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US100 ~ 4H Bullish Pennant (1H update)CAPITALCOM:US100 tapped & held above confluence. US Flash Manufacturing & Services PMI release could bring in some big swings in either direction...however intuition tells me majority of implied volatility will manifest next week with US data points: Wed - CB Consumer Confidence Thurs - Final GDP (q/q) | Unemployment Claims Fri - Fed Chair Powell Speech | Core PCE Price Index (m/m) | Revised UoM Consumer Sentiment & Inflation Expectations Play-by-play looks the way..
CAPITALCOM:US100
by BlueHatInvestor
GOLD, Breakout The Bull-Flag-Formation, Confirming The Trend!Hello, Traders Investors And Community, welcome to this update-analysis about GOLD, there are some new meaningful signs in the current formation and price-action which I detected, the last time I mentioned GOLD I recognized an important bull-flag-formation within the structure if you did not see this analysis I recommend that you go to my account and have a look on it. The last hours we saw GOLD breaking out the current bull-flag with good volume and volatility, that is overall all an excellent sign for more continuation to the upside which I mention here with the targets integrated. We are looking at the locally 4-hour time-frame. As you can see in my chart GOLD has still this strong rising-resistance-line above which serves as a highly important resistance in the structure. First of all, it is a good sign that we broke out of the bull-flag which you see in my chart, the next time it is within the high likelihood schedule that the bull-flag will be confirmed with a pull-back of the higher boundary of the bull-flag before moving higher after the confirmation. If the confirmation happens the next time this will be a good place to open a conservative long-position with a stop-loss below 1710 level, it is wiser to wait on the confirmation here than to rush in the trade as there is still some resistance above. After the confirmation happened we can expect GOLD to move higher to the first short-term-target at 1775 which you see marked in my chart in grey after this target is reached we can expect that gold will have a smaller correction to correct its upward-move before moving higher and finally reach the overall full-bull-flag-target which you see in my chart at the 1790 level. This target also matches coherently with the rising blue resistance line and building a bearish confluence zone there. On the longer time-frame, I observed that GOLD is trading in a possible big inverted head and shoulder formation in which we are forming the right shoulder currently but this has to be confirmed properly and when it does we have a good sign to move higher in price action. On the fundamental side, we have the overall stock-market which is declining and this is almost always a bullish sign for GOLD to move higher as the history showed already several times. When the corona-restriction do not increase in the country's again I do not see much of resistance for the growth of gold in the middle-term-basis, remember that when these restrictions increase or we get a second wave of corona-fears on the global-economy it can affect GOLD also as it affected the whole market-landscape, in this case, we need to be prepared and consider the changed situation again, therefore we need to do not get overly speculative and see the situation as it is because that happens fewer and fewer in today's markets. Thanks for watching, support for more market insight, and all the best. There are many roads to prosperity, but one must be taken. In this manner: FAREWELL Information provided is only educational and should not be used to take action in the markets.
TVC:GOLD
by VincePrince
21
SILVER (XAGUSD): Time to Buy 🪙 Update for yesterday's setup on Silver. The price is still approaching a key horizontal support that we spotted earlier. Here are 2 bullish confirmations that I spotted analyzing hourly time frame: the price formed a tiny cup and handle pattern and broke its neckline. The price violated a resistance line of a falling wedge pattern. I believe that the market will start recovering now. Goals: 23.32 / 23.46 ❤️Please, support my work with like, thank you!❤️
OANDA:XAGUSDLong
by VasilyTrader
3
SILVER (XAGUSD): Important Key Level to Watch 🪙 Silver is currently testing a key horizontal demand zone. Taking into consideration that the market is quite oversold after a strong bearish rally, we may see the pullback from the underlined area. Your confirmation to buy will be a bullish breakout of a neckline of a horizontal range on an hourly time frame. Hourly candle close above 23.2 will confirm the violation, a pullback will be expected to 23.33 / 23.45 levels then. ❤️Please, support my work with like, thank you!❤️
OANDA:XAGUSDLong
by VasilyTrader
3
GOLD - Is History Repeating Itself ⁉️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. After rejecting the 2080 resistance, GOLD has been overall bearish trading inside the falling channel in red and it is currently retesting the upper bound / trendline. Moreover, the zone 1980 is a strong resistance. 🏹 So the highlighted red circle is a strong area to look for sell setups as it is the intersection of the blue resistance and upper blue trendline acting as a non-horizontal resistance. As per my trading style: As GOLD approaches the "3" zone, I will be looking for bearish reversal setups (like a double top pattern, trendline break , and so on...) For the bulls to kick in and invalidate the bearish scenario, we need a break above the blue resistance. 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
OANDA:XAUUSD
by TheSignalyst
2
