RoboForex - Forex Broker: overview and news

[Vlad RF]

Price Movements: By Chance or By Nature?

Dear Clients and Partners,​

Most traders I have known want to absolutely conquer the market. Some succeed, but only every now and then, failing to turn this conquer into a permanent win. The reasons are many, from insufficient skills or experience all the way to the lack of the 'holy grail', with the 'not enough money' reason in between. Well, a good set of excuses. These reasons, however, are somewhat true, as all traders are different and use their trading potential differently.

Two major trader’s opinions

There are two major opinions in the market that divide all traders. The first are Stochastics, those who want to predict the price movements. The second, agnostics, are just moving with the market, watching it constantly. The former are an overwhelming minority, while the latter account for about 90%. And even if you are a stochastic, chances are that you're a bit of agnostic, too.

What makes traders choose one way or the other? Again, the reasons are many, but, first and foremost, people tend to back their opinions with theories, either scientific or not that much.

The effective market theory

The effective market theory, for instance, tells us that all market players have access to the same information allowing them to analyze and predict the market moves. This way, each new piece of information is already priced in the market. All market players act rationally, like robots, in order to make the most of it, while a single trader is not able to influence the market.

This has nothing to do with the reality, though. What about the legal actions involving traders who used insider hints to speculate in the markets? Or how about those who buy out a certain currency in order to raise the demand for it? That's it. Theories work for ideal markets, not the real ones.

Reasons for market movements

Any move that happens in a real market has a medley of reasons behind itself; at any given moment, those reasons may be different, and the correlation between them may also be different. The point to understand is that no emotion, speech or data release may influence the price without someone's placing a real buy or sell order. If a bullish candle is rising, this means people are hitting the Buy button on and on, even with the ask price rising,

And the same is for a bearish candle. These are the basics of the price movement mechanics. Why do then massive buyouts and selloffs occur? The effective market theory has a ready-made answer for us again. A trader will sell a country's assets in case the local key interest rate is cut, the unemployment is rising, a war conflict breaks out, and so on. In other words, if a trader understands an asset is under risk, they attempt to get rid of it as soon as possible, even if the price is not that good.

Conversely, if the key interest rate is being risen, or, say, a QE program is coming to an end, a trader will buy out the appropriate assets. You understand, of course, however, that any market has trends, both short term, midterm, and long term, each of them being influenced by various factors and with different weight. Before a long term trend is reversed, the short term one ought to fade out first. Besides, any market has all types of players: large, medium, and small, and all of them operate at different levels on different time frames.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex investment and trading platforms win Global Brands Magazine Awards

Dear Clients and Partners,​

We are delighted to announce that two of our flagship products have received prestigious accolades at the Global Brands Magazine Awards. Our CopyFX investment platform was awarded the title of "Best Copy Trading Platform", and R StocksTrader earned recognition as the "Best Multi-Asset Trading Platform".

Trade in R StocksTrader
the Best Multi-Asset Trading Platform

• Integrated Copy Trading for mobile app
  Copy the best trading strategies as an Investor, receive commissions from subscribers for your trading experience as a Trader
  
• 12,000+ instruments
  US Stocks, Indices, ETFs, CFDs on stocks, and other popular assets
  
• Cost-effective conditions
  Enjoy market-based spreads from 0 pips, a commission for Stocks from 0.009 USD per share
  
• Useful functions
  One-click trading directly from charts, a built-in strategy constructor, advanced watchlists, etc
  
• Corporate actions
  Automated dividend payments and supported corporate actions (cash dividends, splits, mergers, and more)

Invest without borders with
the Best Copy Trading Platform

• Versatility
  Copy the best trading strategies as an Investor, receive commissions from subscribers for your trading experience as a Trader, or guide newcomers to top Traders and earn a share of their commission as a Partner
  
• Security
  Robust handling of high-volume transactions, unmatched security protocols, and exceptional network stability
  
• Integration
  Seamless integration with the top-tier MetaTrader 4/5, as well as via the exclusive R StocksTrader platform
  
• Adaptability
  You can choose multiple roles or simply select one - be it a Trader, Investor, or Partner

Read more at RoboForex Website


Sincerely,
The RoboForex team

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of the Thanksgiving holiday in the US

Dear Clients and Partners,​

We are informing you of the upcoming adjustments to the trading schedule due to the Thanksgiving holiday in the US.

This schedule is intended for informational purposes only and may be subject to further amendments.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on CFDs on the US indices (US30Cash, US500Cash, USTECHCash) and the Japanese index JP225Cash

• 23 November 2023 – trading stops at 7:40 PM server time
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on Oil (Brent, WTI)

• 23 November 2023 – trading stops at 7:40 PM server time
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on US stocks

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on US futures

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 7:15 PM server time

R StocksTrader platform

Schedule for trading on US stocks and ETFs

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on US stocks and ETFs

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on the US indices

• 23 November 2023 – trading stops at 7:40 PM server time
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on oil (WTI.oil, BRENT.oil)

• 23 November 2023 – trading stops at 7:40 PM server time
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on US futures

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 7:15 PM server time

Please take note of the above amendments to the trading schedule as you plan your trading activity.

Sincerely,
The RoboForex Team

 

[alex0713]

I have something wrong with MT4. Please take a look and give feedback

 

[Vlad RF]

The RoboForex partners promotion with cash prizes worth $1,000,000 continues!

Dear Clients and Partners,​

We remind you that all RoboForex partners can take part in our grand promotion and win cash prizes.

The distribution of 60 prizes from $1,000 to $15,000 is organised once a month to April 2024.

