Analyse your trading strategy with expert Siby varghese to reap more profits

Forex market is a platform where the investors can exchange, speculate, buy and sell a currency. The participants of forex market include banks, institutions, brokers, investors, etc. The currency market is the largest in the world. The volume of transactions in foreign exchange market exceeds the combined volume of transactions in stock market of the world by a huge difference. The daily turnover of currency market exceeds $5 trillion.

The forex market is the only market which cannot be dominated by single market exchange. It is operated through global market networks of brokers and computers. Forex brokers are the intermediaries that connect the investors and the traders. The forex market is divided into two levels, i.e., the over-the-counter market and the interbank market. Large banks and financial institutions trade through interbank market. Over-the-counter or OTC market is used by individuals where they trade through brokers and online platform like Siby Varghese.

Types of trading styles

• Day trading: Day trading is where the trader exits the trade before the completion of the day. This style of trading protects the investors from overnight speculations in the prices. It is the best type of trading who are new in the trading business. This type of trades generally lasts for a few hours not exceeding more than 24 hours.
• Scalping: This is another style of trade which lives for a short period of time, possibly for a few minutes. The scalper has to be quick in taking decisions as the time frame provided is very rigid. This style of trading requires the scalper to quickly conquer the offer spread and skim a few profits before the closure of the trade.
• Positional trading: Positional trading style is a long term trade. The investor here invests their money for a long period in hope of maximizing their profits. The investor must have immense patience and knowledge.

When is the exact time to switch strategies?

• When the risk to reward ratio is not proportionate to each other the trader is required to change their Forex strategy. This is called matching risk management.
• The market conditions may not be stable for a long period of time. There are various factors that affect the movement of the currency market. Your trading strategy should also be renewed along with the changes in the market trend.
• The strategy that you follow without its complete knowledge will not show any productive results. Therefore, it is sensible to change your trading strategy.