Although forex (FX) is the largest financial market in the world, it is relatively unfamiliar terrain for retail traders. Until the popularization of internet trading, FX was primarily the domain of large financial institutions, multinational corporations, and hedge funds. However, times have changed, and individual retail traders are now hungry for information on forex.


Margins are a hotly debated topic. Some traders argue that too much margin is very dangerous, however it all depends on trading style and the amount of trading experience one has. If you are going to trade on a margin account, it is important that you know what your broker's policies are on margin accounts, and that you fully understand and are comfortable with the risks involved. Be careful to avoid a Forex margin call. 

Back tests – You can read my forex robot reviews to see if the forex robot has back tests which will give you a good idea how it performed historically, some forex robots even back test as for as 15+ years! Ideally, you would want back tests to have been done using real tick data and spreads, thus making the forex robot back test results as accurate as possible in the mt4 strategy tester

At this stage the "risk management" is rather unsophisticated! In the method calc_risk_position_size below we are simply making sure that the exposure of each position does not exceed risk_per_trade% of the current account equity. risk_per_trade defaults to 2% with the keyword argument, although this can obviously be changed. Hence for an account of £ 100,000, the risk per trade will not exceed £ 2,000 per position.
When investors are selling, the exchange rate of the foreign currency tells them how many units of the quote currency they will get for one unit of the base currency. Traders make decisions to buy if they think that the value of the base currency might increase. In the example, traders would purchase the US dollar with the Euro if they expect the value of the US dollar to increase to $1.31. The change that takes place is how the investor makes a profit.
Systems that derive risk-based margin requirements deliver adequate assessments of the risk for complex derivative portfolios under small/moderate move scenarios. Such systems are less comprehensive when considering large moves in the price of the underlying stock or future. We have enhanced the basic exchange margin models with algorithms that consider the portfolio impact of larger moves up 30% (or even higher for extremely volatile stocks). This 'Extreme Margin Model' may increase the margin requirement for portfolios with net short options positions, and is particularly sensitive to short positions in far out-of-the-money options.
While the default order of the table list arrangement is according to the RFR Rank#, you may like to view a comparison list according to an other value listed there, you can do that by clicking on the desired value title in the table header or select it from the dropdown list at the top right to the table, this will re-arrange the list according to that value, the first click on the header value title will re-arrange the list in an ascending order, the second click will revert to a descending order of that value, and so on. You may also switch between the ascending / descending list orders by clicking the     buttons to the right of the top right dropdown list.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
Almost all of the reviewed Forex robots here are for beginners and are newbie traders friendly. However we recommend trading with one or more of FxAutomater EAs that include WallStreet Forex Robot, Volatility Factor, Forex Diamond, Forex Trend Detector & Forex Gold Investor (New EA trading Gold via MT4), all of which are self dependent, totally automated, easily installed beside that they are making excellent results starting from 2018 as a continuation of their previous proven success over the past few years! They are currently offering price discounts on their EAs! FxAutomater group are highly experienced Forex System Developers with good reputation!
It is essential that traders understand the margin close out rule specified by the broker in order to avoid the liquidation of current positions. When an account is placed on margin call, the account will need to be funded immediately to avoid the liquidation of current open positions. Brokers do this in order to bring the account equity back up to an acceptable level.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
Before rushing out in pursuit of the next high-yield pair, however, be advised that when the carry trade is unwound, the declines can be rapid and severe. This process is known as the currency carry trade liquidation and occurs when the majority of speculators decide that the carry trade may not have future potential. For every trader seeking to exit their position at once, bids disappear, and the profits from interest rate differentials are not nearly enough to offset capital losses. Anticipation is the key to success: the best time to position the carry is at the beginning of the rate-tightening cycle allowing the trader to ride the move as interest rate differentials increase.
Is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Member - Canadian Investor Protection Fund. Know Your Advisor: View the IIROC AdvisorReport. Trading of securities and derivatives may involve a high degree of risk and investors should be prepared for the risk of losing their entire investment and losing further amounts. Interactive Brokers Canada Inc. is an execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives.

In particular I've made the interface for beginning a new backtest a lot simpler by encapsulating a lot of the "boilerplate" code into a new Backtest class. I've also modified the system to be fully workable with multiple currency pairs. In this article I'll describe the new interface and show the usual Moving Average Crossover example on both GBP/USD and EUR/USD.


