Forex Trend: Let Currencies Soar or Plummet against Each Other
The Forex Trend arena enables traders to take advantage of general trends in the
market concerning the three most liquid currencies – USD, EUR and GBP. A trend is
a general movement in a certain direction, and is considered by some to be the most
indicative and reliable market feature
What this means is: this arena lets traders trade the USD, the EUR or the GBP against
multiple currencies, allowing them to take advantage of general trends in the strength
of your currency of choice.
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Click on the Forex Trend
icon to enter the arena. |
This arena works a little differently than the two we’ve already discussed. Your
trade is set up step by step, and your options are more specific.
Upon entering the arena you’ll be presented with the following screen:
The first stage in setting up your trade is to select a currency and whether you
expect it to rise or fall.
Once you’ve selected the currency and its direction you will be presented with your
next decision:
But before you decide which currencies to set your chosen currency against, you
should click on the “Set Risk/Reward Level” box to select your desired leverage.
If you neglect to set the leverage before you open your trade, the risk/reward level
will remain on its default setting, which is x200.
You must now select which currency or currencies you want your selected currency
to compete against. Keep in mind the direction in which you expect the strength
of the currency to fluctuate. Mind you, even if according to your trend research
the currency is generally on the rise, you may still expect it to fall against
certain currencies, therefore you should consider your choice carefully. Click on
a currency to add it to your list of counter currency. After having added a currency
you can click on it again to remove it.
Once you’ve chosen your counter currencies, you will be asked to choose the amount
you wish to trade for:
Since we’ve selected to pair the US Dollar up against three different currencies,
at the leverage of x200, the minimum amount we can now trade for is $150, $50 for
each currency. The amounts differ according to the number of currencies selected
to compete against the trending currency, and according to your selected risk/reward
level.
Notice that the rates for your currencies against the US Dollar are now displayed
in the left section of the screen.
Clicking on the “Open Trade” button opens the trade.
Let’s see what happens once we open the trade:
Since we’ve predicted that the US Dollar is on an upward trend, the left-to-right
progress of the currencies on this screen represents the strengthening of
the currencies. However, if we had chosen a currency to fall, the left-to-right
progress of the currencies would have represented the weakening of the currencies.
Had we predicted the fall of the US Dollar, this picture would have represented
the opposite statistics.
To save you the hassle of adding and subtracting your profits and losses for each
individual currency, you can see your overall profit on the bottom of the screen.
It’s also important to notice that while the five open trades on screen were opened
as one trade, it is possible to close the trade of each currency individually by
clicking on the close button near the appropriate currency. You can also close the
trade as a whole by clicking on “Close Trade”.