The winners will be decided by the market.

A system as transparent as possible - It's all up to stocks.

Join our grand promotion!​

Read more at RoboForex Website

Sincerely,
The RoboForex Team

 

[Vlad RF]

How to Trade on Forex? Ultimate Guide for Beginners

Dear Clients and Partners,​

What are financial markets – exchange and Forex?

When an uninitiated reader encounters the collocation "financial market", they discern no difference between such terms as "stock market", "exchange", "Forex", "equity market", "bond market", "currency market", "derivative market", etc. So, I think there should be an explanation what the financial market really is. First of all, understand and remember that the financial market is not just a place for trading, but the entire system of the economic relations, which appeared in the process of exchanging different goods and recourses.

The financial market is an environment for mobilization and aggregation of capital, for loaning, exchanging currencies, and investing in the industrial sector. Balance of supply/demand for borrowed funds forms the global financial market. The global financial market can be classified according to types of goods that are traded. There are following types of financial markets:

• The currency market (Forex). The basic asset here is currencies, which are bought and sold by brokerage companies, banks, and investment funds.
• The stock market. This is the place where they trade securities (stocks, bonds, bills, derivatives).
• The commodity market. Among assets that are traded here are oil, metals, farm produce.
• The precious metals market is often considered as a part of the commodity market, but it should be classified as a separate market due to significant trade turnover growth. As a rule, precious metals often serve as safe haven assets.

Trading procedures on Forex

Since the Forex market is an OTC market, it doesn’t imply actually buying or selling currencies like they do in exchange offices.

A lot of people ask themselves a question: "How do I become a trader and start trading on financial markets?" Let’s try to track the career path of a future "big boy from Wall Street" step by step. Early stages in trading on Forex and other financial markets are pretty similar. Let’s take a closer look at this process by the example of the currency market.

First of all, a trader-to-be chooses a broker and decides on the trading platform they are going to use for trading. A variety of trading terminals available on the market allows to choose one that meets all their requirements and preferences. After choosing the platform, they have to decide on a trading account type. As a first step, it’s better to go for a standard demo account, which helps to learn how to open and close positions, place Stop Loss and Take Profit levels, and use charts and indicators.

Stop Loss is a protective order placed by a trader to limit possible losses in case of negative market situation. The order level is defined on basis of the current market situation, risks that a trader can afford, and their trading strategy.

Take Profit is an order to close a position when the instrument quotes reaches some specific price level. The order parameters are set by a trader based on their forecasts or according to their trading strategies. Take Profit orders can be placed not lonely at the position opening, but later as well. Also, there are methods of trading without Stop Loss and Take Profit levels, when a trader closes each deal manually after evaluating the current market situation.

How to trade on demo account?

Let’s assume that a trader chooses MetaTrader 4 terminal, opens a demo account with 10,000 virtual USD, and decides to trade EUR/USD positions of 1 lot. In this case, a trader opens positions using virtual money and if they lose it, no real financial losses will be incurred. Any trader has an opportunity to open several demo account with the same broker and trade any amount of virtual funds.

After that, it’s time to learn how to open positions. After opening the EUR/USD chart, a trader sees that the price may rise in the future (we’ll later discuss what reasons this conclusion is based upon). To open an order, we choose "New order" tab, specify the volume (by default, 1 lot), set Stop Loss and Take Profit levels, and add comment to the order if necessary.

Read more at R Blog - RoboForex

Sincerely,
RoboForex Team

 

[Vlad RF]

RoboForex receives "Best Trading Conditions" and "Best Partner Program" awards

Dear Clients and Partners,​

We are delighted to inform you that RoboForex has received awards in two prestigious nominations from influential media outlets. The company won the "Best Trading Conditions" title at the International Business Magazine Awards and the "Best Partner Program" accolade from the World Economic Magazine Awards.

Trade with the industry leader and experience the advantages of being a RoboForex client

Become a RoboForex partner
and earn up to 84% with the Partner programme’s best conditions

• Instant partner commission
  Earn up to 70% commission under the Partner programme
  
• Loyalty programme
  Receive up to 20% of the total partner commission as extra profit
  
• 24/7 Support
  RoboForex Support is available 24/7 to assist you
  
• No Payout Limits
  There are no restrictions on the maximum payments per month or per client
  
• Convenient payouts
  The commission is automatically transferred to your account on a daily basis

Use our interactive Affiliate Calculator to estimate your potential profit.

Read more at RoboForex Website

Sincerely,
The RoboForex Team

 

[Vlad RF]

S&P 500 Forecast for 2024: Can the Index Hit 5,000?

Dear Clients and Partners,​

On 29 November 2023, we looked at the popular stock index S&P 500 (US500), examining global economic factors influencing it and potential investment and trading strategies. Based on technical analysis, we assessed the current situation on the index chart and explored analysts' forecasts for 2024.

Overview of the S&P 500

The S&P 500 is one of the world’s most widely used stock indices, comprising 500 of the largest companies traded on US stock exchanges. It was created on 4 March 1957 by Standard and Poor’s, now known as S&P Global Inc.

Companies in the index basket represent various economic sectors and industries, making the S&P 500 a crucial gauge for assessing the US stock market.

The S&P 500 eligibility criteria

• Market capitalisation is greater than or equal to 14.5 billion USD
• At least 50% of shares should be available for public trading
• Stocks should be traded on the NYSE or NASDAQ
• The company should have a primary listing on a US stock exchange, comply with US securities laws, and generate at least 50% of its income in the US
• Operations for the last four quarters should be profitable

The list of the S&P 500 companies is revised every quarter. If, for any reason, a corporation no longer meets the above criteria, it is replaced with another company.

