However, it’s important to note that these options may lose all of their value if the stock moves beyond these bounds, making the strategies riskier than buying and selling stock. One of the indicators that give away a sideways price movement is the trading volume; it mostly remains flat during a sideways trend because it …
Trading Sideways Explained: What Is the Definition? Good or Bad Market? Lire la suite »
A horizontal channel is also known as a price range or sideways trend. In a sideways market, there are several strategies you can consider to make money. For example, you could sell options, engage in short-term trading, invest in dividend-paying stocks, or opt for index funds or ETFs. Additionally, you could consider alternative investments, like real …
3 Effective Options Strategies For a Sideways Market Lire la suite »
A sideways market means prices are getting ready to continue forward in the same direction they had been in before. It’s unlikely that a sideways market will occur before a significant change in direction. Well, as with every phase in the market, a sideways market is neither good nor bad; it all depends on how …
Sideways Market What Is It, Indicators, Trading Strategies, Chart Lire la suite »
Selling short, as this strategy is sometimes called, is a way for traders to bet on falling prices or hedge a the ‘weekend’ forex traders lifestyle position. While it may sound straightforward, short selling involves plenty of risks. It’s a relatively sophisticated (and risky) trading maneuver that requires a margin account and a keen understanding …
A short squeeze is when a heavily shorted stock suddenly begins to increase in price as traders that are short begin to cover the stock. One famous short squeeze occurred in October 2008, when the shares of Volkswagen surged higher as short sellers scrambled to cover their shares. During the short squeeze, the stock rose …
Or most recently, there is the example of Wirecard, a once hot German financial technology company that was repeatedly accused of fraud, sparking strong denials from the company. And most investors would do better sticking to a long-only portfolio. Let’s run through an example to see how it all works and how much you could …
What Is Short Selling? Strategies, Risks, and Rewards Lire la suite »
Additionally, the risk of the broker being unable to fulfill its financial obligations (counterparty risk) is a consideration. CFD trading involves costs such as spreads, overnight financing fees, and, in some cases, commissions. These costs can impact overall profitability, especially for frequent traders. Leveraged trading is more likely to be adopted by those trading short-term …
CFD Trading: A Beginner’s Guide to Contracts for Difference Lire la suite »
When trading forex, trades are typically liquidated and closed in real-time during a margin call. When trading stocks on the stock market, you may have more time to send in additional funds. Below are examples of margin requirements and the corresponding leverage ratios. What forex brokers have the highest leverage? Your leverage ratio will vary, …
Short Forex Trading Videos: What is Leverage in Forex? FXTM Lire la suite »
The use of leverage in trading is often likened to a double-edged sword since it magnifies both gains and losses. This is particularly relevant in the case of forex trading, where high degrees of leverage are the norm. The examples in the next section illustrate how leverage magnifies returns for both profitable and unprofitable trades. …
What is Leverage in Trading? How to Trade with Leverage IG UK Lire la suite »
