Introduction to Foreign Exchange Trading
Forex or else Foreign Exchange is a global market where two national currencies are traded against its other. These two currencies form an exchange rate and are called a Forex pair. For example, Euro against the US Dollar create the EURUSD, or else the Eurodollar pair.
Exchange rates are the subject of investment and speculation. Apart from central banks, these are the major Forex market participants:
- Commercial and investment banks
- Retail traders (common people) via Forex brokers
- Institutional investors (investment firms, hedge funds, etc.)
- Trade companies (importers/exporters) and other companies that are exposed to currency risk
The Foreign Exchange market operates 24/5, from Monday to Friday.
Where is Forex Market Situated?
Actually, Forex has no center, it operates as a decentralized electronic network, almost the same way as the World Wide Web. Every buy/sell order is executed according to demand and supply. This electronic infrastructure is called the ECN network (Electronic Communication Network) of Banks.
MT4 GUIDE AND KEYBOARD SHORTCUTS
MetaTrader4 is an excellent freeware platform that over the years has become the undisputed Forex industry’s standard platform. MetaTrader4 and MetaTrader5 by MetaQuotes can be used for trading Foreign Exchange currencies but also for trading Equities, Metals, Energies and Soft Commodities via CFDs and Futures.
ESSENTIAL MT4 TIPS FOR FOREX TRADERS
Here are some useful tips when trading with MT4 and MT5:
(1) Language Customization
- Go to Mt4 Top-Menu and there Select >View
- Select > Languages (chose your preferred language among tens of selections)
(2) Adding Assets on Metatrader4
Usually, beginners don’t know that they can add assets to those visible on the left of their MT4 screen (Market-Watch Window).
- Press Ctrl-U to see all Symbols
- Select a Symbol and press -Show- (on the Right), now it is available on MT4 Market-Watch Window
(3) Common Template Creation (used in all Charts)
You don’t have to add indicators and other stuff each time you open a new chart window. You can create a custom template, save it, and use it automatically each time you open a new chart:
- Right-Click on a Price Chart and press >Properties
- Customize your chart (colors and other preferences)
- Insert your favorite indicators
- After you have customized everything you need, go to Top-Menu
- Choose >Charts and then choose >Template
- Choose >Save (and name your template)
- Finally, when you open a new chart you can go to >Charts and >Template and then >Load Template (click on your previously saved template)
- All your chart preferences and loaded automatically.
(4) Altering the Size of your Position, Without Completely Closing it
- Right-click on your open trade (It is visible on the bottom where is the Terminal Area (Ctrl+T)
- Select "Close" as you normally would
- Change the number of lots you wish to close. For example, if you have opened 0.5 lot and you wish to be left with 0.3 lot, then close 0.2
(5) Measure the Distance of Pips and Period with Accuracy
- Press Ctrl-F and the Crosshairs Tool will appear on your screen (this tool appears also if you just keep pressing continuously the mouse-wheel)
- Hold down the left button of your mouse starting from a certain point, and then move your cursor to another point.
- Three numbers appear which are divided by slashes (these numbers corresponds to Bars/Pips /Price)
(6) Duplicate Objects on MetaTrader-4
- Select any object by clicking it (for example a trendline)
- Press Ctrl+Left-Click on it (the object is now duplicated)
- Go to the copied object and drag the duplicated object from it
Note: If you use this trick on a trendline you may easily create a price channel and that is extremely useful as channels are very important when trading Forex.
(7) Combine Two Indicators in one place
- Insert an oscillator (for example RSI)
- Press Ctrl-N in order to reveal the -Navigator Window- on the left
- Drag any additional indicator from the Navigator Window to the already opened indicator (RSI in our example)
- Choose your settings and enjoy the combination
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