Intra-Day Fundamentals - EUR/USD, NZD/USD and Dollar Index: U.S. Durable Goods Orders
2017-02-27 13:30 GMT | [USD - Durable Goods Orders]
if actual > forecast (or previous one) = good for currency (for USD in our case)
[USD - Durable Goods Orders] = Change in the total value of new purchase orders placed with manufacturers for durable goods.
From rttnews article:
EUR/USD M5: 19 pips range price movement by U.S. Durable Goods Orders news events
NZD/USD M5: 11 pips range price movement by U.S. Durable Goods Orders news events
Dollar Index M5: range price movement by U.S. Durable Goods Orders news events
AUD/USD Intra-Day Fundamentals: Australian Current Account and 22 pips range price movement
2017-02-28 00:30 GMT | [AUD - Current Account]
if actual > forecast (or previous one) = good for currency (for AUD in our case)
[AUD - Current Account] = Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous quarter.==========
From official report:
AUD/USD M5: 22 pips range price movement by Australian Australian Current Account news event
Quick Technical Overview - USD/CAD: trading to be within 100-daySMA/200-SMA ranging area waiting for the direction of the trend to be started (adapted from the article)
D1 price is located within 100 SMA/200 SMA levels for the ranging market condition:
If the price breaks 1.3055 support level on close D1 bar so the price will be reversed back to the primary bearish condition and with 1.3008 nearest target to re-enter.If price breaks 1.3334 resistance level so the primary bullish trend will be resumed with 1.3460 daily bullish target.If not so the price will be ranging within levels for direction.
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2013.07.31 18:54
The Basics of Forex Leveraging :
in trading simply refers to the ability to increase the size of your
trade or investment by using credit from a broker. When trading using
leverage, you are effectively borrowing from your broker, while the
funds in your account act as collateral. This collateral is referred to
The amount of leverage available is based on the margin requirement of the broker.
Margin requirement is usually shown as a percentage, while leverage is
expressed as a ratio. For example, a broker might require a minimum
margin level of 2%. This means that the customer must have at least 2%
of the total value of an intended trade available in cash before opening
the position. A 2% margin requirement is equivalent to a 50:1 leverage ratio.
In practical terms, using 50:1 leverage, having $1,000 in your account
would allow you to trade up to $50,000 worth of a given financial
instrument. At a 50:1 leverage, a 2% loss in the instrument traded
completely wipes out a fully leveraged account. Conversely, a 2% gain
doubles the account.
Leverage by Market and Instrument
Leverage available differs substantially depending on what market you
are trading and from which country you are based. For example, the
degree of leverage available for trading stocks is relatively low. In
the United States, investors typically have access to 2:1 leverage for
trading equities, a margin level of 50%.
The futures market offers much higher degrees of leverage, such as 25:1 or 30:1, depending on the contract traded.
The leverage available in the forex market is higher still at 50:1 in the U.S. and as high as 400:1 offered by brokers internationally.
Leverage in Forex Trading
High leverage availability, coupled with a relatively low minimum
balance to open an account, has added to the allure of the forex market
to retail traders. However, excessive use of leverage is often and
correctly cited as the primary reason for traders blowing out their
The danger that extreme leverage poses to investors has been recognized
and acted on by the U.S. regulatory bodies, which have created
restrictions on the amount of leverage available in forex trading. In
August 2010, the Commodity Futures Trading Commission (CFTC)
released final rules for retail foreign exchange transactions, limiting
leverage available to retail forex traders to 50:1 on major currency
pairs and 20:1 for all others.
As of 2013, brokers outside the U.S. continue to offer leverage of 400:1 and higher.
Examples of Leveraged Trades in the Forex Market
In our first example, we'll assume the use of 100:1 leverage
In this case, to trade a standard $100K lot you would need to have
margin of $1K in your account. If, for example, you make a trade to buy 1
of USD/CAD at 1.0310 and price moves up 1% (103 pips) to 1.0413, you
would see a 100% increase in your account. Conversely, a 1% drop with a
standard 100K lot would cause a 100% loss in your account.
Next, let's assume you are trading with 50:1 leverage and 1 standard
$100K lot. This would require you to have margin of $2K (2% of 100K).
In this case, if you buy 1 standard lot of USD/CAD at 1.0310 and price
moves up 1% to 1.0413, you would see a 50% increase in your account,
while a 1% drop with a standard 100K lot would equal a 50% loss in your
Consider here that 1% moves are not uncommon and can even happen in a
matter of minutes, especially after major economic releases. It could
only take one or two losing trades using the leverage described in the
examples above to wipe out an account. While it's exciting to entertain
the possibility of a 50% or 100% increase in your account
in a single trade, the odds of success over time using this degree of
leverage are extremely slim. Successful professional traders often
suffer a string of multiple losing trades but are able to continue
trading because they are properly capitalized and not overleveraged.