LINKUSD LINK USD CRYPTO CFD on PEPPERSTONE Higher local rejections aren't marked because they appear to be tested, if you're doubtful, mark them yourself. Initial lows, supports, untested spots marked with hotpurple box. Testing support currently, also a local low has been created, either we regain it and hold to continue with the move up.. or more likely, break below and push on to retest initial lows that created this whole trend up. Always refreshing charting a different ticker, removes imprinted biases, lets you acknowledge key spots, and removes all the bs. Anyways, i'll be watching this ticker over the next week or two. Once again LINKUSD LINK USD CRYPTO CFD on PEPPERSTONE gravy
PEPPERSTONE:LINKUSD
by gravy49
1
EUR/USD pair stalled going into EU inflation dataAfter surging close to 4% since early July off the back of a weakening USD, the EUR/USD pair has stabilised around $1.123. With very little volatility seen this week in the pair, eyes now turn to the euro, as the European inflation data is set to be released tonight. Analysts are predicting a continued downward trend in inflation, with a Year-on-Year forecast of 5.50%, which is below May’s figure of 6.1%. If the inflation data comes in above forecasts, we may see a further increase in the EUR as investors move towards the potentially higher yields. On the technical front, the tightening of Bollinger Bands on the 4-hour chart is something to watch. The lack of movement in the EUR/USD pair throughout this week has led to exceptionally tight Bollinger Bands, with levels not observed on this timeframe since 2021. When Bollinger Bands contract significantly, it typically signifies a period of low volatility and suggests that a breakout or significant price movement may be on the horizon. The Relative Strength Index (RSI) is also in overbought territory on multiple timeframes, including the daily. This might suggest there is room for a cool-off before a further continuation higher. However, with the European inflation data due tonight, the fundamental data might cancel out any technical signals.
Short
by Ryanboyd
EURUSD (Euro/USD) currencies Shorting Chance Fundamental Analysis: Based on the fundamental analysis of EUR/USD, there are indications of a shorting bias. Here's a comprehensive analysis based on the provided information: The recent price action and market sentiment suggest a potential shorting opportunity for the EUR/USD currency pair. Last week, the pair experienced a significant rally, posting its largest one-week gain of 2023, driven by broad-based selling pressure on the US Dollar (USD). However, despite the recent uptrend, the pair remains technically overbought in the near term, implying a possible reversal may be on the horizon. One of the key factors contributing to the shorting bias is the negative shift in risk sentiment. Cautious market sentiment is evident at the beginning of the week, with the Euro Stoxx 50 Index down more than 0.5% and US stock index futures trading modestly lower. If safe-haven flows dominate the financial markets in the second half of the day, it could limit the upside potential of EUR/USD and support the shorting bias. Moreover, the European Central Bank (ECB) has signaled its intent to continue tightening its policy, as revealed in the accounts of the ECB's June policy meeting. This suggests that investors may be hesitant to bet on a steady pullback in EUR/USD, further supporting the shorting bias. In terms of price levels, the 1.1000 psychological level is a key area to monitor. A confirmed break below this level could potentially set up a run towards the 1.0800 level, which represents a two-year low. The widening yield differential between US Treasury bonds and Bunds, along with potential inflationary pressures in the Eurozone, may contribute to the downside pressure on EUR/USD. It's essential to consider that fundamental analysis provides insights into the market's underlying factors but does not guarantee specific price movements. It is crucial to combine fundamental analysis with technical analysis and risk management techniques to make informed trading decisions. Please note that the information provided is based on the current market conditions and is subject to change. It is always recommended to conduct further research and analysis before making any trading decisions. Technical Analysis: Based on technical analysis, there appears to be a shorting opportunity in the EUR/USD currency pair. Several indicators suggest a bearish bias, including bearish divergence between the price and the MACD (Moving Average Convergence Divergence) indicator, as well as confluences of Fibonacci levels indicating potential resistance in the golden zone. The target for this short trade is set at the 1.27% Fibonacci extension level. Firstly, bearish divergence is observed between the price and the MACD. This occurs when the price forms higher highs, indicating potential strength, while the MACD indicator forms lower highs, suggesting underlying weakness. This bearish divergence signals a possible reversal in the upward trend of the EUR/USD pair. Additionally, the presence of Fibonacci confluences in the golden zone adds further weight to the bearish bias. The golden zone typically represents a range between the 38.2% and 61.8% Fibonacci retracement levels. The confluence of multiple Fibonacci levels within this zone serves as a potential area of strong resistance, which strengthens the case for a shorting opportunity. In terms of trade execution, the target for this short trade is set at the 27% Fibonacci extension level. The Fibonacci extension levels are projected beyond the original price range and serve as potential price targets for the continuation of the downtrend. It is important to note that technical analysis is not infallible, and it is always prudent to incorporate risk management strategies and consider other fundamental factors before making trading decisions.
