RoboForex - company news and official support for customers

Dear traders!

This week, the ContestFx project will continue as usual with the following exciting competitions:
The 120th competition of "Demo Forex" has reached its "equator".
The 301st competition of "Week with CFD" has just started.
434th competition of "Trade Day" will start on 17.03.2021 at 12:00.
350th competition of "KingSize MT5" will start on 18.03.2021 at 20:00.

The winners of our contests become the owners of prize money received to their real trading accounts, which enables them to trade the whole variety of the Forex market without investing their own financial savings required as an initial deposit.

Do not miss your chance!

Sincerely,
RoboForex Contest

RoboForex adds useful push notifications to the mobile version of MT5

Dear Clients and Partners,

We’ve added another useful feature to MetaTrader 5! From now on, you have access to push notifications about popular asset prices’ reaching the lowest or highest level in the MT5 mobile application.

How does it work?

When the price of one of the below-specified trading instruments reaches the highest or lowest level over some particular period of time (from 1 to 12 months, or all-time), your smartphone will receive a push notification in the following format:

EURUSD exceeded 3-month high.

The list of instruments



How to manage push notifications?

To start receiving push-notifications, you need to install the MetaTrader 5 mobile application on your smartphone or tablet. Notifications are enabled by default.

You can manage your subscription to mobile push-notifications in your RoboForex Members Area.

Benefit from all opportunities MetaTrader has to offer!

 

1. Access to popular markets
   Trade such popular assets as Forex, Metals, CFDs on US stocks, indices, and oil.
   
   
2. Algo trading
   Create and backtest trading robots using built-in tools without having to harness any programming skills.
   
   
3. Exceptional conditions for Prime accounts
   Get access to unique trading conditions similar to liquidity providers.

Mobile push notifications are a quick way to learn about popular asset prices’ reaching the lowest or highest level. Open an MT5-based account, install the MetaTrader 5 mobile application, and receive the maximum information for more efficient trading at RoboForex.

Open MT5 account

Download an MT5 mobile application

Sincerely,
RoboForex team

Dear traders!

This week, the RoboForex company's project called ContestFX invites you to participate in the following competitions on demo accounts:
The 120th competition of "Demo Forex" has entered its fourth week.
The 302nd competition of "Week with CFD" has just kicked off today.
435th competition of "Trade Day" will start on 24.03.2021 at 12:00.
351st competition of "KingSize MT5" will start on 25.03.2021 at 20:00.

We remind you that you can take part in any of your desired competitions after going through a simple registration procedure, and using the funds received as a prize the winners of our competitions can start trading on the Forex market without investing their own financial savings.

Good luck!

Sincerely,
RoboForex Contest

How to Trade without Leverage

Author:Victor Gryazin

Dear Clients and Partners,

In this overview, I will speak about trading without leverage so that you could decide whether this type of trading suits you.

What is leverage?

Trading with leverage means that you open a position for a lager sum than you have on your deposit via marginal crediting. In essence, leverage is the ratio of your capital and borrowed money. In financial markets, leverage is provided by your broker; normally it starts from 1:10.

Using leverage, traders with small deposits can open rather large positions in financial markets. For example, owning a deposit of 1,000 USD, a trader can use leverage of 1:100 (provided by their broker) and open positions for 100,000 USD total (1,000 USD * 100).

On the one hand, trading with leverage lets the trader increase their potential profit; n the other hand, it also increases possible risks. Conversely, trading without leverage means lower risks but requires a larger deposit.

Trading in Forex without leverage

As a rule, trading in Forex means quite high leverage (starting 1:100). This is explained by currency pairs being instruments with low volatility, and traders compensate for this by increased trade volumes. However, using leverage is not obligatory; you can make a profit without it. This will require more investments, though.

Naturally, potential profitability will be lower when you trade without leverage than with it. If a currency has grown by 1%, and the trader bought it for the whole deposit with leverage of 1:100, their profit will be 100%, while without leverage, it would be just 1%. However, the use of leverage means maximum risk: if you get mistaken with your forecasts, you can lose the whole of your deposit in one trade.

