Benefits of Having a White Label Forex Trading Platform

Benefits of Having a White Label Forex Trading Platform

Benefits of Having a White Label Forex Trading Platform

Entrepreneurs who wish to start their firm without beginning from scratch now have more options thanks to the availability of low-cost international payment processing. Companies can give an existing product a new identity by altering its name or brand name, known as the “white label.” The term “Forex white label solution” refers to things made by one company and then packaged with the brand name or emblem of another.

 

An MT5 white label solution brokerage platform specifically built for brokers wishing to start their Forex brokerages is one of the items available to online marketers. These Web-based systems suit seasoned Forex brokerages wanting to move to white-label Forex trading solutions and save money without losing service.

 

Forex White Label solution Trading Platforms Have many Benefits.

 

The advantages of a MT 5white label solution broker are as follows:

 

The platform fee is the only cost associated with the pay-as-you-go approach. Aside from transaction costs, there are no ongoing fees, ensuring that clients maintain complete control over their operations.

 

There’s no need to install anything because it’s a Forex white label solution. A forex platform is a software that can be used in any web browser without needing installation or upgrades. This makes processes go more smoothly.

 

Flexibility — the proper technology partner may tailor an off-the-shelf solution to meet your specific business demands and branding requirements, allowing it to work harder for you by increasing conversions.

 

Scalability: As your company expands, you won’t have to pay license fees or invest in software development.

 

White-label reliability To protect your company transactions, forex trading platforms are built using high-level programming languages, tested for resilience, and use the most up-to-date security protocols.

 

Ease of Use – The white-label Forex trading platform is simple to use, with a simple navigation system that guarantees users have a pleasant experience while visiting your website or login into their accounts.

 

Customers can contact customer service anytime during market hours, allowing them to buy currencies at the best prices without waiting until the next working day.

 

Forex White Label solution Brokerage’s Drawbacks

 

Customers may hold you responsible if there are any faults with the software or website since it is unclear who is providing the service. In certain circumstances, you may not access all client data marketers need because another organization holds it.

 

Limited customization choices – once you’ve decided on a white-label Forex trading platform, developers will change the firm name and logo. If you’re not happy with this level of customization, you’ll need to spend extra money on additional adjustments or branding efforts.

 

Customers like to conduct business with organizations they know and trust. Thus there is a lack of trustworthiness. MT 5 White Label solution Brokers may have trouble establishing confidence with potential consumers because they lack a long-standing reputation in the market.

 

EnclaveFX Forex white label solution can assist a broker in growing their business in three ways:

 

Enhance broker branding – MT5 white label solution may be adapted to your branding and design needs, one of the significant advantages. This helps you give a better customer experience while distinguishing yourself from competitors.

 

Reduce costs — Compared to non-white branded providers. White-label solutions often have reduced implementation costs. Furthermore, monthly fees are frequently eliminated for the first few months while you get started, allowing you time to grow your volume without breaking the bank before Forex white label solutions bring in income.

 

Increase your revenue potential by using a white-label service. Forex trading platforms provide brokerages with various technical tools and services that can help them boost conversion rates and extend their international business chances.

 

A new company can enter the forex market at a low cost by choosing EnclaveFX for the MT5 White Label solution for Forex brokerage. It provides brokers with a customizable solution that can help them attract new consumers while providing them with superior technology for improved back-office management tools.

Signs of a Best Forex Broker check Before Starting Trading

Signs of a Best Forex Broker check Before Starting Trading

Signs of a Best Forex Broker, Check Before Starting Trading.

You can place a bet on any of the world’s currencies through forex trading accounts by buying or further selling currency pairs that strongly react to any economic events around the globe. The forex market is usually open for all 24 hours within a day. For seven days a week, that begins on Sunday afternoon in the United States and closes on Friday in the afternoon after stock dealers have finished trading. Currency trading is enormous, estimated up to $4 trillion in daily transactions, far from exceeding the volume of stock and bond markets across the globe. 

Long and short positions on any currency pairs, which consider the exchange rate between any two kinds of legal money, like the (EUR) and (USD) American dollar, is regarded by many forex traders as beginners. When the exchange rate moves a little above, a long position makes money; when it moves lower, a short place makes money. There is no need for a forex broker for beginners to borrow funds or assets from a broker to initiate a temporary sell position, but she may need to pay out the rollover fee. 

Brokers manage payment of expenses like commissions, professional advice, and withdrawal requests and keep your funds in an account whose value swings nightly based on daily gains and losses. Many brokers hide the facts of their fee schedules wisely in the tiny print on their websites, needing all their potential clients to do the required homework before making a demo or live account. Here’s an in-depth analysis of how to choose a forex broker for beginners to help you prevent unpleasant shocks. 

What to consider when selecting and short listing a Forex Broker for beginners?

To find the best forex broker for beginners, you must first determine the type of investor and your forex trading objectives.

Each forex broker for beginners has its own set of benefits and drawbacks. The amount of security provided by these businesses and transaction fees are all crucial factors to consider. Each broker’s security features are unique. Some brokers have precautions to keep accounts safe and secure from hackers, such as two-step authentication.

Best Forex brokers in the world are regulated in many ways. The Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) (CFTC) supervise and regulate forex brokers for beginners in the US, France, Germany, Switzerland, Austria, Canada, and the United Kingdom. However, not all forex brokers for beginners are licensed, and traders should avoid doing business with anyone who isn’t registered. 

Brokers’ platforms are also widespread in required account minimums and various costs of exchange transactions. You should adhere to a budget for investment life before diving into a trading platform. Determine your goals and, how much money you need to invest, how much money you’re willing to give out in fees. When short listing on the ideal platform for your purposes, consider various factors. 

 Getting clarity on multiple Currency Pairs in Forex trading for beginners:

Before you register an account, you must first learn the foundations of forex trading for beginners, including everything from currency pairs to pips and profits and everything in between. 

A currency pair is a specified numerator that compares the values of two currencies, with base currency on top and a quote currency upon the last. EUR is the initial base currency, and USD is the quote currency in the EUR/USD currency pair, the most well-known forex instrument worldwide. A EUR/USD quote rate represents similar to what you’d pay in Paris if you needed to exchange dollars for Euros. One dollar equals one euro in this approach, so a quote of “EUR/USD 1.23000” represents the euro trading at 23 percent above the American dollar (USD). 

Each ratio is expressed in any of the two to five decimal places and is also available widely in a flipped-over version that creates a new currency pair that ranges in the opposite pathway. 

To use our example, EUR/USD denotes the euro’s value against the US dollar, whereas USD/EUR denotes the value of the US dollar against the euro. Therefore: 

The outcome is 1.25000 if EUR/USD is 1.25000/1.00. 

As a result, the USD/EUR will equal 1.00/1.25000 =.80000. 

When forex became popular in the early 2000s, traders from other nations made longer and shorter bets upon their local currency at the bottom (the quotation currency). 

Most participants currently trade the currency pair with the biggest volume. In addition, the more popular version is likely to have a narrower bid/ask spread, lowering trading costs. 

When the EUR/USD ratio rises, forex dealers profit, but when the ratio falls, they lose money. Traders earn when the EUR/USD rate decreases and they lose money when the rate rises. Although brokers may provide dozens of currency pairs, four stand out:

  1. The EUR/USD rate is when the euro and the US dollar are exchanged.
  2. The exchange rate prevalent the US dollar and the Japanese yen is USD/JPY.
  3. The exchange rate prevalent between the British pound sterling and the US dollar is GBP/USD.
  4. The exchange rate prevalent in the dollar and the Swiss franc is USD/CHF.

Profits and Pips:

A more excellent ask price and a lower bid price are displayed in forex quotes. The last two decimals are sometimes expressed the smallest price increment is a pip written in huge characters (% in brackets) Once the deal is closed, profits and losses are computed using many pips gained or lost. Because traders must buy at the open, all positions begin with a small loss. 

 The difference between the two figures is known as the spread.

This is standard practice since most forex brokers for beginners do not charge commissions or fees for transaction implementation instead of relying on the bid/ask spread for profit. 

Although most currency pairs have narrower spreads than minor currency pairs, many brokers now offer fixed spreads, which means they will not vary in reaction to market conditions, even if they are favorable. 

