News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here:
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here:
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here:
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
Guest Commentary: 3 Ways to Limit Your Risk in Forex Trading

Guest Commentary: 3 Ways to Limit Your Risk in Forex Trading

Yohay Elam, Forex Crunch,

As we all know, trading forex can be risky. Traders in a constant search for a great trading opportunity - they seek making a profit. This is great, but not everybody is paying enough attention to another dimension of making an overall profiting: limiting the risk.

How can we limit the risk? Here are 3 basic methods.

Risk reward ratio: The first thing is profit related. The potential profit should be double or more than the risk. 3:1 is even better. This doesn't mean limiting the stop loss or extending the take profit targets in order to achieve the desired risk reward ratio - it's a critical measure if the trade has potential or not. If your system produces a trade that has a plausible risk reward ratio, it's a good trade. Otherwise, it isn't. A high risk reward ratio means that you can have more losing trades than winning ones, but still be successful in making profits on the long run.

Limiting a single trade's loss according to the account size: Basic money management means that you are aware of the percentage of loss to your total account on every single trade. A maximum loss of 2% of your account is optimal. Also 3% can be considered sound.

Smaller trades in times of high volatility: You cannot anticipate breaking news, but there are quite a few known events which result in high volatility. Non-Farm Payrolls and rate decisions are scheduled and usually rock the markets. If you plan to trade before or after these events, more caution is needed. You can tighten your stops, stay more connected to the markets and most importantly reduce the size of the position than on calmer times.

How do you limit your risk? Are you using any of these methods? Do you reduce position sizes or tighten stops in times of high volatility?

Further reading: 5 Most Predictable Currency Pairs – Q3 2012

By Yohay Elam, Forex Crunch

Would you like to see more third-party contributors on DailyFX? For questions and comments, please send them to

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.