CMTrading Daily

While technical analysis is arguably the most popular method of market analysis, traders who fail to consider the fundamentals and major economic indicators will either figure out that their trades aren’t going according to plan, or they have missed favorable opportunities.

Fundamental analysis is just one of the several methods of predicting a market’s direction and as it provides a macroeconomic view of the market, it tends to help with long-term trades the most. However, keeping track of the state of a country’s economy and economic factors such as interest rates and unemployment rates can facilitate a better understanding of short-term price fluctuations as well.

Even though the South African economy is on a slowdown, the Johannesburg stock exchange is still going strong and investors’ interest is piqued by the ongoing boom in the mining sector.

Trading forex involves buying or selling various financial instruments including currency pairs, stocks and commodities. All these financial instruments are quoted according to the forces of supply and demand in the market and currencies that are in high demand offer the most favourable spreads.

The GBP/JPY pair is one of the most volatile pairs in the forex market. This pair also acts as a benchmark for worldwide economic strength and favors longer-term trading strategies that focus on taking advantage of rollovers in order to receive positive interest. During economic crises, GBP JPY may sustain long-term trends with big moves measuring thousands of pips.

One of the most important advantages that forex and CFD trading has to offer is the use of margin or leverage. In this article we will explore how margin is used in online trading to magnify potential returns and how it can affect your trading results.