Traders must select a lot of sizes for their forex positions. A lot is the smallest deal size possible for a currency pair. When trading the US dollar, a common 100k lot is $100,000, which was once the minimum amount authorized by many forex businesses. This has altered thanks to mini lots of 10,000 units ($10,000 when trading upon USD) and multiple micro-lots of 1,000 units ($1,000 when trading upon USD). 

The more the unit size, the lesser pips are needed for attaining break even or losing currency.  

What is the meaning of “Margin”?

Margin accounts are used for opening new forex accounts, allowing all clients to purchase or sell multiple currency pairs with a total deal value substantially more significant than the money required funding the account. Individuals residing in the United States can open their accounts for any amount between $100 to $500 with a 50:1 margin, providing reasonable considerable leverage – which means that size of your trade will be more than your current account holding the balance. 

A forex trader with a $500 account at a broker that offers a 50:1 leverage can make long and short bets for up to $25,000, or 2.5 times the small lot size. It’s dangerous to use leverage. Since it can wipe out accounts overnight, still, it makes sense because currencies move slowly in quiet periods and carry significantly less risk of payment failure. 

In conclusion, it is doubtful that the dollar or the euro will ever reach zero. FX volatility can reach historic highs in times of crisis, such as the wild British pound and euro gyrations following the United Kingdom’s decision to leave the European Union in 2016. 

Unlike stockbrokers, the best forex brokers do not charge interest when using margin. Even so, overnight holdings will suffer rollover credits or debits, which will be decided by the interest rate relationship between the currencies ready to make up the currency pair. 

The credit or debit is determined by the overall trade value, not just the fraction over the account amount in this method. A trader with a long position in the higher-yielding currency will be compensated at the most basic level overnight. A trader that has a long position in the lower-yielding currency, on the other hand, will get paid nightly. Do the inverse computation when selling short. 

What Are the Qualities to look for in a Forex Broker for beginners?

When looking for a trustworthy best forex broker globally, take your time to guarantee that your funds and trades are handled correctly. The National Futures Association (NFA), a self-regulatory government group dedicated to transparency, requires all forex brokers for beginners in the United States to register with them. 

Because brokers can be hacked or go out of business, your assets and personal information security are more important when opening a forex account. Unlike stockbrokers, who are protected by the Securities Investor Protection Corporation (SIPC) if the brokerage goes bankrupt, forex brokers for beginners in the United States are not. Even worse, if the best forex broker in the world does not provide negative balance protection, which ensures that you will not be asked for more money than your account balance if a position fails, a forex broker for beginners can take legal action to recover more money from your account balance. 

Customers should get quick and easy access to help and trading desks via chat, phone, and e-mail. In the United States, look for coverage available 24 hours a day, seven days a week, which means you can contact the broker between Sunday and Friday afternoon. Test the broker’s response time before you fund the account by using the chat interface and contacting the phone number to see how long it takes for a customer care representative to react. 

Forex Trading Platforms include:

Currency pairings are priced on the interbank market; a communications system used by large banks and financial institutions but does not have a central exchange like the NASDAQ or the New York Stock Exchange. These trades motivate forex brokers for beginners, but they aren’t obligated to provide clients with the best interbank bid or ask. They may purposely promote larger spreads with lower prices to enhance profits when trades are accomplished through the automated system. 

You can decide by going to the broker’s website and looking at the deal execution options. Potential clients can check and verify for conflicts of interest. Check if the broker has a dealing desk that makes trades and takes the other side of a customer’s trade. A more trustworthy broker will publish quotes directly from the interbank system through The actual buy and sell transactions handled by a wholesale liquidity provider or an electronic communications network (ECN). These businesses are not affiliated with the professional system, but they have direct ties. 

Most forex brokers for beginners have demo accounts, which allow potential clients to test out. While trading currency pairings using fictional money, you can use standalone, web-based, and mobile interfaces. This software displays exact quotations, charts, and watch lists using a simple process, making it crucial for analyzing the broker’s bid/ask price-quality. If a broker does not provide a demo account, be wary because it may be utilizing old or ineffective technology. 

Demo accounts allow potential clients to test out the standalone, web-based, and mobile interfaces while trading currency pairs with fictitious money. This software displays exact quotations, charts, and watch lists using a simple process, making it crucial for analyzing the broker’s bid/ask price-quality. If a broker does not provide a demo account, be wary because it may be utilizing old or ineffective technology. 

You can quickly see which forex broker for beginners delivers the best bid and ask prices in regular market conditions by comparing several accounts to real-time quotations from a popular financial website. If feasible, check currency pairs again soon after a Federal Reserve rate decision or similar market-moving event to see how they behave in highly volatile conditions. 

The educational portion should also cover the trading platforms, currency pairs, and market order types offered by the broker. Look for videos, manuals, or other instructions that demonstrate creating custom watch lists, setting up technical charts, etc. 

Using comprehensive research and economic analysis tools, currency pairs with the best short-term profit potential should be identified. All the Third-party comments, expert analysis, real-time news, and live webinars are available for free and should all be included in this section. Look for global research rather than just local market research and a daily economic calendar that lists all market-moving economic announcements worldwide. 

Social trading has exploded in popularity in recent years, and the most significant is now offered via brokers. Account-holders may connect and share trading ideas, methods, and observations through a social hub. Some social situations have taken this notion a step further by providing a copy trading interface that allows you to imitate the buy and sell orders of others. 

The most significant social hubs will have a ranking system that allows customers to find the most active individuals quickly. These relationships can be when it comes to personalizing trading platforms, API interfaces that allow third-party add-ons are extremely useful. It’s even better if the broker has a robust add-on library with contributions that simplify transaction administration. 

Last Thoughts:

Take your time looking for a forex broker for beginners because a bad choice might be costly. Top brokers will access the worldwide interbank system, many resources, and low trading fees. They’ll treat your money with care, even if you open a modest account in the hopes of turning it into a small fortune through your trading skills. 

In less than 5 minutes, you may create a live account. 

In less than 5 minutes, you can open a trading account and join a worldwide community of traders trading 300+ CFD products on assets like FX, indices, and gold with an award-winning broker. On EnclaveFX Live and Demo accounts, you may trade forex with 0.0 spreads and up to 1:500 leverage. You’ll also have access to free education, trading tools, and phone support 24 hours a day, seven days a week. Find out more and get started right away.

 

Tips to Invest in Precious Metals

Tips to Invest in Precious Metals

Tips to Invest in Precious Metals.

Gold and silver are considered valuable metals for Metal trading online and have been coveted for a long. Even today, precious metal trading online has a place in the portfolio of a wise investor. But which precious metal trading online is the greatest to invest in? What makes them so volatile?

 

There are many different ways to purchase precious metals for Metal trading online, such as gold, silver, and platinum, and several compelling reasons to join the treasure hunt. So, if you’re a beginner at precious metals for online metal trading, keep reading to find out more about how they function and how you might invest in them.

 

Crucial Takeaways of this artical:

 

  • Precious metal trading online is an excellent portfolio diversifier and inflation hedge; however, gold, the most well-known of these Online metal trading, is not the one and only available to investors.

 

  • Silver, platinum, and palladium are all three precious metals trading online that can be added to your portfolio, and each has its own set of risks and rewards.

 

  • Investors can acquire access to physical metal trading online through the futures market, online metal trading ETFs and mutual funds, mining company equities, and own physical metal trading online.

Gold:

 

Let’s begin with the granddaddy of all metals: gold. Gold is differentiated by its resistance to rust and corrosion, malleability, and ability to conduct heat and electricity. It has many industrial uses in dentistry and electronics, but it is best known as a jewelry base and an option for currency coins.

 

The market determines and analyzes the base price of gold 24 hours a day, seven days a week. Gold is primarily a function of sentiment, with supply and demand having less impact on its price. This is because the bulk of above-ground hoarded gold greatly outweighs the fresh mine supply. Said, when hoarders decide to sell, the price reduces. A new collection is swiftly consumed when people desire to buy, driving gold prices upward.

 

A rise in the desire to hoard the gleaming yellow metal trading online can be attributed to several factors:

 

  • Systemic financial concerns: When banks and money lenders are thought to be unstable and have political stability, gold is frequently sought as a safe store of value.

