Trade War News: China Claims Trade Optimism, Requests Sanctions Against U.S.

Always there is new about the Trade War between China and U.S. Today's news reported that China Claims Trade Optimism, Requests Sanctions Against U.S.

Chinese Vice Foreign Minister Le Yucheng told the media on Tuesday that he remains optimistic about a trade deal being reached between the United States and China, saying that “as long as we respect each other and seek equal cooperation, there are no disagreements that cannot be resolved…”The comments came shortly after China sought $2.4 billion in retaliatory sanctions against the U.S. for its failure to comply with a World Trade Organization ruling since the time Barack Obama was president. The WTO will review the case next week.

Washington officials have challenged the WTO’s ruling, which relates to tariffs on specific Chinese products including solar panels and wind towers. Washington has also been battling the WTO about its treatment of China on the global trade stage, claiming that the WTO provides better trade terms for China because it is considered a ‘developing country’. Consequently, the U.S. is aggressively trying to repeal China’s developing country status in the WTO.

Global economists have long posited that the ongoing trade war is not just harming the U.S. and China, but is having deleterious results on the greater global economy. Kristalina Georgieva of the International Monetary Fund has estimated that the trade war could lead to “global losses of around $700 billion,” while IMF Chief Economist Gita Gopinath projected earlier this month that the trade war would cause “slower growth in nearly 90 percent of the world.” The IMG forecasts international economic growth of 2.4 percent in 2020, a 0.2 percentage point decline from its April forecast.

Malaysian Prime Minister Mahathir Mohamad expressed concern that his country could be caught in the economic crosshairs earlier this week. “Economically we are linked to both markets, and physically we are also caught in between for geographical reasons,” Mahathir said. He added that he is hoping for the best and preparing for the worst by seeking new trade collaborations with other neighboring countries.

The U.S. dollar was moderately lower just after noon in Asia on Tuesday, with the dollar index trading down 0.04 percent to 97.29 .DXY as of 12:47 p.m. HK/SIN. The British pound surged against the greenback, up 0.19 percent to $1.2982, while the euro rose 0.04 percent to $1.153. The Australian dollar also gained against its U.S. counterpart, trading up 0.12 percent to $0.6874. The dollar did manage to squeeze out gains against the yen, trading up 0.03 percent to 108.61.

Read Also:

➤ ECB and risks with Raising Cash Rate. (Report)


Source: Daily Forex

ECB and risks with Raising Cash Rate. (Report)

 Olli Rehn governor of the bank of Finland cautioned against premature cash rate hikes, highlighting past mistakes.

“The core inflation rate remains low and clearly below the ECB’s price stability target,” wrote Rehn on his recently published book. “Normalizing monetary policy awaits its turn, even though it would be important to increase the room for maneuver in monetary policy before the next recession,” he said.

Rehn was making a reference to Jean-Claude Trichet's rate hikes in 2011 and Mario Draghi's decision to undo them at the end of the year.

The European Central Bank (ECB) is expected to meet on Thursday, being this meeting the last of Mario Draghi's tenure who is leaving the ECB by the end of the month to be succeded by Christine Lagarde. Many speculate that the ECB will insist on implementing stimulus measures since the European economy is showing signs of being about to enter into a recession. In its last meeting, the bank resolved to cut the interest rates and promised to keep implementing quantitative easing and ruled out rate hikes for the near future, at least until the end of the first half of next year. The Bank doesn't raise the cash rate since the 2008 financial crisis.

The Reuters interest rate probabilities established a 23% chance of a Cash Rate hike, favoring the idea of the Bank keeping the rates steady. A Bloomberg survey of economists on Friday shows that the analysts don't expect a cash rate increase before late 2022.

Rehn recommended the Union to focus on financial stability and aim for more credible fiscal rules and better coordination of fiscal policies.

“Europeans deserve better decisions than we were able to take during the euro crisis, But first they need to wake up to see why euro-zone reform is important and how it should be done,” he added.

Mario Draghi's Era approaches its end

The upcoming ECB meeting is the last one of a somewhat controversial tenure. The Italian economist Mario Draghi is finally leaving his post at the end of this month to be replaced by the former Chairman of the International Monetary Fund Christine Lagarde.

Despite bringing in discord on the Bank's governing board and failing to meet the ECB's inflation target, Draghi's tenure will be remembered for saving the Euro.

“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough,” said Draghi in a historic speech five years ago and before announcing a program that brought down bond yields.

Draghi will also be remembered for implementing the controversial Quantitative Easing program in early 2015, in a way that at the time the Bank put the program on stand-by they acquired about €2.6 trillion of bonds, favoring economic growth and employment figures. He also has stated on multiple occasions that the European Union should move towards a Fiscal Union.

It's highly unlikely that the ECB's position will change significantly after the end of Draghi's mandate. Lagarde will now have to deal with a divided governing board, as some of its members consider that Draghi's stimulus measures are risky.

"It is good that there are different opinions," said Lagarde last month, "If it was unanimity, consensus, there would be none of that debate which is so necessary and productive," she added.

By 8:24 GMT the Euro went down by 0.12 percent against the US dollar, falling to the 1.1135 level. It gained 0.09 percent against the Sterling, at 0.8609. Conversely, it gained 0.16 percent against the Swiss Franc, at 1.1007.

Read Also:

➤ US Dollar requirements to Secure a Direction (2019 Q4 Dollar Forecast)

➤ Sterling Pound and UK stocks surge on EU report due UK possible Brexit deal

News by: Daily Forex

Steps required for every Forex trader to start

Every business needs organized steps to start and maintain a profit stability. In a risky field such Forex trading, every trader who want to enter to Forex world should know and organize steps required to start Forex trading.

A Forex trader need a little money and patience to sustain a trade path. But he also need skill to successes in limiting losses while identifying good trade set ups with a positive risk. It's easy to get into trading Forex, but it's also pretty difficult to earn easy money without working smart. 

There are many steps you need to follow to become a successful Forex trader, or you will lost all business money.

So, we are here today to discuss the required steps for starting Forex trading account.

1- Capital Money to start Forex

Forex traders do not need to have a lot of capital money to trade. The average Forex broker requires at least $300 to open an account and start trading. A good rule of thumb is to have at least $1000 to open a mini account, preferably $2000.
Most of Forex brokers recommend not to start with less than $500. 4Forexxx blog recommends an amount of 500 - 1000 USD to start your Forex account.


This number will allow you to trade with a bit of a buffer in case of losses. You're not looking to risk the whole amount of money, but just have a higher cushion so that you're not forced out of a trade, which can happen with smaller balances. 

2- Using A Demo Account to try 

Demo account is a trading account with monopoly money in it that is connected to the live market. Trades can be take place in real time and represent what would be true losses and gains if the money were real.

Before you put the first dollar or euro on the line with trading, you'll need some practice. A demo account will provide you the ability to practice trading and try without the pressure of getting loss.

3- L earn to Practice FX Trading Before Trading Live

First, you need to seek some Forex trading advises and strategies from a Forex trainer or to read and learn about them. As a trader you will need to develop your own trading strategy and trading ideas, but in the beginning, it would be better to have some professional directions and recommendations. Many Trading information will let you to have a well start with trading Forex.

4- Trend Traders earn Targets on Trade

Before you actually commit to live trading and money on the line, you should be able to profitably trade on your demo account or with paper trading.

It will be difficult to refrain from trading after you make those first few profitable trades, but experience really counts in Forex trading. It's something that you cannot work around-setups have to get it the old fashioned way, hard work.

5- The Right Track With Your Trading?

After practicing for several months or times, doing a little training, and getting some Forex education and becoming consistently profitable, it's time to start making live trades. You may find that it's a little different to have actual money on the line, but if you stick to the same practices you used to be profitable while trading the demo account, you will be successful.

Our Opinion:

The Forex market gives you the opportunity to find trading opportunities around the clock on your schedule. Additionally, the start up capital is rather low and you can determine how much exposure or leverage you want on a trade, which gives you added flexibility. Learn how to start right with these tips and you're half-way toward a successful trading career.

Related Articles:

➤ How much money you need to start Forex trading!
➤ How to create your Forex trading plan. 2019 Forex plan


⧭ For more visit Forex Gate Tube

How much money you need to start Forex trading!

Forex trading is not an easy business. In a such field where business risk is high, we have to setup a plan.

➤➤ Related: How to create your Forex trading plan!

The first and most important step when creating Forex plan is to decide the amount of money that you will start your trading operations with. This is the minimum capital to start Trading Forex. You have to determine how much money, your trading account needs to be funded!

It's easy to start day trading currencies as the foreign exchange (Forex) market is the most accessible financial market. Many Forex brokers require only $100 as a minimum initial amount to invest, and some go as low as $50.

In contrast, the stock market, for which the Securities and Exchange Commission requires day traders to maintain an account with $25,000 in assets, there is no legal minimum amount required for Forex trading.

Is $50 or $100 is the suitable amount money to create your Forex trading account!

The answer is "NO", and there some issues must be learned to optimize the ideal Forex trading start.

1- Risk Management

Day traders shouldn't risk more than 1% of their Forex account on a single trade. You should make that a hard and fast rule. That means, if your account contains $1,000, then the most you'll want to risk on a trade is $10. If your account contains $10,000, you shouldn't risk more than $100 per trade.

Even great traders have strings of losses; if you keep the risk on each trade small, a losing streak can't significantly deplete your capital. Risk is determined by the difference between your entry price and the price at which your stop-loss order goes into effect, multiplied by the position size and the pip value.

2- Pip Values

The Forex market moves in pips. Let's say the euro-U.S. dollar (EUR/USD) currency pair is priced at 1.3025. That means the value of one euro, the first currency in the pair, which is known as the base currency, is $1.3025.

For most currency pairs, a pip is 0.0001, which is equivalent to 1/100th of a percent. If the EUR/USD price changes to 1.3026, that's a one pip move. If it changes to 1.3125, that's a 100 pip move.

3- Trading Lots

Forex pairs trade in units of 1,000, 10,000 or 100,000, called micro, mini, and standard lots.

When USD is listed second in the pair, as in EUR/USD or AUD/USD (Australian dollar-U.S. dollar), and your account is funded with U.S. dollars, the value of the pip per type of lot is fixed. If you hold a micro lot of 1,000 units, each pip movement is worth $0.10. If you hold a mini lot of 10,000, then each pip move is $1. If you hold a standard lot of 100,000, then each pip move is $10. Pip values can vary by price and pair, so knowing the pip value of the pair you're trading is critical in determining position size and risk.

4- Stop-Loss Orders

When trading currencies, it's important to enter a stop-loss order in case the value of the base currency goes in the opposite direction of your bet. A simple stop-loss order would be 10 pips below the current price when you expect the price to rise or 10 pips above the current price when you expect the price to fall.

Now, we are going to try Forex trading with different capital money.

Capital Scenarios:

- $100 in the Account 

Assume you open an account for $100. You will want to limit your risk on each trade to $1 (1% of $100).

If you place a trade in EUR/USD, buying or selling one micro lot, your stop-loss order must be within 10 pips of your entry price. Since each pip is worth $0.10, if your stop loss were 11 pips away, your risk would be $1.10 (11 x $0.10), which is more risk than you want.

You can see how opening an account with only $100 severely limits how you can trade. Also, if you are risking a very small dollar amount on each trade, by extension you're going to be making only small gains when you bet correctly. 

- $500 in the Account

Now assume you open an account with $500. You can risk up to $5 per trade and buy multiple lots. For example, you can set a stop loss 10 pips away from your entry price and buy five micro lots and still be within your risk limit (because 10 pips x $0.10 x 5 micro lots = $5 at risk).

Or if you choose to place a stop loss 25 pips away from the entry price, you can buy two micro lots to keep the risk on the trade below 1% of the account. You would buy only two micro lots because 25 pips x $0.10 x 2 micro lots = $5.

Starting with $500 will provide greater trading flexibility and produce more daily income than starting with $100. But most day traders will still be able to make only $5 to $15 per day off this amount with any regularity.

- $5,000 in the Account

If you start with $5,000, you have even more flexibility and can trade mini lots as well as micro lots. If you buy the EUR/USD at 1.3025 and place a stop loss at 1.3017 (eight pips of risk), you could buy 6 mini lots and 2 micro lots.

Your maximum risk is $50 (1% of $5,000), and you can trade in mini lots because each pip is worth $1 and you've chosen an 8 pip stop-loss. Divide the risk ($50) by (8 pips x $1) to get 6.25 for the number of mini lots you could buy without exceeding your risk. You would break up 6.25 mini lots into 6 mini lots (6 x $1 x 8 pips = $48) and 2 micro lots (2 x $0.10 x 8 pips = $1.60), which puts a total of only $49.60 at risk.

With this amount of capital and the ability to risk $50 on each trade, the income potential moves up, and traders can potentially make $50 to $150 a day, or more, depending on their Forex strategy.

➧ Finally, we recommend $500 as a start of Forex trading capital.

Starting out with at least $500 gives you flexibility in how you can trade that an account with only $100 in it does not have. Starting with $5,000 or more is even better because it can help you produce a reasonable amount of income that will compensate you for the time you're spending on trading.

Recommended Article:

➤2019 Forex Plan. The recommended steps to create a trading plan.

Info. credit: Thebalance

How to create your Forex trading plan. 2019 Forex plan

Forex Planning

Planning is the main key for every business's success. All traders, business stakeholders and every company in any field must plan their works well in order to avoid losses and to optimize revenue.

Forex is a financial risky field which you must plan well and be updated to market changes. Forex is a business where you need to try and evaluate and re-plan your work using different strategies to reach the max-profit.

A Forex trading plan is an organized way to executing a trading system that is based on your market analysis and your forecast while evaluating risk management and opportunities.

Forex traders who follow a systematic approach and plan well, are those who survive year after year after year in that risky business.

What you must know before entering Forex trading!

1- Decide how much you want to deposit

2- Decide on your currency pairs

3- Choose an appropriate broker

4- Creating the right Forex account for you

5- Know how the China-US Trade War affects the currency rates

6- Follow analysis about important trade concerns such as UK Brexit

7- Read about Forex signals and trading indicators

8- Watch Forex videos to learn from competent traders

Forex is a try&error trade

After you get the required information, you need to get in business. You must know that Forex is a try&error trade, and you may experience possible losses. Only your plan will enable you avoiding great money losses. Traders must focus on the trading plan.

Forex trading is a business and every trader should approach his or her business professionally. Forex trading isn't a video game in which you aim and shoot at a target on the screen for fun and hope to see a gold coin appear. Instead, we're effectively taking part in a highly competitive domain populated by large, powerful players like banks and hedge funds. Therefore,  a planned trading system that is detailed, realistic, and well structured will be needed if you really want to be successful in this business.

The key of a planned trading system is to have a set of well defined trading objectives in terms of your personal trading situation and target profit, the opportunity profile for currency pairing, risk management, and account equity. If you don't take the time to learn and understand how these variables can affect your results, then you don't have any chances for success in Forex business.

- Personal Trading Situation and target profit

First, you need to set a useful target for trading according to your personal trading situation, including the number of currency pairs traded and the volatility of each pair (measured by Average Daily Range (ADR)), personal trading style, times of day available to trade, and the total time available each week for trading.

As an example, a target of 500 pips per month might be an unrealistic target for someone who has only 2-4 trading hours per day, twice per week, focusing on scalping on a pair such as EUR/CHF, which has a lower ADR. Therefore, it is necessary for each trader to realistically consider his or her own personal trading situation in order to derive a challenging but achievable target for monthly trading profit.

- Opportunity Assessment

An effective method of conducting an opportunity assessment is to look back over a chart for the past 1-6 months. On this chart, highlight the times of day and days of the month when you are generally available to trade. In relation to your trading style, how many setups were apparent on that chart, and how many pips potential did they offer relative to the realistic take-profit levels where you would have exited the trade!

- Risk Management

Managing risk is the most important part of any trading plan.

Winning trades are only one part of the profit equation. The other part is unprofitable trades, which have to be accounted for in deriving a realistic bottom-line objective. It is critical that your trading plan specifically allow for losses.

Trading loss can be divided into two categories: the average size of stop loss employed, and the frequency of trades being stopped out. If you maintain a record of your trading activity, whether in a demo or live account, it can be useful to simply plug in your actual figures for average stop loss and Win/Loss and assume those performance metrics can be projected into the future.

If your trading situation does not allow for this, you may need to consider wider stop losses, which will in turn have some effect on Reward/Risk and position sizing.

- Account Equity

Depending on account equity,  a lot of dollar profit can be generated from 500 pips per month. For example: 500 pips per month operating profit into a financial profit in USD (assuming a US dollar trading account and 500 pips realized on a USD quote pair).

As indicated above, with a 30-pip stop and risking 1.5% of account equity on any single trade, 500 pips equates to $2,500 profit for every 10K increment in Equity. This results in an actual leverage utilization of 5: 1, which is apparently much lower than the maximum leverage traditionally offered by many brokers.

Note that the money management benchmarks are very general that they do not reflect partial lot sizing for levels of account equity between the categories quoted above. In other words, profit-per-trade potential can be further optimized by calculating position size (number of mini lots per order) each and every time a trade is about to be entered, relative to the current actual account size using the 30-pip stop and 1.5% account risk formula illustrated above.

Based on the above, we can see how Account Equity can affect our financial profit, increasing our operating profit (in pips) through leverage. Thus, the question every trader inevitably faces when opening a new account - "how much money should I put in?" - needs to reflect consideration for the maximum amount that could be lost entirely without disrupting household finances, while at the same time addressing the question "how much do I want to make?"

If you want to earn $10,000 per month on 500 pips, for example, then your trading account needs to be funded to the tune of $40,000. If that is not possible, then the target for financial profit (in dollars) will need to be reduced, or the target for operating profit (in pips) will need to be increased.

It will be much better to start building up your trading confidence by building up your account slowly and consistently over time than to have to repeatedly answering call after call from your broker.

Focus on your Forex plan as it's the optimal protection in such business.

How Much is Forex Brokers Fees and Costs

Every Forex trader seeks a transparent and trustworthy broker to reduce costs. Some brokers don't clarify their fees and costs. Traders must avoid those brokers.

How to know about brokers fees and costs!

You need to know types of costs and fees to compare brokers and choose the best transparent and trustworthy broker.

Forex brokers charge fees in one form or another and there are trading costs associated with each trade placed. Many traders often ignore the total cost per trade which can make a big difference to the overall outcome. While the most obvious cost is through spreads, there are other fees and costs which are applicable and should not be ignored. Transparent brokers will always be upfront about their fees and list them either on their website, or in their trading platform.

Overview of Direct Trading Costs:

Direct trading costs consist of spreads, commissions, swap rates, overnight financing costs, storage fees and custodial fees. Not all costs apply to every trade and it all depends on which asset is traded, in case it is traded on margin and the duration of each trade. 

All costs involved with each trade should be mentioned by the broker. This is especially true if the broker offers a proprietary trading platform. Calculators are also provided which allow traders to calculate the cost of each trader before placing it.

-Spreads costs

Spreads are the most obvious cost associated with a trade and refers to the difference between bid and ask price. Spreads are the primary income source for brokers who live from the mark-up on raw spreads. Raw spreads can be as low as 0.0 pips in the EUR/USD, the most liquid currency pair which carries the lowest spread. Everything above this level is the mark-up the broker charges.

While spreads are listed on each broker’s website, traders can easily view them in their trading terminal.

-Commissions costs

Some accounts may come with spreads as low as 0.0 pips on the EUR/USD, but the broker charges a commission per lot. Accounts which charge commissions are usually ECN accounts which operate a no-dealing desk execution. Traders get the raw spreads, or very close to it, and in exchange the broker charges a commission.

Commissions are also charged on equity trades and various other assets (ETFs, ETC’s, bonds, etc.) will carry a commission charge. In order to get the full details on which assets carry a commission, traders should either consult the asset directory provided by their broker or get the information directly from the trading platform. Transparent brokers will list the full contract specifications on their website while proprietary trading platforms list all the information in each deal ticket. Volume discounts are often given to account which carry commissions.

-Swap Rates

Swap rates, sometime referred to rollover rates, apply to each position which is held overnight. Swap rates occur due to the interest rate differences in the base currency and the quote currency. Brokers will list how this rate is calculated and there is a Swap Long and a Swap Short rate. Depending if the traders take a long or short positions, swap rates will either be credited from or debited to the account balance. A lot of brokers fail to forward positive swap rates to traders.

Forex traders can check the precise swap in their MT4 Trading Platform by following these steps:

1-Right-click on the desired symbol in the “Market Watch” window and select “Symbols”.

2-Select the desired currency and then click on “Properties” located on the right side.

3-Scroll down until you see “Swap Long” and “Swap Short”

-Overnight Financing Costs

This is a cost related to margin trades. Brokers will explain how the effective overnight financing rate is calculated. It depends on the amount of leverage used per trade and which asset is traded. This is an important cost to monitor as it increases the longer an asset remains open in the account.

-Storage Fees

Some brokers will charge traders a storage fee for holding certain assets. This is an unnecessary fee, but will be charged for holding positions in the account which comes on top of swap and/or financing fees. In essence it is a fee charged for maintaining positions in your portfolio. Brokers who charge storage fees should be avoided.

-Custodial Fees

Equity, ETF and bonds come with custodial fees which are usually a small percentage charged annualized, but may be deducted monthly with a minimum. Not all brokers offer equity or bond trading and use CFDs which are great to get in on the price action without the need to incur custodial fees.

Overview of Indirect Trading Costs:

Indirect trading costs are costs which are not charged per trade, but include costs such as withdrawal charges and account inactivity fees. Deposit charges are waived by all brokers, which is standard industry practice. Some brokers even reimburse their traders for deposits made via bank wire which is usually charged by the trader’s bank. Withdrawal fees are usually not charged by brokers, but third-party fees may apply such as bank wire charges. All charges relating to deposits and withdrawals should be listed on the brokers website.

Another unnecessary fee which some brokers charge is an account inactivity fee. This is usually applied after three months of no trading activity. The broker will then charge a quarterly cost, which will be listed in the trading conditions of the broker’s website, until the account balance is either depleted or trading resumed.

In general, all fees which a broker can charge will be listed in their website under trading conditions. Traders should carefully review this section as the lesser known costs are only mentioned there. In case this information is not provided, the broker is better to be avoided. Customer service can be contacted, but again, a transparent and trustworthy broker will not hide their costs. Costs like spreads and swaps are best accessed directly from the trading platform as they can change quickly due to market conditions. Using cost calculators provide by brokers can also be used in order to determine precise costs per asset and volume traded.

Related Articles:

➽ How to earn money with Forex!

Sterling Pound and UK stocks surge on EU report due UK possible Brexit deal

EU Reuters: 

Possible Brexit deal between UK and EU has it's consequences on money market. Unstable market is the situation now as the news come and go at the time there is no certainty.

Traders don't have forecasts to predict what's going to happen if there was a brexit deal. 

As a result of expected brexit deal, Sterling jumped against the dollar and the euro while British stock prices and government bond yields rose in late afternoon trading on Tuesday after a Bloomberg report that British and European Union negotiators were close to a Brexit draft deal.

The pound jumped more than 1% versus the dollar to $1.2742 and by a similar margin against the euro to 86.31 pence. The FTSE250 of UK mid-cap stocks (FTSC) was last up 1.6%.

"A deal between the UK and EU was 60 percent in the price and now we stand to see if the remaining 40 pct come into play so the pound is rallying," said Stephen Gallo, European head of FX markets at BMO.

British government bond yields shot higher. The two-year gilt yield (GB2YT=RR) rose to its highest level since Sept. 16 at 0.575%, up around 7.5 basis points on the day.

The move rippled over into the broader European bond market with the 10-year German government bond reaching 2.5 month highs, up 4 basis points at -0.41% (DE10YT=RR).

European equity benchmarks accelerated their gains on the news with the STOXX 600 (STOXX) over 1%, Germany's (GDAXI) up 1.2%, France's CAC40 (FCHI) up 1.2%.

Related Posts:

➽ Wall Street got a Jolt with socks of JPMorgan, UnitedHealth and J&J

Wall Street got a Jolt with socks of JPMorgan, UnitedHealth and J&J

Source: Investing.com Report

 Stocks surged on Tu 15-10-19 as the first big day of earnings delighted investors, but the rally faded a bit toward the close as profit-taking set in.

The S&P 500 finished up 1% and even topped 3,000 several times during the day.

Selling resistance at that level, however, kept pushing the index back, and it finished below 3,000 for an 18th-straight day.

 Nasdaq Composite jumped 1.24% with big gains in chip stocks.

The Dow, powered by gains in UnitedHealth Group (NYSE:UNH), JPMorgan Chase (NYSE:JPM) and Johnson & Johnson (NYSE:JNJ), closed up 0.89%, about 257 points. The blue-chip index had been up as many as 333 points earlier in the session.

UnitedHealth (NYSE:UNH), JPMorgan (NYSE:JPM) and J&J all reported strong earnings and went higher.

Chip stocks were higher on hopes a trade deal with China will come through.

Reports of a possible Brexit deal in Europe added to the good feelings.

Even Wells Fargo (NYSE:WFC) went good, saying it expects to show a gain in net interest income in the future. And set aside $1.6 billion for expenses relating to its fake deposit account scandal.

Interest rates moved higher as investors looked for better profits in stocks. 

Just, oil prices and gold moved lower.

What Is ECN / STP Trading?

ECN/STP is a broker's model of business which client's orders"trades" are sent directly to one or more liquidity providers to be executed on their end.

Liquidity providers like :

• Companies
• Banks
• Financial institutions 

that quote buy and sell price in a financial instrument.

“ECN” stands for “Electronic Communications Network”. ECN brokers construct and utilize such networks"platforms" to match their client’s trade orders directly with other market participants.

ECN brokers make a profit every time their clients trade, unlike “market makers” / “dealing desk” model brokers who make greater profits when their clients lose as they are taking the other side of the trade.

The more liquidity providers a broker has in general, the better execution for its clients will be (more liquidity available generally means less price slippage).

What makes a true STP (Straight through processing) broker is that the STP broker doesn’t internalise the orders, but sends them to liquidity providers, acting as the center point or the connection ring between their client and the real market.

ECN brokers typically charge both a spread and a commission which is usually a percentage of the trade size. Therefore, although their spreads are mostly considered lower than those offered by market makers, the total cost per trade may not be very different between high-quality brokers of both types. 

ECN brokers usually require a higher minimum deposits than market maker / dealing desk brokers, meaning that smaller clients may find ECN services unavailable to them.

