Centrist Macron win in first round alleviates French election worries | ...

Gold vs. Silver

Every time people think of precious metals, first of all they come up with gold. Gold literally attracts people, whether in form of jewelry, industrial goods, etc. Moreover, this traces back to ancient times when all the religious icons were made of gold, wealth of kings were in gold and money was measured in terms of gold coins.

They say that gold will always be worth more than silver, the issue is their price ratio. Never in history had the price of silver per troy ounce exceeded the price of gold per troy ounce. The ratio shows how many ounces of silver one can buy with one ounce of gold. So, if a silver price is $30 and the gold price is $1500, the ratio will be 50. The latter can fluctuate. The fluctuation in XAUXAG means greater trading opportunities!

General overview on Gold vs. Silver disparity

Despite the fact that gold attracts more and more people, recently silver usage in industrial production has risen. Its demand has grown by one fifth over the last decade, which impacts the silver price. Some investors call it “the devil’s metal” as it moves much faster when markets are bullish. Analysts say that silver has no life of its own and it merely follows the direction of gold prices, but some historic XAUXAG charts show that silver has twice outpaced gold. There may be cases when investing in silver makes more sense than investing in gold. The difference between the prices of gold and silver is not persistent and changes depending on various factors. It is affected by the amount of mined silver, political problems and the general state of the global economy. It may be undoubtedly stated that gold is a rarer metal compared to silver. Generally, owning gold and silver can be a secure hedge against economic uncertainty.

Gold vs. Silver: XAUXAG trading

The XAUXAG trading instrument reflects the relationship between the dollar values of gold and silver. The XAUXAG instrument shows differences in the price dynamics, as well as the periods when they outperform each other. As mentioned above, the price fluctuations can bring great trading opportunities. Trend following strategies can be employed when price is in uptrend or downtrend. Even if XAUXAG is in the neutral trend, traders can make active investments in order to profit on price fluctuation in the range: buy near the support level and sell near resistance. XAUXAG trading opportunities can be identified on a XAUXAG chart, which shows the past price movements of the instrument, as well as help analysts build trading strategies for future movement dynamics.

Prices of gold and silver vary with changes in relative demand and changing level of global financial and geopolitical risks. Trading XAUXAG carries risks associated with trading financial instruments and care should be taken to control the risks appropriately.

Did you know that “Kopi luwak”, also known as cat poop coffee or civet cat coffee, is the most expensive and prestigious coffee in the world with retail prices reaching

€550 / US$700 per kilogram? The uncommon method of producing Kopi luwak is the main reason why the price of this coffee is so high. The coffee is made from the coffee beans, which have been eaten by a cat called Asian palm civet and then passed through its digestive tract. During this process, the cat’s proteolytic enzymes seep into the coffee beans, thus creating shorten peptide as well as an abundance of amino acids. This is what gives this coffee its unique flavor and aroma. After being pooped out, the farmers or coffee harvesters collect the defecated beans and begin processing them by washing the beans carefully, drying them in the Sun and after all these processes roasting them. 

Keep on trading CFD on Coffee. 

Currency trading

Currency trading started in the 1970s after the transition to the model of floating exchange rates adopted after the conclusion of the International Monetary Fund conference in Jamaica in January 1976. Theretofore, the exchange rates of national currencies were fixed by the government. Central banks of countries maintained the exchange rates of national currencies on the same level with the help of intervention allowing their changes only through devaluation and revaluation.

Currency markets, where takes place the process of exchange of one currency for another one, were formed due to the transition to floating exchange rates. The largest and most popular currency market is Forex. The participants of the Forex market are central banks of countries, commercial banks, hedge funds, investment and insurance companies, brokerage and dealer companies, etc.

The constant changes in the value of one currency or another based on their demand and supply are the basis for speculations on various currencies. Currency trading on the Forex market by individuals for the purpose of making money from the difference between Ask and Bid prices is carried out through intermediaries – brokerage and dealer companies.

Currency pairs

The main instruments of trading on the Forex market are currency pairs, where the first currency is considered to be a commodity and the second one - money. For example, if you decide to trade EURUSD, then for the purchase of euro, you will pay in dollars.

The US dollars and one of the major convertible currencies are presented in the most popular currency pairs:

• EURUSD (euro/US dollar);
• USDJPY (US dollar/Japanese yen);
• GBPUSD (British pound/US dollar);
• USDCHF (US dollar /Swiss franc);
• USD/CAD (US dollar/Canadian dollar);
• AUD/USD (Australian dollar/US dollar);
• NZD/USD (New Zealand dollar/US dollar).