 

  • Inflation: When actual rates of return in the stock, bond, and real estate markets are negative, consumers frequently flock to gold as a haven asset.

 

  • War and political turmoil have always prompted people to stockpile gold. A lifetime’s worth of money can be made portable and stored until needed for food, shelter, or other necessities as the sound pathway to the riskiest situation.

Silver:

 

Silver’s price fluctuates between its perceived position as a store of value and its role as an industrial online metal trading, unlike gold. As a result, price swings in the silver market are more volatile than those in the gold market.

 

As a result, while silver will trade in a similar range to gold as a hoarding item, the metal’s industrial supply/demand equation has an equivalent impact on the price. This equation always has in response to innovations, such as:

 

  • The emergence of the digital camera has overtaken silver’s previously dominant role in the photography industry—silver-based photographic film.

 

  • The growth of the upper-middle class in the East’s developing market nations fueled a surge in demand for silver-based electrical appliances, medical devices, and other industrial equipment. Silver’s qualities make it a desirable commodity for everything from bearings to electrical connections.

 

Silver’s applications in batteries, superconductors, and microcircuits.

It’s not sure whether or not these changes will impact overall non-investment silver demand. Various applications influence silver’s price, and it isn’t merely utilized for fashion or as a store of value.

 

Platinum:

 

Like gold and Silver, Platinum is traded on global commodities exchanges. Because it is significantly rarer, it frequently fetches a more significant price (per troy ounce) than gold during the stock market and political stability periods. Annually, far less online metal trading is extracted from the ground.

 

Other varied factors which are influencing the price of platinum are inclusive:

 

Platinum, similar to silver, is regarded as an industrial metal trading online. Automotive catalysts to reduce the harmfulness of pollutants have the highest demand for platinum. Following that, the majority of the market is for jewelry. Catalysts for petroleum and chemical refining, as well as the computer sector, consume the remainder.

 

  • Platinum prices are affected mainly by auto sales and production numbers due to the auto industry’s considerable reliance on online metal trading. Legislation requiring automobiles to install more catalytic converters could increase demand. In 2009, however, American and Japanese automakers began to use recycled auto catalysts or more of palladium, platinum’s reliable—and typically less expensive—sister group metal.

 

  • Only two countries have many platinum mines: South Africa and Russia. This opens the door to cartel-like behavior that artificially supports or raises platinum prices.

 

  • According to investors, all of these factors combine to make platinum the most volatile of the precious online metal trading.

 

Palladium:

 

Palladium, which has more industrial uses than the other three metals trading online, is less well-known. Palladium is a gleaming, silvery metal employed in various production processes, including electronics and industrial products. It’s also utilized in dentistry, medical, chemical applications, jewelry, and groundwater treatment, among other things.

 

The United States, Russia, South Africa, and Canada are major countries that produce most of the world’s supply of this uncommon online metal trading, which has the atomic number 46 on the periodic table of elements.

 

Palladium was initially used in jewelry in 1939 by jewelers. When white gold is combined with yellow gold, the alloy produces a more substantial metal trading online than white gold. Tonga’s government minted circulating palladium coins commemorating King Taufa’ahau Tupou IV’s coronation in 1967. This is the first and foremost palladium usage in coinage.

Palladium can be thinned to one-two hundred fifty thousandths of an inch by online metal trading workers. Pure palladium is pliable, but it becomes more robust and complex when worked with at room temperature. The sheets are then employed in solar energy and fuel cell applications.

 

Palladium is commonly used in catalytic converters because it is an excellent catalyst for speeding up chemical reactions. This gleaming metal trading online is 12.6 percent tougher than platinum, making it more durable and long-lasting.

 

Putting Treasure in Your Treasure Chest:

 

Let’s look at the precious online metal trading investment possibilities available.

 

Commodity Exchange-Traded Funds (ETFs) are mutual funds that invest in commodities (ETFs)

 

Gold, silver, palladium, and platinum exchange-traded funds (ETFs) are a quick and liquid way to buy and sell gold, silver, palladium, and platinum. On the other hand, ETFs do not provide you with physical access to the commodity. Thus you do not have a claim on the metal trading online in the fund. A gold bar or a silver coin will not be sent to you.

 

Mutual Funds and Common Stocks:

 

Precious online metal trading miners’ stocks are highly correlated to precious metals prices. Unless you’re familiar with how mining stocks are valued, it’s probably best to stick to funds managed by people who have a track record of success.

 

Futures and Options are two types of financial instruments:

 

Investors who wish to make large wagers on metal trading online can take advantage of the futures and options markets, which provide liquidity and leverage. You might make the most money with derivative products or lose the most money.

 

Bullion:

 

Coins and bars are only feasible for those with a secure location to store them, like a complete box for the safe deposit or a safe. Bullion is unquestionably the only alternative for those who expect the worst, but bullion is illiquid and plain inconvenient to hold for those with a longer time horizon.

 

Certificates provide investors with all the different and varied advantages of owning actual gold without the hassles of transit and storage. On the other hand, certificates are only paper if you’re looking for insurance in the event of a real tragedy. Expect no investor to accept them in exchange for anything useful.

 

Is Investing in Precious Metal trading online a Good Idea for You?

 

Precious online metal trading provides unique inflationary protection due to their intrinsic value, lack of credit risk, and inability to be inflated. That implies you won’t be able to print any longer. They also provide proper “upheaval insurance” for financial and political/military disruptions.

 

According to investment theory, precious metal trading online has a low or negative correlation to other asset classes such as stocks and bonds. Even a small percentage of precious online metal trading in a portfolio can minimize risk and volatility.

 

Risks of Precious Metal trading online:

 

Every investment has its pair set of dangers. Investing in precious online metal trading carries considerable risk, even though they provide a certain level of security. Due to technical inconsistencies, metal trading online prices may fall (more sellers than buyers). On the other hand, Sellers gain from economic uncertainty because prices tend to rise.

 

What Are the Advantages of Precious Metals trading online Investing over Stocks?

 

Investing in precious online metal trading has several advantages over equities, including inflation protection, intrinsic value, no credit risk, high liquidity, portfolio diversification, and purchase convenience.

 

What Are the Best Precious Metal trading online Investment Options?

 

The best ways to invest in precious online metal trading are to acquire the metal trading online are outright and hold it in physical form or by exchange-traded funds (ETFs) that have substantial exposure to precious trading metal online or firms in the precious metal trading online market.

 

What Are the Drawbacks of Precious Online Metal trading Investing?

 

Individuals will not receive any revenue from precious metal trading online because they have no financial flow. If a person owns the metal trading online outright, there is also a storage cost connected with the investment.

 

Final Thoughts:

 

Precious online metal trading is a valuable and effective way to diversify a portfolio. Knowing your goals and risk profile before stepping in is the key to success with them. The erratic nature of precious metal online trading can be used to build wealth. It can also lead to ruin if left unchecked.

What Happens If Cryptocurrency Is Included in the GST?

What Happens If Cryptocurrency Is Included in the GST?

What Does It Mean For Investors If The Government Brings Cryptocurrency Under GST?

 The government is attempting to bring cryptocurrencies under the Goods and Services Tax (GST) scope so that the total value of transactions can be taxed. Cryptocurrency exchanges are now subject to an 18% GST rate on services offered to users in the financial services category.

 According to GST officials, Cryptos are similar to lottery, casinos, betting, gambling, and horse racing in that they are taxed at a rate of 28% on the total value. Furthermore, in the event of gold, a 3% GST is paid on the whole transaction amount.

 We’re looking at whether cryptocurrencies can be classified as products or services and resolving any doubts about whether it can be deemed an actionable claim,” a government official told PTI. The GST rate on cryptocurrency will be determined only after the classification is completed.

 What Happens If Cryptocurrency Is Included in the GST?

 Another insider speculated that if GST is imposed on the total amount of bitcoin transactions, the rate maybe 0.1 to 1%. “The tax rate is still up for negotiation, whether it is 0.1 percent or one percent. Another official stated, “First, a decision on the asset’s classification must be made, and then the tariff will be considered.”

 Because the Goods and Services Tax (GST) law lacks a clear definition of cryptocurrencies and no law governing virtual digital currencies, the classification must assess whether the legal environment qualifies it as an actionable claim. A creditor can file an actionable claim for any debt not secured by a mortgage on immovable property.

