Is it hard to find the perfect trading platform? It would be Trading View, for sure. Here, we have mentioned all the things you need to know about the platform before stepping into the world of trading.
Introduction to the Trading View
TradingView is a popular web-based platform for charting and trading in financial markets launched in 2011. It provides a wide range of tools and features for technical analysis, charting, and trading across various asset classes, including stocks, forex, cryptocurrencies, and commodities.
Moreover, it is known to be the most popular social network for traders and investors on the web. They have over 50+ million users. It has advanced features and interactive tools that help traders with different skill levels. The platform facilitates global market data to give investors real-time information at their fingertips.
Key Features of Trading View
- Users can share their trading ideas, analysis, and charts with the Trading View community. This social aspect allows traders to learn from each other and discuss market trends.
- Traders can create and use custom indicators and trading strategies using Pine Script, which is TradingView’s scripting language. This allows for a high degree of customization and flexibility in technical analysis.
- Traders can set up alerts based on price levels, indicators, or other criteria. This feature helps users stay informed about market conditions, price movements, and potential trading opportunities.
- TradingView provides screeners for various asset classes, allowing users to filter and identify securities based on specific criteria such as price, volume, and technical indicators.
- Traders can practice their strategies without risking real money using TradingView’s paper trading feature. This is useful for testing and refining trading strategies.
- Some brokers are integrated with Trading View, allowing users to execute trades directly from the platform. This streamlines the trading process for those who have accounts with supported brokers.
- TradingView provides real-time data for various financial instruments, helping traders stay up-to-date with market movements.
It’s important to note that while TradingView offers a robust set of features for technical analysis and trading, users should always conduct thorough research and exercise caution when making financial decisions. Additionally, the availability of certain features may depend on the subscription plan chosen by the user.
How to Use Trading View Platform
There are multiple ways in which you can utilize Trading View to enhance your trading experience. Therefore, it is known to be a powerful financial platform that provides traders with an extensive range of exclusive TradingView features and tools designed to support market analysis and informed decision-making.
Features of the Charting Tools and Analysis
TradingView platform provides multiple features for investors and traders, including charting tools and analysis of the market.
Advanced Charting on the Platform:
- There are several types of charts, including Heikin Ashi, Renko, Kagi, and many more forms which the user can choose.
- They also have multiple time frames and themes, making it easier for the trader to analyze the price movements and identify patterns.
- Also, enabling simultaneous comparison of different assets or time through multi-charts layouts.
- The platform boasts a vast selection of over 10 in-built technical indicators like Moving Average (MA), Moving Average Convergence/ Divergence (MACD), Bollinger Bands, and candlestick pattern recognition. Moreover, all the indicators help the trader to analyze the market tends thoroughly.
- TradeView offers drawing tools that allow users to explain their charts and perform all kinds of detailed technical analyses. These tools include Fibonacci retracements, support/resistance levels, and many more.
- Users can set alerts based on price levels, technical indicators, or specific events. These alerts can be delivered via visual popups, audio signals, or notifications sent to your mobile phone.
- So, the platform ensures that the traders and investors stay informed about the market movements.
- TradingView also includes fundamental tools such as valuation ratios and analysis, financial statements, and historical data of the company as well to help the traders so they can perform fundamental analysis.
Market Data Coverage
- The platform provides extensive market data coverage, encompassing stocks and forex commodities.
- Moreover, TradingView even allows users to create their indicators, strategies, and alerts using the platform’s programming language, Pine ScriptTM…
Benefitting from Trading View
It is a valuable resource for traders and investors of different backgrounds, even the ones with little to no trading skills or knowledge at all.
- Trading View is a versatile platform that caters to traders of all skill levels, from beginners to professionals.
- Furthermore, beginners can benefit from the user-friendly interface of the platform, educational resources, and a supportive community where beginners can learn from experienced traders.
- So, traders with more knowledge and experience will have the advantage of the platform’s charting tools and technical indicators to analyze the market and stay informed about the trends.
