Markets uncertain as UK sends mixed messages before Brexit

Markets Uncertain As UK Sends Mixed Messages Before Brexit

The week ending the 16th June saw the markets displaying uncertainty about the GDP/USD pair with consecutive Doji candles on the 14th and 15th with a significant degree of through-flow only highlighting this lack of assuredness of the part of investors. This is understandable, as uncertainty seemed to be the underlying theme of the events which underpinned economic developments during the week in question. Indeed not only the UK but also the USA seemed to be sending out mixed messages, with the respective Central Banks sounding hawkish noises as the political news indicated only increasing levels of uncertainty, doubt and general indecision. The markets’ uncertainty seemed a reasonable reaction in the face of this medley of mixed messages.

The position of the UK seemed clear at first glance, but a second and a third revealed deeper and more baffling trends. The government of the UK was and is facing the Brexit negotiations, due to commence on the 19th June in a weakened condition following the decision to call a snap election. If Prime Minister May hoped to strengthen her majority and gain a clear mandate to negotiate Britain’s withdrawal from the European Union then she scored a political home goal of epic proportions. In the aftermath of the election, she was left with no overall majority and forced to scramble to negotiate a Supply and Confidence arrangement with the DUP of Northern Ireland if she was to be able to govern at all. As the DUP is a confirmed Euro-Sceptic party then this might seem to indicate that the UK might attempt to negotiate a hard Brexit, a move most British businesses earnestly seek to avoid. In light of this surely the future of the GBP can be predicted.

Or can it? The fact is that the DUP is Euro sceptic in principle; it was the most sceptical of all British political parties before the rise of UKIP. However, it must be remembered that the DUP is a party of Northern Ireland and thus wants to maintain as open a border as possible; the preferred phrase in use is ‘frictionless’. This is very much in accord with the sort of Brexit that British businesses are hoping for, and it is entirely possible that a soft Brexit was one of the conditions insisted upon by the DUP before they entered into any coalition deal.

In light of this consideration we have the UK facing a stern seeming EU set on ensuring that the matter of British obligations are honoured before any trade negotiations be considered, with a British government that may be committed to achieving a free trade, minimal customs, the continuing recognition of pre-existing standards and rules and the maintenance of universal access to goods and services. In light of this, is it any wonder if the market is unsure of what will eventually transpire?

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

GBP to suffer after political home goal

GBP To Suffer After Political Home Goal

The aftermath of the UIK’s controversial 2017 General Election seemed to come into focus towards the end of last week after a period of uncertainty. This came as yet another blow to the new government of Theresa May already left reeling by losing its majority in the British Parliament and having to form a minority administration in combination with the Democratic Unionist Party of Northern Ireland. Initially, following the immediate dismay in the wake of the comparatively poor performance of the sitting government, Sterling seemed to rally as hopes grew for a Soft Brexit. This was paradoxically a result of the involvement of the DUP in the new administration. The paradox here is that, until the rise of UKIP, the DUP were seen as the most Euro-Sceptic of all the larger British political parties. However it is always important to note that the DUP is a party of Northern Ireland, and Northern Ireland relies on its close trading links with the Republic of Ireland. The DUP is therefore very definitely in favour of the frictionless border with the Republic and no observers could see how a Hard Brexit could be negotiated or realised if such an open border existed between part of the UK and part of the EU. The prospective reality of this eased fears somewhat as the start of the Brexit negotiations loomed. Sterling also recovered against the dollar in the wake of softer than expected US economic announcements and also because of the USA government’s own political troubles.

However, these tentative signs that all was not as grim as it looked for the pound in the immediate future were soon offset by cold, hard realities revealed by eh EU’s demeanour and announcements, and also by hawkish behaviour from Euro currencies. The European Union remained firm in its commitment to a policy of refusing to consider future trading negotiations until the finality of Britain’s exit was hammered out at the conference table, these details including the small matter of financial obligations on the UK’s part amounting to €100 billion. Perhaps not surprisingly the chart for the Euro and Sterling indicated a risk towards the downside with technical indicators firmly in the negative.

All in all Theresa May’s decision to call a snap general election in 2017 seems set fair to count as one of the most decisive home goals ever scored by a party in government. The desire was too firm up the Conservative government’s position and grant it a mandate to negotiate Brexit strongly with a country united behind a strong administration. The end result has left a weak and shocked minority government in office, beholden for its ultimate support to a small party that, in one vital area of policy, is committed to steps that would sabotage the Brexit in the eyes of many of its supporters. Thus a weakened government faces negotiations vital the country’s economic future. It is not surprising that Sterling looks set to perform negatively in most major pairs.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

 

Top Reasons Forex Traders Fail

Top Reasons Forex Traders Fail

Most people will have heard about the forex market considering it is one of the largest, as well as one of the most accessible, financial markets on the planet. However, despite there being many forex investors, there are only a few who are considered to be truly successful. The climates of the market, combined with the leverage of borrowed capital, means traders have no room to make mistakes. With the factor specific circumstances and risks relating to trading currencies, many traders face more risks within the world of forex than elsewhere.

