Advanced Forex Trading Techniques - PowerPoint PPT Presentation

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Advanced Forex Trading Techniques


Learn about the best advanced forex trading techniques, strategies and technical indicators for Forex trading success. We also find out which methods of trading are best - simple systems or advanced... – PowerPoint PPT presentation

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Title: Advanced Forex Trading Techniques

Advanced Forex Trading Techniques
  1. Forex Trading
  2. Advanced Forex Trading Techniques
  3. Hedging
  4. Position Trading
  5. Forex Options
  6. Scalping

Forex Trading
  • In the beginning forex trading seems like it is
  • It seems like you only do a job as a trader is to
    pick what direction the currency pair is going to
    go and collect the profit.
  • You are thinking of trying to find the 100
    percent accurate forex trading system on the
  • If only it were that much simple.

Advanced Forex Trading Techniques
  • Hedging is a way to reduce the risk by taking
    both the sides of trade at once.
  • If broker allows it, an easy way to hedge is just
    to initiate a short and long position on the same
  • Advanced traders sometimes use the two different
    pairs to make one hedge, but that can get very

Position Trading
  • Position Trading is based on your overall
    exposure to a currency pair.
  • Your position is the average price for a currency
  • Example You might take a short trade on EUR/USD
    at 1.40. If the pair is ultimately trending lower
    but happens to retrace up, and you take another
    short at 1.42 at your average position be 1.41,
    you will be back in overall profit.

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Forex Options
  • A forex option is an agreement to purchase the
    currency pair at a predetermined price at a
    defined time.
  • Example You are long the EUR/USD at 1.40, and
    you feel that there is a chance that it falls to
    1.38 in overnight trading.
  • Not requiring to risk a more profound reaction,
    you decide to put a stop at 1.3750, setting up
    potential loss of 250 pips.

  • 250 pips sound painful, so you choose to use a
    forex option to lessen the pain.
  • You purchase an option for overnight hours with
    the strike price of 1.3750.
  • If EUR/USD goes up and never touches 1.3750
    overnight, you lose the premium that you paid for
    the currency option.

  • If the EUR/USD falls and touches your option and
    stop loss, you would receive profit from your
    option, depending on how much of a premium you
    paid, and you realize the loss of long trade on
    the EUR/USD.
  • The options profit make up for some of that loss
    on the currency trade.

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  • Scalping is making a very short-term trade for a
    few pips using the high leverage.
  • Scalping is best done in conjunction with a news
    release and supportive technique conditions.

  • Many beginning forex traders start with the
    scalping, but it does not take long to figure out
    it how much you can lose if you do not have the
    idea what you are doing. In general, scaling is a
    risky strategy that doesn't pay well in
    comparison to its risk.
  • If you are going to make scalping trades, it is
    best to do them in conjunction with overall
    trading position, not as a primary method of

  • Advanced Forex trading is about seeing all the
    options when you make a trade.
  • Aside from using the masterful risk management
    and extreme caution, advanced trading can be an
    alternate way to make profits and control losses.
  • Advanced trading techniques are just about using
    market's behaviour to your advantage.

  • Learning to use advanced techniques correctly is
    what give you the edge that makes you stand apart
    from the average trader.

Thank You
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