Different Commodities and Stocks on the Trading View
- The extensive data of the market on this platform allows traders to view it as a valuable resource.
- Stock traders can access earning data, real-time quotes, and other important information to help traders or investors make smart decisions.
- Forex traders can analyze the currency pairs, and commodity traders can monitor the prices of various commodities, such as oil, gold, and agricultural products.
Seeking Data-driven Insights and Analytics on Trading View
- TradingView is not only for traders who are active investors who are seeking data insights but can also benefit from the features of this platform.
- The platform also helps users find information about economic indicators and financial ratios. Also, for helps an investor to make an informed decision.
- The community on the platform allows users to share ideas, strategies, and insights, creating a collaborative environment for investors to stay informed about market trends and conditions.
Trading View is a great platform for trading and staying informed about market conditions and price movements. Because of its user-friendly interface, this platform is a great place for people who have just started trading and have zero knowledge or skills about it. It also provides lots of features that are already advanced in the trading game. Hope you find this article helpful!
Options trading is known as one of the most popular modes of investment. But most of the traders lose in this kind of trading because of severe gaps in understanding and know-how of its derivatives.
So, we recommend you never execute an option trade without sufficient knowledge. In this post, we have discussed all an investor must know about the options, their types, and some common strategies.
What is Options Trading?
Options are basically contracts of trade that investors use to take risks about whether an asset price will increase or decrease on a specific future date without any obligation to buy the asset in question. However, a buyer in options is charged an amount known as a premium by the sellers for a claim.
If the market prices become unfavorable for options holders, they have the option to expire worthless and not exercise the right. It ensures that potential losses are not higher than the premium amount. Alternatively, if the market prices move in the track that makes the right more valuable, they can exercise the trading.
Example of Options Trading
After understanding the basics of options, here we have described its example. In the example, we have used the company Costco as a fiction.
Suppose on 1st March, the stock price of Costco company is $75, and the set premium is $10 for a June 80 call. It means that the expiration is the 3rd Friday of June, and the strike price is $80. The total price of the contract is $10 x 100 = $1000.
Keep in mind that a stock option contract is the option to buy 100 shares. That is why you must multiply the contract by 1000 to get the total price. The strike price is $80, which means the stock price must rise above $80 before the call option is worth anything. Moreover, the contract is $10 per share the break-even price would be $90.
When the stock price is $75, it is less than the $80 strike price, so the option is worthless. But don’t forget that you have paid a $10 premium for the option, so you are down by this amount at this time.
Three weeks later the stock price is $95. The option contract has increased along with the stock price and now is worth $20 x 100 = $2000. Subtract what you paid for the contract, and your profit is ($20 – $10) x 100 = $1000. At this point, you can sell your option, which is called closing position, and take your profits.
By the expiration date, the price decreased and is now $68 as the price is less than our strike price, which is $75, and there is no time left; the option contract is worthless. Right now, we are down to the original investment of $10.
Types of Options
Options trading is basically a derivative security as its price links to the price of something else. This trading has two types, including;
- Call Option: In this type of trading, the buyer of the contract purchases the right to buy an underlying security at a designated price within a specific period. The price a buyer pays is known as the strike price, and the end date for exercising a call option is known as the expiration date.
- Put Option: This trading type is opposite to the call option. So, instead of having the right to buy an underlying security asset, the buyer of the contract purchases the right to sell it at a fixed strike price in the future. Moreover, the put option also has an expiration date.
Common Strategies in Options Trading You Should Know
There are many strategies in options that limit and maximize the return. Here we have shared some common strategies of options that every investor must know.
1. Long Put
A put option allows the holder the right to sell the underlying at a set price. This strategy is preferred for a trader who is bearish on stocks like indexes or ETFs but wants to take on less risk than with a short-selling strategy. Furthermore, this strategy fits people who want to use leverage to take the benefit of dropping values.
2. Short Put
It is the reverse strategy in options trading of long put, but in short put, a trader sells a put and expects the stock price to be above the strike price when the expiration date occurs. In exchange for selling a put, the trader gets a cash premium, which is the most a short put can earn. If the stock closes below the strike price at option expiration, the trader must buy it at the strike price rate.
