Back to www.cobrasmarketview.com

Top 4 Trading Tools and Their Requirements in the Forex Trad

Post Reply
adamsmiths1
Posts: 4
Joined: Wed Nov 23, 2016 3:45 am

Top 4 Trading Tools and Their Requirements in the Forex Trad

Post by adamsmiths1 »

There is a saying that the foreign exchange market never sleeps. It is true as the forex market or the FX market is always active. The trading is active in this market for 24 hours a day and 5 days a week. In fact in some countries, the forex market is open on the weekends too. Hence, there is no waiting for the opening bell. This market is greatly popular among the traders because it is highly volatile, and daily turnover of this market is more than 4 trillion dollars. The volatility and liquidity of this market has made it the largest financial global market. This market is larger than any other stock or future markets. Because of its highly volatile nature everyday more and more people are trading here to gain profit. According to an expert of CornerTrader “Everyday millions of newbies enter into the market to execute trade in order to earn some more money. But they don't even research about the market properly. As a result, they face a great loss.” He also includes, “In order to avoid this problem, the newbies should use different tools for trading. They should also have clear idea about those tools.”

If you are new to the forex market and have no idea about forex trading tools and their requirements, then you can follow this article to have a brief idea about them. Read on-

1. Forex Calendar:
Forex calendar is one of the most essential tools that are used in the forex trading. It’s just like our daily calendar. And it also works like our daily calendar. Just as the daily calendar makes us remember the dates and months, forex calendar indicates and reminds us about all the market moving events, like- debt auctions, factory orders and monthly job claims. This calendar is a real need for the traders who want to trade seriously. It allows you know the fluctuations and moves of the market before executing the trade. This calendar is also used as a platform where the forex brokers publish forex related economic news.
2. Forex Calculator:
Forex calculator is also of great help for the traders as it helps to measure the volatility of the currency pair, and it also indicates the active trading hours. As there are dozens of currency pairs traded in the forex market, it is almost impossible to calculate the volatility of these currency pairs. By using the historical data, the forex volatility calculator can calculate and measure the volatility of approximately 35 currency pairs. There is also a table where you can change the pips and percentage of each and every forex currency pair daily.
3. Trading Platform:
Trading platform is the most important tool among all the forex trading tools. There are different forex trading platforms available online like- cTrader, MetaTrader, MetaTrader 4 and 5 etc. One should choose and trade on a trading platform that is user- friendly and have a practice account for the same. A practice account helps the trader to try several strategies without losing the real money.
4. Currency correlation:
Currency correlation is a familiar tool for the traders who prefer trading with more than one currency pair. If you want to use this tool, you should know this below-discussed fact-

• Search for a negative correlation if you are using hedging technique.
• No correlation is required in terms of diversifying.
• You should search for a positive correlation, if you want to increase exposure.

Most people take trading as a shortcut to earn money. But trading in the forex market is not so easy; in fact it is a little risky. So research more about it and hone your skill of trading. Use trading tools to a your success a reality.
Post Reply