RoboForex - roboforex.com

[RoboForex Contest]

Dear traders!

This week, a RoboForex project called ContestFX will continue with the following competitions:

The 151st competition of "Demo Forex" is approaching the final stage.
The 437th competition of "Week with CFD" has just kicked off.
The 571st competition of "Trade Day" will start on 01.11.2023 at 12:00.
The 485th competition of "KingSize MT5" will start on 02.11.2023 at 20:00.

It is very easy to take part in our demo contests - all you need to do is to go through a simple registration procedure just once, and then any of the competitions you like will be available to you in just a couple of mouse clicks.

Join us, it won't be boring!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How Much Should Be the First Deposit Amount?

Dear Clients and Partners,​

After doing some demo trading and conquering the virtual market, every trader starts sooner or later thinking about opening a real account and depositing their hard-earned money. The question of 'How much should I deposit?' arises soon, and the answers are many. The first one may think of is funding the account with the minimum deposit amount or the minimum investment amount defined by the broker. However, when choosing this option, one should understand this may lead to losing the deposit quickly if the market goes against you. Meanwhile, the losses at early stages are very bad for any trader's psychology, and overcoming such losses is not an easy task. Thus, sometimes, continuing demo trading is much better than investing a minimum amount.

Setting goals for trading

Another popular option described across the web is that a trader should invest so much money as they are willing to lose. In other words, a trader ought to believe they will be wagering their money, rather than investing. This could be partly true, as deeming this money lost from the very beginning will solve any future emotional problems in case this money is really lost. On the other hand, however, this may make the trader think their trading activity is unimportant, as if it were a mere game of chance. This is actually why most novice traders do not trade but rather wager, and only one out of ten, on average, is successful.

We believe everyone asking themselves the How Much Should I Deposit? question should first understand their purpose. If you are in the markets only to play a game, it does not matter how much (or little) you are going to invest. Whether you play with a hundred or two of bucks in a cent account or even continue demo trading, makes virtually no difference.

Typical mistakes of a trader

Many beginner traders think they could turn $100 into millions in a month. Is it realistic? Long story short, you will have to double your deposit every single day. This is barely possible, even mathematically. So, every time you start thinking on saving up your cash and putting in a minimum deposit, multiply this amount by 10 or even 20. This won't guarantee you any profits either, but will at least allow your account to have some financial support, preventing it from getting 'blown' in a flash.

Conclusion

Rationally thinking, the first deposit amount should be in line with the average weekly or monthly gain the trading system is ready to provide you with. Thus, if you want to earn, say, $1,000 per month, and your system gives you 10% to 20% monthly, you should deposit between $5,000 and $10,000.

We all understand, however, that financial conditions of every single trader matter, too. Some would say $1,000 is a large amount, while for others 100,000 won't be enough. Everyone has to make their own choice, and should remember at all times that even a huge deposit does not guarantee profits without the appropriate attitude to trading.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Hedge Your Risks?

Dear Clients and Partners,​

Hedging risks is an essential ability for both new and advanced investors. Risk hedging is used when a trading system no longer works, and you've got to secure your capital against the volatile market conditions.

Hedging on Forex

The most simple and popular way to hedge risks in Forex is opening an opposite position. For instance, if you've got a losing long position which you don't want to close, you can just go short, opening a sell position with the same size. Thus, your losing position will get compensated with a winning one.

This is not that perfect, though. When doing so, you've got very little free margin to trad with, which limits your trading and may lead to loss of potential profits. Besides, you will spend money on spread, and this is not less important. You can think of it as 'a little money here and a little there', but this finally may lead to permanent losses.

Accepting losses

What is the best way to act then? Sometimes, it is a good idea to just close a bad trade before it ruins your deposit. A mistake, yes, but not a catastrophic one. Such mistakes are good to learn on as long as you get more experienced.

More seasoned traders may choose an index that monitors a few currencies instead of sticking to a single pair. Thus you will be able to see a pair that stands out of the market noise. For example, you can track the dollar index that will help you to monitor both EUR/USD and other currencies. Having a look at the overall market picture is also a way of hedging your risks.

Sometimes, too much hedging and in-depth trading is also bad. In these cases, one had better stick to the simplest strategies without too much analysis or searching magic robots, signals, or signs.

Conclusion

Very often a trader understands why the hedging strategies are good only after they have faced losses. In the worst scenario, this will happen only when the deposit is already blown. This makes using the hedging techniques essential since your first trading day, before you lose too much money.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project is waiting for you with the following contests:

The 152nd competition of "Demo Forex" and 438th competition of "Week with CFD" have just started.
The 572nd competition of "Trade Day" will start on 08.11.2023 at 12:00.
The 486th competition of "KingSize MT5" will start on 09.11.2023 at 20:00.

