Trader's Tools

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Broker Spread Comparison Tool

Among the most crucial elements to think about when choosing a broker is the spread.Traders always prefer a tighter spread, as entering and exiting positions could be much cheaper. forex trading strategies At once, the trader will make their trades at the most effective exchange rates.

Conversely, a broad spread in a trade increases the expense of trading and can seriously hinder the task of short-term traders, such as for example scalpers, who make money on short-term positions, taking small profits.

Many spread comparison sites allow traders to filter by currency pair and see which brokers offer probably the most competitive spreads.

Time Zone Converter

The time periods that the trader chooses to work in the forex market have an important impact on the exchange rates of currencies. The world's largest forex trading centers are New York, Tokyo, London and Sydney, which operate in numerous time zones.

The opening hours of those key shopping malls overlap to some degree, with the Sydney market opening on Sunday at 17: 00 New York time and closing on Friday at 17: 00 New York time.

A chart showing enough time when the forex market is open for 24 hours in a variety of financial centers all over the world is a useful tool for the trader. This is particularly so because the periods when markets overlap, they are probably the most active and liquid for trading.

Trading activity, liquidity and market volatility are three important components required for effective trading of the chosen financial instrument.

Volatility Calculator

Among the most crucial elements necessary for successful trading is market volatility. Currency pairs with a limited range are generally not the most effective pairs to trade.

Given the amount of currency pairs designed for trading, it is way better to leave the calculation of volatility to a particular service. A typical forex volatility calculator or indicator форексtakes historical details about the exchange rate and determines the volatility of every currency pair in real time.

A good forex volatility calculator also reduces historical volatility into different time periods, such as for example 1 week, 1 month, 3 months, and 1 year. This helps traders determine whether the volatility of the selected trading instrument is high or low relative to the selected historical period.

It can also help a trader focus on probably the most volatile currency pairs at a time when they are most volatile, as higher volatility results in more trading opportunities.

On one other hand, the trader can reduce how big the career in currency pairs with higher volatility to reduce their risks.

Trading Platform

MetaTrader 4 doesn't have equal as one of the most popular platforms for forex tradingфорекс. This comprehensive trading platform has several features which are essential for any trader.

The trading platform includes full technical analysis functionality, allowing traders to analyze currency charts in real time and apply several different technical indicators to them. You may also trade currency pairs directly from the charts.

Trade Magazine

Keeping trader's trade log of trades is an invaluable way to understand from your own trading. Having a record of the history of every trade, why it had been initiated and why it had been liquidated, can offer a trader valuable details about their trading habits.

Additionally, monitoring all trades helps the trader hone and improve their trading. Studying your own mistakes helps you avoid them in the future, and these are just some of the advantages of keeping a trading journal.