The FxPro Margin Calculator works out exactly how much margin is required in order to guarantee a position that you would like to open. This helps you determine whether you should reduce the lot size you are trading, or adjust the leverage you are using, taking into account your account balance. Select your trading instrument, your trade size, leverage and account currency, and click ‘Calculate’. Our Margin Calculator will do the rest.
In order to understand Forex trading better, one should know all they can about margins. Forex margin level is another important concept that you need to understand. The Forex margin level is the percentage value based on the amount of accessible usable margin versus used margin. In other words, it is the ratio of equity to margin, and is calculated in the following way:
RISK WARNING: Iforexrobot is a software reseller, we do not offer investment advice or execute trades. The software we provide is a tool where the settings are input by the end user to design their own trading strategy. Trading forex and CFDs carry a high degree of risk to your capital and it is possible to lose your entire deposit. Only speculate with money you can afford to lose. As with any trading, you should not engage in it unless you understand the nature of the transaction you are entering, and the true extent of your exposure to the risk of loss. Between 74% and 89% of retail investors lose money with trading in CFDs. These products may not be suitable for all investors, therefore if you do not fully understand the risks involved, please seek independent advice.
I am very interested in online Forex trading for the first time. I have been searching for a really good Forex Robot because I know nothing about technical. Although I am open to reasonable risk however I do not want to loose money for nothing. Any suggestion for a really good Forex Robot, that is easy to operate and works all by itself so that I do not have to do anything in decision making? Any suggestions about do's
Pip stands for percentage in point and is the smallest increment of trade in FX. In the FX market, prices are quoted to the fourth decimal point. For example, if a bar of soap in the drugstore was priced at $1.20, in the FX market the same bar of soap would be quoted at 1.2000. The change in that fourth decimal point is called 1 pip and is typically equal to 1/100th of 1%. Among the major currencies, the only exception to that rule is the Japanese yen. One dollar is worth approximately 100 Japanese yen; so, in the USD/JPY pair, the quotation is only taken out to two decimal points (i.e., to 1/100th of yen, as opposed to 1/1000th with other major currencies).
Free margin in Forex is the amount of money that is not involved in any trade. You can use it to take more positions, however, that isn't all - as the free margin is the difference between equity and margin. If your open positions make you money, the more they achieve profit, the greater the equity you will have, so you will have more free margin as a result. There may be a situation when you have some open positions and also some pending orders simultaneously.
Back tests – You can read my forex robot reviews to see if the forex robot has back tests which will give you a good idea how it performed historically, some forex robots even back test as for as 15+ years! Ideally, you would want back tests to have been done using real tick data and spreads, thus making the forex robot back test results as accurate as possible in the mt4 strategy tester
The first method, calculate_pips, determines the number of pips that have been generated by this position since it was opened (taking into account any new units added to the position). The second method, calculate_profit_base, calculates the current profit (or loss!) on this position. The third method, calculate_profit_perc, determines the percentage profit on this position. Finally, update_position_price updates the previous two values based on current market data.
At this point, we're now carrying out our practice trading! As I've stated before in the previous entry, it is very easy to lose money with a system like this hooked up to a live trading account! Make sure to view the disclaimer in the post as well as be extremely careful with your own Strategy objects. I highly recommend trying this on the sandbox or practice accounts prior to a live implementation.
In other asset classes, the smallest increment of a change in asset price is known as a "tick". In foreign exchange trading it is known as a "pip" (Price Interest Point). It is the smallest increment in any currency pair and is (usually) 1/100th of a percent, also known as a basis point. Since the majority of major currency pairs are priced to four decimal places, the smallest change occurs on the last decimal point.
Trading on margin can be a profitable Forex strategy, but it is important to understand all the possible risks. You should make sure you know how your margin account operates, and be sure to read the margin agreement between you and your selected broker. If there is anything you are unclear about in your agreement, ask questions and make sure everything is clear.
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The rationale for this is that the "practice" trading account and the local Portfolio components should have similar, if not equal, values for attributes such as the Account Balance, the Unrealised Profit & Loss (P&L), the Realised P&L and any open Positions. If I could achieve this and run some test strategies through it, and if the attributes appeared to be equal across both the local portfolio object and OANDA, then I could have confidence in the capability of the backtester in producing more realistic results as and when strategies were deployed.
At this point, we're now carrying out our practice trading! As I've stated before in the previous entry, it is very easy to lose money with a system like this hooked up to a live trading account! Make sure to view the disclaimer in the post as well as be extremely careful with your own Strategy objects. I highly recommend trying this on the sandbox or practice accounts prior to a live implementation.

To get started, investors interested in trading in the forex markets must first sign up with either a regular broker or an online forex discount broker. Once an investor finds a proper broker, a margin account must be set up. A forex margin account is very similar to an equities margin account – the investor is taking a short-term loan from the broker. The loan is equal to the amount of leverage taken on by the investor.
There is one unpleasant fact for you to take into consideration about the margin call Forex. You might not even receive the margin call before your positions are liquidated. If the money in your account falls under the margin requirements, your broker will close some or all positions, as we have specified earlier in this article. This can actually help prevent your account from falling into a negative balance.
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