Short
by BitonGroup
XAUUSD Bias: Short; Timeframe: DailyHello there, we may see a sell continuation today in the gold market as the price is currently lingering between 61.8 and 50 percent of Fibonacci levels in the downtrend market. Also, a nice bearish engulfing candle that completely swallowed the previous bar has been printed on the chart, showing us that the bears are in control. Market condition: Bearish Order Type: Market Stop loss: Place it above the bearish engulfing candle=1940.745 or 1935:313, depending on your lot size. Profit Target: First: 1907.931 Second: 1894.313 Third: 1829.365--Don't be greedy. Happy trading
OANDA:XAUUSDShort
by OraclePips
Mastering CFD Trading: A Comprehensive Beginner's GuideContracts for Difference (CFDs) have garnered significant attention as derivative products that offer traders the ability to speculate on the price movements of various assets without the need to own them physically. These financial instruments emerged in the latter part of the 20th century, propelled by the advent of the internet revolution, which revolutionized trading by facilitating swift and convenient short-term transactions. CFDs have since become an integral part of the repertoire offered by prominent brokers, providing traders with enhanced leverage and access to an extensive range of markets that encompass stocks, indices, currencies, and commodities. This broad market coverage has contributed to the popularity and widespread adoption of CFDs among traders seeking diverse investment opportunities. The historical roots of CFDs can be traced back to the late 1980s and early 1990s. It was during this period that derivative trading witnessed significant advancements, driven by technological progress and regulatory changes. The introduction of electronic trading platforms and the availability of real-time market data allowed traders to execute trades swiftly and efficiently, leading to the development of CFDs as a viable financial instrument. The operational mechanics of CFDs are relatively straightforward. When trading a CFD, the trader enters into a contract with a broker, mirroring the price movements of the underlying asset. This contract stipulates that the trader will pay or receive the difference in price between the opening and closing positions of the CFD. If the price of the underlying asset moves in the trader's favor, they stand to make a profit. Conversely, if the price moves against their position, they may incur a loss. One of the key advantages of trading CFDs is the ability to utilize leverage. Leverage allows traders to control a larger position in the market with a smaller initial investment. This amplifies potential gains, but it is important to note that it also magnifies potential losses. Traders should exercise caution and employ risk management strategies when using leverage in CFD trading. Furthermore, CFDs offer traders the flexibility to profit from both rising and falling markets. Through a process known as short-selling, traders can speculate on price declines and potentially profit from downward market movements. This ability to take both long and short positions provides traders with opportunities to capitalize on market trends and volatility. However, it is crucial to acknowledge that CFD trading carries inherent risks. Due to the leverage involved, losses can exceed the initial investment, potentially resulting in significant financial losses. Moreover, CFD trading is subject to market volatility, and sudden price movements can lead to rapid and substantial losses. Throughout this comprehensive article , we shall delve into the historical backdrop of CFDs, elucidate their operational mechanics, and present an evaluation of the advantages and disadvantages associated with trading these financial instruments. History Of CFD: Towards the conclusion of the 20th century, the landscape of exchange trading underwent a profound transformation, thanks to the advent of the Internet. This revolutionary technology empowered traders to engage in rapid short-term trades with unparalleled ease. Consequently, intraday trading emerged as a prominent trend, and astute brokers swiftly recognized the burgeoning demand for this segment among individual traders. However, a significant predicament persisted within the trading realm - exchanges were highly specialized and compartmentalized. Currency exchanges, stock exchanges, and futures exchanges operated as distinct entities, precluding traders from capitalizing on opportunities across multiple asset classes. For instance, a trader operating with a currency broker lacked the means to profit from futures or stocks. While opening multiple accounts with different companies was a possible solution, it was far from optimal. Furthermore, another obstacle loomed large: high leverage was imperative for generating profits through short-term transactions, yet traditional stock exchanges were averse to the risks associated with margin trading. In response to these challenges, visionaries at UBS Investment Bank conceptualized a new trading instrument known as the contract for difference (CFD). This innovative derivative allowed traders to profit from the price fluctuations of various assets without the need to physically own them or conduct transactions on the underlying exchanges. Traders could now conveniently engage in trading shares, oil, and other commodities using a single broker. Additionally, CFDs provided the desired leverage for short-term trading, overcoming the limitations imposed by traditional stock exchanges. Over time, CFDs became widely available, offered by popular brokers operating in diverse markets, including the forex market. Presently, this versatile financial instrument is successfully utilized by both short-term traders and long-term investors, catering to a broad spectrum of trading styles and planning horizons. The flexibility and accessibility of CFDs have made them an