ECN advantages:

• Anonymity
• Immediate trade execution
• Client, liquidity access
• Automated Forex trading/market data feed
• Variable Spreads

ECN Vs. Dealing Desk 

So what are the critical differences between an ECN/STP broker and dealing desk brokers, who are often referred to as "market makers”? We have compiled a simple table of pros and cons, in order to outline the key points of difference between ECN/STP brokers and dealing desk/market making brokers

Forex Rollover (Swaps)

A Forex rollover/swap is described as the interest added or deducted for holding any currency trading position open overnight. It is important therefore, to consider the following aspects of rollover/swap charges:

• Rollover/swaps are charged on the client's Forex account only on the positions kept open to the next Forex trading day"overnight".

• The rollover process starts at the end of day, at 23:59 server time.

• There is a possibility that some currency pairs may have negative rollover/swap rates on both sides (Long/Short).Every thing is possible/ you don't know the future.

• When the rollover/swap rates are in points, the Forex trading platform converts them automatically into the account's base currency.

• The rollover/swaps are calculated and applied on every trading night. On Wednesday night rollover/swaps are charged at triple rate.

Slippage

Slippage, in trading terms, can be described as having an order filled at a different price to the price initially quoted on the trading platform. However, slippage should be regarded as a positive indication that the market and the trader's chosen market access, is operating in a transparent and efficient manner.

Major Economic Indicators That Affect Forex Trading

Economic indicators are the key statistics that show the direction of an economy. Important economic events drive the Forex price movements, therefore it is important to get familiarized of the global economic events in order to perform proper fundamental analysis, which will enable Forex traders to make informed trading decisions.

Interpreting and analyzing the indicators is important for all investors as they indicate the overall health of the economy, anticipate its stability and enables investors to respond on time to sudden or unpredictable events, also known as economic shocks. They can also be referred to as a traders 'secret weapon' as they reveal what is to come next, what may be expected of the economy and which direction the markets can take.

1-GROSS DOMESTIC PRODUCT (GDP)

The Gross Domestic Product (GDP) report is one of the most important of all economic indicators, as it is the biggest measure of the overall state of the economy. It is the total of monetary value of all the goods and service produced by the entire economy during the quarter being measured (does not include international activity).

For example, when the economy is healthy, we will see low unemployment and wages increases as businesses demand labor to meet the growing economy. A change in GDP down or up , usually has a significant effect on the market, due to the fact that a bad economy usually means lower earnings for companies, which translates into lower currency and stock prices. Investors really worry about negative GDP growth, which is one of the factors economists use to determine whether an economy is in recession.

Level of importance:High level

2-CONSUMER PRICE INDEX (CPI)

Consumer Price Index (CPI) is the most widely used measure of inflation. It measures the change in the cost of consumer goods and services from month to month.

The base – year market basket is derived from detailed expenditure information collected from thousands of families and persons in the U.S.

The basket consists of more than 200 categories of goods and services separated into eight groups:

• Food and Beverage
• Housing
• Apparel
• Transportation
• Medical care
• Recreation
• education and communication
• Other goods and services

it is the best known measure for determining the cost of living changes. It is used to adjust wages, retirement benefits, tax brackets and other important economic indicators.

Level of importance:High level

3-PRODUCER PRICE INDEX (PPI)

Beside the CPI, producer price index report is considered as one of the most important measures of inflation. It measures the price of goods at the wholesale level.

As a contrast to CPI, PPI measures how much producers are receiving for the goods while CPI measures the cost paid by consumers for the goods.

The biggest attribute in the eyes of the investors is the ability of PPI to predict the CPI. The theory is that most cost increases that are experienced by retailers will be passed on to consumers. Some of the strengths of the PPI are:

• Indicator of future CPI.
• Moving the markets positively.
• Good breakdowns from investors in the companies surveyed.

But on the other hand one of the most disadvantages of PPI that not all industries in the economy are covered.

Level of importance:High level

Resources:

➧https://www.fxcc.com/major-economic-indicators