3. Long Call
In this strategy, a trader buys a call and expects that the expiration will exceed the stock price. If the stock soars, the benefit of this trade is uncapped, and traders can get many times their initial investment. While the price falls, the losses are limited to the premium paid for the option and no more.
However, this strategy is preferable for those traders who are confident about a particular stock, ETF, or index and want to limit the risk. Additionally, traders want to use leverage to take advantage of rising prices.
4. Short Call
In a short call, option traders sell a call but also buy the stock underlying the option 100 shares for every call sold. Keeping the short-call stock turns a potentially risky trade into a safe trade that can produce income. Traders expect the stock price to be below the strike price at the expiration date.
But if the stock finishes above the strike price, the owner must sell the stock to the call buyer at the strike price. However, this strategy is preferred for traders who expect no change in the underlying price, collect the full option premium, and want to limit the upside potential in exchange for downside protection.
5. Long Straddle
In a long straddle strategy, a trader buys both a call and put option with the same strike price and expiration date. The direction of the market movement after it has been applied has no bearing on profit and loss. Traders get profits from weighty price movements in both directions.
6. Short Straddle
Unlike long straddle, short straddle strategy allows the traders to sell both a call and put option with the same strike and expiration date. It is applied during the times when the market is less volatile. Traders will get profit from minimal price fluctuations.
7. Married Put or Protective Put
In this options trading strategy, a trader buys an asset and buys an (ATM) put option at the same time for an equivalent number of shares. The holder of a put option has the right to sell stock price, and each contract is worth 100 shares. Traders opt for this strategy to protect the downside risk when holding a stock.
Don’t know much about the futures trading? Let’s cover all the things you need to know about this trading method.
Introduction Futures Trading
Futures trading is a financial trading method that involves buying and selling contracts for the future delivery of a commodity or financial instrument. These contracts are known as futures contracts. They specify the quantity, quality, and price at which the underlying asset will be delivered on a future date.
Futures can be conducted on a variety of assets, including commodities (such as gold, oil, and agricultural products), financial instruments (such as stock indices and interest rates), and more.
Futures contract typically refers to specific types of futures like oil, bonds, gold, and the S&P 500 index. These contracts enable you to agree on a price for an asset in the present that would be exchanged in the future. This contract is also known as the direct way to invest in oil. However, the term “Futures” is more general and refers to the whole market.
Purpose of Futures Trading:
- Participants use futures contracts to hedge against the price volatility of the underlying asset and reduce the risk associated with price fluctuations.
- Futures traders also engage to speculate on future price movements.
- Futures contracts, as mentioned above, are standardized agreements traded on organized exchanges that specify the quantity, quality, and delivery date.
- Furthermore, these future contracts have an expiration date. Which must be settled by either physical delivery or by cash settlement with assets.
- There are businesses or investors known as “Hedgers” who use these contracts to protect themselves against the adverse price movements in the market.
- These individuals or institutions are seeking to profit from price movements without the intention of taking physical delivery of the underlying asset.
- Futures trading often involves leverage, allowing traders to control a larger position with a smaller amount of capital. While leverage can increase profits, it also increases the potential for losses.
- It can be risky due to the leverage involved and the volatility of the underlying markets.
- It’s essential for individuals engaging in futures trading to have a good understanding of the markets, risk management strategies, and the specific instruments they are trading.
- Futures trading is typically conducted on regulated exchanges, such as the Chicago Mercantile Exchange (CME) and others, to ensure fair and transparent trading practices.
- Depending on the type of futures contract, settlement can occur through physical delivery of the underlying asset or a cash payment based on the contract’s value.
Understanding the Basics of Futures Trading
- Futures trading means a contract to buy or sell a particular commodity at a future date.
- The amount and the price of the commodity are fixed at the time of the agreement in future trading.
- Some contracts do allow the settlement of cash instead of delivery. However, some contracts contemplate that the agreement will be fulfilled by the time decided for the delivery of the commodity.
- Most contracts are wind up before the delivery date.
- A futures commodity option gives the buyer the right to buy or sell a particular futures contract at a future date and for a particular data.
- There are some limited exceptions, such that commodity futures and options must be traded through an exchange by a person or firm registered with the CFTC (Commodity Futures Trading Commission).
Traders of the Futures Market
- Most of the participants in the future markets are producers and consumers of institutional or commercial commodities.
- Most participants are “hedgers” who prefer futures to maximize the value of their assets and reduce the risk of losses from price changes.
- Some of the participants profit from changing prices in the futures contract.
Future Professionals Regulations
- Companies and individuals should be registered with the National Futures Association (NFA) for handling customers or to give them trading advice. NFA is approved by the CFTC, which is a self-regulatory organization.
- CFTC protects customers by requiring market risks and past performances to be revealed to potential customers.
- Customers funds are kept in a separate account from the firms’ funds.
- Also, customers’ funds are adjusted to reflect the trading of each day of current market value.
- The CFTC also monitors internal controls and sales practice compliance programs.
- Furthermore, the NFA also provides detailed information for traders.
Things to Consider Before Purchasing Futures Commodity
- Firstly, consider your financial experiences, resources, and goals.
- You must understand all the obligations of any contract before you purchase.
- Ensure to review the risk disclosure documents provided thoroughly they are provided to you by the broker.
- Make sure you know whom to contact when there is a problem or question.
- You should ask questions and gather all the information that you need to know before opening a trading account.
- Like other markets, Futures have risks, like many investors losing all their money and being required to pay more than the money they invested initially. You always have to be cautious.
Before you engage yourself in a futures trading participant, you must understand the markets thoroughly.
You also should have a solid trading plan and be aware of the risks involved.
Many traders also use technical analysis, fundamental analysis, and risk management strategies to inform their trading decisions. Additionally, it’s advisable to stay updated on market news and events that may impact the prices of the underlying assets.
Difference Between Futures and Forwards
A forward is just like futures in that it specifies the exchange of goods for a specified price and date. But a forward can not be traded on an exchange and also doesn’t have interim partial payments due to marking to market. Moreover, forwards have the risk of credit, whereas futures do not.
Futures trading is one of the most popular ways of trading. It involves buying and selling contracts for the future and specifying the quantity and quality. And the price at which the underlying asset will be delivered on a date set in the future. Before buying or selling futures commodities, here are some of the things mentioned above that you should consider. Hope you find this article helpful!
Have you ever wondered why the forex market sometimes moves more rapidly, literally in the blink of an eye, and you are not ready for this kind of change? In this article, we have shared how you can prevent this type of change. Be ready to avail profitable opportunities with the help of a forex expert advisor.
What is a Forex Expert Advisors and Its Types
Expert advisors are also known as EAs or Forex robots that are used with the MT4 Forex trading platform to enhance your currency trading. Whether fully automated trading or simple expert advising, such as signals, you can decide whether to act or not.
An expert advisor is a software that automates trading functions based on algorithms. MT4 EAs use a mathematical model based on trade signals to search and suggest perfect entry and exit points in trades. Most profitable EAs also collect trading data from the forex market and deliver analytics to the forex trader. Best expert advisors are customizable, and traders can program them to use their desired trading strategy.
Types of Forex Expert Advisors
In the Forex market, five types of expert advisors are usually used for trading, that is mentioned below.
- The News Expert Advisors
These types of EAs will analyze financial news and identify strategic trades based on the changes that happen in their wake time. With this expert advisor, you don’t have to watch the news to know whether the values of currencies will rise or drop.
- The Breakout Expert Advisors
These Expert advisors will continuously do technical analysis of the market and let traders know when they think big changes are coming.
- The Hedge Expert Advisors
These EAs will open opposing positions, which will reduce your risk and profits. The hedge EA will let you know the best time to sell to cut your losses. Before starting hedge forex, ensure you understand the algorithm of hedging no matter if you are a beginner or experienced trader.
- Scalper Expert Advisors
These EAs track the goal to secure small profits once they are available. These expert advisors will open and close an endless amount of orders for any profit and could trade up 400-500 times a day, depending on market conditions.
- Adaptive Expert Advisors
Under this category, EAs can be set to react in different ways to different moments in the market. It is the most flexible and customizable expert advisor.
Benefits of Using the Best EA
On the internet, thousands of expert advisors are available for MetaTrader 4 or MetaTrader 5 platform. It is a complicated task to choose the best from them. However, all the EAs are not perfectly coded, and if the code is not perfectly written, the EA is not working accurately. Buying and using broken EAs significantly harms your money and trading experience.
However, the most accurate expert advisor is Trendonex, that are perfectly coded to provide accurate trend identification and smart entry points.
- EA, like Trendonex, helps you to automate your trading strategies.
- Trendonex for MT4 helps you identify multiple opportunities, deeply monitor the market, analyze factors rapidly, and trade accordingly.
- An EA like Trendonex can help you manage your risk with built-in stop loss and take profit functions for every trade. Additionally, you can use the breakeven and trailing stop features to minimize your risks further.
- The best forex EA also assists you in trading in a more disciplined manner by taking out the emotional factor of trading.
- Forex expert advisors are active 24/7 and do not need to take a break like humans.
- Additionally, by using the best EA, like Trendonex, there will no longer be a need to hire a specialist.
How to Productively Use MT4 Expert Advisor
The best expert advisors for MetaTrader 4 need a powerful computer and an excellent internet connection. Since they work online and 24/7, they require a system that can always be online and work smoothly. Getting the right hardware resources for profitable trading with MT4 expert advisors can get expensive, especially for new forex traders.
EAs are perfect for automated forex trading, but they still cannot remove issues that rely on third-party causes. There are issues like a delay that can cause you slippage in trades or the opportunity to place a great trade on time. These problems are mainly a result of poor internet connection or physical distance from your forex brokers.
These problems might seem disappointing, but every problem has a solution, too. The solution to all of these problems is forex virtual private servers, also known as VPS. These virtual private servers are located in all the Forex market hotspots. Traders can always find a Forex VPS in a location close to their broker to prevent delay. However, they work 24/7, which means if you are occupied or asleep, your Forex VPS is online and MT4 expert advisor is trading without internet interruption.
Reasons to Use EAs in Forex Trading
- Emotional Factor
Emotions impact the trader’s decision by creating greed, fear, excitement, and anger. Since financial assets are involved, emotions can impact directly and instantly, resulting in bad-quality decisions. So, if you are an emotional trader, using EA is a good choice to boost your decision-making process. An EA makes decisions without emotions, and it is free of fear and greed.
- Short-term Trader
A short-term trader continuously watches charts and should respond to short-term volatility and make more trades than long-term investors. Responding to all the ups and downs in the market makes a trader emotional, and it will impact their decision capability.
- Optimize an Expert Advisor
For someone who has built optimization skills and can optimize in less time and more frequently. So, for them, it is the best option to run an EA.
In this article, we have shared all the beneficial information regarding the forex expert advisors for the MetaTrader 4 platform. No matter what type of EA you are using for trading, don’t forget to get the services of forex VPS to run an expert advisor without any interruption.
Don’t know much about the Forex Trading market and the strategies used in that?
The Foreign Exchange Trading Market or commonly known as the Forex or FX market. This marketplace is global and is open 24 hours a day on weekdays. And it is the best place to trade your assets. FX trading is conducted OTC (over-the-counter), which means there is no physical place to exchange assets.
Rather than using a central exchange, like the New York Stock Exchange, the FX market is operated and monitored by a worldwide network of banks and financial institutions.
Understand the Forex Terms
Every marketplace has its terminology, and before entering the trading market, these are the important words to know before engaging in FX trading.
- Currency Pair: All trades require a currency pair. Additionally, to the common, there are also less common trades such as exotics, which are currencies of developing countries.
- Pip: Pip is considered the shortest percentage in points, and a pip refers to the minimum possible price change within a currency pair. Therefore, FX prices are quoted out to at least four decimal places; a pip is equal to 0.0001.
- Bid: The exchange rates are determined by the maximum price that buyers are willing to pay for a currency is called a bid.
- Ask: The exchange rates are determined by the minimum price that sellers ask to sell the currency is known as ask.
- Spread: It is the fees that apply on the transaction between bid-ask is called the bid-ask spread.
- Lot: A lot is a unit measuring a unit of currency. Forex commonly deals with specific amounts called lots, or basically the number of currency units you sell or purchase. There are four lot sizes available to trade: Standard (100,000), Mini (10,000), Micro (1000), and Nano (100).
- Leverage: Because of large lot sizes, some traders may not be ready to put so much amount to execute a trade. Leverage is the term for borrowing money, which allows traders to participate in the foreign exchange market without the money otherwise required.
- Margin: Trading through leverage is not free; traders must deposit some money as a security amount known as a margin.
6 Facts about Forex Market
- The Forex Market is Enormous: Foreign exchange FX is the world’s most traded market, with over $7.5 trillion being traded regularly. To put it in view, the daily average volume for the S&P 500 is 2.27% of the FX traded volume means 553 billion US dollars.
- Perhaps you have Already Traded Forex: When you travel to another country, you have to exchange your currency for foreign currency to spend money there. Sometimes, you don’t even completely spend that currency, and you will convert it back to your own country’s currency. This procedure is known as FX.
- Currencies are Available in Pairs: You are always trading one currency with another, for instance, the US dollar against the euro (USD/EUR). It is known as an FX pair.
- Potential Opportunities: Forex is an unexpectedly liquid market, and it is rapidly changing all the time. It makes it especially attractive to traders looking for short-term gains.
- It is a Decentralized Exchange: As you know, stocks use exchanges such as New York Exchange. However, FX is traded by an OTC means there is no physical exchange; it is a decentralized global network of banks.
- The Forex Market Never Sleeps: This market is open 24 hours a day, five days a week, from Sunday 5 PM to Friday 5 PM. It is why the time zones of the four trading centers, London, Sydney, New York, and Tokyo, extend over with each other, so when one closes, another opens.
How does Forex Trading Works
FX traders trade a currency pair, the two different currencies quotation paired together. A currency pair significantly tells traders the current market price of one currency against another. A three-letter code denotes every currency pair. These two codes are usually two letters representing the region where the currency belongs and one letter representing the name of the currency itself. For instance, the currency code of the U.S. dollar is USD, and the currency code of the British pound is GBP.
In a currency pair, the first currency is the base, and the second is the quote. The quote shows how much of the second currency you can get with one unit of the first. For example, if the EUR/USD quote is 1.06, it means 1 euro is equal to $1.06.
Pros and Cons of Forex Trading
|It is one of the largest liquid markets.
|It leverages trading to increase the risk of loss.
|On the FX market, more than 100 global currency pairings are listed.
|Unpredictable market behavior due to geopolitical reasons.
|It operates 24 hours and five days a week.
|It charges trading commission and margin fees.
|It required low initial capital.
|Open orders require 24-hour risk management.
|In FX, high volatility creates profit-making opportunities.
|Currencies don’t generate flow or dividends.
What is the benefit of the Forex?
This market has many benefits if you have strategies to survive in the market. It will help you to earn lots of profit when you can convert large amounts of foreign currency.
How is forex profit calculated?
The FX profit can be calculated by multiplying the size of the position (traded units) by pip movement or simply just multiplying the pip movement.
Can I day trade with $100?
Yes, you can start trading with $100; however, it also depends on the broker. Some brokers may ask for more than $100 for the deposit.
To conclude, Forex trading is a great market. It offers accessibility and profit potential but involves risks like leveraging and market unpredictability. But through the predetermined logic that EA possesses the risk in the trading can be reduced or at least can detect the risk before time. Now, this can help the trader to make a decision suitable for him and according to his risk tolerance.