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Tuesday, January 22, 2013

The Three Forex Trading Sessions of the World

Even though the forex market is open 24 hours a day, the market experience very different levels of volatility. Also the liquidity or volatility of different currency pairs differs considerably in different hours of a day. This is because the difference in market participants at different time periods. The world FX market can be categorized to three different trading sessions and currencies related to each session are most liquid in that session.
  1. Asian Forex Trading Session: Usually the trading hours from 11 p.m. to 8 a.m. GMT is regarded as the Asian trading session. It is also known as Tokyo session. The session is mainly represented by Tokyo capital market participants but also include participants from countries like China, Australia and New Zealand. When opened after the week holidays, this Asian session can have high volatility and can be used as an indicator of future changes.
  2. European Forex Trading Session: Usually the trading hours from 7 a.m. to 4 p.m. GMT is regarded as the European session. It is also known as London session. The session is mainly represented by participants from UK, France, Germany and Switzerland.
  3. North American Forex Trading Session: Usually the trading hours from noon to 8 p.m. GMT is regarded as the North American session. It is also known as New York session. The session is dominated by participants from USA but also include a few from Canada, Mexico and Latin American countries. The market is usually high in participation and volatility.

Orient Financial Brokers is a leading Online Forex Broker in Dubai offering services to traders across Middle-East. OFB forex trader education resources are much helpful for online traders.

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Monday, January 14, 2013

Automated Forex Trading Software UAE

Automated forex trading is the practice of trading current pairs using advanced currency trading software that do not require any human interference. The practice is getting popular, especially among new traders and part-time traders having not much time for trading. The software scans market charts, price changes, price trends, and news; and check for spread discrepancies, patterns, crossovers, breakthroughs, bottoms, tops and other predefined parameters. If the criteria are met the software broadcasts a trading signal and automatically makes the buy or sell trade.

There are many advantages of automated forex trading software. These include
  • Emotionless trading: As there is no or minimum human influence involved, the trades will be unemotional and consistent.
  • Faster trades: the trades will be made as soon as the used defined criteria are met and as everything predetermined the order will be placed in no time.
  • Good for speculation and arbitrage: speculation and arbitrage involves looking for small price/spread discrepancies, software programs can better identify those and can capitalize on those.
  • Absentee trading and time saving: provided that trader has a perfect trading environment and data flow, the software can make trades round the clock without any human presence.

But there are also some disadvantages of automated forex trading.
  • The trading systems are usually costly. And you also need to invest for creating a good trading infrastructure which includes computer, power and internet access.
  • The rules are user defined; that means the trades are going to be as successful as the trader.
  • Relaxed rules can generate many false/no profit trading signals and tighter rules can generate any signals at all.
  • Not all online forex brokers support fully automated forex trading; also most systems only support trading a handful of major currency pairs.

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