All participants of our contests have a chance to showcase their trading skills. Upon winning, they'll receive prize money to their real accounts which they can use to trade in Forex market instead of investing their own savings.

If you aspire to be one of the winners, don't miss your chance!

Sincerely,
RoboForex Contest

 

[Vlad RF]

Price Movements: By Chance or By Nature?

Dear Clients and Partners,​

Most traders I have known want to absolutely conquer the market. Some succeed, but only every now and then, failing to turn this conquer into a permanent win. The reasons are many, from insufficient skills or experience all the way to the lack of the 'holy grail', with the 'not enough money' reason in between. Well, a good set of excuses. These reasons, however, are somewhat true, as all traders are different and use their trading potential differently.

Two major trader’s opinions

There are two major opinions in the market that divide all traders. The first are Stochastics, those who want to predict the price movements. The second, agnostics, are just moving with the market, watching it constantly. The former are an overwhelming minority, while the latter account for about 90%. And even if you are a stochastic, chances are that you're a bit of agnostic, too.

What makes traders choose one way or the other? Again, the reasons are many, but, first and foremost, people tend to back their opinions with theories, either scientific or not that much.

The effective market theory

The effective market theory, for instance, tells us that all market players have access to the same information allowing them to analyze and predict the market moves. This way, each new piece of information is already priced in the market. All market players act rationally, like robots, in order to make the most of it, while a single trader is not able to influence the market.

This has nothing to do with the reality, though. What about the legal actions involving traders who used insider hints to speculate in the markets? Or how about those who buy out a certain currency in order to raise the demand for it? That's it. Theories work for ideal markets, not the real ones.

Reasons for market movements

Any move that happens in a real market has a medley of reasons behind itself; at any given moment, those reasons may be different, and the correlation between them may also be different. The point to understand is that no emotion, speech or data release may influence the price without someone's placing a real buy or sell order. If a bullish candle is rising, this means people are hitting the Buy button on and on, even with the ask price rising,

And the same is for a bearish candle. These are the basics of the price movement mechanics. Why do then massive buyouts and selloffs occur? The effective market theory has a ready-made answer for us again. A trader will sell a country's assets in case the local key interest rate is cut, the unemployment is rising, a war conflict breaks out, and so on. In other words, if a trader understands an asset is under risk, they attempt to get rid of it as soon as possible, even if the price is not that good.

Conversely, if the key interest rate is being risen, or, say, a QE program is coming to an end, a trader will buy out the appropriate assets. You understand, of course, however, that any market has trends, both short term, midterm, and long term, each of them being influenced by various factors and with different weight. Before a long term trend is reversed, the short term one ought to fade out first. Besides, any market has all types of players: large, medium, and small, and all of them operate at different levels on different time frames.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Become a RoboForex Partner and Earn Money with the Company

Dear Clients and Partners,​

In this post, we'll talk about the RoboForex Partner Programme and how you can earn money in the Forex market without actually trading. First of all, let's define the "affiliate programme" concept. What is it about?

This term refers to an Introducing Broker (IB) collaboration in which the partner attracts new clients for the broker by using the promotional resources made available by the broker. The resources can be thematic platforms, publishers, forums, and blogs that can turn visitors to the resource into active clients of the broker.

The partner may receive payments for the direct attraction of a new client, or for the further client's trading activity, or both. This cooperation scheme is beneficial for both parties: the broker acquires new active clients referred by the partner, as a result of which the partner receives passive income. It is important to note that the amount of this income depends on the intensity of the trading operations on the attracted client's account.

RoboForex Partner Programme

The RoboForex Partner Programme provides the incentive to earn a steady income by attracting clients to the company and providing them with access to the latest trading technologies and high-quality services. According to the Programme, the broker transfers up to 70% of their income to the partners, and up to an additional 20% under the Loyalty Programme from the total partner commission. In total, the payout can amount to up to 84% of the broker's income – a unique offer in the market.

The initial amounts received can be used by the partner to further develop the affiliate network, and attract new participants who will eventually become clients of the broker. More clients = more payouts.

Thanks to special conditions, RoboForex partners can instantly develop their affiliate network to a certain level, and start receiving a stable income from the very first month of work. Such affiliate networks are not a rarity in the modern market. They are actively developed by brokerage companies, whose owners started off as partners of RoboForex, which emphasises the high profitability of this type of earning.

Loyalty programme

The RoboForex Loyalty Programme allows you to additionally receive up to 20% of your partner's commission for the month. The Loyalty Programme payment scheme is shown in the table below.

VIP programme

Within the frameworks of our VIP Programme, you can receive an partner commission in the amount of up to 70% of the Company’s revenue for your direct clients (1st level), and 10% of the commission received by your sub-partners (2nd level).

Expert programme

A 5-tier Expert Programme is available to partners, offering a partner commission of 35% of the company's earnings for direct clients, and an additional percentage of commissions for sub-partners at various levels of the affiliate network.