Imagine a trader who has a deposit of 100 EUR and opens a maximally possible trader with leverage of 1:100, buying 0.1 lot of EUR/USD. If their forecast turns out to be wrong, and the price goes against their position, an average daily movement of 100 points in this pair (1 point = 1 euro) will destroy the whole of their deposit; they will have nothing to trade anymore.

To open the same position of 0.1 lot in EUR/USD without leverage, one needs to have 10,000 EUR. However, the same opposite movement of 100 points against the position will only mean a loss of 1% of the deposit (100 EUR). The trader will have 9,900 EUR left to trade, while in the first case, they will be left with nothing. If you trade without leverage, you risk losing your whole deposit only if your currency nears zero.

To trade in Forex without leverage, you need a reliable broker that provides leverage of 1:1. Choose your broker with all your diligence because your deposit will have to be substantial (starting 10,000 USD). Opening a trading account, alongside other parameters (trading terminal, type of account, currency), choose leverage of 1:1.



Advantages and drawbacks of no-leverage trading

The pluses and minuses of trading without leverage are as follows:

Advantages:

1. Smaller trading risks – the size of the deposit lets you trade with a good safety margin and withstand drawdowns waiting for your asset (stocks) to grow.
2. Psychological comfort – trading with a good safety margin, you take most price movements calmly and pay less attention to trading.
3. Less expenses as you pay no fees for overnight transferring of your positions.

Drawbacks:

1. A large deposit – no less than 10,000 USD is recommended.
2. Moderate profitability – significantly smaller than when trading with leverage.

Closing thoughts

It is up to each trader to decide whether to use leverage in trading or not. If you have enough money and prefer long-term trading with moderate risks, you will be comfortable trading without leverage. Choose your broker wisely and open a trading account with leverage of 1:1.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

RoboForex cuts the list of cryptocurrencies available for trading

Dear Clients and Partners,

RoboForex has made a decision to cut the list of Cryptocurrencies and Cryptoindexes available for trading in MetaTrader 4, MetaTrader 5, and R Trader.
On March 30th, 2021, positions in the following instruments will be switched to the "Close Only" mode:



On April 23rd, 2021, from 12:00 to 1:00 PM server time, all open positions in the listed-above instruments will be closed at the latest market price, while all pending orders will be cancelled.

Please, take into account these changes when planning your trading activity.

Sincerely,
RoboForex team

RoboForex increases the number of trading servers for its clients

Dear Clients and Partners,

Due to a constant increase in client base, RoboForex has enabled 2 new servers (RoboForex-Pro-3 and RoboForex-ECN-2) for MetaTrader 4 platform. As a result, the load will be equally divided between all servers, thus increasing their stability and helping us in achieving our goal, providing our clients with quality services and the opportunity to trade as comfortably and quickly as possible.

The company’s new servers offer clients to open accounts of Pro and ECN types.

Open a Pro or ECN account

and start trading with a reliable broker today!

Start Trading

Read more about trading conditions

Sincerely,
RoboForex team

Dear traders!

This week, the ContestFX project brings to your attention the following competitions:

The 120th competition of "Demo Forex" has entered the final phase.
The 303rd competition of "Week with CFD" has just started.
436th competition of "Trade Day" will start on 31.03.2021 at 12:00.
352nd competition of "KingSize MT5" will start on 01.04.2021 at 20:00.

To become a member of our competitions held on demo-accounts, you will have to go through a simple registration procedure just once and after that, you'll be able to participate in any of your desired competitions in just a couple of mouse clicks.

We're looking forward to your joining in and wish you good luck in trading!

Sincerely,
RoboForex Contest

RoboForex: changes in trading schedule (Easter holidays)

Dear Clients and Partners,

We’re informing you that due to the Easter holidays in the USA and the European countries, Catholic Good Friday and Easter Monday, there will be some changes to the trading schedule*.

MetaTrader 4 / MetaTrader 5 platforms

Trading schedule on CFDs on US indices (US30Cash, US500Cash, USTECHCash) and Japanese index JP225Cash

1. April 2nd, 2021 – trading stops at 4:00 PM server time.
2. April 5th, 2021 – trading starts as usual.

Trading schedule on CFDs on German index DE30Cash

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – no trading.
3. April 6th, 2021 – trading starts as usual.

Trading schedule on Metals (XAUUSD, XAGUSD) and CFDs on oil (Brent, WTI)

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – trading starts as usual.