indispensable tool in the arsenal of market participants seeking to capitalize on price movements and maximize their trading potential. CFD Leverage Explained: One of the notable features of CFD trading is the availability of margin trading, which enables traders to borrow funds from their brokers. This concept is closely tied to the notion of leverage, which has a significant impact on the trading process. Leverage allows traders to control larger positions in the market with a smaller amount of their own capital. To illustrate the concept, let's consider an example. Suppose a trader utilizes a 1:50 leverage. This means that with just $1,000 of their own funds, they can open a position equivalent to $50,000. In this scenario, the borrowed funds provided by the broker amplify the trader's purchasing power, enabling them to access larger market positions. The level of leverage available in CFD trading varies depending on the underlying asset being traded. For instance, when trading shares, the leverage typically ranges up to 1:20. On the other hand, for commodities like oil, leverage can often reach as high as 1:100. It is important to note that when comparing leverage in CFD trading to leverage in forex currency pairs, the ratios may appear different. A 1:20 leverage in CFDs might seem relatively lower when contrasted with the leverage commonly available in forex trading. However, it is crucial to consider these ratios within the context of their respective markets. In traditional stock markets, equity leverage is typically limited and rarely exceeds 1:2. This means that traders in those markets have less flexibility in terms of controlling larger positions with a smaller amount of capital. In contrast, CFDs provide traders with significantly higher leverage, allowing them to amplify their potential gains and losses. It is important to approach leverage in CFD trading with caution and exercise risk management strategies. While leverage can magnify profits, it also amplifies potential losses. Traders should be mindful of the increased risk associated with higher leverage levels and consider their risk tolerance and trading strategies accordingly. Comparing leverage ratios across different markets provides insights into the varying degrees of flexibility and risk exposure available to traders. Understanding and utilizing leverage effectively is an essential aspect of CFD trading, enabling traders to optimize their trading strategies and potentially enhance their profitability, while remaining cognizant of the associated risks. How CFDs Work: Let's break down the scenario provided to understand the implications of trading CFDs compared to traditional stock ownership. Assuming the Ask price per share is $171.23, a trader purchasing 100 shares would need to consider additional costs such as commissions and fees. In a traditional brokerage account with a 50% credit on margin, this transaction would require a minimum of $1,263 in available funds. However, with CFD brokers, the margin requirements are typically much lower. In the past, a 5% margin was common, which would amount to $126.30 for this trade. When opening a CFD position, the trader will immediately experience a loss equal to the size of the spread at the time of the trade. For example, if the spread is 5 cents, the stock price must rise by 5 cents for the position to reach the breakeven level. If the trader owned the stock directly, they would make a 5 cents profit. However, it's important to consider that owning the stock directly would entail paying a commission, resulting in higher overall costs. Now, let's consider the scenario where the offer price of the stock reaches $25.76. In a traditional brokerage account, positions could be closed at a profit of $50, resulting in a 3.95% return on the initial investment of $1,263. However, in the case of CFDs, when the price reaches the same level on the national exchange, the bid price on the CFD may be slightly lower, let's say $25.74. Consequently, the profit from trading CFDs would be lower since the trader must exit the trade at the bid price. Additionally, the spread in CFD trading is typically wider compared to regular markets. In this example, the CFD trader would earn approximately $48, resulting in a 38% return on the initial investment of $126.30. It's worth noting that these figures are specific to the example provided and may vary depending on various factors, including the specific brokerage, market conditions, and the pricing dynamics of the underlying asset. Why Trade CFDs / Pros And Cons Of Trading CFDs Indeed, one of the significant advantages of trading CFDs is the expanded range of tradable instruments compared to the classical forex market. While the forex market primarily deals with currencies, CFDs provide traders with the opportunity to trade a wide array of assets. Most brokers now offer CFDs on various instruments such as gold, stocks, and stock indices, greatly diversifying the available trading opportunities. However, it is important to note that CFDs are not a direct replacement for the underlying assets. Although the price of a CFD contract reflects the price movements of the underlying instrument, there may be differences in the actual returns. These differences can be attributed to factors such as spreads, commissions, and other costs associated with CFD trading. Speaking of commissions, it is crucial to consider that CFD commissions may differ from those applied to the underlying asset. This distinction becomes particularly relevant in longer-term trading scenarios. Traders need to carefully evaluate the commission structure and any associated fees when assessing the overall costs of trading CFDs. Now let's delve into the main advantages and disadvantages of trading CFDs: Pros of CFD Trading: 1 ) Expanded Market Access: CFDs provide access to a wide range of markets, including stocks, commodities, indices, and more, allowing traders to diversify their portfolios and capitalize on various asset classes. 