Increased partner commission rate on Gold, Silver, Oil and other instruments

In February 2023, RoboForex significantly increased its partner commission rates for the popular instruments such as Gold (XAU/USD), Silver (XAG/USD), and Crude Oil (Brent, WTI). In addition, the rate was increased for US500, USTech, and US30. The changes and the current values of the partner commission rates are reflected in the tables below.

What the broker provides to the partner

Partners can choose advertising content to put on their sites. A large selection of banners, informers and other related promotional material can be found in your personal account.

There are special affiliate accounts with an increased spread and with an increased commission per 1 million USD of turnover. They allow you to earn up to 70% of broker's revenue and are available for all affiliates. They will be most suitable for those affiliates who provide their clients with various additional services – trading signals, expert advisors, access to scripts and other options.

Advantages of the RoboForex Partner Programme

• There is no limit on payouts
  The maximum payout depends only on the partner’s success
• There are no restrictions on transactions
  The partner's remuneration is paid for all transactions of attracted clients, without exception
• There is no limit on bonuses
  The partner's commission is calculated including all bonuses that have been used by the clients referred
• Simple analytics
  Partner receives real-time, comprehensive information about their referred clients in the relevant sections of their Members Area
• The Broker's Loyalty Programme
  The broker rewards active partners and gives them the opportunity to earn up to 20% extra income on top of their existing remuneration

How to get started

To become a partner of RoboForex, simply register your account on the broker's official website. When you register, you will be presented with an Partner Agreement, which describes the terms and conditions of your cooperation in detail. You can attract new clients to the company, and earn money from their trading activity as soon as you complete registration!

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Read more at R Blog - RoboForex

Sincerely,
The RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, a RoboForex project called ContestFX offers you the following demo competitions:

The 152nd competition of "Demo Forex" has been running since last Monday.
The 439th competition of "Week with CFD" has just started.
The 573rd competition of "Trade Day" will start on 15.11.2023 at 12:00.
The 487th competition of "KingSize MT5" will start on 16.11.2023 at 20:00.

To participate in our contest, all you need to do is to go through a simple registration procedure just once, and then any of the competitions you like will be available to you in just a couple of mouse clicks.

We wish all of you successful trading!

Sincerely,
RoboForex Contest

 

[Vlad RF]

GBP/JPY Forecast: Will the Correction Begin in the Q4 of 2023?

Dear Clients and Partners,​

The GBP/JPY pair is among the currency pairs that are highly favoured in the global currency market. In this article, we will examine the primary fundamental factors affecting the GBP/JPY exchange rate, analyse its performance in 2023, and explore the short-term and medium-term forecasts provided by experts.

Overview of the GBP/JPY currency pair

The GBP/JPY pair is a cross rate comprising the two popular currency pairs, GBP/USD and USD/JPY. It is worth reminding that a cross rate is the value of one country’s currency denominated in another country’s currency and determined based on their value against a third country’s currency. In this case, the latter refers to the US dollar, the key international reserve currency. The GBP/JPY exchange rate reflects fluctuations in the British pound sterling (GBP) value against the Japanese yen (JPY).

The UK currency is the base currency in this pair, and the current price reflects how many yen are needed to buy or sell one pound sterling. When the pair quotes increase, it indicates a strengthening UK currency. Conversely, a decline signifies a weakening pound sterling against the yen.

Trading characteristics of the GBP/JPY pair

• The yen exerts the most significant influence on the currency pair’s performance. If there is a strong directed movement of the JPY, the pair’s quotes are likely to follow it. At the same time, owing to its high volatility, the GBP may occasionally set the direction of the movement
• The pair trades round the clock from Monday to Friday inclusive
• The highest activity is observed during the Asian, European, and American trading sessions
• The GBP/JPY pair experiences high daily volatility within the 1,000-1,500 pips range. During times of market force majeure, it has the potential for strong movements exceeding 3,000 pips per day
• Thanks to its popularity and high liquidity, the spread for this pair ranges around 10 pips in a quiet market

Fundamental factors influencing the GBP/JPY quotes

The Bank of England’s monetary policy

The primary tool used by the Bank of England, the UK’s central bank, to control inflation and influence the exchange rate of the national currency is the implementation of changes in the interest rate. If the interest rate increases, the pound sterling exchange rate appreciates, while a decrease in the interest rate leads to a decline in the exchange rate. Since December 2021, the Bank of England has executed a series of interest rate hikes to curb mounting inflation.

The rate increased from 0.1% to 5.25% during this period. The Bank of England’s Monetary Policy Committee aims to achieve a 2% inflation target. In October 2023, the Consumer Price Index (CPI) rose by 6.7% compared to 2022 figures. With inflation rates slowing, the UK central bank paused its interest rate hikes from August 2023. The regulator sees risks of a potential slowdown in the country's economy due to a significant tightening of credit terms.