Trading schedule on CFDs on US stocks

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – trading starts as usual.

Trading schedule on CFDs on Russian GDRs

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – no trading.
3. April 6th, 2021 – trading starts as usual.

R Trader platform

Trading schedule on US stocks and ETFs

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – trading starts as usual.

Trading schedule on CFDs on US stocks and ETFs

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – trading starts as usual.

Trading schedule on CFDs on US indices (US30, US500, NAS100)

1. April 2nd, 2021 – trading stops at 4:00 PM server time.
2. April 5th, 2021 – trading starts as usual.

Trading schedule on CFDs on EU and UK indices (GER30, UK100, FRA40, SPA35)

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – no trading.
3. April 6th, 2021 – trading starts as usual.

Trading schedule on CFDs on EU and UK stocks (except Danish, Norwegian, and Swedish)

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – no trading.
3. April 6th, 2021 – trading starts as usual.

Trading schedule on CFDs on Danish, Norwegian and Swedish stocks

1. March 31st, 2021 – trading stops at 2:00 PM server time.
2. April 1st, 2021 – no trading.
3. April 2nd, 2021 – no trading.
4. April 5th, 2021 – no trading.
5. April 6th, 2021 – trading starts as usual.

Trading schedule on metals (XAUUSD, XAGUSD) and CFDs on oil

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – trading starts as usual.

cTrader platform

Trading schedule on metals (XAUUSD, XAGUSD)

1. April 2nd, 2021 – no trading.
2. April 5th, 2021 – trading starts as usual.

Please, take into account these changes in schedule when planning your trading activity.

* – This schedule is for informational purposes only and may be changed by the provider.

Sincerely,
RoboForex team

How to Trade by the Two Fingers Strategy?

Author: Victor Gryazin

Dear Clients and Partners,

In this overview, I will present a simple but popular strategy called Two Fingers. The idea of the strategy is to find signals of the main market trend after a correction.

How does the strategy work?

Two Fingers can be called a medium-term strategy: it takes several days for signals to form and work. As long as it is very simple, it suits any currency pair.
The main idea of the strategy is to find a strong market trend and open a position in a correction. Look for a trend on D1 and for entry points — after a correction on a smaller H4 timeframe.

Two Fingers is an indicator strategy. To find the trend and signals, the strategy uses 4 indicators:

 

1. Moving Average (22)
2. Moving Average (5)
3. Bill Williams's Fractals
4. OsMA

Installing the indicators by the strategy

The indicators used in the strategy are standard and available in basic MetaTrader4 and MetaTrader5. Open and install the indicators via the Main menu: Insert/Indicators.

To trade by Two Fingers install four indicators on the chart of your instrument:

 

1. MA 1: period 5, method: Simple, apply to: Close, style: choose red.
2. MA 2: period 22, method: Simple, apply to: Close, style: choose blue.
3. Fractals by Bill Williams.
4. OsMA with the following parameters: fast EMA: 12, slow EMA: 26, MACD SMA: 9.

To avoid repeating the whole process each time you start trading, you can save this set of indicators in MT4 and MT5 as a template. Right-click the window with the indicators and choose Template/Save template/Two fingers.

Examples of trading by Two Fingers

Let me show you several examples of buying and selling by the strategy:

A buying trade

1. On D1 of USD/JPY there is an uptrend. The red MA(5) is above the blue MA(22).
2. On D1, an upper Williams's Fractal has formed.
3. Draw a horizontal level through the high of the second candlestick after the fractal icon (104.50).

Bottom line

Two Fingers is a trend strategy; it is based on trading the trend after a correction. This is a medium-term strategy which signals appear and work during several days. Reagrdless its rules being so clear, test it on a demo account and make sure it works well.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

Dear traders!

This week, the ContestFX project, as usual, will continue with the following competitions on demo accounts:
The 121st competition of "Demo Forex" and 304th competition of "Week with CFD" have just kicked off.
437th competition of "Trade Day" will start on 07.04.2021 at 12:00.
353rd competition of "KingSize MT5" will start on 08.04.2021 at 20:00.

We remind you that all winners of our trading competitions receive prizes to their real trading accounts as a reward. They can use them to earn profit from the Forex market without investing personal savings required as an initial deposit.

Don't miss the opportunity, to be one of them!

Sincerely,
RoboForex Contest

How to Trade by USD/CHF?

Author: Victor Gryazin

Dear Clients and Partners,

USD/CHF – the US dollar against Swiss franc – is one of the majors in Forex. In this overview, we will discuss some factors influencing the quotations of USD/CHF as well as learn some ways of trading the pair.

Some history

The history of the Swiss franc starts in the 1700s. At those times, in Switzerland, there were numerous coins in circulation, including foreign ones. Aiming at creating a unified currency, the Swiss government introduced the franc all over the country. The state monetary and credit policy is carried out by the National bank of Switzerland.

Throughout history, the Swiss franc has been some sort of a safe-haven currency. Historically, it had almost zero inflation, moreover, Switzerland legally secured gold reserves behind the national currency. This measure, however, was canceled in 2000 through certain changes in Swiss constitution.

Thanks to a flexible exchange rate and sustained development of the economy, the Swiss franc remains one of the most stable currencies in the world and enjoys active demand as a protective asset. The trust of international investors is the reason for the growth of the franc against other national currencies.

How to trade USD/CHF?

For USD/CHF, various methods and approaches can be used depending on your preferences. You can use fundamental factors, tech analysis, and indicator strategies.

Trading fundamental factors

One way is to trade using fundamental factors and events. This might be short-term trading on news or long-term trading on expectations of changes in interest rates or during some world crises.

Example:

Using the property of the Swiss franc to act as a protective asset in different crises, you can sell USD/CHF (buying the franc against the dollar) when investors flee for safe-haven assets. After the beginning of the pandemic of COVID-19 in 2020, USD/CHF quotations fell from 0.9850 to 0.9200 during a couple of days.

Examples of trading by Two Fingers



Bottom line

USD/CHF is a popular pair in the Forex market. Thanks to its liquidity, availability, and the minimal spread it is so loved by traders. You can trade it based on fundamental factors, tech analysis, or indicator strategies.

Beginner traders should start practicing on a demo account and switch to a real one only after they get a stable positive result. To trade successfully, you need to be disciplined and stick to your risk management rules.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

Financial Indices of Companies: Guide for Beginners

Author: Maks Artemov

Dear Clients and Partners,

Trading in financial markets, especially in the stock market, having information about financial indices of companies might be extremely useful. Not only beginners but also “market whales” use financial reports for market analysis.

If you have just started trading, try studying data and indicators of companies for reporting periods. Normally, companies give reports for a quarter, 6 months, and a year. Trading intraday, you may neglect those, but in medium-term and long-term investments, financial indicators and reports become influential.

See below such indices discussed in detail, including how they can influence your choice of stocks for investments.

Price/Earnings

Price/Earnings (or P/E) is a multiplier that demonstrates the ratio between the stock price and the yearly return on it. By P/E, the investor evaluates how long it will take for their investment to pay off.

1. P/E lets you choose a company with overvalued or undervalued shares;
2. Low P/E means that your investment will pay off soon;
3. It is only applicable to companies that make a profit.

Price/Cash Flow

P/CF is the ratio of the asset’s price and the company’s cash flow with regard to depreciation costs, capital expenditures, and the working capital. It is calculated by dividing the market capitalization of the company by the cash flow from completed market operations.
P/CF is traditionally evaluated as follows:

1. P/CF above 20 means that the company is in trouble;
2. P/CF between 15 and 20 is good;
3. P/CF below 15 means that the company is in a perfect shape.

Price-to-Book

P/B or P/BV (Price-to-Book Value) shows the price of the company’s assets that can be sold if the company goes bankrupt minus its commitments (debts, expenses). This coefficient is a stock multiplier that shows whether the company is attractive for investments or whether its stocks are overvalued it the market. Undervalued shares have a chance to grow.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

Dear traders!

This week, the RoboForex company's project called ContestFX is waiting for you to participate in the following competitions:

The 121st competition of "Demo Forex" has gained "speed".
The 305th competition of "Week with CFD" started today.
At 12:00, April 14th, 2021, starts the 438th competition of "Trade Day".
At 20:00, April 15th, 2021, starts the 354th competition of "KingSize MT5".

