Trading forex can be a complicated endeavour, yet with the advancements in technology it has become a lot simpler in recent years. Thanks to the rise in smartphone and tablet apps anyone can make currency exchanges from the palm of their hand with just a few clicks.
In order to be successful and make more wins than losses when trading on the forex market, there are still many other tools that can be used to simplify the process. Even better than that, many of the following can be downloaded or used online for free.
There are a number of factors that affect currency value, such as political events, change in interest rates and many more. An economic calendar will show important upcoming events, some of which will affect the value of a particular currency, such as a government’s annual budget or central bank’s conference. Use the calendar to predict price changes in currencies you exchange.
Before making any trades it is important to think it through and work out what your best options are. Using an FxPro forex calculator will quickly and easily calculate how much margin is required to open a position based on the currency pair, account currency, leverage, position size and more details if required.
When trading more than one pair it can become harder to keep tabs on the value of each in comparison. A currency correlation tool makes working this out a lot quicker than setting up your own spreadsheet. It is essential to know as for hedging you need negative correlation, diversifying needs zero and increasing exposure requires positive correlation.
Time Zone Converters
The markets for trading forex are basically open 24/5, as the four major markets based in Sydney, Tokyo, London and New York all open and close at different times, resulting in plenty of overlap. However, to stay on top of this and track other major currency markets it is best to use a forex market hours converter. You choose a time zone and see what’s happening.
Rate History Calculators
Historical data regarding the currency pairs you are trading is incredibly helpful to learn from and determine how the price may change in a certain time period. If you want to look at a short or long period of time a rate history calculator will provide the accurate data almost instantaneously. By analysing historical price movements you should have a better chance of predicting and acting on future changes.