Demo Account vs. Live Account

 Trading the Forex market is not as easy as trading some other financial instruments. It is because of volatility and the element of risk involved. Opening a Free forex demo account is the best gateway to the FX trading whether for a beginner or a professional trader. A Forex demoaccount offers significant benefits to traders seeking to earn better. You will be able to trade in real-time, risk-free environment and test your trading strategies with a demo account. A demo account can be opened at no cost. Trade orders on a Forex demo account are normally implemented without any problems. When you begin trading the live Forex accounts,you may find that your pending orders might not get filled.Autotrader,commodity,cta,dma,foreign exchange,forex,forex rates,forex trade,forex trading,ib,leverage,metatrader 4,penny stocks,spread,stock,stock market,stp,trading

A trader cannot be re-quoted in a demo account as it is a fully controlled environment whereas in a live market account re-quote is something that traders have to live with. In a demo trading environment, spreads are usually tighter. Unlike a real trading account, stop-loss order execution is always executed perfectly in a demo trading environment. The primary reason as to why the differences arise between demo and live accounts is because of data feed. A broker has to pay a certain amount of fees to access the live market quotes. A demo account is economic when compared to a live account.commodity market, commodity prices, commodity trading, currency market, crude oil futures, currency rate, currency trading, daily fx,day trade, day trader, day trading,daytrading,economic calendar, foreign exchange rate, forex calendar, fundamental analysis  

 

 Demo trading accounts offer a risk-free trading environment for traders. It is especially useful for beginners as it helps them to get familiar to markets. A demo account could also be used to trade various instruments and test the trading conditions offered by the broker. Traders, who are familiar with the demo trading condition, can move to trading in a real account. Traders can then opt for a micro or a FX cent A/c that can help them precisely evaluate the real-time trading conditions. A majority of brokers nowadays provide micro Forex tradingaccounts. Micro accounts are the next step for traders to test their potential FXbroker before opening a standard trading account.utures market, gold futures, hot stocks, investing in stocks,metatrader,mt4,mt5,natural gas futures, oil futures, online broker, online trading, options trading, stock trade, stock broker, stock charts, stock market quotes, stock ticker 

 

Australian trade surplus December 2016– Is it likely to prevent Australia technical recession

Australian Dollar (AUD) surged due to the trade surplus (reported by Australian Bureau of Statistics at $1.243 billion) and the weak US Dollar (USD) also contributed to a strengthening of the AUD as Federal Reserves of US maintains its status quo on the interest rates. Now the point of discussion is a ‘technical’ recession in Australia which lurks on Australian economy due to shrinking GDP of the country.

Opinions, facts sheets, and calculations from experts are not supporting this trade surplus as a big boost to the Australian economy. A number of experts and surveys point at slow demise of this hullabaloo of trade surplus. Here are two strong points:  Autotrader,commodity,cta,dma,foreign exchange,forex,forex rates,forex trade,forex trading,ib,leverage,metatrader 4,penny stocks,spread,stock,stock market,stp,trading

China-based surplus likely to slow down: The export boom of Australia has a great dependency on China (approx to 32%) and here is the problem. Due to the political and economic turmoil China is predicted to be facing can cut short this export. Recent development shows that real estate in China is plunging along with market liquidity. At the same time, its trade relation with the United States is also going to face some challenges as newly elected president of America, Trump, is likely to add 45% tax on the imports from China. This could lead to a shortage of funding. All these factors collectively can decrease the imports from Australia.

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 Export growth measured by volume not value: Australia is projecting a value based growth in the export at 12% in the quarter 4 of 2016. However, Export growth contribution is measured by volume of trade, not the value. Official data show that the volume of export increased only by 0.6%. If the volume growth does not improve in next two-quarters, there could be some tough situations for Australia.