 

There are several common mistakes that stop investors from realising their investment goals. Read on to find out some of the more frequently occurring mistakes that can deteriorate profits.

 

A frequently committed sin within trading is letting emotions influence your decisions. If you do not maintain your trading discipline, you will turn those small losses into significant financial hits. Many successful traders suffer small losses before achieving a few big wins. If you give in to emotions and lose control, divert from your plan and focus on the short term, you stand to lose a lot more than you may be able to afford.

 

You may have also heard the saying “failing to plan is planning to fail”. When it comes to the forex markets this is especially true. If you create a strong risk management plan and have strategically placed goals to achieve, you can navigate the choppy waters and avoid the common pitfalls.

 

Furthermore, many traders fall when they fail to adapt to the ever-changing market. Forex is constantly changing, so without strategically having backup routes to take for every possible scenario, you can expect to be hit with losses. The market changing brings both opportunities and risks, by being able to adapt to what could happen, you won’t be in for any nasty surprises if it does happen.

 

Many things in life are best learnt through trial and error. It is perhaps one of the fastest ways to learn a new skill, but when it comes to forex trading it is a categorically monumental mistake. Efficiency is key to get right, and learning from your own mistakes is much slower than learning from the experience of other, more professional traders. There are many formal trading certifications and even mentor relationships available which will get you up to speed much quicker than if you went it alone.

Expecting to get rich quick? If that is your plan you should not even attempt to start trading forex. This marketplace is more akin to a marathon than the 100-metre sprint.

Success is derived from experience and strategies, so do not expect abnormal returns and do not front capital with that aim in mind. This ties into your trading strategy and starting to trade through emotions. You need to have realistic expectations to be successful.

 

While the strategy is crucial, another key strategy that is often overlooked is risk management. You should always look to diversify your portfolio as well as implement stop losses. By knowing exactly the amount of capital that is at risk, you can assess whether you are satisfied with the risks compared to the benefits.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

Scottish Referendum

Pound Takes a Hit Upon Scottish Referendum Murmurings

Greg Swift, A spokesperson for UK PM Theresa May, has reported that May remains against a second Scottish independence referendum. While speaking to reporters in London he stated that should the question be asked as to whether there would be another referendum, then the answer would clearly be a defiant “No.” Also, he pointed out that the Scottish people made their decision blatantly clear in 2014, to remain in the UK. The results were definitive, legal and fair, as such, it is no surprise to see that May wishes to stick to her guns over the matter. Swift was responding after a noticeable reduction in the pound, which was brought on by reports that the Scottish government was making preparations to have a second referendum vote.

 

A reduction of about 0.6% against the dollar was the level to which the pound dipped after May’s team was preparing for controversial Nicola Sturgeon, to use the Brexit controversy as a reason to call for yet another vote. During September 2014, Scotland voted 55% – 45% to stay in the UK. However, a poll carried out by the Glasgow Herald found that the split in favour of remaining within the union had shrunk down to just two percentage points. Bookmaker William Hill said that there’s a greater chance of Scotland’s nationalists succeeding should there be another referendum, with 7/4 odds for a “Yes” vote versus 2/5 odds for a ”No” vote.

 

The Scottish government refrained from commenting on the Times report.  However, since the historical Brexit vote on June 23rd, Sturgeon, the SNP leader, has continuously said that a second independence referendum was “likely to happen” after Scottish nationals opted to remain in the EU. She even stated that she felt that the UK government was running out of time with regards to Scotland’s wish to remain in the single market.

 

As with other ministers, May has made it known that they do not wish to chase after single-market membership within their talks of an after-Brexit EU deal. According to government officials involved in Brexit planning, the PM intends to prompt Britain’s withdrawal from the EU, doing so close to the time that a summit takes place in Brussels. The Scottish National Party holds its annual Aberdeen-based spring conference just 7 days later, with it sure to be an event with strong independence referendum ramifications. Economic editors such BBC’s Robert Peston is of the opinion that the UK’s increased cost of finance and the resultant harm to economic growth will continue for as long as the uncertainty about the referendum persists.

