Trading tools

Principles of Forex Trading

UBCFX provides the best solutions for their clients to help them make the trading formula easier and safer, via various ways that include best market analysis and trading lectures. UBCFX provides to their clients daily analysis, and special tips that will help them understand the markets direction. To help them take maximum profit from minimum risk. As we know and believe that learning is the secret of success we also provide Ebooks and various trading lectures to help you create your trading identity.

Buying And Selling in Forex

Currency trading considers the buying and selling as the fundamental processes in Forex trading. We can simply define it as the processes of exchanging sets of primary and intersectional currency pairs. It differs completely from the traditional barter system that we use in our daily accounts in the sense that it includes two contracts, the first is immediate, and the other is a future, where trading is done through an agreement of opposing this trade after a specific period of time, then, the buying and selling processes appear in their simplest form.

Leverage And Margin

Leverage is the ability to use something small to control something big. Specific to forex trading, it means you can have a small amount of capital in your account controlling a larger amount in the market. Stock traders will call this trading on margin. For example, with a leverage of a value 1:200, you can only control one unit in two hundred units. Leverage is considered as one of the best and most important features of forex trading, on condition that it is used wisely and appropriately. Leverage differs from one company to another, and is chosen based on the trader’s desire. It also differs from the size of the contract used, whether it is small or standard. The leverage must be used carefully, because it has as many chances for profit as for losses.

Times To Trade Forex Around The World

  • New York – 8 AM to 5 PM
  • Tokyo – 7 PM to 4 AM
  • Sydney – 5 PM to 2 AM
  • London – 3 AM to 12 PM

The possibility of trading hours overlapping should be considered.

For example: New York and London: between 8 AM and 12 PM

Stop Loss

Stop loss order is one of the most important tools every trader needs to be safe in their trades, especially in Currency pairs. Simply put, stop loss order can be defined as the order that is used to stop movements that are going against you and calculate your losses depends on your investment strategy.

The mark up spread is added to actual market spreads and in fact is the profit of the broker you’re dealing with.