If you have never participated in the competitions we offer, then you need to go through the simple registration process just once and after that participation in the desired competition will become available to you in just a couple of mouse clicks.

Good luck to all traders!

Sincerely,
RoboForex Contest

Butterfly: How to Trade the Graphic Pattern?

Author: Andrey Goilov

Dear Clients and Partners,

Technical analysis suggests a whole range of patterns. Each author tries to make their pattern unique and describe it in as much detail as possible. At a certain point, there even appeared a whole trend of adding the Fibo grid to already existing patterns to enhance identification. Such price structures are called Harmonic patterns.

Many investors add Fibo levels even to such simple patterns as Head and Shoulders to evaluate the position of Shoulders and whether it complies with the requirements to the pattern. For the Double Top pattern, they have invented the Dragon pattern, in which the author also uses the Fibo grid to assess the correctness of the pattern and whether it will work.

I have a reason to tell you all this. To the Butterfly pattern that I am describing below, the same principle is applied. To check whether the pattern has formed correctly, Fibo levels are used. The main issue is how to do it. Before answering this, let us get into the history and the specifics of the topic.

What is the difference between the Butterfly and Gartley?

The Butterfly pattern is very similar to the Gartley pattern (also called Gartley Butterfly). We already have an article on it. Many traders mix these two up but if you look closely, they are absolutely different.

The Gartley pattern was designed and presented by Harold Gartley in his book "Profit on the Stock Market". At that time, it did not include Fibonacci levels. Later, Harmonic traders added the levels and concluded that the B point of the pattern must be near 0.618 of the correction and point D — at 0.786.

As for Butterfly, point B is near 0.786, while point D is near the projection of 1.27 of the XA wave. This is the main difference between the Butterfly and Gartley patterns. As you can see, it would be a hard job to find this difference without Fibo levels.

The structure of a bullish Butterfly

A bullish pattern gives the trader a signal to buy. Each of the five points of Butterfly coincides with its own Fibo level.

Mind that even if the price reaches the marked level of point D, where we expect the pattern to end, do not rush at opening a buying position. This area is called the "Potential reversal area", which means that the price will not necessarily grow.

The bullish Butterfly pattern forms as follows:

1. The price starts going upwards in the first point X. This is where the Butterfly starts forming.
2. Upon testing the next point A, the quotations go down but no lower than point X. The place where the decline stops gets the name of point B.
3. Upon testing point B, the quotations form an ascending impulse again but do not renew the high. The place where the growth ends is called point C.
4. After they test this latter point, the quotations start their final decline which ends in point D. This will be the largest movement of all, and traders prepare to buy from this point.

Closing thoughts

The Butterfly pattern is a graphic structure that consists of five points. It has clear entry and exit rules.
Harmonic Trading on the whole presumes trading by such patterns, not just describing them. A trader does not only open and closes positions near the levels that they have drawn by the Fibo grid but also learns to manage their trading, draws trendlines to find a good entry point, splits the position into parts for the sake of comfortable work, and uses Trailing Stop.

The Butterfly patterns should be traded by the trend because this way your potential profit will be much higher. Finally, never forget about money management, no matter how well the points coincide with Fibo levels and how harmonically the whole pattern looks.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

How To Trade Intraday with Keltner Channel?

Author: Victor Gryazin

Dear Clients and Partners,

In this overview, I will present to you the main principles of trading with the Keltner Channel indicator. This indicator forms a price channel on the chart that we will use for intraday trading.

What is Keltner Channel based on?

Keltner Channel is a popular trend indicator that can be used for evaluating the current trend and searching for trading signals. The indicator was created by a trader Chester W. Keltner in the 1960s; later (in the 1980s) Linda Bradford Raschke used a modified version of this indicator.

In Keltner Channel, we use a combination of medium-day volatility (the ATR indicator) and a Moving Average (SMA or EMA). The indicator consists of three lines: the upper, lower, and middle ones. These lines go alongside the quotations, creating a dynamic price channel. The working principle is similar to those of other channel indicators: Envelopes and Bollinger Bands.

On the price chart, the moves of quotations in the Keltner Channel look as follows:

1. When the asset is in an uptrend, the quotations regularly reach the upper border of the indicator and break through it. Most of the time, the price rests above the lower line of the channel and sometimes descends to the middle line.
2. When the financial instrument goes in a downtrend, the quotations regularly reach and cross the lower line of the price channel. Most of the time, the price rests below the upper line of the channel and sometimes corrects to the middle line.

Installing and setting up the indicator

Keltner Channel is not a standard indicator, which means you need to download the installation file and install the indicator to your terminal. You can download the file for MetaTrader 4 via a link at the end of the article.

To install Keltner Channel to MetaTrader 4, copy the file with the indicator into the folder Indicators. Via the Main menu, go to File/Open data catalog/MQL 4/Indicators – copy the file into the folder and restart the terminal.

As a result, Keltner Channel will appear on the list of user indicators, and you will be able to install it to the desired chart via Insert/Indicators/User/Keltner Channel. Alternatively, left-click the indicator in the Navigation window and drag it to the chart.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

RoboForex adds several useful improvements and new instruments to R Trader

Dear Clients and Partners,

We’ve expanded the list of Stocks and CFDs on stocks of American companies available for trading in R Trader, and improved the platform’s functionality. Benefit from all opportunities the updated web terminal has to offer to make your operations with over 12,000 trading instruments more efficient.

More about updates to R Trader:

1. Over 650 new assets
The list of instruments available for trading has been added with over 650 Stocks and CFDs on stocks of the companies that had their IPOs recently, such as Affirm (AFRM), Airbnb (ABNB), Bumble (BMBL), Coupang (CPNG), Roblox (RBLX). In addition to that, there is an opportunity to invest in SPAC, which has been hyping all over the stock market recently.

2. Corporate actions – right on the charts
Major corporate actions can be now tracked right on the charts. This new feature makes following the news of the companies you’re interested in more convenient.


3. Opportunity to hide accounts
Now you can see only those accounts that are frequently used, while all other accounts can be hidden from the terminal panel. It won’t have any influence on their activity as you can unhide them at any moment and they will be displayed on the screen again.


4. New languages and analytical tools
Within the frameworks of the update, we’ve added such analytical tools as UK Top Losers, Gainers, Volume leaders. Also, the terminal is now available in new languages – Portuguese and Thai.

5. More flexible settings

1. History of orders and transactions can be filtered by instruments.
2. Server time is now displayed at the bottom of the screen, while the client time – in the “Contract specification” section.
3. Watchlists can be now navigated from a keyboard.
4. Any indicator or other technical analysis element can be removed with the “Delete” key.

6. Enhanced capabilities of the mobile version

1. More convenient Watchlists management.
2. New graphs and indicators in Charts.
3. Corporate actions

Add new assets to your investment portfolio and benefit from all opportunities of the updated platform to improve your trading results. If you’re unfamiliar with the multi-asset platform, open an account and get access to trading more than 12,000 instruments.

Open R Trader account

Go to platform

Sincerely,
RoboForex team

Dear traders!

This week, the ContestFX project, as usual, invites you to participate in the following competitions:

The 121st competition of "Demo Forex" has entered the third week.
The 306th competition of "Week with CFD" has just started.
439th competition of "Trade Day" will start on 21.04.2021 at 12:00.
355th competition of "KingSize MT5" will start on 22.04.2021 at 20:00.

We remind you that all winners of our demo competitions receive funds as a reward to their real trading accounts and they can use them to start full-fledged trading activities in the Forex market without investing personal savings required as an initial deposit.

Good luck!

Sincerely,
RoboForex Contest

How to Use the US Dollar Index (DXY) in Forex Trading?

Author: Victor Gryazin

Dear Clients and Partners,

In this article, you’ll be introduced to the US Dollar index, which shows dynamic patterns of the American currency and helps to find additional signals for Forex trading.

What is the US Dollar index?

The US Dollar index (DXY or USDX) is an aggregated indicator of the leading global currency cost relative to a basket of other foreign currencies. Technically, the index can be compared with stock indices, such as Dow Jones or S&P 500. Stock indices track the stock market, while DXY shows the USD rate relative to other currencies and its current calculated value.