GBP/JPY performance in 2023

The GBP/JPY pair has maintained a consistent upward trend throughout 2023. The quotes surged from a low of 156.00, where they hovered at the beginning of the year, to a 7-year high of 186.76 in late August. The absence of clear signals from the Bank of Japan regarding potential monetary tightening exerts upward pressure on the yen, driving the currency pair’s quotes higher.

At the same time, the Bank of England has actively raised interest rates throughout 2023 in response to mounting inflationary pressure. The significant difference between the rates resulted in the serious weakening of the yen and the gradual growth of the pair’s exchange rate. At the time of writing on 9 November 2023, the quotes hovered around 185.40, nearing their annual high.

GBP/JPY technical analysis

The pair has steadily grown since September 2022, moving within the long-term daily ascending channel. At the end of August 2023, the quotes reached an annual high of 186.76, followed by a slight downward correction during which the price hit a low of 174.28. It is worth noting that this is now a local support level.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex investment and trading platforms win Global Brands Magazine Awards

Dear Clients and Partners,​

We are delighted to announce that two of our flagship products have received prestigious accolades at the Global Brands Magazine Awards. Our CopyFX investment platform was awarded the title of "Best Copy Trading Platform", and R StocksTrader earned recognition as the "Best Multi-Asset Trading Platform".

Trade in R StocksTrader
the Best Multi-Asset Trading Platform

• Integrated Copy Trading for mobile app
  Copy the best trading strategies as an Investor, receive commissions from subscribers for your trading experience as a Trader
  
• 12,000+ instruments
  US Stocks, Indices, ETFs, CFDs on stocks, and other popular assets
  
• Cost-effective conditions
  Enjoy market-based spreads from 0 pips, a commission for Stocks from 0.009 USD per share
  
• Useful functions
  One-click trading directly from charts, a built-in strategy constructor, advanced watchlists, etc
  
• Corporate actions
  Automated dividend payments and supported corporate actions (cash dividends, splits, mergers, and more)

Download the App


​

Invest without borders with
the Best Copy Trading Platform

• Versatility
  Copy the best trading strategies as an Investor, receive commissions from subscribers for your trading experience as a Trader, or guide newcomers to top Traders and earn a share of their commission as a Partner
  
• Security
  Robust handling of high-volume transactions, unmatched security protocols, and exceptional network stability
  
• Integration
  Seamless integration with the top-tier MetaTrader 4/5, as well as via the exclusive R StocksTrader platform
  
• Adaptability
  You can choose multiple roles or simply select one - be it a Trader, Investor, or Partner

​

Sincerely,
The RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project will continue, as usual, with the following competitions:

The 152nd competition of "Demo Forex" has gained "cruising speed".
The 440th competition of "Week with CFD" has kicked off today.
The 574th competition of "Trade Day" will start on 22.11.2023 at 12:00.
The 488th competition of "KingSize MT5" will start on 23.11.2023 at 20:00.

Let us remind you that upon winning, all winners receive prize funds to their real accounts, and this money can be used for trading in the Forex market instead of investing the winners' own savings.

Do not miss your chance to be one of them!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of the Thanksgiving holiday in the US

Dear Clients and Partners,​

We are informing you of the upcoming adjustments to the trading schedule due to the Thanksgiving holiday in the US.

This schedule is intended for informational purposes only and may be subject to further amendments.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on CFDs on the US indices (US30Cash, US500Cash, USTECHCash) and the Japanese index JP225Cash

• 23 November 2023 – trading stops at 7:40 PM server time
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on Oil (Brent, WTI)

• 23 November 2023 – trading stops at 7:40 PM server time
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on US stocks

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on US futures

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 7:15 PM server time

R StocksTrader platform

Schedule for trading on US stocks and ETFs

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on US stocks and ETFs

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on the US indices

• 23 November 2023 – trading stops at 7:40 PM server time
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on oil (WTI.oil, BRENT.oil)

• 23 November 2023 – trading stops at 7:40 PM server time
• 24 November 2023 – trading stops at 8:00 PM server time

Schedule for trading on CFDs on US futures

• 23 November 2023 – no trading
• 24 November 2023 – trading stops at 7:15 PM server time

Please take note of the above amendments to the trading schedule as you plan your trading activity.

Sincerely,
The RoboForex Team

 

[Vlad RF]

The RoboForex partners promotion with cash prizes worth $1,000,000 continues!

Dear Clients and Partners,​

We remind you that all RoboForex partners can take part in our grand promotion and win cash prizes.

The distribution of 60 prizes from $1,000 to $15,000 is organised once a month to April 2024.

The winners will be decided by the market.

A system as transparent as possible - It's all up to stocks.

Join our grand promotion!

​

Sincerely,
The RoboForex Team

 

[RoboForex Contest]

Dear traders!