These currency pairs together with cross-pairs (currency pairs without the US dollar, for example, EURGBP, EURJPY, GBPNZD, etc.) form the group of majors on the Forex market. Major currency pairs are considered to be the most liquid instruments, moreover, they also have high volatility, which allows to generate good cash of flow from trading.

Less liquid currency pairs, which are composed of the world’s main currencies paired with less liquid currencies are called minors, for example, EURHKD, EURSEK, USDHKD, USDNOK, USDSGD, and others.

Besides, the above listed pairs there also exist exotic currency pairs, the combinations of which are composed of one of the main currencies and a currency of the country with moderately developed or developing economy (for example, Czech crown, Polish zloty, Danish krone, Turkish lira, etc.).

The value of currencies of different countries depends on many factors, but the main ones are the state of the economy and political events in the country. These factors are the basis of the fundamental analysis of currency quotations. In the economy of each country take place important events, which indispensably influence the rate of the national currency. For example, the announcement of the European Central Bank interest rate immediately affects the rate of the euro which may lead to very high volatility in the market.

Besides fundamental analysis, there also exists technical analysis, which is based on the emergence of trends, support and resistance levels on the charts of currency pairs.

In order to start trading on the Foreign Exchange market, one needs a computer, an internet connection, initial capital and a right choice of the brokerage company. For successful trading on the Forex market, it is necessary to have fundamental knowledge about financial markets and trading experience.

Top Trades for AUDUSD

Have you been following forex developments after the US presidential election? Here is how much you could earn by trading Australian dollars.

The Australian dollar (AUD) weakened against the US dollar (USD) in February after a period of growth following the US presidential election.

• Based on our AUDUSD technical analysis released on February 27, 2017 you could sell 100,000 AUD with 1:100 leverage at the exchange rate AUDUSD 0.764 on March 2, 2017 by investing 764 USD (margin for this position).
• Close the position on March 9 at the exchange rate AUDUSD 0.75.
• Therefore, by investing just 764 USD, you could earn 1372.40 USD (net of $27.6 swap charge), that is increase the investment about 179%.

Try your own successful strategy by trading currency pairs.

Trade Currency Pairs

If you have no real trading account yet, open it now and realize your best trading strategies: the minimum deposit is 1$!

Open Trading Account

                                        1 minute to register

If you are a beginner, visit our Education Center first.

Enjoy your trading with us!

          Gator Oscillator

Trading in Forex market presupposes high risks which not all traders can endure. Therefore, before starting to trade one should carefully consider his goals, investing abilities and the risks he might face. Undeniably, every novice trader makes mistakes, but in order to succeed in trading, it is very important to get acquainted with the trading environment. Moreover, traders should also develop their own trading strategies to be more disciplined and reach the best financial results. To develop an exact trading strategy, traders use a variety of techniques and tools such as charts or technical indicators to study the market. These tools aim to predict the future market movements, thus helping traders to better forecast the market. The Gator Oscillator is just one of these tools, which is of great help for traders.

Gator Oscillator: the basics

The Gator Oscillator, developed by Bill Williams, is one of the indicators of technical analysis, which is closely related to Alligator indicator and is used alongside with it. The Gator Oscillator shows the absolute degree of convergence/divergence of the Alligator’s three smoothed moving averages indicating the hunger or sleep periods of Alligator, i.e. trending or non-trending periods of price movement.

The Gator Oscillator is displayed as a histogram built on either side of the zero line. The bars above zero show the absolute difference between the blue and red lines of Alligator indicator (jaw and teeth: moving averages with periods of 13 and 8), whereas the bars below zero show the absolute difference between the red and green lines of Alligator indicator (teeth and lips: moving averages with periods of 8 and 5).

The Gator Oscillator histogram is made up of green and red bars. The green bar shows up when its value exceeds the value of the previous bar, and the red bar, on the contrary, shows up when its value falls behind the value of the previous bar.

How to use Gator Oscillator

As was mentioned above, the Gator Oscillator is a supplement to Alligator indicator and it helps to better imagine the forthcoming changes in trends, i.e. when Alligator awakes, eats, fills out and sleeps. Respectively, the Alligator’s activity is divided into the following 4 periods:

• The Gator awakes when the bars on either side of the zero line have different colors: red or green;
• The Gator eats when the bars on both sides of the zero line are colored green;
• The Gator fills out when one of the bars either above or below the zero line turns red after the “eating” phase;
• The Gator sleeps when the bars on both sides of the zero line are colored red. 

Basically, the Gator Oscillator, as well as many other trading indicators have great importance in showing traders how to carefully examine and forecast the future market movements in order to become a more experienced and successful trader.

Non farm payrolls are expected to decline

About Forex Learn Forex Trading