The US Dollar index started trading in 1973, soon after the dismantling of the Bretton Woods system. Its base value was 100.00. For example, if the index grows up to 110.00, it means that the value of the dollar increased by 10% relative to its base value. Starting from 1973, the index’s high was 160.00, while the year 2008 showed an all-time low at 70.00.

Apart from the major USD Dollar index, there are other indices: the Bloomberg dollar index, the Wall Street Journal dollar index, etc. All of them are be highly correlated to each other and measures the same thing (the US dollar value) but their calculation formulae are quite different, that’s why they show pretty close but not always the same results.

In this article, we’ll talk about the major and classic US Dollar index (DXY). However, the basic idea of any other US Dollar index will be pretty similar.



How to use the US Dollar index in Forex trading?

The US Dollar index is traded on exchanges in the form of non-deliverable contracts – futures and options, but it can also be used for trading on Forex because the USD is a part of major currency pairs. The DXY chart can be found on different analytical resources, for example, tradingview.com. let’s consider three ways of using the US Dollar index of Forex trading:

The US Dollar trend indicator

The US Dollar index is the key indicator that one should pay attention to when trying to define the current dollar tendency. As one can learn from the technical analysis course, “trend is our friend” and it is better to open orders in the direction of an active tendency. So, it is necessary to open the US Dollar index chart and define the current trend direction.

Closing thoughts

The US Dollar index is a very important macroeconomic indicator that reflects the current dynamics of the American currency relative to its base value of 100.00. The index movement is closely watched by many traders, analysts, and economic experts. DXY can be used for defining the current tendency in the US Dollar and finding trading signals on Forex. For trading, one can use significant support and resistance levels, price patterns, Price Action patterns.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

What an NFT is and How One can Make Money on It

Author: Eugene Savitsky

Dear Clients and Partners,

The stock market is so dynamic that sometimes investors find it difficult to keep track of all tendencies. To avoid such an exhausting race, many of them turn to long-term investments but there are some who always crave adrenaline and try to jump into all possible reckless ventures.

Last week, I wrote an article about SPAС, shares of which skyrocketed by hundreds of percent and now the time has come for Non-Fungible Tokens (NFT).

What is a Non-Fungible Token?

A Non-Fungible Token is a digital unit, which certifies the right of ownership and uniqueness of digital assets. An NFT can also be created for things in the real world.

What is a distinctive feature of an NFT?

Here’s an example: an artist is doing a painting, which can be later photographed and uploaded online. This photograph will be copied by other users in the same quality, in which it was initially uploaded. As a result, it will be difficult to see the difference between the original digital painting and its copy, and the original will be only the painting from the real world.

An NFT allows the creation of a unique code of the painting, which can help to define its original and the true owner in both real and digital worlds. At the same time, an asset can be created in the virtual world without binding it to the same object in the real one.

But there are some who took it a step further. They destroyed the original painting leaving only its digital copy. It’s difficult to accept but that’s the reality.

Injective Protocol burned the original painting “Morons (White)”

Injective Protocol bought a famous Banksy painting from the New York gallery Taglialatella Gallery for $95,000 converted it into an NFT, and then burned the original. As a result, only a virtual asset with a unique code is left. Now the painting doesn’t require any alarm systems, specific storage conditions, and other things to accompany it in the real world.

A tokenized asset will continue its existence in the digital environment, all the people will have to do is to relocate into the virtual world and everything will fall in its place.

Where can an NFT be used?

As you have already understood, one of the applications of tokens is artwork-collecting. An NFT is created for originals of paintings and sculptures, and when the owner wants to sell a physical object, they can place an NFT on auction and it will be enough for proving the authenticity of the asset and the right of ownership.

In online games, users often buy clothes, lands, weapons, characters, and other gaming accessories. Creating NFTs for virtual objects will allow arrogating the right of character ownership for example, and this right will be beyond the game developer’s power. Such objects could be exchanged or bought for real money. This might fuel further development of the gaming economy.

Personal identification can also be one of the areas of potential NFT usage. Passports, driving licenses, birth certificates, and other personal documents can be assigned with NFTs, which can be used for approaching different institutions in your country or outside it without personal attendance. Probably, the coronavirus may lead to the creation of COVID-passports using NFTs.

Read more at R Blog - RoboForex

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RoboForex team

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