 A loss in one crypto asset cannot be offset against a loss in another.

 The government recommended in the Union Budget 2022-23 that any transfer of virtual/crypto currency assets be taxed at 30%. There will be no deductions allowed aside from purchase costs, and no losses in transactions will be allowed to be carried forward.

 Today, in a significant setback for the crypto business, the government reaffirmed that, under the provisions in Budget 2022, investors would not be able to offset losses in one crypto asset against losses in another. Mining infrastructure will also be ineligible for tax deductions.

 In addition to the 30% tax, the Union Budget for 2022-23 proposes a 1% TDS on the transfer of such assets. Tax experts were divided on whether investors could deduct losses in one cryptocurrency against losses in another. The term “set-off” refers to offsetting losses against the profit or income of a given year. This benefit is offered while investing in stocks.

“As per provisions of the proposed section 115BBH to the Revenue-tax Act, 1961 (the Act), loss from the transfer of VDA would not be allowed to be set off against the income coming from the transfer of another VDA,” Minister of State for Finance Pankaj Chaudhary told the Lok Sabha on Monday. He was responding to the Member of Parliament’s questions.

Understand Key Trends of Crypto Trading Before Investing in Cryptocurrency

Understand Key Trends of Crypto Trading Before Investing in Cryptocurrency

Years of investing in bitcoin markets frequently yield the strongest trading strategies for online Cryptocurrency trading.

 

Any newbie may learn how to develop the best trading tactics and avoid typical bit coin blunders with the help of this useful guide for Cryptocurrency trading online.

 

In this blog, we’ll go over for smooth and sufficient online Cryptocurrency trading:

 

  • Six Cryptocurrency trading methods and recommendations
  • What are the five most common bit coin blunders, and how can you avoid them?
  • What is crypto jargon, and how can you decode it?
  • Six pointers on crypto currencies

 

Here are six pointers to consider if you wish to invest in Cryptocurrency trading online:

 

1. Have a crypto trading strategy for online Cryptocurrency trading.

 

It’s not simple to find the difference between real Cryptocurrency advice and scammers; plenty of sharks waiting to take your money.

 

In the previous nine months of 2021, there were 7,118 reports of crypto investment frauds. According to Action Fraud, the average loss per victim was £20,500, up 30% from the same period in 2020.

 

Take a step back from the hoopla when you’re presented with a lot of information about Cryptocurrency trading online.

 

Examine the project or platform critically. What is the total number of users? What problem is it supposed to solve? Avoid coins that often claim to be from the Earth but haven’t been delivered.

 

2. Take precautions against Hazard:

 

Many people who offer Cryptocurrency trading online advice may not be looking out for your best interests. So don’t repeat the same mistakes as others and get stung.

 

Set boundaries on upper limits. You can invest in any specific digital currency and don’t volunteer to risk huge amounts of money you can afford to lose by trading with it.

 

Online Cryptocurrency trading is a high-risk enterprise, with more traders losing money than making money.

 

We describe the digital currency’s highs and lows for smooth online Cryptocurrency trading.

 

3. Diversify your Cryptocurrency holdings:

 

It’s not good to put too much money into one unified Cryptocurrency for online Cryptocurrency trading. Don’t put all your eggs in one similar basket, as they say.

 

Spread your money among multiple digital currencies, like with equities holdings and shares for investments.

 

This signifies you won’t be overly affected if any one of them loses value, which is particularly important given how volatile these investments’ market prices are.

 

There are thousands of options, so do your homework. World coin and safe moon are two examples.

 

4. Commit to it for the long haul:

Prices fluctuate at the top speed from day to day, and inexperienced traders are sometimes fooled into panic selling when prices are low.

 

Crypto currencies aren’t going away anytime soon. Investing in the crypto market for months or years may yield the finest results for online Cryptocurrency trading.

 

5. Purchases can be automated:

 

To take advantage of pound-cost averaging, you may automate your crypto purchases, just like you would with real stocks and shares for crypto currencies trading online.

 

You can set up recurring buys on most Cryptocurrency exchanges, including Coin base and Gemini.

 

This is exactly where crypto investors instruct the platform to buy a set quantity of their favorite online Cryptocurrency trading monthly, such as £100 worth of bit coin. When prices are high, they get a little less currency, and when prices are low, they get a little more.

 

That eliminates the stress of trying to time the market by buying or selling a currency at the lowest feasible price. Even market specialists have a hard time getting it properly.

 

6. Make use of trading bots:

 

Trading bots are effective in specific situations, but they are not suggested for beginners searching for Cryptocurrency trading online investment advice. They are frequently disguised scams.

 

If they existed, everyone would be utilizing actual algorithms that perfectly timed your buy and sell trades!

 

Five crypto blunders to avoid in online Cryptocurrency trading:

 

As per the Reports published by the Financial Conduct Authority’s recent data, approximately 2.3 million Britons possess bit coin in different forms.

 

It’s really simple to become engrossed in the sensationalism of news headlines. We’ve compiled a list of some of the most typical online Cryptocurrency trading blunders.

 

1. Purchasing just based on a low price:

 

Low pricing cannot always imply a good deal. Prices are sometimes cheap for a reason! Keep a close watch for coins with dwindling user numbers.

 

Frequently, developers abandon a project, and it ceases to be updated, rendering the coin vulnerable.

 

2. Channelizing Everything:

 

Many dubious trading platforms advise you to bet as much as possible to earn more and increase your profits. This is a quick track to the poorhouse.

 

Better crypto investment advice would be to limit your investment money to a particular percentage — say, 5% — and to have an emergency cash fund in an easy-to-access savings account that is never invested in the market in online Cryptocurrency trading.

 

3. Believing that Cryptocurrency is “easy money.”

 

They are making money through trading any type of financial instrument, whether stocks and shares or commodities like silver and gold, which is not simple. Cryptocurrency trading online is in the same boat.

 

Anyone who claims otherwise is most likely attempting to dupe you into making crypto blunders.

 

4. Losing track of your crypto key:

 

If you keep your Cryptocurrency in a hardware wallet, losing your key is like losing the keys to a bank vault.

 

All of your crypts will be unrecoverable if you lose your key.

 

5. Becoming a victim of a con:

 

Be cautious of crypto bargains that appear too good to be true. We’ve outlined four common Cryptocurrency scams to be aware of:

 

Scams involving cloud multipliers

 

Fraudsters occasionally contact victims via email or text with an “investment opportunity.” They claim to return double or triple the amount invested in bit coin to investors who deposit their Cryptocurrency trading online to a specific digital wallet.

 

Pumping and dumping

 

Criminals may quickly inflate or deflate the price of extremely small or unknown coins, sending their value surging in some cases.

 

Criminals may own a large amount of a Cryptocurrency at any time (through pre-mining previous to it being available to the general public).

 

When unknowing traders rush in to get a piece of the action, the criminals wait for the price to rise before selling all of their coins, causing the price to plummet.

 

They can inflate the price by promoting it on social media before selling it for more.

 

Malicious wallet software

 

According to the finest crypto advice, stick with well-known crypto wallets like Ledger, Tremor, Exodus, or Metalmark.

 

Dodgy or unknown wallets found on Google Play or the App Store can use dodgy programming to steal your crypto assets.

 

Fake coins

 

It’s impossible to distinguish what’s real and what’s not with so many crypto currencies trading online on the market.

 

Criminals can steal your identity and, in certain cases, your hard-earned money if you buy in bogus coins.

 

Don’t take anyone’s word; perform your research on coins using as many sources as possible before purchasing them.

 

Double-check your Vocal and Lingo about crypto jargon:

 

In the round world of crypts, there is a lot of jargon that might be difficult to understand.

 

Use this handy guide to take advantage of the greatest crypto advice and avoid typical Cryptocurrency blunders that could ruin your trading account.

 

The althorn is a combination of “alternative” and “coin,” It refers to any Cryptocurrency other than bit coin.

 

Cryptocurrency exchanges: Like traditional stock exchanges, Cryptocurrency exchanges such as Coin base, Finance, Gemini, and Bit stamp make traders flexible, and investors purchase and sell crypto currencies. Unlike traditional stock exchanges, Cryptocurrency exchanges are exclusively available online and are open 24 hours a day, seven days a week.

 

Limits: Most exchanges do not restrict how much Cryptocurrency trading online a user may make on a given day. Some brokers may temporarily halt clients depositing funds on their platforms during volatile trading days when bit coin prices are moving up or down very quickly.

 

Shorting Cryptocurrency trading online involves betting on the price coming down rather than increasing.

 

Forks: A fork in Cryptocurrency trading online is a split in a block chain that creates two independent block chains. This is occasionally due to a developer debate over how the block chain should be organized. Bit coin split into two block chains in 2017: bit coin and bit coin cash.

 

An initial coin offering (ICO) is a sale of new crypts to investors for the first time. In the world of stocks and shares, it’s equivalent to an initial public offering (IPO).

 

When platforms talk about margin trading, they refer to investors borrowing money to enhance their Cryptocurrency wager. But be cautious because margin trading can substantially increase losses if a trade doesn’t go your way.

 

The government does not back a fiat currency. For example, sterling, US dollars, and Indian rupees are all examples of currencies.

 

People can “mine” or produce crypto currencies on the cloud to compete for prizes in the form of newly created crypto. Cloud mining pools resources and reduces mining costs by using remote data centers with shared processing power, such as those that power Google services.

 

Many cloud mining organizations are merely scams, so be cautious. To mine the most popular crypto currencies, massive amounts of computing power are required. Anyone promising quick cloud-mining profits is most certainly a con artist.

 

Bull markets and bear markets are stock market terms derived from the past. In a bull market, traders feel optimistic about the prospects for a particular investment, so they will continue to buy, and prices will rise; in a bear market, traders are apprehensive, so prices will decrease.

 

A sell order is an instruction sent to a platform by traders to sell Cryptocurrency that they own when the price reaches a specified level. This is known as a “stop-loss” in traditional markets.

How can You Present Yourself for Successful Trading in the Forex Market?

How can You Present Yourself for Successful Trading in the Forex Market?

How can you present yourself for successful trading in the forex market?

Learn how to design a profitable trading plan for your online Forex trading and put it into action. You’ll have complete guidance on which market to trade, when to take profits, when to reduce losses, and where further possibilities in online FX trading might lie if you have a good plan.

What exactly is an Online Forex trading strategy?

An Online FX trading plan is an all-encompassing instrument for making trading decisions. It assists you in determining what to trade, when to trade, and how much to change. An online forex trading plan should be unique to you; you can use someone else’s plan as an instruction manual, but keep in mind that their attitude toward risk and available cash may be very different from yours.

Your online Forex trading strategy might include anything you choose, but it should always have the following:

  • Your Online FX trading motive
  • Your time commitment towards trading
  • Your trading objectives
  • Your risk-taking mindset
  • Your trading capital is accessible
  • Rules for personal risk management
  • The markets you’d like to invest in
  • Your tactics are effective.
  • Record-keeping procedures

On the other hand, an Online Fx trading strategy specifies joining and exiting transactions. An online FX trading plan is not the same as a trading strategy. ‘Buy bit coin when it reaches $5000 and sells when it reaches $6000,’ for example, is a simple trading strategy.

Enclave FX may teach you more about Online Forex trading tactics for successful and fruitful Online Fx trading.

Why do you require an Online Forex trading strategy?

An Online Forex trading plan is necessary since it may assist you in making rational trading decisions and defining the criteria of your ideal trade. An intelligent online FX trading strategy will aid you in avoiding rash decisions made in the heat of the moment.

A soundtrack plan has the following advantages:

Online FX Trading is more accessible because all of the planning has been done ahead of time, allowing you to trade according to your pre-determined parameters.

More objective decisions: You may remove emotions from your decision-making process because you already know when to take profits and cut losses.

Better trading discipline: By sticking to your trading plan with rigor, you may be able to figure out why specific trades succeed and others don’t.

More space for improvement: establishing your record-keeping system allows you to learn from previous Online Forex trading blunders and enhance your decision-making.

How do you make an online FX trading strategy?

When it comes to building an excellent online Forex trading strategy, there are seven simple stages to follow:

  • Make a plan for your motivation.
  • Decide on the amount of time you can commit to Online Forex trading.
  • Define your objectives.
  • Select a risk-to-reward ratio.
  • Determine how much money you have to trade with.
  • Examine your market understanding.
  • Create a trade journal.

Make a plan for your motivation:

Identifying your Online FX trading motive and the amount of time you’re ready to devote to it is a crucial stage in developing your Online Fx trading strategy. Ask yourself why you want to be a trader, and then write down what you hope to accomplish through trading.

Decide on the amount of time you can commit to Online Forex trading:

Determine how much time you can devote to your Online Forex trading endeavors. Do you have enough time to manage your trades early in the mornings or late at night, or can you trade while you’re at work?

If you want to make many trades a day, you’ll need a little extra time. If you’re long on assets that will mature over a lengthy period and plan to manage your risk with stops, limits, and alerts, you may not need many hours per day.

It’s also critical to devote enough time to Online FX trading preparation, including education, strategy practice, and market analysis.

Define your objectives:

Any Online FX trading goal should be detailed, measurable, realistic, relevant, and time-bound, not just a general remark (SMART). ‘I hope to grow the value of my entire portfolio by 15% in the next 12 months,’ for example. This objective is SMART because the numbers are explicit, you can track your progress, it’s reachable, it’s about trade, and it has a deadline.

It would be best to decide on your Online Forex trading style. Your Online Forex trading style should be determined by your personality, risk tolerance, and the amount of time you’re willing to devote to Online Forex trading. There are four primary types of Online Forex trading:

Position trading entails holding positions for weeks, months, or even years in the hopes of making a profit in the long run.

Swing trading is the practice of maintaining positions for several days or weeks to profit from medium-term market movements.

Day trading makes a small number of trades in a single day without holding any positions overnight, hence reducing expenses and risks.

Scalping is the practice of placing multiple trades per day for a few seconds or minutes in the hopes of making modest profits that build up to a considerable sum.

Select a risk-to-reward ratio:

Work out how much amount of risk you’re willing to take before you start Online FX trading, both for individual trades and your overall online Forex trading strategy. It’s critical to establish a risk limit. Market values fluctuate constantly, and even the safest financial instruments are not without risk. Some new traders prefer to take a lower risk to get their feet wet, while others prefer to take a higher risk in the hopes of making more enormous profits – the choice is entirely yours.

It is feasible to profit even if you lose more often than win constantly. It ultimately boils down to a question of risk vs. yield. Traders prefer a risk-reward ratio of 1:3 or greater, which means that the potential return on trade is at least double that of the possible loss. Calculate the risk-reward percentage by weighing the amount you’re willing to risk against the potential gain. The risk-reward ratio is 1:4 if you’re investing $100 on a trade with a possible increase of $400.

Keep in mind that stops can help you manage your risk.

Determine how much money you have to trade with:

Consider how much money you have available to invest in Online Forex trading. Never take on more risk on amount more than afford to lose. Trading entails a high level of risk, and you might lose all of the amounts kept aside as your trading capital (or more, if you are a professional trader).

Before you begin, do the math to ensure you can afford the most significant possible loss on each trade. If you don’t have enough Online Forex trading cash to get started right away, use a demo account to practice until you do.

Examine your market understanding:

The market you intend to trade will impact the specifics of your trading strategy. This is because, for example, an online forex trading plan will differ from a stock trading plan.

To begin, assess your knowledge of asset classes and markets, and study everything you can about the one you wish to trade. Then think about when the market opens and closes, how volatile it is, and how much amount you stand to lose or gain per point of price movement. If these aspects aren’t your liking, you may want to look for another market.

Enclave FX is a great place to learn about numerous asset classes and markets:
Create an Online Forex trading journal:

A trading diary must back up a trading plan to be successful. You should keep track of your trades in your Online Forex trading journal so you can see what’s working and what isn’t.

You must include the technical aspects of the trade, such as the entry and exit points, and the rationale and emotions behind your trading actions. If you vary from your plan, make a note of why you did so and what happened as a result. There is a lot more information than you have in your diary.

An example of an Online Forex trading strategy is as follows:

You can use the following questions and answers to help you develop a trading strategy. Remember that your Online FX trading plan is a personal roadmap, so you should tailor it to your specific circumstances.

What drives my Online Forex trading decisions?

