Discuss Forex Day Trading For Beginners

This topic is the comment feed for the article Forex Day Trading For Beginners.

  • This topic has 13 replies, 3 voices, and was last updated 21 hours ago by Christian Harris.
  • Creator
    Topic
  • #183221 Reply
    DT Admin
    Keymaster
      DayTrading.com Team
    Viewing 3 reply threads
    • Author
      Replies
      • #183251 Reply
        Thorian

          Are exotic currency pairs suitable for day trading? The article mentions they are highly volatile so it sounds like they could be? And what are the most traded exotic pairs?

          Reply
          • #183264 Reply
            James Barra
            Moderator
              DayTrading.com Team

              Hi Thorian,

              Thanks for your message.

              Exotics can be suitable for day trading but there are some key considerations and challenges to weigh up:

              • Exotics tend to exhibit higher volatility than majors, providing opportunities to profit from significant price movements over a short period.
              • Exotics tend to have lower liquidity than majors which may result in slippage (the difference between the requested and actual price). This can seriously affect day trading results.
              • Exotics tend to have wider spreads and higher trading costs than majors. Again, this can really impact the profitability of short-term trading strategies.
              • For these reasons, day traders often target more liquid, major currency pairs (EUR/USD, USD/JPY etc).
              • Like day trading any currency pair, risk management is essential if you deal in exotics.

              Among the most popular and traded exotic currency pairs are:

              • USD/ZAR (US Dollar/South African Rand)
              • USD/SGD (US Dollar/Singapore Dollar)
              • USD/INR (US Dollar/Indian Rupee)
              • USD/HKD (US Dollar/Hong Kong Dollar)
              • EUR/TRY (Euro/Turkish Lira)
              Reply
            • #183561 Reply
              Thorian

                Do you have a full list of all exotics James?

                Reply
              • #183828 Reply
                James Barra
                Moderator
                  DayTrading.com Team

                  Hi Thorian,

                  We don’t maintain an exhaustive list of all exotic currency pairs.

                  However, CMC Markets is the broker we’ve evaluated with the most extensive range of currency pairs, with more than 300, including a long row of exotics. If you open a demo account you can view all the available options.

                  Reply
                • #183870 Reply
                  GreenbackScalper

                    Take a look at the list of exotics on TradingView – https://www.tradingview.com/markets/currencies/rates-exotic/

                    Reply
                  • #184203 Reply
                    Thorian

                      Good man cheers.

                      Reply
                  • #183879 Reply
                    Omar_Rahl_4421

                      You mention things like “inflation, GDP, employment, retail sales, trade balances” and so on can impact currency prices but do you have more information or examples of how these economic indicators can specifically effect market values?

                      Reply
                      • #184774 Reply
                        James Barra
                        Moderator
                          DayTrading.com Team

                          Hi Omar_Rahl_4421,

                          Thanks for your message.

                          Hopefully the below helps answer your question.

                          • Inflation – Inflation can devalue a currency because it diminishes purchasing power. Deflation can have the opposite effect. Let’s say the US reports higher than forecasted inflation, the Fed may raise interest rates to tackle it, with higher interest rates enticing foreign investors seeking better returns, which in turn boosts demand for the US Dollar.
                          • GDP – Growing Gross Domestic Product (GDP) indicates a robust economy that can result in rising currency values. Let’s say there are reports GDP is growing in the Eurozone, you might see appreciation in the Euro as investors back the region’s economic outlook.
                          • Retail sales – Retail sales are a key component of GDP, concerned with consumer spending. Rising retail sales indicate a growing economy which may lead to currency appreciation. Let’s say the UK reports noticeably high retail sales, you may see a stronger GBP.
                          • Trade balances – A trade surplus (more exports than imports) often strengthens a currency while the reverse can weaken it. Let’s say India reports high demand for its goods, you may see a stronger INR as international buyers purchase rupees to pay for the exports.
                          Reply
                        • #184782 Reply
                          Omar_Rahl_4421

                            That’s what I mean, great. You may want to add that to the article for others.

                            Do you have the same sort of explanation for the impact of “employment” on currecncies too?

                            Reply
                          • #184827 Reply
                            James Barra
                            Moderator
                              DayTrading.com Team

                              Hi Omar_Rahl_4421,

                              High employment often suggests a strong economy which can result in currency appreciation. Let’s say the US Department of Labor reports a rise in non-farm payrolls (closely monitored employment figures), the Fed may then increase interest rates, leading to a rise in USD.

                              Reply
                          • #185016 Reply
                            Omar_Rahl_4421

                              Thanks for taking the time to explain!

                              Reply
                            • #192210 Reply
                              Mason

                                Neat page.

                                This might be a stupid question but am I an idiot if I consider day trading forex WITHOUT using leverage? Do all FX day traders leverage positions?

                                I have about 10K to play with so not huge by any stretch but not nothing either. I’m more than willing to gradually build up my portfolio rather than shooting for the stars with massive trades and returns.

                                Reply
                                • #192215 Reply
                                  Christian Harris
                                  Participant

                                    If you’re not trading a substantial amount (tens of thousands of dollars), your profits in forex trading without leverage will likely be small because daily price fluctuations tend to be minimal.

                                    It’s safe to say that most day traders use leverage, as currencies usually move less than 1% in a single day.

                                    Have you considered day trading stocks? Unlike the relatively stable currency markets, stocks tend to be more volatile, with daily movements of 5%, 10%, or even 20% on a strong trading day.

                                    Trading stocks without leverage can offer significantly higher profit potential compared to forex.

                                    Reply
                              Viewing 3 reply threads

                              Reply To: Discuss Forex Day Trading For Beginners
                              Your information: