The top 3 trends in forex trading of 2018
We are almost halfway done with the third quarter of 2018, but there have already been a lot of local and global events that have impacted the foreign exchange market during the first half of the year. The ongoing developments in the realm of politics, business, and finance in the United States, the European Union, and elsewhere in the world are definitely worth watching for Forex traders all around the globe. As the largest and most liquid market in the world with more than 5 trillion US dollars’ worth of average daily trading volume, there should be a good reason why you should always keep up to date on the latest news and trends on the foreign exchange market.
Trading successfully in forex requires a good understanding of its fundamentals and the concepts of market analysis. Keeping up with the latest trends can also help you trade and make important decisions based on the sentiment of the market and its condition as a whole. Read more about the top three trends in forex trading this year and start learning the behavior of this market in no time.
The change in technology and the rise of algorithmic trading will be noticeable.
The foreign exchange market has witnessed the increasing adoption of algorithmic trading systems that will eventually change the forex market as we knew it in the past. These specially engineered computer programs will offer a new way of creating trade orders in automation with increased speed and precision. This will hopefully eliminate the personal bias and human error which are the two of the most common reasons that people lose in a trade. The rise of algorithmic trading will also increase the use of market and trend analysis which can help beginners with little trading knowledge to reduce their risks of incurring successive losses. Since automated trading works even you are sleep or away from your computer, it can also give you more time to spend things that matter more.
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Cryptocurrencies will start co-existing with traditional currencies in the market.
With the increasing acceptance on cryptocurrencies, it might not take a long while before we see these new virtual currencies co-exist with foreign currencies in the largest market in the world. Cryptocurrencies have already entered some of the biggest financial institutions and they may soon be added as mainstream payment solutions in the near future. With the increasing support for KYC (know your customer) and AML (anti-money laundering) protocols, 2018 might be a good year for forex market to fully co-exist with cryptocurrencies.
Regulation and price transparency will be the main highlights for this year.
The forex market is expected to come out stronger this year, propelled by the increase in regulation and the improved transparency in the prices. If the exchanges will continue to cooperate with regulatory councils and they make ways to provide transparency in the market by improving their technology, the forex market can definitely maintain a positive trend that is definitely stronger than before.