2 ) Leverage and Margin Trading: CFDs offer the potential for higher leverage, allowing traders to control larger positions with a smaller initial investment. This amplifies potential profits (as well as losses) and can enhance trading opportunities. 3 ) Ability to Profit from Both Rising and Falling Markets: CFDs enable traders to take advantage of both upward and downward price movements. Through short-selling, traders can speculate on price declines and potentially profit from falling markets. Cons of CFD Trading: 1 ) Counterparty Risk: When trading CFDs, traders are exposed to counterparty risk, as they enter into contracts with the broker rather than owning the underlying assets. If the broker encounters financial difficulties or fails, it can impact the trader's positions and funds. 2 ) Potential for Higher Costs: CFD trading may involve additional costs such as spreads, commissions, and overnight financing charges. These costs can impact overall profitability, especially for longer-term trades. 3 ) Market Volatility and Risk: CFDs are subject to market volatility, and sudden price movements can result in rapid and substantial losses. The use of leverage in CFD trading can amplify both gains and losses, making risk management crucial. It is essential for traders to consider these pros and cons when deciding to engage in CFD trading. Adequate risk management strategies and a thorough understanding of the underlying markets and associated costs are essential for successful and informed trading decisions. Risks Of Trading CFDs: Trading CFDs (Contracts for Difference) involves inherent risks that traders should be aware of before engaging in such activities. Understanding these risks is essential for making informed decisions and implementing appropriate risk management strategies. Here are some of the key risks associated with CFD trading: Leverage Risk: CFDs allow traders to access larger market positions with a smaller initial investment. While leverage can amplify potential profits, it also magnifies losses. Traders need to be cautious and manage leverage effectively to avoid significant financial setbacks. Market Risk: CFDs are directly linked to the price movements of underlying assets, which can be influenced by various factors, including economic indicators, news events, and market sentiment. Rapid price fluctuations can lead to substantial losses, especially if positions are not managed appropriately. Counterparty Risk: When trading CFDs, traders enter into a contractual agreement with the CFD provider. This exposes them to counterparty risk, which refers to the possibility of the provider failing to fulfill its obligations. It is crucial to choose a reputable and regulated CFD provider to minimize this risk. Operational Risk: CFD trading platforms can experience technical issues, such as system outages or errors, which may prevent traders from executing trades or managing positions effectively. Traders should be prepared for such operational risks and have contingency plans in place. Liquidity Risk: In certain cases, CFD markets may lack sufficient liquidity, meaning there is a limited number of buyers and sellers. This can make it challenging to enter or exit positions at desired prices, particularly during volatile market conditions. Traders should be cautious when trading illiquid CFD markets. Hidden Costs: Some CFD brokers may impose additional fees and charges, such as overnight financing fees or spread mark-ups. These hidden costs can reduce profitability over time, and traders should carefully review the fee structure of their chosen CFD provider. To mitigate these risks, traders are advised to implement risk management techniques, including setting stop-loss orders to limit potential losses, conducting thorough market analysis, and continuously monitoring positions. It is also crucial to conduct due diligence when selecting a CFD provider, ensuring they are regulated and offer transparent pricing structures and reliable customer support. By understanding and effectively managing these risks, traders can enhance their chances of success and navigate the complexities of CFD trading more confidently. Choosing A Broker For CFD Trading: When selecting a broker for CFD trading, certain parameters take precedence. These include: 1 ) Reliability and Reputation: When it comes to CFD trading, the importance of a broker's reliability and reputation cannot be overstated. Given the instrument's relative lack of popularity, there may be instances of limited liquidity, which increases the temptation for unethical practices such as manipulating charts or altering quotes. It is crucial to choose a broker known for their trustworthiness and positive reputation. 2 ) Variety of CFDs for Trading: It is advisable to thoroughly examine the broker's website and review the comprehensive list of available contracts. Ensure that the list includes the specific CFDs you intend to trade. Having access to a wide range of CFD options allows you to diversify your portfolio and pursue various trading opportunities. 3 ) Contract Specifications: Identify the CFDs in the broker's list that you plan to trade frequently. Pay attention to the contract specifications, including spreads, commissions, and swaps, as they should align with your trading style and objectives. If you require high leverage, verify the leverage availability for each CFD category. By carefully considering these parameters, you can make an informed decision when choosing a broker for CFD trading. This will contribute to a more satisfactory trading experience and help you align your trading strategy with your goals. Conclusion: Contracts for Difference (CFDs) provide traders with a gateway to a diverse range of popular exchange-traded assets. Through a single CFD broker, traders can engage in trading activities involving stocks, indices, and even cryptocurrencies. The key to achieving success in CFD trading lies in the trader's level of proficiency in understanding the intricacies of specific instruments. The most favorable outcomes are typically attained by individuals who concentrate their efforts on a particular asset class or even a specific instrument within that class. By acquiring comprehensive knowledge and a deep understanding of the various factors that influence prices, traders can surpass market performance and reap the rewards they rightfully deserve. This focused approach enhances their ability to make informed decisions, seize profitable opportunities, and maximize their potential gains in the CFD market.
COINBASE:BTCUSDEducation
by FOREXN1
12
INFORMATIONAL : THE UPSURGE OF PROPRIETARY TRADING FIRMS There has been a recent upsurge of CFD prop firms appearing. These prop firms offer traders the opportunity to trade with their capital and earn a percentage of the profits. But are these prop firms better than trading with a broker? And what are the risks and benefits of joining them? In this publication, we will explore these questions and more. 🔹What are CFD Prop Firms? CFD prop firms are different from traditional prop firms in several ways. Traditional prop firms typically employ traders and give them access to proprietary trading tools and tactics as well as training and coaching. Contrarily, CFD prop businesses fund traders once they successfully complete a task or audition rather than hiring them. Typically, the audition entails paying a fee and achieving specific trading goals within a predetermined time span. A profit target, a maximum drawdown limit, a daily loss limit, and other risk management guidelines could be part of the trading objectives. If a trader passes the audition, they will receive a funded account with a certain amount of capital, ranging from $10,000 to $1 million or more depending on the prop firm. The trader can then trade with the prop firm's capital and keep a percentage of the profits, usually between 50% to 80%. The prop firm will also monitor the trader's performance and enforce the same trading objectives as in the audition. If the trader violates any of the rules or loses too much money, they may lose their funded account or have to start over. 🔹Benefits of Joining a CFD Prop Firm Joining a CFD prop firm gives traders access to more capital than they would otherwise not have, which is one of the key advantages. As a result, they may be able to trade more instruments, diversify their portfolio, and boost their earning potential. Another advantage is that the trader's downside risk is diminished because they are just putting their audition fee at danger and nothing more, not their own money. Additionally, certain prop companies provide extra advantages like coaching, education, community support, scaling plans, and bonuses. 🔹Drawbacks and Challenges of Joining a CFD Prop Firm However, joining a CFD prop firm also has some drawbacks and challenges. One of them is that it can be difficult to pass the audition and maintain the funded account, as some of the trading objectives can be very strict and unrealistic. For example, some prop firms require traders to make a 10% profit within 30 days while keeping their drawdown below 5%. This can put a lot of pressure on traders and force them to overtrade or take excessive risks. Some prop companies may not be transparent or reliable and may not actually supply real money to trade with, which is another disadvantage. Instead, they might run a Ponzi scheme or use the audition fees to distribute the earnings. Therefore, before joining any prop firm, traders should exercise due diligence and investigation. The repute of the prop firm, regulation, fees, profit splits, trading products, leverage, platform, customer support, and withdrawal procedures are a few of the variables to take into account. Finally, another challenge is that having more capital does not necessarily mean being a better trader. Trading with more money can also increase the psychological pressure and emotional stress that traders face. Therefore, traders need to have a solid trading plan, strategy, discipline, and risk management skills before joining a prop firm. They also need to be realistic about their expectations and goals, and not rely on prop firms as a shortcut to success. 🔹Conclusion In conclusion, CFD prop firms can be a viable option for traders who want to trade with more capital and earn more profits while limiting their downside risk. However, they also come with some challenges and risks that traders need to be aware of and overcome. Therefore, traders need to weigh the pros and cons of joining a prop firm versus trading with a broker based on their own circumstances and preferences. Trading with a CFD prop firm can be a great opportunity for traders who have a proven track record of profitability and want to leverage their skills to make more money. One of the main issues is that the CFD prop industry is heavily unregulated and lacks transparency and accountability. This means that traders may not have legal protection or recourse in case of disputes or frauds. Moreover, some prop firms may impose strict rules and conditions on their traders, such as high fees, unrealistic targets, or limited withdrawal options. Therefore, before signing up with a CFD prop firm, traders should always conduct their due diligence and research. They should search for reputable and reliable prop companies that have a good track record, transparent terms and conditions, and equitable profit-sharing plans. Additionally, they should contrast various prop businesses and pick the one that best matches their trading preferences, objectives, and style. Additionally, traders should keep in mind that the best option to guarantee complete control and security over their trading activity remains opening their own trading account with a reputable broker.