Looking back: the S&P 500 performance in recent years

According to TradeThatSwing, the average annual return for the S&P 500 from September 1973 to September 2023 inclusive is 10.75% if unadjusted for inflation and 6.59% if adjusted for inflation. From 1998 to 2022 inclusive, the maximum index return of 30% was recorded at the end of 2013. The minimum value for the same period was seen at the end of 2008, standing at −38%.

The average annual return for the S&P 500 from September 2018 to September 2023 inclusive reached 10.49% if unadjusted and 7.28% if adjusted for inflation. It can be assumed that the index value could have been higher if stock performance in 2020 were not characterised by the high volatility caused by the COVID-19 pandemic. In addition, it was negatively affected by both a bearish market and a high inflation level in 2022.

Global economic factors influencing the S&P 500

• The Federal Reserve’s monetary policy. Interest rate changes may impact borrowing costs for companies, affecting profits and investment decisions
• Global economic growth. This usually has a positive impact on companies’ profits and contributes to index growth
• Exchange rates. The strengthening of the US dollar may adversely affect profits of US companies with a significant share of global operations
• Corporate reporting. Positive quarterly and annual reports may drive up stocks of the S&P 500 companies, creating favourable conditions for index growth
• Important political events in the country. For example, tax reforms or regulation changes may have a substantial effect on the stock market, and hence the index
• Energy source prices. Changes in oil and gas prices may affect the energy sector, and index quotes

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

What is CFD and Its Difference from a Real Asset?

Dear Clients and Partners,​

Are there any beginners, who haven’t asked themselves a question what a CFD is and how it is different from a real asset? Let’s go deeper in these terms and try to determine which one of them is more interesting and easier-to-use for both beginners of stock exchange markets and experienced investors.

What is CFD?

First of all, one should know what CFD stands for. CFD means a Contract for Difference. As a matter of fact, it is an instrument traders can use for trading or speculating in price differences, but without buying a base asset, stocks, metals, or commodities.

Trading on the stock market

Now, let’s compare trading stocks and CFDs. In order to participate in trading stocks, a trader has to open an account. In this case, the leverage value will be 1:20, at most. This, in its turn, means that traders with small deposits will have limited opportunities for trading.

Usually the minimum contract size on stock exchange markets is 1 lot, which is 100 stocks. For those, who would like to use smaller contract sizes, in R StocksTrader, the multiasset trading platform the minimal contract size is 0.01 lots - 1 stock. The maximum contract size is limited only by the amount of funds on a trader’s account or the number of traded stocks. It’s quite easy to calculate how much money a trader requires for trading, if, for example, a stock of one popular social network costs 181 USD. Margin requirements for 1 lot (100 stocks) will be 181 * 100 = 18,100 USD.

With small deposits, there will be no opportunities for opening this position. But this is just one of the many examples. However, on stock exchange markets one can find stocks at the price from 0.01 USD, that’s why there are a lot of options for trading even if there is insufficient money for expensive stocks. Apart from this, one should take into account the platform expenses (so called monthly fee) and the commission to be paid to a broker for every opened and closed positions (on average, a trader will spend on this about 4,000 USD a year). Holding positions overnight is free at some of the brokers, but some of them make traders fulfill some certain conditions.

Corporate actions

In case of trading stocks, there are both expenses and some positive moments. For example, cash dividends, because a trader acts as a shareholder with the right to vote at the company’s meetings (for this, a trader has to fulfill some certain conditions). However, in most cases, trading is speculative and has no goals to receive dividends or to take part in shareholder meetings.

One should know that there are some restrictions in trading. Not all stocks are available for credit sale; sometimes, there is no access to open a short position, especially if a trader hasn’t got this asset.

Trading CFDs

Now it’s time to talk about Contracts for Difference. In this case, brokers usually provides bigger leverage values than for trading stocks. Everyone decides for themselves whether it’s good or bad, but increased leverage values allow traders to expand the list of available trading instruments.

An opportunity to trade, both buy and sell, without any restrictions. If a trader buys some trading instrument, but the instrument price falls contrary to expectations, CFDs offers an opportunity of hedging. Trading Contracts for Difference doesn’t imply buying/selling a base asset. Quotes of CFDs and base assets are usually the same, but sometimes there may be 1-2 pips difference due to the internet connection speed. CFDs can be traded through “Forex” terminals, which are usually provided for free. However, trading hours for both CFDs and base assets are the same. The minimum contract size for CFDs, unlike stocks, is 0.1 lots, while the maximum size is limited only by opportunities traders have.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

How to Trade with Leverage

Dear Clients and Partners,​

What is Leverage

Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading. On Forex, you can easily find brokers offering up to 2000:1 leverage, and there's one that claims to offer unlimited leverage to its clients. In the stock market, meanwhile, you'd barely come across a broker that offers over 20:1 leverage.

Leverage in Forex

Leverage got especially popular in Forex, as it is less volatile, and one needs to have their funds leveraged in order to boost the performance, and, subsequently, the profits. The EUR/USD, for instance, moved just 1.10% in May, which would have returned you a 1.10% profit without leverage (1:1). Over the same period, Tesla yielded 14% profit to the shareholders. This way, once the Forex brokers stop offering leverage, the gains in the market will get ridiculously small for the retail traders, and those will have to move the money elsewhere.

