Forex hedging strategy guaranteed profit

Hedging itself is the process of buying or selling financial instruments to offset or balance your current positions, and in doing so reduce the risk of your losses.

Forex brokers nowadays that allow and support hedging strategy and frees you from dependency on the market direction.

Hedging is a strategy to protect one’s position from an adverse move in a currency pair.

The forex hedging is trading both ways (up and down or buy or sell). Trader can make a hedge against a particular currency by using two different pairs.

Forex hedging is the act of strategically opening additional positions to protect against adverse movements in the fx market.

Forex hedging means reducing or controlling risk. This is done by taking a position in the futures market that’s opposite to the one in the same pairs.

The concept of hedging in forex trading is deemed to be illegal in the US.

forex stochastic indicator explained

The stochastic oscillator uses a scale to measure the degree of change between prices from one closing period to predict the continuation of the current direction, or to explained providing insights into potential future market.

The indicator’s used by many traders to implement a consistent form of technical analysis.

It is can used in any financial market especially in forex trading. Stochastic processes are widely used as mathematical models of systems and phenomena that appear to vary in a random manner.

The indicator measures momentum by comparing the closing price with the previous trading range over a specific period of time.

It is widely used in forex trading to pinpoint potential trend reversals ranging from 0 to 100.

The stochastic oscillator reflects overbought conditions with readings-over 80 and oversold-conditions with readings under 20.

By comparing current price to the range over time, the stochastic oscillator reflects the consistency with which price closes near its recent high or low.

The stochastics are more useful in sideways or choppy markets. It’s best in consistent trading ranges.

Parabolic sar forex

Indicators are usually used to forecast price changes on the currency market.

They are calculations which take the volume and price of a certain financial instrument into account.

By using Forex indicators, traders can make decisions about market entry and exit.

Determine when a trend will reverse by using the Parabolic SAR and find the optimum points for entering the market.

In stock and securities market technical analysis, parabolic-SAR (parabolic stop and reverse) is a method devised by J. Welles Wilder, Jr., to find potential reversals in the market price direction of traded goods such as securities or currency exchanges such as forex.

One indicator that can help us determine where a trend might be ending is the Parabolic SAR (Stop And Reversal).

A Parabolic SAR places dots, or points, on a chart that indicate potential reversals in price movement.

The Parabolic SAR is an indicator that follows the trend and determines the reversal point in the price channel.

SAR literally means “stop and reverse.”  Visually, it takes the form of a series of dots that are either above or below the price chart.

If you increase it, the indicator will give more signals, but their accuracy will decrease.  If you decrease it, the signals will be more accurate, but there will be fewer of them.

The longer the indicator’s period, the greater the expiration time must be.  The farther the Parabolic SAR dots from the chart, the more stable the trend.

The closer the dots, the more likely the trend is to reverse.  The Parabolic SAR gives accurate signals only if the market trend is strong.

How to avoid swap forex

Swap is an interest fee strategy that’s either paid or charged to you at the end of each trading day.

A forex swap is a commission or rollover interest charged by a broker for extending a trader’s position overnight.

When trading on margin, you receive interest on your long positions, while paying-interest on short-positions.

Forex swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates and may use foreign exchange derivatives.

It is refers the interest rate differential between the two currencies of the pair you’re trading.

It’s calculated according to whether your position is long or short.

Types of swaps:

  • Basis swap
  • Overnight indexed swap
  • Interest rate swap
  • Currency swap
  • Credit default swap
  • Commodity swap
  • Equity swap

So, how to Islamic forex trading accounts do not charge you with avoid overnight-swap interest for holding your trade?

Forex swap free account is intended for traders who use trading systems without adjustment to swaps or for the customers who are not allowed to receive swaps-owing to their religious beliefs (Islamic Account).

Riba is a concept in islamic-banking that refers to charged interest. It’s forbidden under sharia (Islamic Religious Law).