This week, a RoboForex project called ContestFX offers you the following demo competitions:

The 152nd competition of "Demo Forex" is approaching its end.
The 441st competition of "Week with CFD" has just started.
The 575th competition of "Trade Day" will start on 29.11.2023 at 12:00.
The 489th competition of "KingSize MT5" will start on 30.11.2023 at 20:00.

Becoming a participant of our competitions is easy - all you need to do is to register an account just once and then any of the contests you like will be available to you in just a couple of mouse clicks.

Join us!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Trade on Forex? Ultimate Guide for Beginners

Dear Clients and Partners,​

What are financial markets – exchange and Forex?

When an uninitiated reader encounters the collocation "financial market", they discern no difference between such terms as "stock market", "exchange", "Forex", "equity market", "bond market", "currency market", "derivative market", etc. So, I think there should be an explanation what the financial market really is. First of all, understand and remember that the financial market is not just a place for trading, but the entire system of the economic relations, which appeared in the process of exchanging different goods and recourses.

The financial market is an environment for mobilization and aggregation of capital, for loaning, exchanging currencies, and investing in the industrial sector. Balance of supply/demand for borrowed funds forms the global financial market. The global financial market can be classified according to types of goods that are traded. There are following types of financial markets:

• The currency market (Forex). The basic asset here is currencies, which are bought and sold by brokerage companies, banks, and investment funds.
• The stock market. This is the place where they trade securities (stocks, bonds, bills, derivatives).
• The commodity market. Among assets that are traded here are oil, metals, farm produce.
• The precious metals market is often considered as a part of the commodity market, but it should be classified as a separate market due to significant trade turnover growth. As a rule, precious metals often serve as safe haven assets.

Trading procedures on Forex

Since the Forex market is an OTC market, it doesn’t imply actually buying or selling currencies like they do in exchange offices.

A lot of people ask themselves a question: "How do I become a trader and start trading on financial markets?" Let’s try to track the career path of a future "big boy from Wall Street" step by step. Early stages in trading on Forex and other financial markets are pretty similar. Let’s take a closer look at this process by the example of the currency market.

First of all, a trader-to-be chooses a broker and decides on the trading platform they are going to use for trading. A variety of trading terminals available on the market allows to choose one that meets all their requirements and preferences. After choosing the platform, they have to decide on a trading account type. As a first step, it’s better to go for a standard demo account, which helps to learn how to open and close positions, place Stop Loss and Take Profit levels, and use charts and indicators.

Stop Loss is a protective order placed by a trader to limit possible losses in case of negative market situation. The order level is defined on basis of the current market situation, risks that a trader can afford, and their trading strategy.

Take Profit is an order to close a position when the instrument quotes reaches some specific price level. The order parameters are set by a trader based on their forecasts or according to their trading strategies. Take Profit orders can be placed not lonely at the position opening, but later as well. Also, there are methods of trading without Stop Loss and Take Profit levels, when a trader closes each deal manually after evaluating the current market situation.

How to trade on demo account?

Let’s assume that a trader chooses MetaTrader 4 terminal, opens a demo account with 10,000 virtual USD, and decides to trade EUR/USD positions of 1 lot. In this case, a trader opens positions using virtual money and if they lose it, no real financial losses will be incurred. Any trader has an opportunity to open several demo account with the same broker and trade any amount of virtual funds.

After that, it’s time to learn how to open positions. After opening the EUR/USD chart, a trader sees that the price may rise in the future (we’ll later discuss what reasons this conclusion is based upon). To open an order, we choose "New order" tab, specify the volume (by default, 1 lot), set Stop Loss and Take Profit levels, and add comment to the order if necessary.

Read more at R Blog - RoboForex

Sincerely,
RoboForex Team

 

[Vlad RF]

RoboForex receives "Best Trading Conditions" and "Best Partner Program" awards

Dear Clients and Partners,​

We are delighted to inform you that RoboForex has received awards in two prestigious nominations from influential media outlets. The company won the "Best Trading Conditions" title at the International Business Magazine Awards and the "Best Partner Program" accolade from the World Economic Magazine Awards.

Trade with the industry leader and experience the advantages of being a RoboForex client

​

Become a RoboForex partner
and earn up to 84% with the Partner programme’s best conditions

• Instant partner commission
  Earn up to 70% commission under the Partner programme
  
• Loyalty programme
  Receive up to 20% of the total partner commission as extra profit
  
• 24/7 Support
  RoboForex Support is available 24/7 to assist you
  
• No Payout Limits
  There are no restrictions on the maximum payments per month or per client
  
• Convenient payouts
  The commission is automatically transferred to your account on a daily basis
  

Use our interactive Affiliate Calculator to estimate your potential profit.

​

Sincerely,
The RoboForex Team

 

[Vlad RF]

S&P 500 Forecast for 2024: Can the Index Hit 5,000?

Dear Clients and Partners,​

On 29 November 2023, we looked at the popular stock index S&P 500 (US500), examining global economic factors influencing it and potential investment and trading strategies. Based on technical analysis, we assessed the current situation on the index chart and explored analysts' forecasts for 2024.

Overview of the S&P 500

The S&P 500 is one of the world’s most widely used stock indices, comprising 500 of the largest companies traded on US stock exchanges. It was created on 4 March 1957 by Standard and Poor’s, now known as S&P Global Inc.

Companies in the index basket represent various economic sectors and industries, making the S&P 500 a crucial gauge for assessing the US stock market.

The S&P 500 eligibility criteria

• Market capitalisation is greater than or equal to 14.5 billion USD
• At least 50% of shares should be available for public trading
• Stocks should be traded on the NYSE or NASDAQ
• The company should have a primary listing on a US stock exchange, comply with US securities laws, and generate at least 50% of its income in the US
• Operations for the last four quarters should be profitable

The list of the S&P 500 companies is revised every quarter. If, for any reason, a corporation no longer meets the above criteria, it is replaced with another company.

Looking back: the S&P 500 performance in recent years

According to TradeThatSwing, the average annual return for the S&P 500 from September 1973 to September 2023 inclusive is 10.75% if unadjusted for inflation and 6.59% if adjusted for inflation. From 1998 to 2022 inclusive, the maximum index return of 30% was recorded at the end of 2013. The minimum value for the same period was seen at the end of 2008, standing at −38%.

The average annual return for the S&P 500 from September 2018 to September 2023 inclusive reached 10.49% if unadjusted and 7.28% if adjusted for inflation. It can be assumed that the index value could have been higher if stock performance in 2020 were not characterised by the high volatility caused by the COVID-19 pandemic. In addition, it was negatively affected by both a bearish market and a high inflation level in 2022.

Global economic factors influencing the S&P 500

• The Federal Reserve’s monetary policy. Interest rate changes may impact borrowing costs for companies, affecting profits and investment decisions
• Global economic growth. This usually has a positive impact on companies’ profits and contributes to index growth
• Exchange rates. The strengthening of the US dollar may adversely affect profits of US companies with a significant share of global operations
• Corporate reporting. Positive quarterly and annual reports may drive up stocks of the S&P 500 companies, creating favourable conditions for index growth
• Important political events in the country. For example, tax reforms or regulation changes may have a substantial effect on the stock market, and hence the index
• Energy source prices. Changes in oil and gas prices may affect the energy sector, and index quotes

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

What is CFD and Its Difference from a Real Asset?

Dear Clients and Partners,​

Are there any beginners, who haven’t asked themselves a question what a CFD is and how it is different from a real asset? Let’s go deeper in these terms and try to determine which one of them is more interesting and easier-to-use for both beginners of stock exchange markets and experienced investors.

What is CFD?

First of all, one should know what CFD stands for. CFD means a Contract for Difference. As a matter of fact, it is an instrument traders can use for trading or speculating in price differences, but without buying a base asset, stocks, metals, or commodities.

Trading on the stock market

Now, let’s compare trading stocks and CFDs. In order to participate in trading stocks, a trader has to open an account. In this case, the leverage value will be 1:20, at most. This, in its turn, means that traders with small deposits will have limited opportunities for trading.

Usually the minimum contract size on stock exchange markets is 1 lot, which is 100 stocks. For those, who would like to use smaller contract sizes, in R StocksTrader, the multiasset trading platform the minimal contract size is 0.01 lots - 1 stock. The maximum contract size is limited only by the amount of funds on a trader’s account or the number of traded stocks. It’s quite easy to calculate how much money a trader requires for trading, if, for example, a stock of one popular social network costs 181 USD. Margin requirements for 1 lot (100 stocks) will be 181 * 100 = 18,100 USD.

With small deposits, there will be no opportunities for opening this position. But this is just one of the many examples. However, on stock exchange markets one can find stocks at the price from 0.01 USD, that’s why there are a lot of options for trading even if there is insufficient money for expensive stocks. Apart from this, one should take into account the platform expenses (so called monthly fee) and the commission to be paid to a broker for every opened and closed positions (on average, a trader will spend on this about 4,000 USD a year). Holding positions overnight is free at some of the brokers, but some of them make traders fulfill some certain conditions.

Corporate actions

In case of trading stocks, there are both expenses and some positive moments. For example, cash dividends, because a trader acts as a shareholder with the right to vote at the company’s meetings (for this, a trader has to fulfill some certain conditions). However, in most cases, trading is speculative and has no goals to receive dividends or to take part in shareholder meetings.

One should know that there are some restrictions in trading. Not all stocks are available for credit sale; sometimes, there is no access to open a short position, especially if a trader hasn’t got this asset.