PEPPERSTONE:BTCUSDEducation
by ChristopherDownie
15
GOLD is still Strong 🥇Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. Gold has been overall bullish trading inside the rising channel in red and it is currently retesting the lower red trendline. Moreover, the orange zone is a previous major high turned into a potential support. 🏹 So the highlighted purple circle is a strong area to look for buy setups as it is the intersection of the orange support and red brown trendline. (acting as non-horizontal support) As per my trading style: As GOLD is sitting around the lower the purple circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...) UNLESS the lower red trendline is broken downward, then the bears would take over for a deeper correction. 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
OANDA:XAUUSD
by TheSignalyst
6
CFD,FUTURES,OPTIONS. WHAT IS THE DIFFERENCE ?🔷CFD Contacts Contract for Difference is referred to as CFD. It is a type of financial contract that enables traders to make predictions about price changes in a variety of underlying assets, such as indices, equities, and commodities, without actually holding such assets. A contract for difference (CFD) is an arrangement between two parties, usually a trader and a broker, to exchange the variation in the value of an underlying asset between the opening and closing dates of the contract. The trader will make money if the asset's price rises during that time; if it falls, they will lose money. Compared to traditional trading methods, CFD trading has a number of benefits, including cheaper transaction costs, the option to trade on leverage, and the opportunity to profit from both rising and falling markets. It does, however, come with dangers, including those related to leverage and market volatility, which, if not effectively managed, can cause large losses. It is significant to remember that not all nations permit CFD trading, and local restrictions may differ. Before beginning CFD trading, traders should speak with their broker and get professional assistance. Advantages: 1:High Leverage: CFD trading offers high leverage, which means that traders can control a larger position with a smaller investment. This can potentially result in larger profits. 2:Access to Various Markets: CFD trading provides access to a wide range of markets, such as stocks, indices, commodities, and currencies, allowing traders to diversify their portfolio and take advantage of different trading opportunities. 3:No Ownership of the Underlying Asset: CFD trading allows traders to speculate on the price movements of an underlying asset without actually owning it. This means that traders can benefit from the price movements of an asset without incurring the costs associated with owning it. 4:Short Selling: CFD trading allows traders to profit from falling markets by selling the asset short, which is not possible in traditional trading. 5:Lower Transaction Costs: CFD trading involves lower transaction costs compared to traditional trading methods, such as buying and selling stocks through a broker. Disadvantages: 1:High Risk: CFD trading is associated with high risk due to the high leverage and market volatility. Traders can potentially lose more than their initial investment. 2:Complexity: CFD trading involves complex financial instruments, which can be difficult for new traders to understand. 3:Limited Regulation: CFD trading is not regulated in all jurisdictions, which can expose traders to unscrupulous brokers and fraudulent activities. 4:Overnight Financing Charges: CFD trading involves overnight financing charges, which can eat into a trader's profits if positions are held for an extended period. 5:Counterparty Risk: CFD trading involves counterparty risk, which means that traders are exposed to the financial stability of their broker. If the broker goes bankrupt, the trader may lose their investment. 🔷Futures Contacts Financial contracts known as futures contracts allow two parties to buy or sell an underlying asset at a fixed price and later date. A commodity, currency, stock index, or other financial instrument could be the underlying asset. On regulated markets like the Chicago Mercantile Exchange (CME) or the New York Mercantile Exchange (NYMEX), futures contracts are standardized and exchanged. The exchanges serve as go-betweens between buyers and sellers and offer a clear trading environment for futures contracts. A futures contract's buyer commits to buying the underlying asset at a predetermined price and later date. On the other side, the seller consents to provide the underlying asset at the agreed-upon cost and time. Traders and investors utilize futures contracts for hedging or speculative objectives. By fixing a price for future delivery, hedges use futures contracts to guard against changes in the underlying asset's price. Conversely, investors utilize futures contracts to profit from changes in the price of the underlying item without really holding it. Advantages: 1:Price Discovery: Futures trading provides a transparent and efficient marketplace for discovering the price of the underlying asset, which benefits traders and investors. 