Markets tend to react to the outside events. Markets react to the seasons. Markets react to holidays. Markets react to political crisis. Markets are what the people are thinking. The day before the Presidents day is the worst day and the day after the Easter is the worst day after. However, you should keep in mind that a lot of other factors also come into play and you have a lot of room for error. The next best holiday bets are the Labor Day and the Memorial Day because they fall before the first day of trading in September and June respectively.  Read more... (604 words, estimated 2:25 mins reading time)

Have you ever received the dreaded forex margin call? But contrary to the popular opinion that a margin call represents that worst case scenario for the currency trader, this is far from the truth. The risk that is assumed when trading aggressively the currency markets often results in receiving a margin call. The worst case could be far worse.

A margin call is in fact a safeguard to protect a trader from losing 100% or even more of the money in the trading account. To owe additional funds to the broker is actually the worse case scenario. This uncomfortable position is largely avoided because of the existence of the margin call.  Read more... (536 words, estimated 2:09 mins reading time)

Before the coming of Euro, it was necessary to hold large amounts of every individual European currency. As a result the currency reserves tended towards US Dollar. In 1990s, 65% of the global reserves were in US Dollar.

However, with the introduction of Euro, foreign reserve assets are shifting in favor of Euro. As EU becomes one of the major trading partners for most countries around the world, this trend is expected to continue.  Read more... (621 words, estimated 2:29 mins reading time)

The first step is to identify the type of trade into which we will enter. It all depends on your trading strategies. What matters most to a trader or an investor is how to create a positive cash flow.

Is it a day trade? Is it a swing trade or is it a long term positions trade? Once we acknowledge what our goals and objective are than we can narrow our expectations.  Read more... (599 words, estimated 2:24 mins reading time)

EUR/USD is the most liquid and the most popular currency pair among the forex traders. Trading currencies can be exciting and lucrative. Its a great market because of the way politics affect the trends. Elections, strikes, and sudden developments, both good and bad, can lead to significant trading profits if you stand ready to trade the euro is a convenient currency because it encompasses the policies and the economic activity and political environment of a volatile but predictable part of the world: Europe. EUR/USD is the most heavily traded currency pair in the global currency markets at the moment.  Read more... (782 words, estimated 3:08 mins reading time)