We can wait for some time to see the actual scenario. Now let us have a look at what some of the experts are saying. The positive outlook is found in Shane Oliver of AMP Capital who is saying “While the GDP contraction in the September quarter will no doubt invite talk of a recession (defined as two consecutive quarters of falling GDP) growth is likely to bounce back in the December quarter avoiding a recession so there is no reason to get too gloomy.” futures market, gold futures, hot stocks, investing in stocks,metatrader,mt4,mt5,natural gas futures, oil futures, online broker, online trading, options trading, stock trade, stock broker, stock charts, stock market quotes, stock ticker  

 On the other hand, we cannot deny what Citi's Joshua Williamson noted: "Current high commodities prices will filter through to households by less than the previous price boom precisely because there isn't the investment and labour market boom in construction and downstream services now."  

We can conclude with a positive note that AUD is gaining after was influenced downward by the aftermath of Donald Trump’s shock election back in November. Will the trade surplus be able to back the entire Australian economy alone to avoid a technical recession which is supposed to be triggered by plunging GDP? Time has the answer…

Fed rate hike – A glimpse of the impacts on Forex trading

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The entire world of Forex trading and stock markets awaits the decisions of US Federal Reserve Bank (FED). The markets eye on lowering/increase of the interest rates or the maintaining of the status quo. The decision of Fed is not only linked to the US economic health, it also affects the health of the Forex market. However, the world of Forex is also driven by the decisions of Swiss National Bank, Bank of England, European Central Bank, Reserve Bank of New Zealand, Bank of Canada (CAD), Bank of Japan, and Reserve Bank of Australia. The entire Forex market feels the palpitation of against the anticipated or a surprise announcement made by these banks. A Forex trader needs to plan or make strategy to gain out of the decisions from these leading banks the world of Forex trading take place majorly with the currencies - Swiss Franc (CHF), Great Britain Pound (GBP), Euro (EUR), New Zealand Dollar (NZD), Canadian Dollar (CAD), Japanese Yen (JPY) and Australian Dollar (AUD). commodity market, commodity prices, commodity trading, currenmarket, crude oil futures, currency rate, currency trading, daily fx,day trade, day trader, day trading,daytrading,economic calendar, foreign exchange rate, forex calendar, fundamental analysis

 So we now have a look at some of the impacts of the Fed interest hike on Forex trading:

 US dollar movement - The movement of the US dollar keeps its impact on the entire world economy as this currency takes part in major trading (not only the Forex) of the countries across the globe. And here comes the decisions of Fed that are taken to boost or strengthen US Dollar. Whether interest rates grows up or even maintains stability, the decision of Fed is to push US currency up and along with the overall economy.    

Fed increases the interest rates once it sees growth aspects of the economy. And the increase in the interest rate means the increase the yield on assets available in US currency. US dollar becomes more sought-after than other securities available in the market. This opens up an opportunity for Forex traders to buy the Dollar against weaker currencies. The increase in the value of US Dollar provides scope to invest in a broad basket of currency pairs to avoid the risks other weak currencies pose. futures market, gold futures, hot stocks, investing in stocks,metatrader,mt4,mt5,natural gas futures, oil futures, online broker, online trading, options trading, stock trade, stock broker, stock charts, stock market quotes, stock ticker 
 Adjustments of currency pairs: The Fed rate hike is always anticipated by the market. There are so many factors of increase in the interest, but traders know one thing for sure that Fed would intervene to stabilize or boost the Dollar. So the currency prices are adjusted to exchange according to the floating exchange rates to tolerate any adverse effect of a boost to the US Dollar price. So the time fed hikes the rates drastic movement in the market can be prevented to save the traders from facing losses.  stock prices, stock trading, stock trading apps,technical analysis, swing trading, trade forex, traded options, trading account, trading forex, stocks and shares, market analysis,forexlive,forex market, forex online, forex rate, forex signals

Decline or closing of carry trade: In the carry trade, with the hope of borrowing Dollar in lower interest rate and buy the currencies (of the emerging market currencies) that yields higher interest rates. But the moment Fed raises the interest rate, thereby US dollar gains its position (other currencies invested in fall) and the traders who were involved in the carry trading has to stop borrowing as their calculated profits would not be possible.   

Well, these three sections of the market are primarily affected due to Fed hike along with other sections. If a Forex trader is not aware or does not take necessary steps along the Fed interest rate hike, there could be huge losses in the trading.