‘I want to allow myself and learn as much as I can about financial markets so that I can dive upon a brighter future for myself,’ for example.

What is the length of my commitment?

Allow ample time to watch your trades, but think about the optimum moment for you. Some traders prefer to monitor their trades throughout the day, while others set out morning, afternoon, and nighttime. It is generally good to use stops to limit your risk, but this is especially important if you plan to leave positions open while you are not watching them.

What are my short-term, medium-term, and long-term objectives?

‘In the following 12 months, I hope to raise the value of my portfolio by 15%,’ for example. To do this, I want to take advantage of opportunities three or more times every month, but only when they are relevant to my approach. I also want to be consistent, increasing my risk every three months if I’m over 15%, and continuing to learn by reading financial news for at least two hours a week.’

How does my risk-to-reward ratio look?

Compare the amount of money you wish to risk on each trade to the potential gain to get your desired risk-reward ratio. The risk-reward ratio is 1:3 if your maximum possible loss is $200 and your maximum potential profit is $600.

It is recommended that you only risk a modest percentage of your overall Online Fx trading capital on each deal — less than 2% is regarded prudent, while more than 5% is considered high risk.

How much money will I set aside for Online Fx trading?

For instance, ‘For the first six months, I will set aside $1000 per month.’

Which markets am I going to trade?

‘I want to trade forex and hard commodities because these are the markets I am most familiar with.’

How will I evaluate my transactions and results?

‘I’m going to start a trading journal, take notes on every trade, go over the notes every weekday morning, and do a month-end evaluation.’ Every day, I’ll record my wins and failures, as well as why I made certain decisions and how I felt about trading. Every three months, I’ll review my notes and update my strategy.’

Are you ready to put your trading strategy into action? Open a live account with EnclaveFX to begin trading right away or a demo account to practice without risk.

Tips to Start your Own Cryptocurrency Exchange

Tips to Start your Own Cryptocurrency Exchange

Step-by-Step Guide to Starting Your Bitcoin or Cryptocurrency Exchange

Cryptocurrencies, like Bitcoin and other digital currencies, are becoming increasingly popular. Early Bitcoin investors and miners are sitting on modest fortunes, and the notion is gaining traction.

“During the Gold Rush, most would-be miners lost money,” noted renowned investor Peter Lynch, “but people who sold them picks, shovels, tents, and blue-jeans made a nice profit.” One might compare the makers of picks and shovels to the owners and operators of bitcoin exchanges in the cryptocurrency boom’s gold rush. 

This step-by-step tutorial will take you on the proper route if you, too, since the potential benefit and want to establish your Bitcoin exchange firm. 

In 10 Easy Steps, Learn How to Start a Bitcoin Exchange: 

 

1. Seek legal advice to ensure that all licensing requirements are met.

2. Obtain venture capital funding.

3. Look for a company that offers cryptocurrency exchange software.

4. Link your exchange to others for better liquidity

5. Form a business relationship with the recognized payment processor.

6. Use the most up-to-date security techniques.

7. Go live after the required beta testing.

8. Begin a marketing and public relations strategy.

9. Assist customers.

10. Keep a legal team on hand to ensure continuing compliance.

 

1. Consult a recognized legal person for the required licenses: 

Before you implement a plan into action, one should seek legal guidance to know more about the legal and regulatory requirements for the new businesses. All jurisdictions in which the company wants to operate will require proper licensing. In many places, cryptocurrency exchanges operate with little oversight because government regulations have yet to catch up with technology. In contrast, in others, such as the United States, Bitcoin operators must be licensed Money Transmitter businesses and must adhere to SEC and CFTC rules and regulations, among other things. Legal representation is essential. Because they operate under the currency exchange umbrella, most exchanges must follow Know Your Customer (KYC) laws, which have become increasingly common in fighting against money laundering. As a result of the Patriot Act, these rules have been in force in the United States since 2002. Regulations differ by jurisdiction, so speak with an experienced lawyer with the industry.

 

2. Obtain venture capital funding: 

Before you begin your project, you should know what you will be the total cost. A minimum of $135,000 will be necessary to design and launch a bitcoin exchange. This includes technology, hosting, initial legal guidance, government registration, and first advertising costs. While not all finances are necessary upfront, the venture must have sufficient funding to provide a proper runway. One of the most common and silly mistakes startups make failing to prepare for the future, resulting in tiny early fundraising that may cover development expenditures but leave the company without the vital operations funding it needs until it becomes profitable. Startups frequently mistake obtaining licenses from unscrupulous crypto exchange providers who charge ongoing fees and fail to mention the legal duties and costs of setting up and operating an exchange.

 

3. Locate a vendor of technical solutions: 

EnclaveFX offers total custom cryptocurrency exchanges for a one-time license cost that includes no royalties or compensation arrangements. This means there are no fees, clients can host the business themselves, and clients get the total source code, which is vital for auditing purposes because certain regulators seek source code inspection. EnclaveFX has more than 20 years of experience constructing stock exchanges, including backend technology used by some of the world’s top stock exchanges, and is always looking for ways to offer value to its clients.

What’s the point of white-labeling source code? White label exchange software with a complete source code allows all customizations of a custom-built exchange while dramatically reducing time to market and total cost.

4. Link your exchange to others for better liquidity: 

Liquidity is the base step of any required exchange. Potential clients will be skeptical of your new enterprise if you don’t have an order book and trading activity. We can connect your business to a network of current exchanges, improve its liquidity, avoid these hurdles and challenges, and avoid the need to imitate activity using dummy accounts within the new business. Remember that the more comprehensive the network of exchanges, the less liquidity your further discussion would face.

5. Form a business relationship with the recognized payment processor. 

All payment processors are not formed similarly. Companies will have an extensive range of fee arrangements, among various things. To wrestle with other exchanges, you’ll need the lowest transaction rate. Some other processors include hidden costs in their contracts, so read the deal carefully before signing. Settlement time and compliance with PCI DSS are few in the best and recognized practices for ensuring cyber security, are two more distinctions amongst processors. It’s worth noting that while federal law does not demand compliance in the United States, numerous state laws do. To protect new businesses from cyber dangers, make sure your payment processor is PCI-compliant. This is also another example of how crucial it is to comprehend the complexities of business regulation.

 

6. Use the most up-to-date security techniques: 

EnclaveFX-powered exchanges are the safest globally, with offline cold storage wallets, two-factor verification, and encrypted databases. Furthermore, the EnclaveFX does not save passwords (only hashes). We’ve written extensively about data breaches such as Mt. Gox and Bithumb, which have become well-known in the industry. What’s the bottom line? Cryptocurrencies have become a hotbed for cybercrime and hacking, forcing exchanges to differentiate themselves based on security.

7. Go live after the required beta testing: 

Once You’ve created your trade, you’ve also made a deal with a payment processing company. You’ve also gone to great lengths to verify that your exchange complies with all applicable rules and regulations. You’ve assured that your business is safe from cyber-attacks.

8. Begin a marketing and public relations strategy: 

It’s time to get updated with crypto news publications like daily blog updates of foreign exchanges after your exchange is up and running. To avoid having to scramble for extra funds after your initial raise, it’s critical to properly plan your marketing activities, as well as their expenditures. Many exchanges do not have a marketing budget and rely on free social media promotion to achieve a critical mass of traders.

 

 9. Be cautious when providing customer service: 

While providing excellent customer service is the final step in creating a successful cryptocurrency exchange, your ability to excel in this area will determine your long-term success. Those who deal with customers must be attentive and satisfactorily resolve customer complaints and technical issues. Customers should be contacted at all the points, so consider using a ticketing system like ZenDesk and staffing it with knowledgeable and helpful representatives who are available 24 hours a day, seven days a week, because cryptocurrencies never stop trading.

 

10. Keep a legal team on hand to ensure continuing compliance: 

We cannot put more pressure on the importance of ensuring legal laws, regulations, and compliance and adhere to all latest, present, and proposed rules and regulations, not limited to the jurisdiction in which exchange is based but also in all foreign jurisdictions where your exchange members or traders will reside or conduct trading. Because cryptocurrency laws are continuously shifting worldwide, it’s critical to either engage a full-time in-house legal compliance staff or outsource to renowned law firms to maintain your exchange lawful in all of the countries where you’ll do business.