Trading CFDs

Now it’s time to talk about Contracts for Difference. In this case, brokers usually provides bigger leverage values than for trading stocks. Everyone decides for themselves whether it’s good or bad, but increased leverage values allow traders to expand the list of available trading instruments.

An opportunity to trade, both buy and sell, without any restrictions. If a trader buys some trading instrument, but the instrument price falls contrary to expectations, CFDs offers an opportunity of hedging. Trading Contracts for Difference doesn’t imply buying/selling a base asset. Quotes of CFDs and base assets are usually the same, but sometimes there may be 1-2 pips difference due to the internet connection speed. CFDs can be traded through “Forex” terminals, which are usually provided for free. However, trading hours for both CFDs and base assets are the same. The minimum contract size for CFDs, unlike stocks, is 0.1 lots, while the maximum size is limited only by opportunities traders have.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

How to Trade with Leverage

Dear Clients and Partners,​

What is Leverage

Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading. On Forex, you can easily find brokers offering up to 2000:1 leverage, and there's one that claims to offer unlimited leverage to its clients. In the stock market, meanwhile, you'd barely come across a broker that offers over 20:1 leverage.

Leverage in Forex

Leverage got especially popular in Forex, as it is less volatile, and one needs to have their funds leveraged in order to boost the performance, and, subsequently, the profits. The EUR/USD, for instance, moved just 1.10% in May, which would have returned you a 1.10% profit without leverage (1:1). Over the same period, Tesla yielded 14% profit to the shareholders. This way, once the Forex brokers stop offering leverage, the gains in the market will get ridiculously small for the retail traders, and those will have to move the money elsewhere.

How to Get Leverage

A broker will grant you leverage once you deposit your own funds on your account with that broker. Those funds are called margin, and they act as collateral for the loan money you get from the broker. Every broker has its own minimum deposit limit; in many cases, it is as little as $10. Some even don't require any: you just get a welcome bonus, 'free money' that acts as margin.

Leverage and Expenses

When trading with a broker, you as a trader always have to pay commissions on every trade you make. The commission or fee may be priced in spread or may be paid apart. Besides, when rolling a position overnight, you will have to pay the swap. Without leverage, those fees can be barely seen in the statement, but when you do use leverage, they become a few times larger. Let's assume you open a USD/JPY trade with a 1:1 leverage and a $1,000 deposit. With the smallest lot size, 0.01, and a spread of 1.90 pips, you get a ridiculous $0.17 fee. Once you have moved to a 100:1 leverage, however, you will be able to open a 1-lot position, and, considering this, the fee will increase to as much as $17.48. Thus, larger leverage leads to larger expenses.

Advantages of Leverage

Leverage is so much popular in Forex because, without it, you won't earn as much in Forex as in stock market over a certain time frame. Leverage increases the capital you can operate, thus boosting your performance and ROI. Look at the above example: suppose you opened a EUR/USD trade on May 1 and closed it on may 31; this would have yielded you 1.10% profit. With Tesla, you would have earned nearly 14 times more. That's why, if you don't use leverage in Forex, you don't want to trade Forex at all!

Leverage Risks

Unfortunately, not every trade results in profit. Sometimes, you will certainly have losing trades, and in this case the leverage will magnify your losses. Say, you went long on EUR/USD with a $1.200 deposit, the price is 1.1200, and your lot size is 0.01 (micro lot), each pip thus costing $0.10. Then the price fell to 1.190, and in case you decide to close your position, your loss will be as little as one dollar! With 100:1 leverage, this would be a different story. You would have most likely gone one lot, and a 10-pip fall will now cost you as much as $100. Your profit and loss size, therefore, is strictly bound to the leverage size; with more leverage, you earn more and you lose also more!

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

Types of Financial Instruments

Dear Clients and Partners,​

On financial markets, no matter when, while working there or just getting to know them, investors will surely face such things as financial instruments. What are they? We’ll paint it in details.

Financial instruments

Financial instruments imply a wide range of terms and definitions. It’s very easy to see how numerous they are: they include a category of banking tools, a group of market assets, and a lot of other financial operations that many people have heard of, but only few have really seen and used them.

All financial instruments can be roughly divided into two main groups: the first group is available to everyone without any exceptions, while the second one requires particular knowledge and skills. As a result, the first group will contain credits, loans, bank deposits, and leasing.

Credits and loans

Credits and loans are the most widespread financial instruments for citizens. The only thing that may really compete with them is a bank deposit. A credit is an operation when a lender grants money to a borrower at a certain interest. The money, of course, is subject to return according to the agreement. As the years go by, global lending terms are getting “milder”, because banks are competing to retain customers, thus offering them better conditions. However, in developing economies it doesn’t work this way: in most cases, the rate on credit is a primary source of banks’ revenue.