Let's now assume a lower leverage of 5:1. To trade a standard $100K lot
at this leverage would require margin of $20K. An adverse 1% move in the
market in this case would cause a far more manageable 5% loss.
Fortunately, micro lots
enable traders to use lower leverage levels such as 5:1 with smaller
accounts. A micro lot is equivalent to a contract for 1,000 units of the
base currency. Micro lots allow flexibility and create a good
opportunity for beginning traders, or traders starting with smaller
account balances, to trade with lower leverage.
When you enter a trade, your broker will keep track of your account's Net Asset Value (NAV). If the market moves against you and your account value falls below the minimum maintenance margin, you may receive a margin call.
In such an event, you could receive a request to add funds to your
account, or your positions could simply be flattened automatically by
the broker to prevent further losses.
The Use of Leverage and Money Management
The use of extreme leverage is fundamentally antithetical to the conventional wisdom on money management in trading.
Among the widely accepted tenets on money management are to keep leverage levels low, to use stops and to never risk more than 1-2% of your account on any one trade
The Bottom Line
Data disclosed by the largest foreign-exchange brokerages as part of the
Dodd-Frank financial reform legislation has shown that a majority of
retail customers lose money trading. A substantial if not leading cause
is the misuse of leverage.
However, leverage has key benefits, providing the trader with greater
flexibility and capital efficiency. The absence of commissions, tight spreads
and available leverage are certainly beneficial to active forex
traders, creating trading opportunities not available in other markets.
Sergey Golubev, 2016.06.30 08:08
How to Trade - Forex Leverage (based on the article)
Leverage in forex is expressed as ratios - for example as the following: 1:1, 1:50, 1:100, 1:200, 1:400.
Leverage in forex = Purchase Power/Capital Invested
This leverage ratio of 1:100 is translated as following:
For every $1 I deposit in my forex broker's account, my broker in return
deposits $100 in my margin
account. So, if I deposit $1000 then my broker deposits $100,000 in my
trading account. So with just $1000 of my own money, I can control
$100,000 for my trading purposes. By doing so I
created a leverage in forex.
"Leverage has been in use from the early dawn of our civilization
primarily to cope up with daily necessities. In the medieval era
leverage was employed probably just to lift heavy stones to build
houses. But in the modern era leverage has been used extensively in
finance and commerce. When I am buying
one million dollar house with only 10% down payment, I am essentially
using leverage. Leverage adds glamor to forex trading. It is what makes
so many traders gravitate to forex trading as compared
to equities and other securities market."
"Hence, leverage in
forex is the secret behind huge wind fall profits in forex trading. Be
as it may, leverage can magnify losses in losing trades. This is also
why leverage is considered double edged sword. If I make winning trades
then my profits are huge. Likewise if I make losing trades my losses are
Intra-Day Fundamentals - EUR/USD and Brent Crude Oil: U.S. GDP Second Release
2017-02-28 13:30 GMT | [USD - GDP]
[USD - GDP] = Annualized change in the value of all goods and services produced by the economy.
From official report:
EUR/USD M5: 16 pips range price movement by U.S. Gross Domestic Product news events
Brent Crude Oil M5: 19 range price movement by U.S. Gross Domestic Product news events
USD/CNH Intra-Day Fundamentals: Caixin Manufacturing PMI and 40 pips range price movement
2017-03-01 01:45 GMT | [CNY - Caixin Manufacturing PMI]
if actual > forecast (or previous one) = good for currency (for CNY in our case)
[CNY - Caixin Manufacturing PMI] = Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.==========
USD/CNH M5: 40 pips range price movement by Caixin Manufacturing PMI news event
USD/CAD Intra-Day Fundamentals: BOC Overnight Rate and 459 pips range price movement
2017-03-01 15:00 GMT | [CAD - Overnight Rate]
if actual > forecast (or previous one) = good for currency (for CAD in our case)
[CAD - Overnight Rate] = Interest rate at which major financial institutions borrow and lend overnight funds between themselves.==========
USD/CAD M5: 59 pips range price movement by BOC Overnight Rate news event
AUD/USD Intra-Day Fundamentals: International Trade in Goods and Services and 21 pips range price movement
2017-03-02 00:30 GMT | [AUD - Trade Balance]
[AUD - Trade Balance] = Difference in value between imported and exported goods and services during the reported month.==========
AUD/USD M5: 21 pips range price movement by Australian Trade Balance news event
Gold: bounced from 200-day SMA to 10-day EMA to below for the daily bearish trend to be resumed (adapted from the article)
D1 price is located near and below 200 SMA on the border between the primary bearish and the primary bullish trend on the chart for 10 EMA to be crossing to below with 1,226 support level as the nearest daily target to re-enter: