Forex vs CFDs: Their Differences And Similarities - FXCM ...

Ripple-overview of cryptocurrency features

Blockchain technology is multifaceted and allows you to implement the most daring and unexpected projects, which are significantly superior in all respects to the very first cryptocurrency – Bitcoin. One such project was Ripple, which was originally created as a faster, safer and cheaper alternative to interbank transfers. Thanks to the efforts of developers and moving away from the traditional structure of the distributed network, Ripple eventually became one of the few projects that combine the functionality of a payment system and a universal platform that allows participants to exchange liquidity for various assets, including but not limited to Fiat currencies.
Ripple cryptocurrency is often compared to Bitcoin, but not because they are similar. On the contrary, we are talking about such large-scale differences that part of the crypto community doubts whether Ripple is a cryptocurrency? Judge:
To ensure high performance and increase throughput, developers had to abandon the traditional distributed network system, where each participant has equal rights with the rest. In the ripple network, node computers have more privileges – they are in constant relationship, searching for consensus and forming a ledger-a distributed database that is similar to the Bitcoin blockchain, but still is not a chain of blocks in the "classical" sense.
The very idea of blockchain implies the creation of an unbroken and unchanging structure. It is impossible to cancel an already committed transaction that has passed through the block mining procedure. This statement is true for the Bitcoin network, but not for Ripple, which officially has a procedure for cancellation of payment, and therefore-and a single control center, which can affect the functioning of the entire system. The fact of violation of one of the fundamental provisions on the structure of decentralized anonymous networks, which directly points to the equality of powers and rights of each of the participants, is the main reason for the heated debate about the true nature of Ripple. Based on the analysis of official information from developers, it is really hard to decide whether Ripple is an ordinary payment system that successfully "masquerades" as a cryptocurrency or it is an innovative solution, one of the few that is able to link the world of the real economy and cryptocurrency .
If we continue the line of comparison with Ripple and Bitcoin, one of the most fundamental differences between them will be the complete absence of mining. Immediately after the launch of Ripla, 100 billion tokens of the internal cryptocurrency XRP were "PreMain". To date, only 55% of the total number of coins issued is in circulation, but since January 2018, developers have been putting 1 billion XRP into circulation through exchanges every month. The concentration, in fact, in one hand more than half of the entire money supply inevitably generates talk about the high risk of investing in this cryptocurrency. In addition, there is one unpleasant moment in the history of Ripple related to the attempt to sell a large number of XRP coins by one of the former members of the development team, which does not add to investors ' confidence in the overall reliability.
But the most important difference between Ripple is a fundamentally different purpose of cryptocurrency. Bitcoin was conceived as an anonymous payment system, but has turned into an investment tool for those who love risk, and the entire Bitcoin network is actually only engaged in servicing transfers between participants. The creators of Ripple do not try to use competition among token holders to increase the overall capitalization of the system. One of the confirmations of this point of view is the constant rise in price of the Bitcoin mining process, which serves as one of the factors pushing its rate up. But Ripple Labs chose a different strategy: they are trying (and not without success) to attract major players in the financial market, offering them to become members of the network and supply liquidity (live Fiat money). The role of the internal cryptocurrency is reduced to the function of a universal transmitting and connecting link between counterparties that can not carry out direct conversion operations between the used instruments from the world of the real economy.
In fact, Ripple is a combination of traditional and decentralized payment systems: the search for consensus and the implementation of transfers are entrusted to nodes that are large financial institutions with their own funds in Fiat currencies. And if other projects of the crypto world issue slogans about the imminent and imminent demise of the traditional banking sector under the influence of blockchain technology, Ripple, on the contrary, expands the horizon of possibilities of banks and financial institutions, offering them a more profitable and universal algorithm for domestic and international payments.
But, despite the fact that Ripple has existed for quite a long time, while it is a competition to the same SWIFT only formally: daily turnover is not comparable either in volume or in the number of operations. And although Ripple is consistently moving towards attracting more large participants (American Express and Money Gram have already become partners), it is still very far from the level of a global and universally recognized payment system.
For a private person, Ripple is not only a convenient payment system with guaranteed liquidity and instant transfers (but not anonymous-this is the requirement of member banks and legislation). Due to the presence on the largest crypto exchanges, private investors can successfully earn on fluctuations in the exchange rate of XRP to the dollar and other cryptocurrencies. The second way is to trade through a Forex broker company, you should choose a dealing center that offers a CFD (contract for difference) with Ripple-there are not very many of them yet.
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How Head & Shoulders Pattern Work in Forex Trading?

How Head & Shoulders Pattern Work in Forex Trading?
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In forex trading, Many Forex traders have made ginormous profits using chart analysis. It is designed to identify the highest probable outcome when the prices follow a certain pattern. Chart analysis has a higher chance of returning you with profits. And every analysis has a theory of the trading trend which makes it quite reliable. Head and shoulders pattern is one of the basic chart analysis methods which has a set of rules to identify the pattern and make profits.
Left Shoulder: When the prices rise to a certain peak and then fall, the peak is known as the left shoulder.
Head: When the prices rise again to an even higher position than the left shoulder and then it falls, the peak is identified as the head.
Right Shoulder: When the stooped price from the head rises to form a peak lower than the head but almost equaling the left shoulder, the right shoulder is formed.
Neck Line: After spotting the left shoulder, head and right shoulder on the chart, the lowest value from the left shoulder is connected to the lowest value at the start of the right shoulder. This simple line is called the neckline. It is crucial to identify the neckline before the trade can be established.
https://preview.redd.it/ht25zvjr38m21.jpg?width=800&format=pjpg&auto=webp&s=b00306e1b79a538c55e05b4cbb3918236de8a1ca
How to Trade the Head & Shoulders Pattern? When the right shoulder hits the neckline is the right time to enter the trade. It is a must for traders to wait for the pattern to get completed as it can go either way even a minute before the completion of the pattern. It suggests that after the prices reach the neckline at the end of the right shoulder, the breakdown occurs. The breakdown is the sudden surge in the rise or fall of the prices.
How head & shoulders work? When the head sees a fall, the traders would have started to sell their positions as it is the highest peak at that time. This leads to less aggressive buying in the market. The traders who entered the right shoulder would have started to sell as the price approaches the neckline. This would further decrease the interest in buying leading to a sudden fall in the prices. Reaching the neckline is when the losing traders experience the pain of heavy losses.
When to get out of the trade? You should get out of the trade when the prices reach a certain position which can be identified by the difference between the highest and lowest of the values in the pattern subtracted from the neckline. It is at this position you can earn a substantial profit with low risk.
Inverted Head & Shoulder: It is also a good position to trade when the head & shoulders pattern is inverted. The left shoulder is formed by the dipping prices and the head is formed after a dip greater than that of the left shoulder. The right shoulder is formed by another ‘V’ in the chart which is less than the head but almost equaling the left shoulder. Here, you add the difference between the highest and lowest value of the pattern to the neckline to determine your closing price.
One last thing to remember: It must have occurred to you that if charts give you the highest probable outcome, why not everyone is using it? And what if everyone follows the chart analysis? Identifying the right scenario where the prices follow the pattern can prove to be challenging and the pattern you identify cannot always be identified by all the traders. What appears to be a pattern for you might not be for the next trader. And there are always those who go by the instinct. So, it is highly unlikely for anyone to experience such scenarios. Trading has its own risks. Using chart analysis doesn’t promise profits every time. It simply gives you the highest probable outcome for the analyzed data. Some traders believe chart analysis to be a lie, while that may be true to some extent as it is impossible to predict the absolute price movements. Sometimes, the market acts differently from the analyzed data. It is your obligation to identify the right trade.
Alfa Financials offers a full suite of the best trading platform for beginners and professional traders. View our customized trader platforms, we are the trusted and experienced regulated online forex brokers for Forex, Futures, CFD and Currency Trading.
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Deciphering the Diamond Chart Pattern

Deciphering the Diamond Chart Pattern
Diamond Chart Pattern
The diamond chart pattern is one of the reliable chart patterns mostly used by the day traders to identify the potential uptrend reversals. The bearish diamond’s occurrences are far more prevalent than their bullish counterparts. The diamond pattern has enabled a large number of traders to make quick profits.
Forex trading markets, because of their high liquidity, gives way to more diamond formations than any trading counterpart.
Cutting the Diamond Bear An offset head & shoulders formation is chosen for the trend lines to be sketched. The left shoulder and the head are connected through a straight line. The head is then connected to the peak of the right shoulder. This forms the upper boundary of the diamond. The price must not break the boundary for it to remain in the pattern.
For the lower part, the left shoulder is again connected to the trough formed after the head which is then connected to the right shoulder.
Identification: Diamond vs Head & Shoulders It is not hard to get confused with the pattern of head & shoulders and diamond as they mirror each other. The offset nature of the head & shoulders pattern can be identified by the head located closer to the left shoulder and the tail slightly closer to the right. And the neckline will always struggle to be a straight line.
Entry The right time to take the trade is by the completion of the pattern. The breakdown is most likely to happen right after the formation of the diamond, so shorting at the end of the right shoulder could prove to be beneficial.
Exit The safest exit is marked from the right shoulder with the difference in value between the highest Peak and the deepest crevice within the pattern. The diamond pattern’s breakdown has more profit potential than just the difference between the peak and trough, but, more than that is a risk.
Stop-Loss Stop loss is a counter-measure to limit your losses in case of the failure of your analyzed pattern. It is most advised to place the stop loss at the last peak formed before the completion of the diamond.
Bullish Diamond Pattern Bullish diamond chart pattern, also known as the diamond bottom is also an existing pattern which is straight opposite to what we have seen, except for the profit potential. It is used to identify the downtrend reversal, but their formation is scarce when compared to the bearish diamond tops.
For the Bullish diamond pattern, the entry is the same as that of the diamond top, but the exit by the uptrend and the stop loss is placed at the last trough formed inside the pattern.
Before trying the learned chart analysis pattern in real time, use the historic trading charts to check if you can identify the right pattern. Novice traders, because of their overwhelming enthusiasm, often put their knowledge to work before testing it out and incur heavy losses. Learning diamond pattern makes no difference if you don’t practice and hone your skills.
Alfa Financials offers a full suite of the best trading platform for beginners and professional traders. View our customized trader platforms, we are the trusted and experienced regulated online forex brokers for Forex, Futures, CFD and Currency Trading.
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What is Forex?

What is Forex? The Forex (Foreign Exchange) Market is the largest market in the world. It is the market where currencies are traded. Each day, more than 4 trillion dollars are exchanged.
Why trade Forex? 24 HOUR MARKET The Forex market is open 24 hours a day, so that you can be right there trading whenever you hear a financial scoop.
NARROW FOCUS Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no room for confusion, so even though the market is huge, it’s quite easy to get a clear picture of what’s happening.
LIQUIDITY The enormous volume of daily trades makes it the most liquid market in the world, which means that under normal market conditions you can buy and sell currency as you please.
THE MARKET CANNOT BE CORNERED The colossal size of the Forex market also makes sure that no one can corner the market. Even banks do not have enough pull to really control the market for a long period of time, which makes it a great place for the little guy to make a move.
SIMPLICITY Use technical analysis (indicators on charts) methods from other markets like equities.
Basic Forex terms Listed below are some of the key terms used in Forex and CFD/Share trading
PIP A Pip is the "Percentage In Point" (PIP), sometimes also referred to as "Point". It is equal to the minimum price increase of a Forex trading rate. The most common Pip is 0.0001.
ASK PRICE The ask price is the price you can buy a currency at. It is also the price at which the market is willing to sell the currency to you.
BID PRICE The bid price is the price you can sell a currency at. The market is willing to pay you this price for this particular currency.
SPREADS Spread are the difference between bid price and ask price.
CURRENCY RATE A currency rate against another currency rate.
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CFD vs. Forex trading - YouTube Is it a Retracement or a Reversal - Forex, Crypto and CFD Trading Why trade FOREX and CFD over stock market? Chart Patterns & Trend Action for Forex, CFD and Stock ... Introduction To Technical Analysis for CFD And Forex Trading CFD & Forex Trading - YouTube

A final difference between CFD trading and Forex trading relates to the general factors that tend to influence the different markets. CFD trading is mostly influenced by specific factors, such as supply and demand of a given commodity or trend changes associated with business sectors. Forex trading on the other hand is mainly driven by global events, like large employment shifts or ... This makes it essential to conduct a full cost analysis of every trade before you commit, ensuring that over the term of your trade you can comfortably cover the costs of trading and financing in addition to delivering a profit. And with overnight financing costs and large transaction fees to boot, this isn’t always as easy a task as it seems. Key Difference Between CFDs and Forex. One of ... Forex, which involves trading different currencies against one another, is a bit more straightforward. This market is also one of the largest available to investors, and it has daily trading volume of more than US$5 trillion (£3.8 trillion). [1] Similarities Between CFDs And Forex. Both CFD and forex trading avoid the transfer of physical ... The key difference between forex trading and CFD trading is that while forex is limited to just currencies, CFD contracts cover a broader range of assets. With forex trading, the eight major currencies make up the majority of the trading volume on the forex market. Although many forex brokers will offer traders between 40 and 70 currencies comprising majors, minors, and exotics, CFD trading ... What Are the Similarities and Differences between the Forex vs CFD trading. Both methods are fascinating and potentially profitable in the currency market. A final difference between CFD trading and Forex trading relates to the general factors that tend to influence the different markets. CFD trading is mostly influenced by specific factors, such as supply and demand of a given commodity or trend changes associated with business sectors. Forex trading on the other hand is mainly driven by global events, like large employment shifts or ... Forex, which involves trading different currencies against one another, is a bit more straightforward. This market is also one of the largest available to investors, and it has daily trading volume of more than US$5 trillion (£3.8 trillion). [1] Similarities Between CFDs And Forex. Both CFD and forex trading avoid the transfer of physical ...

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CFD vs. Forex trading - YouTube

Learn how to read patterns in your trading trading charts and to understand what they are trying to tell you. Trend patterns and chart patterns such as recta... The knowledge to predict the difference between a retracement and a reversal is a great tool to add to your trading arsenal. Many experienced traders are still unable to detect the difference ... Sign in to like videos, comment, and subscribe. Sign in. Watch Queue Queue. Watch Queue Queue. Remove all; Disconnect; The next video is starting stop What's the difference between CFDs and Forex? Learn about the fundamental similarities and distinctions between CFD trading and forex trading. Join our Trading Room where we discuss All Things Forex on a daily basis: https://bit.ly/2PLwUmj Forex vs Stock market - which one is better and why? Let's d... Fundamental, technical, quantitative... There are a number of methods used by forex traders to predict the movements of currency pairs. Some traders focus on... Why trade forex and cfd over stock market. Category Education; Show more Show less. Loading... Advertisement Autoplay When autoplay is enabled, a suggested video will automatically play next. Up ...

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