How to Get Leverage

A broker will grant you leverage once you deposit your own funds on your account with that broker. Those funds are called margin, and they act as collateral for the loan money you get from the broker. Every broker has its own minimum deposit limit; in many cases, it is as little as $10. Some even don't require any: you just get a welcome bonus, 'free money' that acts as margin.

Leverage and Expenses

When trading with a broker, you as a trader always have to pay commissions on every trade you make. The commission or fee may be priced in spread or may be paid apart. Besides, when rolling a position overnight, you will have to pay the swap. Without leverage, those fees can be barely seen in the statement, but when you do use leverage, they become a few times larger. Let's assume you open a USD/JPY trade with a 1:1 leverage and a $1,000 deposit. With the smallest lot size, 0.01, and a spread of 1.90 pips, you get a ridiculous $0.17 fee. Once you have moved to a 100:1 leverage, however, you will be able to open a 1-lot position, and, considering this, the fee will increase to as much as $17.48. Thus, larger leverage leads to larger expenses.

Advantages of Leverage

Leverage is so much popular in Forex because, without it, you won't earn as much in Forex as in stock market over a certain time frame. Leverage increases the capital you can operate, thus boosting your performance and ROI. Look at the above example: suppose you opened a EUR/USD trade on May 1 and closed it on may 31; this would have yielded you 1.10% profit. With Tesla, you would have earned nearly 14 times more. That's why, if you don't use leverage in Forex, you don't want to trade Forex at all!

Leverage Risks

Unfortunately, not every trade results in profit. Sometimes, you will certainly have losing trades, and in this case the leverage will magnify your losses. Say, you went long on EUR/USD with a $1.200 deposit, the price is 1.1200, and your lot size is 0.01 (micro lot), each pip thus costing $0.10. Then the price fell to 1.190, and in case you decide to close your position, your loss will be as little as one dollar! With 100:1 leverage, this would be a different story. You would have most likely gone one lot, and a 10-pip fall will now cost you as much as $100. Your profit and loss size, therefore, is strictly bound to the leverage size; with more leverage, you earn more and you lose also more!

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

Types of Financial Instruments

Dear Clients and Partners,​

On financial markets, no matter when, while working there or just getting to know them, investors will surely face such things as financial instruments. What are they? We’ll paint it in details.

Financial instruments

Financial instruments imply a wide range of terms and definitions. It’s very easy to see how numerous they are: they include a category of banking tools, a group of market assets, and a lot of other financial operations that many people have heard of, but only few have really seen and used them.

All financial instruments can be roughly divided into two main groups: the first group is available to everyone without any exceptions, while the second one requires particular knowledge and skills. As a result, the first group will contain credits, loans, bank deposits, and leasing.

Credits and loans

Credits and loans are the most widespread financial instruments for citizens. The only thing that may really compete with them is a bank deposit. A credit is an operation when a lender grants money to a borrower at a certain interest. The money, of course, is subject to return according to the agreement. As the years go by, global lending terms are getting “milder”, because banks are competing to retain customers, thus offering them better conditions. However, in developing economies it doesn’t work this way: in most cases, the rate on credit is a primary source of banks’ revenue.

Bank deposits

Bank deposits are another widespread financial instrument, which doesn’t imply any in-depth knowledge. In this case, a bank acts as a borrower and pays interests to a lender (an individual) for using their money after a specified period of time is over. The deposit rate is calculated based on the value of the country’s key interest rate, but sometimes there are other possible options.

Leasing

Leasing is a more complicated financial instrument, but it’s quite available for citizens. Leasing agreements have 3 parties: after concluding an agreement, a lessor gets a long-term asset, a lessee undertakes an obligation to pay money on account of debt repayment, while a distributor of a property or equipment sell their products.

Now let’s talk about the second group of financial instruments, which is related to trading on financial markets and speculations of different types. In this case, speculations mean investment in high-risk assets with a possibility of a large income.

Stocks and bonds

So, what are stocks and bonds? A stock is an ownership share. After buying stocks on financial stock exchanges, an owner is guaranteed the right to receive dividends. A bond is an issued security similar to a stock, but with the attached right to receive its nominal value or money, or their equivalent within the time specified. A bond is a debt security. When it comes to risk, stocks are considered more risky financial instrument, while bonds – more conservative.

Futures

Then come derivative instruments. In other words, these are assets that are based on a basic concept, but the instruments themselves are pretty specific tools. Futures are derivative financial instruments based on the SPA of an asset (stocks, good, etc.), and when entering into the agreement parties agree only on the price and the delivery date. Other parameters are usually quite standard and defined by specifications. Futures are trade offers, which are traded on the market on a regular basis.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

How to Use Stop Loss and Take Profit: Learning to Place Orders to the Charts

Dear Clients and Partners,​

The Stop Loss and Take Profit orders act as insurance, being reverse orders in essence. If, for example, a pair was bought, when an Stop Loss or a Take Profit is triggered, a reverse trade (selling) is carried out, locking in profit (if the TP is triggered) or Loss (if the SL is triggered).

What is Stop Loss and Take Profit?

A Stop Loss (SL) is a protective order that limits possible losses of the trader in an open position. It automatically closes the trade when a certain level or amount of losses is reached. A Stop Loss is placed either to limit losses or to lock in profit. In the latter case the order is placed in the profitable area.

A Take Profit (TP) is an order locking in profit without the trader’s participation. The order automatically closes the trade when the price reaches a certain level.
Both Stop Loss and Take Profit must be placed in accordance with the trader’s strategy. For your trading to be stable and successful, these orders are obligatory. The Stop Loss minimizes losses and enhances risk management.

