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The Forex Market And The Cryptocurrency Market

The market of foreign exchange is the biggest as well as the busiest financial market in the globe as it has opened numerous opportunities to traders which has allowed them to earn a large sum of money in only a short period of time. While this a fact, forex trading isn’t all rainbows and butterflies. When engaging in forex trading, it is crucial that you have good knowledge and understanding of the forex market prior to making decisions.

The Forex Market – Working With An Experienced Forex Broker

Similar to other forms of investments, it is fundamental that you make time to research and study the conditions surrounding forex trading. To do this, many forex investors and traders partner with a forex broker, with the presence of the best Islamic forex broker in the industry, to help them in their forex trading journey and evade any frustrations and obstructions towards making a favorable trade.

Let’s have a look at some of the advantages of working with a forex broker, such as the best Islamic forex broker, for anyone who would want to make some profits.

  • They Help You Better Understand the Forex Market. If you are new to the forex market and forex trading and decide to do it on your own, you may encounter plenty of challenges, roadblocks and even losses. To avoid such, work with a professional forex trader as he/she can teach you the ins and outs of the market and forex trading and can also do the bidding for you.
  • They Aid You In Making Decent Profits. Forex markets are extremely volatile and disruptive. If you want to earn decent profits, you have to be open-minded as well as keep to a minimum your expectations.  Working with an experienced forex broker can very much help you earn decent profits.
  • You Save A Lot of Time. Learning and implementing what you have learned about forex trading, not to mention being constantly updated of the market, is actually time-consuming. If you are impatient or already have a lot on your plate, it is best and wise to hire a reliable and trusted forex broker. They can do the trading for you and work on commission. This is better than exhausting all your valuable time learning how to trade on your own.

The Cryptocurrency Market – The Benefits of Crypto Trading

While forex trading can be very profitable, there are those who prefer to do crypto trading. Yes, there is an opportunity to make huge profits in the cryptocurrency market. However, similar to forex trading, it is imperative that you have knowledge and understanding of cryptocurrency, the crypto market and of course crypto trading. But, why is crypto trading so appealing to many even if it isn’t considered a legal tender? Below are some reasons:

  • Runs 24 Hours. The market is open 24/7 since a government doesn’t control it making it decentralized. Hence, crypto traders can make a trade at any time of the day.
  • Transparency and Security. With the blockchain technology, your transactions and crypto wallet are transparent, however your personal information are hidden. In terms of making money transfers, transparency is crucial. When making use of cryptocurrency and the blockchain, security is increased as the protocol or the transaction cannot be changed or manipulated by anybody.
  • Cheap Trading Fees. Compared to the usual bank payments, particularly for transaction of high-value, crypto transactions fees are very low.
  • Volatility. The volatility of cryptocurrencies makes the market very exciting. Because of this, crypto trading bots have become prevalent among traders as it allows them to always control their trading.

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WTO Trading Forecasts Underscore the Need for Reliable Trading Signals

WTO Trading Forecasts Underscore the Need to Have Reliable Trading Signals

The WTO reported that after the surge of 2nd and 3rd waves of COVID-19 in Europe, growth in global merchandise trade is likely to slow down in the 4th quarter. Now more than ever, traditional forex and cryptocurrency traders are finding the need to seek for reliable trading signals to improve the results of their trading strategies. While there are different ways to go about it, the most convenient and fastest method is to use the services of entities providing trading signals as products and services.

Brief Overview of WTO’s Good Trade Barometer

According to the World Trade Organization (WTO), it has become apparent that when economies briefly reopened and resumed with global trading in the second and third quarters, the pent-up demands resulting from the first global lockdown have been met with adequate inventory stocking. Based on the WTO’s Good Trade Barometer for November, other components indicated mixed readings, to which a potential resurgence of the pandemic will have a considerable impact on how trading will carry on in the months ahead.

As it is now the case, the slow exchange of products in the international markets will likewise affect forex trading.

What is the Relationship between World Trade and Forex Trading

Every country trades with other countries, it’s just that nations trade more than others. That being the case, trading behaviors can affect how the value by which foreign currencies are purchased in the forex market. In layman’s term, if a country sold more during the day, it follows that the purchasing countries will also have to exchange their domestic currency into the currency acceptable as payment to the selling nation.

Now to illustrate by way of a hypothetical example, let’s say the U.S. imported products from another country like Canada, paying means a corresponding amount of U.S. dollars will be used to purchase an equivalent amount in Canadian dollars as payment for the Canadian goods. If on the other hand, Canada didn’t buy any product from the U.S. this will result to a trade deficit on the part of the U.S. There is no need for Canada to buy U.S. dollars either.

If U.S. world trade continues to experience trade deficits not only from Canadian trades but also from other countries, and for a prolonged period, the purchasing power of the U.S. dollar in world trade is bound to decline. Such decline is termed as inflation, which in the long run would lower the country’s exchange rate.

Mainly because the inability to sell U.S. domestic products to foreign countries will reduce the country’s trading capital, where and when trading is largely one sided . Where borrowing becomes necessary, the interest rate on such borrowings will cause the US dollar to weaken further.

Now supposing Canada continues to show a strong performance in world trading, from which it gains considerable amount of trade surplus, such developments will lead to growth in Canada’s trading capital. Moreover, if the U.S. purchases or imports goods from Canada on credit basis, the amount that Canada will collect from the U.S. will include interest payments and therefore further weaken the US dollar value against the Canadian dollar.

This hypothetical example is only an exaggeration of how global trades transpire, in order to show how trade deficits, trade surplus, inflation and interest rates and other similar factors can affect the value of different currencies.

Advice on What to Look for In Providers of Trading Signals

When looking for the most reliable trading signals provider, keep in mind that your goal is to improve your profits. Therefore it is not enough that the trading signals are based on mere word-of-mouth tips coming from the grapevine or based on personal perceptions of some market analysts.

Consider the services of signals trading firm AltSignals, which aside from providing signals derived from in-depth analysis of data, maintains special focus on providing only quality signals; as opposed to churning signals in large quantities. Moreover, altsignals services include learning modules that will enable newcomers to develop a better understanding of how trading markets behave.

As one of the best providers of trading signals, the transparency by which the company offers its services is one of the compelling factors that attracted more than 80,000 customers to sign up with AltSignals.

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