Education

 

I wish to learn more about trading
It's great to learn about your interest in the largest industry in the world! We offer Live Webinars for prospective traders that you can apply for via: 

https://www.blackbullmarkets.com/content/view/live-webinar

Alternatively, check out our Education Center for an immediate background on the Forex market: 

https://www.blackbullmarkets.com/content/view/education-center

 

Which strategy should I use?
A good trader will use all three types of strategy to predict the market. (1) Technical analysis, (2) Fundamental analysis and (3) Sentiment analysis.

  • Technical analysis is the study of currency movement on the chart. 
  • Fundamental analysis is determining the market through looking at how the country’s economy is doing. 
  • Sentiment analysis is predicting the market trend by determining how the market will react to the current or future fundamental outlook. 

All three analyses go hand-in-hand and interferes with each other. It is important for a trader to consider all three elements to make successful trading decisions. 

 

How do I manage risk when I trade currencies?
The most common risk management tools that forex traders use are the limit order and the stop loss order. 

Limit order will automatically sell or take you out of the market when the rate of the trade reaches the limit that you have previously set, the highest price that you think the trade will go before it falls. 

A stop loss order works in the same idea instead it take you out of the market when the trade falls unexpectedly over the set limit. This will prevent you from losing significant volume of money over unexpected market turns. 

 

What does it mean have a ‘long’ or ‘short’ position?
Long means buy and short means sell. 

For example, if you are buying EUR/USD, it means you have opened a long position for EUR against USD. 

If you are selling EUR/USD, it means you have opened a short position for EUR against USD.

 

What are swap rates?
When you have an open position in the market overnight, swap rates are the overnight fee you have to pay towards the market in order for them to hold your position within the market.

 

What are the most commonly traded currencies in the Forex Markets?
The most commonly traded pairs usually involves the USD for example the EUR/USD. However other currencies such as the Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar and the New Zealand Dollar are also very popular.

 

When is the Forex market open for trading?
The market opens 24-hours, 5 days a week. It begins on Monday from 10am GMT and moves around the globe and closes on Friday 10pm GMT. 

 

What is the spread?
The spread is the difference between the BID and ASK price within the market quotes. BlackBull markets has very tight spreads (as small as a 0.1 pip spread), thanks to our institutional liquidity providers.

 

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