Naturally, no step-by-step instruction, no matter how comprehensive, will be able to answer all of your questions. However, perhaps, this has assisted you in developing a basic action plan with which you may proceed. As always, the EnclaveFX team is here to help you on your journey, so please feel free to contact us by phone or email if you have any more questions.

 

Indian Union Budget 2022

Indian Union Budget 2022

Budget 2022 Highlight: A digital rupee will be issued, with gains on digital assets taxed at 30%.

 

Cryptocurrency will be taxed at 30% in the Budget of 2022. Meanwhile, the central bank digital currency (CBDC) is a digital version of fiat currency supported by blockchain that can be transacted via wallets and is governed by the central bank.

 

Starting in 2022-23, the Reserve Bank of India will issue a new digital rupee based on blockchain technology. Finance Minister Nirmala Sitharaman made the announcement today during the Union Budget 2022. Blockchain technology is also used to power cryptocurrencies and non-fungible tokens (NFTs), and it is a real-time distributed ledger.

 

The transaction records on a blockchain can’t be modified, and the ledger is transparent and legitimate, which is why it’s employed in cryptocurrency.

 

Meanwhile, the government has announced that any income generated from the transfer of digital assets will be taxed at a rate of 30%. This will influence gains from bitcoin and non-ferrous metals, both of which have enjoyed recent growth in India. “Except the cost of acquisition, no deduction in respect of any expenditure or allowance shall be permitted in computing such income.” Furthermore, any loss incurred as a result of the transfer of a virtual digital asset cannot be offset against any other source of revenue,” she noted.

 

The government has additionally legislated for TDS on payments made concerning the transfer of virtual digital assets at a rate of 1% of such consideration above a monetary threshold to capture transaction details. Giving a virtual digital asset as a gift is also recommended to tax the recipient’s hands.

 

“Digital currency would also lead to a more efficient and cheaper currency management system,” Sitharaman said during the Budget 2022 session in Parliament. As a result, it is suggested that the Reserve Bank of India produce digital rupees utilizing blockchain and other technology beginning in 2022 and 2023.”

The central bank digital currency (CBDC) is a digital form of fiat currency supported by blockchain and governed by the central bank. CBDC is distinct from decentralized virtual currencies and crypto assets, which are not issued by the government and do not have the status of “legal tender.” It allows users to make domestic and cross-border transactions without the involvement of a third party or a bank.

The decision comes as the Indian government prepares to submit a bill prohibiting “all private cryptocurrencies in India” with “limited exceptions.” The launch of a digital currency will not be limited to India. Nigeria established eNaira, a non-interest-paying CBDC, in October 2021. CBDCs have also been introduced in the Bahamas and five additional East Caribbean islands.

Cryptocurrency Regulation Around the World and Comparison with India

Cryptocurrency Regulation around the world and its comparison with India

Cryptocurrency regulation around the world and its comparison with India:

The government’s stance on digital assets has shifted dramatically over the last several years, from an outright ban in 2016 to an impending Bill for regulation. The impending Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 differs from the previous one, titled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019.”

While the previous law intended to outlaw all crypto-related acts such as mining, purchasing, holding, selling, and dealing, the new one will seek to distinguish between it and its commonly used classification as a currency.

Different countries and groups regulate cryptocurrencies in their unique ways.

Different countries and groups have different approaches to regulating cryptocurrencies, but it is reasonable to say that India has been one of the most resistant to them thus far. According to reports in the media about what the government is going to propose in crypto legislation, this status is unlikely to change much. But first, let’s take a look at how Cryptocurrency legislation differs in crucial economies and groups to see how India stacks up.

United Kingdom of Great Britain: 

The United Kingdom, like most other countries, currently lacks comprehensive legislation on Cryptocurrency regulation. The Financial Conduct Authority is the authority that gives licenses to authorized Cryptocurrency -related firms, which includes crypto-exchanges, under the existing system. The scenario is similar to all others seeking a grant from the FCA. These companies must follow a set of strict guidelines. These regulations are stringent for organizations that trade crypto futures and options.

In terms of taxation, gains from Cryptocurrency trading are taxed in the same way that gains from other currencies are taxed. Businesses that trade currencies, as well as Cryptocurrency exchanges, are subject to corporate tax regulations.

This isn’t to argue that the FCA is unconcerned about the hazards posed by cryptocurrencies. It has issued repeated cautions to UK investors, similar to the RBI, to invest with prudence. The United States, like India, has a dual legislative system in which the federal government and state governments both have legislative powers. In the United States, regulations on cryptocurrencies differ by state, but the country as a whole has been in favor of permitting all bitcoin activity.

The state of New York, in particular, is a shining example of a favorable legislative climate. BitLicense, a licensing system for Cryptocurrency businesses and exchanges, was created in New York in 2016. Companies that want to transfer, hold, purchase, or sell cryptocurrencies must get a license from the New York State Department of Financial Services that fall under the system. Wyoming, which freed Cryptocurrency inventors and dealers from securities rules in 2018 if they satisfied specific conditions, is another US state with a favorable legal climate for cryptocurrencies.

European Union:

The European Union’s legislation is multifaceted, with some topics dealt with at the national level and others dealt with at the consolidated Union level. To date, each EU country has regulated cryptocurrencies, with the majority opting for a light-touch approach. The EU, on the other hand, has recently looked into establishing a unified framework for cryptocurrencies. The European Commission released proposed legislation titled Markets in Crypto-Assets Regulation in September 2020. (MiCA).

Cryptocurrencies will be treated as regulated financial instruments, according to the plan. Any firm owning, trading, offering brokerage services, or providing investment advice concerning cryptocurrencies, like other financial instruments, would require regulatory clearance.

The draught is particularly intriguing since it recognizes the various sorts of crypto-tokens, including crypto-assets, utility tokens, asset-referenced tokens, and e-money tokens, and recommends different rules for each.

China:

 China’s Cryptocurrency deals have been a roller-coaster journey. Whereas it used to be open to all crypto-related activity, including mining, it is currently one of the most limited crypto markets in the world. China accounted for over 75% of all crypto-mining globally as recently as September 2019. However, in June 2021, it outlawed Cryptocurrency mining, resulting in a 40% drop in global mining operations, according to some accounts.

In 2017, China outlawed initial coin offers (ICOs), and crypto-exchanges were forced to close as a result. However, because the legislators’ major beef was with initial coin offerings (ICOs), it did not make it unlawful to own or trade cryptocurrencies.

The Chinese government, like India’s, has demonstrated a strong interest in blockchain technology and has promoted the creation of blockchain-related start-ups.

China is also one of the most advanced countries developing an official fiat Cryptocurrency, the digital Yuan. It has already begun real-world Cryptocurrency experiments, which will be centrally regulated but operate differently than traditional fiat money.

What can be allowed in terms of Cryptocurrency legislation in India?

·        Cryptocurrency trade will go on. Those who meet specific requirements will buy and sell bitcoins on exchange platforms.

·        India’s stance on Cryptocurrency appears to be “protective.” Any measures included in the crypto bill are expected to safeguard the safety of investors’ funds. Anyone who has made a Cryptocurrency investment should not be alarmed.

Multiple indicators point to crypto being categorized as an asset class rather than a currency. This means that consumers will invest in crypto and watch their money rise.

What may or may not be allowed in India’s Cryptocurrency laws?

The creation of cryptocurrencies will become more complicated. Anyone with a working internet connection can create a crypto coin right now. Only individuals who meet particular conditions may create crypto, according to the regulations.

Cryptocurrency will not be recognized as legal cash. Many individuals rallied behind the concept of cryptocurrencies replacing the rupee or coexisting with it as lawful money earlier this year. That is unlikely right now. Put another way, and you won’t be able to buy a burger or pizza using Bitcoin.

Conclusion:

There is currently no rule or prohibition in place in the country regarding the usage of cryptocurrencies. The Supreme Court of India overturned the Reserve Bank of India’s (RBI) ruling prohibiting banks from enabling crypto transactions in March 2020.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is set to be introduced in Parliament during the Winter Session, and it aims to outlaw all “private cryptocurrencies” in India. It does, however, allow for some exceptions to promote Cryptocurrency’s underlying technology and applications.

 

 

What is Swing Trading and How It Work?