 

The reality is that, with the pound wavering, another Scottish independence vote could do further damage. In fact, the level of damage that it could do may actually prove to be rather telling given time. That being said, while it’s something that the SNP is clearly pushing for, the reality is that they are only likely to receive what they’re after under specific terms, with Theresa May certainly set to call the tune.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

Signs you have what it takes to be a Forex trader

Signs You Have What It Takes To Be A Forex Trader

The Internet is full of investment-related information, of which most is aimed at teaching you how to trade the Forex market. While the information at-hand is vast and comprehensive, you can be falsely lured into thinking you can easily learn the skills required to be successful.

 

Some believe to be a successful trader you have to be born with certain qualities. The ability to analyse all aspects of markets, as well as a love of working with equations, is by all accounts seen as a given. However, this combination itself is simply not enough. There needs to be an excitement in seeing the markets move, an interest in hearing the speeches of the central banks, and to enjoy the satisfaction of making the right forex trading decisions.

 

An underlying skill you also need is the ability to separate emotions from your actions. There is no point throwing good money after bad money, this requires a strong discipline. Furthermore, a Forex trader also needs to be able to comprehend the significant amount of data quickly. If you were looking at a day trading market strategy, you would need to analyse everything related to the market conditions quickly to allow for an entry and exit of the market within a day.

 

The most successful traders have learnt to be fearless, as well as to handle fear properly. With the high degree of risk, your investment is open too, it requires a strong person to manage the fear of losing all invested capital. When you are confident in your carefully refined trading strategy, you will know how to handle failure without being too afraid of falling for the same mistakes.

 

A successful forex trader will also understand the key aspect of timing when it comes to placing trades. Your strategy will only allow you to make a trade when it is appropriate, even if this opportunity doesn’t open itself up for weeks. You should never open a trade unless all the information available to you compels you to do so.

 

Binge confident, along with being a leader, not a follower is also integral to success. Staying loyal to the defined strategy you have laid out and not following the crowd will ensure you will not be intimidated or have second thoughts before placing a trade. When other traders are all following each other’s behaviour, you would think there is an underlying factor. However, there are many scenarios where traders follow the pack and get burnt for their decision to do so.

 

Finally, a professional Forex trader will also never stop learning. There is no such thing as having “too much knowledge” on the subject of foreign currency exchange. When a vast amount of profits can depend on your overall level of knowledge, you should also continue to grow the level of understanding you have. With constantly changing markets, the most successful traders will embrace the new situation, analyse it, and finally address it.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

How Forex Brokers Make Money

How Forex Brokers Make Money

The forex market (foreign exchange market) is where traders buy and sell a variety of currencies depending on whether they think such rise and fall in value. It is considered to be one of the highest-risk markets, yet still, sees over $5 trillion traded daily. To make a trade, you have to go from an intermediary forex broker to execute the trade. Even if the trade makes money, or loses money, the broker still profits on commissions and fees. Understanding in what areas forex brokers can make money may help you find the best broker for your needs.

 

The Role

 

A forex broker receives orders to buy or sell currencies and then executes such orders in real time. Typically operating on the OTC (over the counter) market. This market does not have the same regulations placed upon it as other financial exchanges, and the broker may not be bound by the rules regarding other securities transactions. With no centralised clearing mechanism, the risk is placed upon you if your counterparty defaults. Remember to investigate and conduct your due diligence on the counterparty before you enter into any agreements.

 

The Fees

 

In return for executing orders, a forex broker will want to be paid a commission for each trade or spread. This is where they make their money. A spread is a difference between the asking price and the bid price of a trade. The bid price is what amount you receive for selling a currency, whereas the asking price is the amount you pay for a currency. This difference between the two is referred to as the spread. A broker could choose to charge a commission on the order as well as a spread on a trade. If you see a broker offering a commission free trade, they will probably have a large spread to make up the difference.

 

The Spread

 

The spread itself can be fixed or variable. If it’s variable, the amount will vary depending on the market, for example, a change in interest rates affecting the major market could have a knock-on effect on the spread. In some cases, it may be advantageous to you and to others unfavourable. If the market becomes volatile, it may result in a much higher price than you expect. Be careful and pay close attention to a forex prices, as they can charge a different spread for buying and selling the same currency. Overall though, a well-capitalised broker who works with a number of large traders generally has competitive prices. What this means is that for traders it pays to shop around in order to get the best rates.

 

The Risks

 

It is possible to make margin trades through depositing a small amount. However, this introduces a lot of risks. In 2015, the Swiss National Bank no longer supported the euro, resulting in the Swiss franc appreciating significantly. Traders who did not foresee this event were not able to meet margin requires and lost a lot of money and a few even went bankrupt.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

how to spot a forex trader

How To Spot A Forex Trader

When it comes to Forex traders you will find that they come in all different shapes and sizes. Across the diverse nature of our world, we have both men and women, from small to tall, all from a range of different cultures and traditions. You could be trading from the sandy white beaches in Thailand in your swimming trunks, or from a shoebox apartment in the heart of Paris. Wherever it may be, we believe there are several signs those giveaways whether someone is a trader, no matter if they are trying to keep it a secret.

 

We pondered on this thought for a bit, and considered what traders in their own countries share in common? It can be hard to determine, however, we thought it would be a bit of fun to make some spirited observations about what may define you as a trader. The following is a tongue-in-cheek look at the types of Forex traders you are likely to find around the globe.

 

The New York Trader

 

  • Upon their bookshelf is a copy of “Wall Street”; every trader will ask themselves at least once within their lifetime “What would Gordon Gekko do?”
  • After trading all night at the computer with unusual currencies, the tired baggy eyes are a giveaway.
  • Plenty of screens with plenty of trading screens. Everybody knows the more you have the more successful you are.
  • A bitten into stress ball, as sometimes you get a little too stressed for only a squeeze

 

The Tokyo Trader

 

  • “Candlesticks”, after analysing so much information those pupils have formed into candlesticks.
  • In the corner an old school Nintendo, covered in the dust of course because what trader has that free time to relax?
  • The embodied twitch in your fingers after countless painful trades.
  • Your table has marks from your fingertips tapping from frustration, waiting for the right market move.
  • The organisation being key, your calculator, strategy and trading history are all perfectly placed.

 

The London Trader

 

  • The constant pacing shows the worn carpet.
  • With so much stress about the loss of pips, a cardio defibrillator is upon the wall.
  • Your forehead is wrinkled with plenty of stress lines.
  • Various browser tabs open with a variety of media platforms, Twitter, Facebook, and forums are all present.
  • A nice strong cup of tea, of course, the drink the nation was built on.

 

The Sydney Trader

 

  • Suffering from the trader’s wrist, from all the clicking of course.
  • A forever overflowing swear jar.
  • The Carry Trading book on the desk, instructing you on about the balance of trading and having a life.
  • An emergency stash of beer, just in case the time is right.
  • An office outside, to trade and take in the sun simultaneously.

 

As you can see Forex traders come in a variety of different forms, so the big question is, what type of trader are you?

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

 

a guide to trading USD EUR

A Guide To Trading USD/EUR

While most world currencies can be traded in one form or another, one of the most common currency pairs to trade is undoubtedly the USD/EUR combo. It shouldn’t be so surprising as to why this is – these currencies collectively represent nearly half of the global economy, with over £20 trillion of economic output between the two. Furthermore, this pair has a tight spread and a wealth of data and information available on how to properly trade it, making it an attractive option for new traders. This article will give you a few key pointers that should help you trade this common, but poorly understood, currency pairing.

 

Key movement triggers

 

One of the most fundamental aspects of currency trading is known as movement triggers. These refer to any events that directly result in the movement of the currency’s value in either direction. Brexit is a particularly extreme example of a movement trigger. These are the reason for why the interest rates between the USD and the EUR vary. The actions of the United States Federal Reserve on the USD are one of the biggest driving factors on the value of the currency – the FED weakening the dollar can lower the gap between the two, while economic strength in the US will have the opposite effect.

 

Notable economic news

 

Of course, the state of the EU and US economies will also have a substantial impact on the performance of the USD/EUR. For example, in 2008 during the banking crisis the USD’s value plummeted, and the result was that for a brief time the EUR was worth about 1.60 USDs, a gap that has since narrowed substantially. For the EUR, the performance of its largest economies (France, Italy, Spain and Germany) will have a considerable impact on the performance of the currency as a whole. Always keep yourself notified of what’s happening in both of these economies, and in the case of the EU remember that even small member countries can have a large impact on the overall value of the EUR.

 

Stock market impact

 

As most will already know, the stock market is completely independent of the forex market, but that doesn’t mean that it doesn’t have an influence on currency values. Generally, rising stock prices correlate to healthy economic growth, which in turn strengthen the currency. The reverse is true as well. In addition, a poorly performing stock market can incentivise people to invest in something other than shares, including currencies – this can also affect the spread of the USD/EUR currency pair. While the stock market doesn’t influence currency values, the same factors that drive stock prices also influence currency values to some degree.

 

 

Cross-continent currency pairing

 

The USD/EUR currency pairing is perhaps the most underrated in the world – a little surprise considering how large the economies that use these currencies are. But as popular as they are, that doesn’t mean that you are guaranteed any form of success. Always do your research before committing money to any kind of trade – if you keep an eye on all of the economic and political changes going on in the United States and the European Union then you will be well positioned to turn a profit.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

 

forex trading signal

What Is Forex Trading Signal?

If you are becoming intrigued by the subject of Forex trading then you will naturally be trying to learn as much as you can about the subject, and in the course of doing this, you might well have come across references to something described as a Forex trading signal. If you have not yet gone into the subject in depth yourself (and you should certainly do so before you commence making use of this tool, or indeed before you start forex trading in general) then here are a few pointers that begin to answer the question posed in the title of this article. The first point to note is that a Forex Trading Signal is simply a suggestion to enter trading on a specific pair of currencies at a specific time and also at a specific price. These useful signals will arrive in a manner of ways, all immediate and electronic. Your signal might be tweeted, e-mailed, posted on a website or arrive via SMS or RMS. With that simple statement we have given the bare bones answer to our question but of course, there are other matters to consider.

One is the source of origin of the forex trading signal that you have received. It might have been created by a person, who will be a forex analyst, or it might have been generated artificially by a forex computer programme that exists as part of a forex trading signal service.  Some of the signals that you can receive are free, while others will definitely have to be paid for and will come to you as part of a service which supplies the Forex trading signal. This signal might be from a single provider, or be from a service that generates the information from multiple systems.

If, as part of your exploration of the subject you decide to pay for a forex trading signal service, then you might be wondering exactly what you will get. This is a matter which the service provider will outline and to which you should pay attention. Will the forex trading signal give exact or approximate figures for the time of your entrance, your exit and also specify when the stop loss arrangement comes into effect? It is important you know this. Also, pay close attention to the other services provided and learn how to appreciate the analysis and trading history behind the signal. Also be prepared to make use of such services as coaching, the provision of educative matter on the subject, comments and account management and definitely be on the look-out for offers of trial periods.

It will also behove you to look into the systems which are used to generate the forex trading signal that is presented to you. Learn to differentiate between a forex trading signal that is generated by technical analysis (this is the majority in practice, and allows your provider to supply a wider range of trading options) and those generated by fundamental analysis or price action.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

Forex trading guide for GBP/KWD

Forex Trading Guide For GBP/KWD

Pretty much everybody knows about currency pairs like the USD/GBP – these are the popular Forex trades that nearly every currency trader dabbles in. But just because it’s popular doesn’t mean that it’s the best, and some of the more underrated currency pairs can actually provide quite a bit of bang for your buck. The GBP/KWD currency pair is a fantastic example.

 

Trading this currency pair makes complete sense – after all, the two economies are closely linked together, with a substantial portion of trade flowing between the two countries. This particular trade is known for its stability and predictability, which enables traders to generate consistent returns on what is an often-underrated pair. That said, understanding the fundamentals of this currency pair is an important part of being able to take advantage of what it has to offer, and this guide aims to inform you of all the most important points you need to know when trading the GBP/KWD.

 

As simple as this concept seems, it’s often misunderstood by many newer traders. All currency pairs have a seasonal element to their performance – this is largely tied to the nature of the economies that these currencies depend upon. While you can’t be an expert on every economy, you can look up several decades of historical data relating to these currencies, which will give you a sense of what the long-term trends look like for pairs such as the GBP/KWD.

 

In many cases, GBP/KWD price dips in March and May are not uncommon, while for the pair to peak in the fall is also, once again, not uncommon. This doesn’t always exactly hold, but it is largely true for most currency pairs, GBP/KWD included. All forex trades have historical charts that you can access; giving you exact rates of change that will help you predict the general trend of a currency in the near-term. These aren’t just for veteran traders – anybody can access them entirely for free. All currency pairs have their own unique seasonal trends, so never fail to do your research before you commit to making a trade

 

You might have heard some people refer to forex scalping as a form of cheating. It isn’t – but what it happens to be is a very effective way to reduce your overall losses while maximising your overall gains if used correctly. Watching the small price movements of the GBP/KWD throughout the course of a day will position you to make the greatest profit. If you want to take advantage of this, keep three Exponential Moving Average charts near you – this will allow you to fully view every possible forex trade that you can make as well as view relevant technical information for each potential trade. Many of the most profitable traders utilise this technique, and you should too.

 

Don’t hesitate to take advantage of the GBP/KWD currency pair. Its relative anonymity will soon disappear as more traders become aware of how lucrative it can be, and knowing how to trade it effectively can net you some serious profits over the long term. This guide will provide you with all of the most important facts and tips, but ultimately you are responsible for arming yourself with the knowledge that you need to succeed when trading GBP/KWD.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.