Almost all trading strategies include the use of an Stop Loss and/or a Take Profit. Each trader has their own criteria of money management (MM) that tell them how much they can afford to lose in each trade. This is the strategy telling where to place an SL and a TP.

How to place a Stop Loss?

The trader defines how much they can lose, according to the MM, if something goes wrong. The strategy tells them where the Stop Loss should be.

Placing Stop Loss and Take Profit in a Pin Bar strategy

The trader is using the Pin Bar strategy. At the top of an ascending impulse, there has formed a Pin Bar pattern, and the trader is planning to open a selling trade. In this case, an Stop Loss will be placed behind the maximal value of the signal candlestick. The landmark for a Take Profit is the nearest support level. The possible profit to loss ratio in this case is 3:1. In the first picture, you can see where the SL and TP must be placed by the trading strategy.

The Stop Loss is usually calculated in points from the entry to the trade, accounting for the sum of affordable losses, expressed in the basic currency of the deposit. The trader must calculate the price of a point and then place the volume. For example, the Stop Loss is 40 points, the available loss is 100 USD; 100 USD/40 pips = the price of a point is 2.25 USD. Hence, the size of the trade is 0.25 lot.

With risk management, the trader can control risks. For example, if they receive a signal with a profit to loss ratio of 1 to 1, the trader should think twice before entering this trade. An optimal profit to loss ratio is no less than 3 to 1.

Placing Stop Loss and Take Profit in a Pin Bar strategy - 2

In the picture, we can see a complete Pin Bar, and if we calculate the trade by the strategy, we will see that the nearest support level is as far away as the Stop Loss, which gives a 1:1 ratio. So, we can filter out this signal as it does not comply with the MM.

How to place Stop Loss and Take Profit automatically?

At present, there are a lot of programs for the trader to live easier. While before the Stop Loss and Take Profit were to be placed manually, and if they were to be changed, the trader had to modernize the order in several steps, nowadays, the things have become much simpler. It is enough to left-click the order on the chart and drag it to the desired price level. Depending on the direction in which the order was moved, an SL or a TP will be placed.

There are scripts and expert advisors that automatically place the Stop Loss and Take Profit levels by the set criteria for each new order. On the Net, you can find an advisor called Auto-MM with a short user guide, which calculates the trade volume and automatically places the Take Profit and Stop Loss.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of the Christmas and New Year holidays

Dear Clients and Partners,​

We are informing you about the upcoming adjustments to the trading schedule during the Christmas and New Year holidays.

This schedule is intended for informational purposes only and may be subject to further amendments.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on DE40Cash

• 25 December 2023 – no trading
• 26 December 2023 – no trading
• 1 January 2024 – no trading

Schedule for trading on CFDs on US stocks

• 24 December 2023 – trading stops at 7:00 PM server time
• 25 December 2023 – no trading
• 1 January 2024 – no trading

Schedule for trading on CFDs on US futures

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading

Schedule for trading on CFDs on Metals, CFDs on Oil, and CFDs on US indices

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading
• 2 January 2024 – trading starts at 10:00 AM server time

Schedule for trading on other instruments

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading
• 2 January 2024 – trading starts at 10:00 AM server time

R StocksTrader platform

Schedule for trading on GER40

• 25 December 2023 – no trading
• 26 December 2023 – no trading
• 1 January 2024 – no trading

Schedule for trading on US stocks, CFDs on US stocks, ETFs, and CFDs on ETFs

• 24 December 2023 – trading stops at 7:00 PM server time
• 25 December 2023 – no trading
• 1 January 2024 – no trading

Schedule for trading on CFDs on Metals, CFDs on Oil, and CFDs on US indices

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading
• 2 January 2024 – trading starts at 10:00 AM server time

Schedule for trading on CFDs on US futures

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading

Schedule for trading on CFDs on EU and UK stocks and indices

• 25 December 2023 – no trading
• 26 December 2023 – no trading
• 29 December 2023 – no trading on CFDs on DE and UK stocks
• 1 January 2024 – no trading

Schedule for trading on other instruments

• 25 December 2023 – no trading
• 26 December 2023 – trading starts at 10:00 AM server time
• 1 January 2024 – no trading
• 2 January 2024 – trading starts at 10:00 AM server time

Please take note of the above amendments to the trading schedule as you plan your trading activity.

Sincerely,
The RoboForex Team

 

[Vlad RF]

Join the grand promotion for Partners with a total prize pool of $1,000,000

Dear Clients and Partners,​

Let us remind you that all RoboForex partners can participate in our grand promotion and win cash prizes.

RoboForex Partner Promotion Overview:

• RoboForex's most significant promotion of the year for partners.
• Every month, 60 winners have the chance to earn up to $15,000 for their outstanding results.

RoboForex Partner Programme

• Strong industry-leading partner program with high commissions to attract clients for your growth.
• From June 2023 to March 2024, all RoboForex Partners are eligible to win cash prizes through automatic monthly coupon distribution during this promotion.

Winning Criteria

• The market will determine the winners.
• 60 winners determined by the closest mathematical match of coupon numbers to selected stock combinations' closing prices on the first Friday of each month.

Earn with RoboForex and receive prizes!​

Read more at RoboForex Website

Sincerely,
The RoboForex Team

 

[Vlad RF]

EUR/GBP 2024 Forecast: Analysis and Expert Predictions

Dear Clients and Partners,​

In-depth analysis of the EUR/GBP currency pair

The EUR/GBP pair is the cross rate of the two popular currency pairs, EUR/USD and GBP/USD. A cross rate is the price of one country’s currency expressed in another country’s currency and determined through their values against a third currency – the US dollar, traditionally considered the primary international reserve currency.

The EUR/GBP exchange rate reflects the dynamics of the value of the common European currency (EUR) against the British pound sterling (GBP). In this pair, the euro is the base currency, and the current price reflects how many pounds are needed to buy or sell one euro. When the pair’s quotes go up, it indicates a strengthening euro, and when they drop, it signifies a weakening euro against the UK currency.

Trading characteristics of the EUR/GBP pair

• The pair is traded round the clock from Monday to Friday inclusive, with the highest activity observed during the European and American trading sessions
• The EUR/GBP pair shows a low average daily volatility of approximately 500 pips
• Thanks to its popularity, high liquidity, and moderate volatility, the spread for this pair is minimal, ranging from 3 to 5 pips in a quiet market

Critical factors influencing the EUR/GBP pair in 2024

The role of the Bank of England’s monetary policy
The primary tool the UK central bank uses to regulate inflation and influence the exchange rate of the national currency is the implementation of changes in the key interest rate. If the interest rate increases, the pound sterling exchange rate strengthens against other currencies, while a decrease in the interest rate leads to a decline in the exchange rate. Since December 2021, the Bank of England has executed a series of interest rate hikes to curb high inflation.

The rate increased from 0.1% to 5.25% during this period. The Bank of England’s Monetary Policy Committee aims to achieve a 2% inflation target. Thanks to interest rate increases, inflation rates are slowing down in the second half of 2023, with the regulator pausing its interest rate hikes since August. While consumer inflation fell from 10.5% in January to 4.6% in November, it is still above the central bank’s target.

Further actions on interest rate changes in 2024 will depend on economic data, primarily on inflation rates. If the UK’s GDP declines and recession signs emerge, this may negatively impact the pound exchange rate, with the EUR/GBP pair receiving support for growth. Conversely, strong GDP growth and high inflation might prompt the regulator to raise the interest rate again, bolstering the pound sterling against the euro.

EU monetary policy and its effects on EUR/GBP
The European Central Bank’s monetary policy strongly impacts the EUR/GBP pair. For example, interest rate hikes in the eurozone contribute to strengthening the euro exchange rate against the pound. The regulator has been implementing a series of tightening measures in its monetary policy since July 2022 to curb rapidly rising inflation. During this period, the interest rate increased from 0% to 4.5%, with the latest (at the time of writing) hike of 0.25% in September 2023.

Consumer inflation in the eurozone is exhibiting signs of a slowdown in 2023: while the rate reached 10.1% in January, growth in November was just 2.4%. The ECB focuses on attaining a 2% inflation target. The regulator is currently pausing its interest rate hike series in response to slowing European inflation rates.

Technical analysis and predictions for EUR/GBP in 2024

After rebounding from the annual low of 0.8500 in July-August 2023, the EUR/GBP currency pair is experiencing upward momentum within an ascending local price channel on the daily chart. At the time of writing, the pair underwent a downward correction towards the channel’s lower boundary, forming a local support level at 0.8550.

If this support level does not break, the pair will likely continue its upward movement to the upper boundary of the ascending channel at 0.8800. Should the quotes fall below 0.8550, the ascending scenario will probably be cancelled, with the price potentially declining to the annual low of 0.8500 and further to 0.8350. The SMA (200) and Alligator indicators suggest a local downward impulse of the price movement.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

Candlestick Analysis: 24 Main Candlestick Patterns

Dear Clients and Partners,​

On all financial markets, the price of an asset is reflected as a price chart, constantly changing during the trading session in accordance with demand and supply.

What is a candle?

A candlestick is a way of displaying information about the price movement of an asset. The candlestick chart is one of the most popular components of technical analysis, allowing traders to quickly and easily interpret price information from multiple price bars.

A candle has three main parameters:

• The body of the candle, representing the opening-closing range.
• A wick or shadow indicating the daily high and low.
• A color that shows the direction of the market - a green (or white) body indicates an increase in price, and a red (or black) body indicates a decrease in price.

Over time, individual candles form patterns that traders can use to recognize major support and resistance levels. There are so many candlestick patterns that indicate opportunities in the market - some give an idea of the balance between buying and selling pressure, while others identify continuation patterns or market hesitation.

Before you start trading, it's important to familiarize yourself with the basics of candlestick patterns and how they can inform your decisions.

Types of Japanese candlesticks

Let us now look at the types of Japanese candlesticks: some may lack bodies or shadows, some may have just one shadow. By shape, candlesticks are divided into:

• Normal (without anomalies).
• Marubozu (long shadowless bodies).
• Dojis (line-like bodies, where the opening price coincide with the closing price or is very near to it).

Depending on the place of forming, candlesticks will have different names, though they will look roughly the same. At the same time, there are candlestick patterns which name do not depend on the place of formation. Based on these parameters, candlestick patterns may be divided into several groups:

• Reversal candlesticks at the top of the trend
• Reversal candlesticks at the bottom of the trend
• Continuation candlestick patterns
• Candlestick patterns that can form either at the top or at the bottom of the trend, its name remaining the same

Types of patterns in candlestick analysis

Candlestick patterns formed at the top of a trend

Now let us discuss the conditions for the formation of the aforementioned patterns and look at the pictures.

Candlestick patterns, formed at the top of the trend, are normally preceded by a long-time directed upward movement.

Shooting Star

A Shooting Star pattern has a small body and a long shadow along with the trend. The second shadow is either too small or lacking.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

Martingale on Forex. How Does It Work?

Dear Clients and Partners,​

Most experienced traders pay a lot of attention to money management, sometimes considering it as efficient as a quality trading strategy. Generally, even beginners do realize that is you enter the market with your whole capital, you are likely to lose it all in quite a short time. However, if you divide the money on your account into 10-20 parts, you will be able to stay on the market much longer and are absolutely not likely to lose all your assets at one trade. There are plenty of money management options. Among the most popular, we can name the Martingale method, the Anti-martingale and the Fixed Fractional trading.

Trading Martingale

Most often, using Martingale on Forex is reduced to merely doubling the position after a loss.
Of course, it is hard to imagine ten Head and Shoulders patterns in a row turn out to be false. As with a coin tossed, ten reverses one after another is not totally impossible, but very unlikely to happen. So, after a losing position, the possibility of another losing one seems lower. Some traders even use a demo account for trading until they receive two losing trades one after the other and only then start real trading, believing that the probability of a third losing trade is quite small. However, mathematicians evaluate the possibility of realization of each next signal as 50%. That is why, when using Martingale, after a loss of 0.1 lot, the next trade will be open for 0.2 lot; in case of another loss, it will open for 0.4 lot.

Here, of course, the size of the capital matters; also, it is important to realize that risks are serious if the trader is simply averaging their position against the trade instead of locking in losses and waiting for a new signal to form.

Martingale Types

We can diversify this approach a little, like any other trading strategy. Conservatively, we may not just double the size of the lot but also move at a slower pace. For example, after a loss of 0.1 lot, we open the next position for 0.2 lot and the next one — for 0.3 lot.

Another option will be doubling the position after a profitable rather than a losing trade. Again, there is an opinion that a trader may lose a large part of their assets if they get into a series of losing trades: for example, when the market is growing but the system gives signals to sell. In such a situation, the trader can keep selling for several days in a row, constantly increasing the size of the lot; thus, they will lose their money quite quickly. However, if they leave the position size intact or start decreasing it, this will let the trader wait for the series of negative trades to end. Conversely, if the trade turned out profitable at 0.1 lot and the next one open for 0.2 lot also turned out positive, the trader may open the next one for 0.4 lot. If the position closed with a loss at 0.2 lot, the trader returns to the initial size of 0.1 lot. In a series of losing trades the trader suffers emotional pressure and is eager to return part of the losses quickly; this type of Martingale will help reduce the risks.

Safe Martingale

If we would like to make this approach safer, we will need a strategy with clear rules of entering and exiting the market either with a profit and a loss. It would be useful to study your trading history and find out how many losing positions in a row you have had. For example, if there has been a maximum of ten such positions and five averagely, you should start increasing the lot from the fourth losing trade or, alternatively, increase it not after each losing position but after two or three of them, when the possibility of a profitable trade is maximal.

Is Martingale worth using?

It is important to realize that, using such a strategy, the trader may overload their deposit, and high risks will yield serious losses in the end. However, if the trader has a clear strategy of entering and exiting the market, vast experience of trading and emotional stability, they can try to increase the size of the lot, controlling risks anyway. As in the example with the reversal pattern, where a new position is open near the main SL, a loss will have little influence upon the general sum on the account. Conservative traders might prefer the method of Fixed Fractional trading, where a percent of the trading account is put under the risk, say, as 2%; along with the deposit, the SL also grows, and if the trader loses, the SL also shrinks. Any trading option can be upgraded and customized in accordance with your preferences and trading methods. This refers to Martingale as well. Perhaps it is worth trying in order to gain experience and weight up all the advantages and drawback of this approach.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of Martin Luther King Jr. Day in the US

Dear Clients and Partners,​

We are informing you about the upcoming adjustments to the trading schedule due to Martin Luther King Jr. Day in the US.

This schedule is for informational purposes and may be subject to further amendments.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on CFDs on US futures

• 15 January 2024 – no trading
• 16 January 2024 – trading as usual

Schedule for trading on CFDs on Metals (XAUUSD, XAGUSD) and CFDs on oil (Brent, WTI)

• 15 January 2024 – trading stops at 7:45 PM server time
• 16 January 2024 – trading as usual

Schedule for trading on CFDs on US indices (US30Cash, US500Cash, and USTECHCash) and CFD on the Japanese index JP225Cash

• 15 January 2024 – trading stops at 7:45 PM server time
• 16 January 2024 – trading as usual

Schedule for trading on CFDs on US stocks

• 15 January 2024 – no trading
• 16 January 2024 – trading as usual

R StocksTrader platform

Schedule for trading on CFDs on US futures

• 15 January 2024 – no trading
• 16 January 2024 – trading as usual

Schedule for trading on US stocks and ETFs

• 15 January 2024 – no trading
• 16 January 2024 – trading as usual

Schedule for trading on CFDs on US stocks and ETFs

• 15 January 2024 – no trading
• 16 January 2024 – trading as usual

Schedule for trading on CFDs on US indices (US500, US30, NAS100), CFDs on Metals (XAUUSD, XAGUSD) and CFDs on oil (WTI.oil, BRENT.oil)

• 15 January 2024 – trading stops at 7:45 PM server time
• 16 January 2024 – trading as usual

Please take note of the above amendments to the trading schedule as you plan your trading activity.

Sincerely,
The RoboForex Team

 

[Vlad RF]

How to Calculate a Trading Lot in Forex Market?

Dear Clients and Partners,​

What is a trading lot?

Such thing as a “lot” plays important role in activity of any trader. In this article, we’ll discuss the term “trading lot” on Forex and describe the ways to calculate it.