Bank deposits

Bank deposits are another widespread financial instrument, which doesn’t imply any in-depth knowledge. In this case, a bank acts as a borrower and pays interests to a lender (an individual) for using their money after a specified period of time is over. The deposit rate is calculated based on the value of the country’s key interest rate, but sometimes there are other possible options.

Leasing

Leasing is a more complicated financial instrument, but it’s quite available for citizens. Leasing agreements have 3 parties: after concluding an agreement, a lessor gets a long-term asset, a lessee undertakes an obligation to pay money on account of debt repayment, while a distributor of a property or equipment sell their products.

Now let’s talk about the second group of financial instruments, which is related to trading on financial markets and speculations of different types. In this case, speculations mean investment in high-risk assets with a possibility of a large income.

Stocks and bonds

So, what are stocks and bonds? A stock is an ownership share. After buying stocks on financial stock exchanges, an owner is guaranteed the right to receive dividends. A bond is an issued security similar to a stock, but with the attached right to receive its nominal value or money, or their equivalent within the time specified. A bond is a debt security. When it comes to risk, stocks are considered more risky financial instrument, while bonds – more conservative.

Futures

Then come derivative instruments. In other words, these are assets that are based on a basic concept, but the instruments themselves are pretty specific tools. Futures are derivative financial instruments based on the SPA of an asset (stocks, good, etc.), and when entering into the agreement parties agree only on the price and the delivery date. Other parameters are usually quite standard and defined by specifications. Futures are trade offers, which are traded on the market on a regular basis.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team

 

[Vlad RF]

How to Use Stop Loss and Take Profit: Learning to Place Orders to the Charts

Dear Clients and Partners,​

The Stop Loss and Take Profit orders act as insurance, being reverse orders in essence. If, for example, a pair was bought, when an Stop Loss or a Take Profit is triggered, a reverse trade (selling) is carried out, locking in profit (if the TP is triggered) or Loss (if the SL is triggered).

What is Stop Loss and Take Profit?

A Stop Loss (SL) is a protective order that limits possible losses of the trader in an open position. It automatically closes the trade when a certain level or amount of losses is reached. A Stop Loss is placed either to limit losses or to lock in profit. In the latter case the order is placed in the profitable area.

A Take Profit (TP) is an order locking in profit without the trader’s participation. The order automatically closes the trade when the price reaches a certain level.

Both Stop Loss and Take Profit must be placed in accordance with the trader’s strategy. For your trading to be stable and successful, these orders are obligatory. The Stop Loss minimizes losses and enhances risk management.

Almost all trading strategies include the use of an Stop Loss and/or a Take Profit. Each trader has their own criteria of money management (MM) that tell them how much they can afford to lose in each trade. This is the strategy telling where to place an SL and a TP.

How to place a Stop Loss?

The trader defines how much they can lose, according to the MM, if something goes wrong. The strategy tells them where the Stop Loss should be.

Placing Stop Loss and Take Profit in a Pin Bar strategy

The trader is using the Pin Bar strategy. At the top of an ascending impulse, there has formed a Pin Bar pattern, and the trader is planning to open a selling trade. In this case, an Stop Loss will be placed behind the maximal value of the signal candlestick. The landmark for a Take Profit is the nearest support level. The possible profit to loss ratio in this case is 3:1. In the first picture, you can see where the SL and TP must be placed by the trading strategy.

The Stop Loss is usually calculated in points from the entry to the trade, accounting for the sum of affordable losses, expressed in the basic currency of the deposit. The trader must calculate the price of a point and then place the volume. For example, the Stop Loss is 40 points, the available loss is 100 USD; 100 USD/40 pips = the price of a point is 2.25 USD. Hence, the size of the trade is 0.25 lot.

With risk management, the trader can control risks. For example, if they receive a signal with a profit to loss ratio of 1 to 1, the trader should think twice before entering this trade. An optimal profit to loss ratio is no less than 3 to 1.

Placing Stop Loss and Take Profit in a Pin Bar strategy - 2

In the picture, we can see a complete Pin Bar, and if we calculate the trade by the strategy, we will see that the nearest support level is as far away as the Stop Loss, which gives a 1:1 ratio. So, we can filter out this signal as it does not comply with the MM.

How to place Stop Loss and Take Profit automatically?

At present, there are a lot of programs for the trader to live easier. While before the Stop Loss and Take Profit were to be placed manually, and if they were to be changed, the trader had to modernize the order in several steps, nowadays, the things have become much simpler. It is enough to left-click the order on the chart and drag it to the desired price level. Depending on the direction in which the order was moved, an SL or a TP will be placed.

There are scripts and expert advisors that automatically place the Stop Loss and Take Profit levels by the set criteria for each new order. On the Net, you can find an advisor called Auto-MM with a short user guide, which calculates the trade volume and automatically places the Take Profit and Stop Loss.

Read more at R Blog - RoboForex

Sincerely,
The RoboForex Team