘short’ position. The difference between the buy and sell price is known as the ‘spread’, which the provider takes to facil...

 

  The Stages of a Forex Trend A trend  is a tendency for prices to move in a particular direction over a period. Trends can be long term, short term, upward, downward and even sideways. Success with forex market investments is tied to the investor's ability to identify trends and position themselves for profitable entry and exit points. This article examines the stages of a forex trend and how they affect investors. Economic Trends Reflected in Currencies For the most part, an economy that is strong will also have a strong currency. Economic strength attracts investment, and investment creates demand for a  currency . The demand for gold as an alternative to  fiat currencies  has led to a currency demand in those countries that produce gold such as Australia, South Africa and Canada. Economic Trends Reflected in Currencies For the most part, an economy that is strong will also have a strong currency. Economic strength attracts inves...

  The law of supply and demand governs all market prices. Supply & demand zones put the economic theory into a trading strategy using price charts. Read on to learn more about S&D trading... Contents: Supply & Demand Zones What are supply & demand zones? Wykoff and Market Structure Types of Supply and Demand patterns How to draw a supply / demand zone Identifying strong supply & demand zones Supply & Demands Zone indicators An example S/D Zone Trading Strategy What are supply and demand zones? Supply and demand zones are a popular analysis technique used in  day trading . The zones are the periods of sideways price action that come before explosive price moves, and are typically marked out using a rectangle tool in the stocks, forex or CFD trading platform. A supply zone forms before a downtrend A demand zone forms before an uptrend Supply and Demand trading strategies use price returning to these zones as entry and exit criteria. The strategy is market...