A lot is a volume of an operation on the Fore market, which is defined by global standards. 1 lot always equals to 100,000 units of a base currency.

For example, in case of USD/CAD, 1 lot is 100,000 USD, because the base currency of this pair is the American Dollar. If one takes such instrument as EUR/USD, then one lot equals to 100,000 EUR or, translated at the current exchange rate, 137,000 USD (EUR/USD rate is 1.3700, hence 1 lot equals to 100 000 * 1.3700).

To open a position of 1 lot worth 100,000 USD, one requires quite a lot of money on their account or the leverage, that’s why financial operations with such amounts of money are mostly performed by large funds and different financial institutions. As for retail speculators with relatively small deposits, brokerage companies provides them with an opportunity to trade fractional lots.

How to calculate a lot on Forex?

When opening a position, a trader needs to calculate the optimal volume, i.e. the quantity in lots, which will allow the trader’s deposit to remain stable in case of any fluctuations against the open position. The order shouldn’t be closed by Stop Out even in case of the slightest price pullback.

First of all, to calculate the volume of a position to be opened, one must decide on two major components:

• The amount of maximum permissible risk for one position to be opened.
• Stop Loss level in pips from the entry point.

In addition to that, the following factors are used for calculations:

• The deposit amount.
• The cost of 1 pip of the price when using standard lots.

There are several methods of calculating the optimal lot size on the Forex market, and we’ll review three of them. In our examples, we’re going to use the following parameters:

• Deposit is 2,000 USD.
• Currency pair is GBP/USD (the cost of 1 pip in case of 1 lot order is 10 USD).
• Maximum permissible risk for 1 transaction is 3%.
• Stop Loss length is 100 pips (the distance between the entry point and Stop Loss level).
• The leverage value is 1:100.

All calculations are made for a trading account with the USD as its base currency.

Recommendations for beginners

It is critical for beginners not to overstate the volume of transactions, even if you are 100% sure of the result.

Below we will offer some useful tips that will help reduce the level of possible losses:

• During the calculation of the lot size, do not round the result up. Rounding should occur only to the smaller side. Example: when you got the value 0.728, with the correct rounding, your result will be 0.72.
• Test the selected trading strategy on historical data, which helps to determine the optimal average Stop Loss order value. This simplifies the calculation, since you no longer have to substitute new values. Only the size of the deposit and the level of risk will change, the rest of the data is known.
• When calculating Stop Loss levels, it is imperative to consider the size of the spread. If you place a stop order at 30, and the spread value is 2, then Stop Loss should be set at 32.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

What is Economic Calendar and What do We Need It For?

Dear Clients and Partners,​

What is the economic calendar?

The economic calendar has long stopped being some sort of a secret; one does not have to be a “pro” economist or trader to use it. Presently, this calendar is yet another instrument for market analysis. Or let us put it different: it is not only an instrument but also a set of signals, indicators that can tell a lot about a certain branch of world economy as well as predict the market reaction to such publications. If you divide the publications in the calendar into different categories (described below), the market reactions and fluctuations will become even more obvious.

The importance of events in the economic calendar

The economic calendar is considered to reflect various news, statistics data and all important events in the economies of the world leading countries. Obviously, the most important statistics would be that of the world biggest economies as they are the real news-makers. Among such economies there are the US, the euro area, Japan, Australia, Canada etc. All data on the economic calendar have different importance and influence on the market. The following levels of importance can be singled out:

• Weak influence.
  News or statistics from this category has almost no influence on the market after the publication. However, if the market is not expecting any major news, minor fluctuations might be seen.
• Moderate influence.
  In certain circumstances such news may affect the currency dynamics. However, there might be no reaction if there are some major events on the horizon. Nonetheless, several moderate influences, released at the same time, are considered to give some dynamics to currency pairs.
• Strong influence.
  This news, even released one by one, seriously affects currency dynamics. All together it sometimes changes the trend of certain instruments. This category is comprised of such major economic event as meetings of Central banks and their decisions upon interest rates, speeches of heads of Central banks, statistics of key world GDPs, Nonfarm Payrolls (the number of new workplaces in the non-agricultural branches of the US economy) and some other.

As a rule, traders pay most attention to strong influences. They hope that after the publication of such news there will be a significant market fluctuation and they will “sweep the deck”. For example, such is the case with the NonFarm Payrolls (NFP) data published on the first Friday of each month. This day used to be called “trader pay day” because if the numbers published differed a lot from the prognoses or from the previous data, rather strong and steep movements occur, which market players try to forecast and “catch”.

Ways of using economic calendar in trading

There are several ways of using the calendar in trading. For example, a trader studies the calendar before starting the day and closes his positions before the publication of moderate and strong influences. Normally, new positions do not open until the market reacts on the news. The reason is clear: high volatility of the market causes unpredictable movements, both downwards and upwards, even with price gaps. The reaction of the market usually lasts for 2 to 3 hours. Keeping this in mind proves good for a trader’s nerves and finance, especially for newcomers on the market.

Another way of using the calendar is trading in accordance with the news. It requires a historical analysis of market reactions to certain news. It might seem boring, time-consuming and difficult at the beginning but it is not. What is to be noticed is the statistics prior to the news and how the market or the price reacted to the publications. Also, the statistics of prior expectations is to be studied and taken into consideration (this data is almost always on the calendar). Sometimes observers make mistakes, and the numbers published are significantly different from those forecast. In such case the reaction of the market will be acute and strong. One may cast an even wider look upon the calendar: factual data of an important piece of news may hide in some indirect statistics published before and by itself having almost no influence upon the market.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team