2:Liquidity: Futures contracts are highly liquid and traded on organized exchanges, which makes it easier to enter and exit positions at any time. 3:Standardization: Futures contracts are standardized, which means that they have a uniform size, settlement date, and other specifications. This allows traders to easily compare prices and make informed trading decisions. 4:Hedging: Futures contracts are commonly used by producers and consumers of commodities to hedge against price fluctuations. By locking in a price for future delivery, they can reduce their exposure to price risk. 5:Leverage: Futures contracts offer high leverage, which allows traders to control a large position with a relatively small amount of capital. This can potentially result in significant profits. Disadvantages: 1;High Risk: Futures trading is associated with high risk due to the high leverage and market volatility. Traders can potentially lose more than their initial investment. 2:Complexity: Futures trading involves complex financial instruments, which can be difficult for new traders to understand. 3:Margin Calls: Futures trading requires traders to maintain a certain level of margin in their trading account. If the account falls below this level, traders may receive a margin call and be required to deposit additional funds or close out positions. 4:Counterparty Risk: Futures trading involves counterparty risk, which means that traders are exposed to the financial stability of their broker. If the broker goes bankrupt, the trader may lose their investment. 5:Market Manipulation: Futures markets can be subject to market manipulation, which can distort prices and harm traders and investors. It is important for traders to be aware of this risk and to monitor market conditions closely. 🔷Options Contacts Financial arrangements known as option contracts between two parties grant the buyer the right, but not the duty, to purchase or sell the underlying asset at a defined price and date in the future. A stock, commodity, money, or other financial instrument could be the underlying asset. Call options and put options are the two basic categories of option contracts. In contrast to put options, which offer the buyer the right to sell the underlying asset at a predetermined price, calls give the buyer the right to purchase the underlying asset at a predetermined price. On regulated markets like the Chicago Board Options Exchange (CBOE) or the International Securities Exchange (ISE), option contracts are exchanged. The exchanges serve as go-betweens between buyers and sellers and offer a clear trading environment for option contracts. Traders and investors utilize option contracts for hedging or speculating objectives. Hedgers use option contracts to hedge against changes in the underlying asset's price, whereas speculators use them to profit from changes in the asset's price without actually holding it. Option trading is highly risky and necessitates a solid trading plan. Before engaging in option trading, it's critical for traders and investors to understand the dangers involved. Advantages: 1:Limited Risk: Buying options contracts limits the potential loss to the premium paid for the contract, while selling options contracts can also limit the potential loss to a certain extent. 2:High Potential Returns: Options contracts offer high leverage, which allows traders to control a large position with a relatively small amount of capital. This can potentially result in significant profits. 3:Flexibility: Options contracts provide traders with a high degree of flexibility, as they can be used for a variety of trading strategies, including hedging and speculation. 4:Hedging: Options contracts can be used to hedge against price fluctuations of the underlying asset. By buying put options or selling call options, traders can reduce their exposure to price risk. 5:Variety: Options contracts are available on a wide range of underlying assets, including stocks, commodities, currencies, and indexes. This allows traders to take advantage of different market conditions and diversify their portfolio. Disadvantages: 1:High Risk: Options trading is associated with high risk due to the high leverage and market volatility. Traders can potentially lose more than their initial investment. 2:Complexity: Options trading involves complex financial instruments, which can be difficult for new traders to understand. 3:Time Decay: Options contracts have an expiration date, after which they become worthless. This means that traders need to be correct about the direction of the underlying asset and the timing of the price movement. 4:Margin Requirements: Options trading requires traders to maintain a certain level of margin in their trading account. If the account falls below this level, traders may receive a margin call and be required to deposit additional funds or close out positions. 5:Illiquid Markets: Options contracts on less popular underlying assets may have low trading volume and liquidity, which can make it difficult to enter or exit positions at desired prices
COINBASE:ETHUSDEducation
by ChristopherDownie