What Is Swing Trading and How Does It Work

What is Swing Trading and how does it work?

Meaning and Methodology of Swing Trading for Forex Traders:

Daily, the forex market sees a diverse range of trading tactics, with its advantages and disadvantages associated with each. In contrast, some methods have a better track record than others in generating outcomes.

Swing trading has a complete meaning that supports a rich base among forex traders to separate the wheat from the chaff. Some refer to it as a “basic” kind of forex trading because positions are held not just overnight but frequently for much longer.

This is because most fundamental traders (also known as fundamentalists) are swing traders, basing their trades on fundamentals that can take several days—or longer—to generate enough price swings to turn a profit.

As swing trading becomes a more systematic approach in the forex market, it’s essential to grasp better how it works. Here’s a look at the fundamentals of swing trading.

What Is Swing Trading and How Does It Work?

Swing trading is a short-term approach in which a trader buys or sells currency based on technical indicators that indicate a price shift is imminent. This pattern can remain stagnant from a few days to several weeks. Swing traders depend too much on technical analysis to follow a currency’s movement and predict when a “swing” is likely to occur. Swing trading is when a trader isn’t concerned with the long-term worth and instead focuses on profiting on momentum peaks and dips.

Take a look at the dramatic increase in the value of the New Zealand dollar against the US dollar from its low on September 2 to its high on September 6. The currency pair’s sudden four-day surge, while being entrenched in a months-long downturn, is precisely robust the kind of movement swing traders are searching.

Before that price breakout, you’ll see a brief period of consolidation, which is a frequent indicator traders use to forecast a swing opportunity. It’s not about a pair’s long-term value in this scenario, but rather its ability to experience a rapid price fluctuation in the short future.

Benefits of Swing Trading:

Swing trading has a strong methodology on paper, but no one can deny that it is a high-risk strategy. On the other hand, Swing trading has some crucial features that could give it an edge over different popular trading approaches.

Flexibility in terms of time trading:

 Extended trading hours, long positions, and long-term commitments are standard features of several trading strategies. Swing trading is a distinctive technique that allows traders to trade with great flexibility. They have a lot of trading freedom as they aren’t aiming to hold back anything for a more extended period and instead rely on price swings. Jumping and Juggling within trading sessions are also possible in the case of day trading. Swing trading is easily adaptable to your trading preferences, regardless of when you prefer to trade. 

Trading under defined parameters:

 Trading within predefined borders is recommended, while some trading tactics may introduce gray areas. Swing trading is controllable mainly because it is reliant mainly on technical analysis. Long-term trading techniques give you a wide berth on borders, but swing trading might make things easier to interpret. 

Smaller stop-losses:

 Swing trading has very small stop-losses, especially when compared to longer-term trades. Stop-losses on a swing trade, for example, could be 100 pips based on a standard four-hour chart, but a stop-loss based on a weekly chart and overall position could be 400 pips. 

With this in mind, swing trading gives the flexibility to take large bets rather than the low-leverage ones prevalent with longer-term trends.

The ability to go in and out of the market:

 Swing trading allows traders to dip in and out of the market quickly and easily, allowing you to spot more trading chances. There will be indicating signals of a forming pattern on any financial chart, but swing traders will be looking for support and resistance. 

You can pay out your profits in the NZD/USD example above once the currency pair reaches a resistance level. If traders believe the currency will resume its trend going downward, you may want to ponder on shorting the pair to profit on both sides of the price movement.

This is a common approach used by traders that operate with high-volatility currency pairs. USD/SEK is one such pair, with a lot of peaks and surges throughout time, as shown in the three-month graph:

Because of its colossal trading volatility and, as a result, the significant risk that comes with trading it, the USD/SEK is frequently viewed as a more “exotic” combination, making it an excellent ground for swing traders looking to profit from a giant price swing.

You can make rapid profits and set up other deals by moving into and out of the market at the proper periods. Swing trading is unlike any different trading strategy in that it allows you to leap in and out of the market.

More effortless movement following the market’s natural flow:  

Though it is not visible, the currency market has a natural ebb and flow. There is nothing that remains upward permanently such tor a negative trend exists.

The AUD/JPY pair, for example, is believed to reflect worldwide investor emotions. This partnership tends to appreciate when the global investment market is strong. Depressed investing attitudes, on the other side, are reflected in the pair’s price movement. You may use a couple like AUD/JPY to profit from these ebbs and flows regardless of how the market changes by combining this information with other technical indicators.

Swing trading allows you to profit from increasing prices during a bull market and to decrease costs during a bear market in the best-case scenario. Swing trading does not bind you to a specific need, allowing you to move with whatever the forex market throws at you.

Swing Trading Risks:

 Swing trading can be profitable, but it can also be risky. The most significant danger is when the currency market is closed on weekends. Market movements might lead a price to the gap and open at a much different price than it closed, putting swing traders in a position where even a stop-loss isn’t enough to prevent a substantial net loss. 

Swing trading exposes traders to market volatility, especially because swing trades are designed to profit from pullbacks and other short-term price fluctuations, many of which may occur inside a more significant trend. Although volatility can provide profit opportunities for experienced traders, it can also increase swing trading risk.

As a result, traders may miss out on profits that could have been made simply by focusing on long-term trends rather than swing trades.

Swing Trading Indicator’s Work

Swing trading performance is primarily determined by the indicators you employ to detect swing potential. Swing traders utilize a variety of indicators. Take a look at a few of the most common ones:

 Moving averages are a type of average that is used to:

Moving averages, particularly long-term moving averages, can assist you in spot trend reversals that suggest a swing opportunity and comprehend the general strength of that trend, albeit they are best utilized in conjunction with other indicators.

For Instance, when a shorter-term moving average crosses a longer-term moving average, it can be a leading indicator of the type of trend reversal that swing traders seek. Notice how the 50-day moving average (in green) crosses over the 200-day moving average (in red) in the NZD/USD chart below, resulting in a considerable price decrease that swings traders may be keen to profit.

 RSI: The relative strength index (RSI) is an outstanding tool for spotting potential swing trade chances based on bearish or bullish setups, particularly for traders seeking opportunities in a short period.

 An RSI of 70 or higher indicates overrated conditions, leading to a price drop. However, an RSI below 30 can imply underbought conditions, meaning that a currency pair is likely to gain value.

 The CHF/USD chart below shows both of these swings in action: oversold conditions that lead to a price increase, followed by an overcorrection that displays overbought conditions and a price decline:

 Swing traders might potentially earn from both the price gain and the price decrease in a matter of hours if they open positions on both sides of the market movement.

 Support and Resistance lines:

 Lines of support and resistance might assist you in finding swing opportunities depending on your expectation of a retracement or extension if you’re utilizing Fibonacci or other trading techniques.

Suppose you’re watching the USD/JPY move inside a range, and the price approaches a line of resistance, for example. In that case, you might consider taking a position in the hopes of the price reversing course and heading toward the corresponding line of resistance. If you’re mistaken, you can put a stop-loss above the line of support, but this simple strategy can make swing trading accessible and even profitable for new traders.

 Conclusion:

 Some traders give preference to take a long-term approach, while others generate more trading opportunities daily. Swing trading allows you to do this by keeping an eye on market fluctuations rather than relaxing and waiting for a trade to happen in your way.

 Swing trading is gaining popularity among traders due to its ability to boost control, trading activity, and, most importantly, profit potential.

Forex Market Hours for Trading

Market Watch In Forex

What is the best time to trade in Forex?

When the Forex (foreign exchange) market is most active, it is the best time to trade. Trading spreads are the prices that have (the difference between the bid and ask prices) tend to reduce during this time. In some cases, less money goes to the market makers who facilitate currency exchanges, leaving more money in the dealers’ pockets.

The Four Major Foreign Exchange Markets:

London, New York, Sydney, and Tokyo are home to the four major FX exchanges. Forex traders must memorize their hours, paying particular attention to overlapping conversations taking Tip: When many discussions are active simultaneously, trading volume increases, and volatility—the amount and rate at which share or currency prices change—increases. Volatility might be more profitable to forex traders.

This looks like a contradiction. Investors, after all this, are wary of dynamic market movements. However, higher volatility within the currency market means more potential for profit.

Hours of Trading on the Forex Markets around the World

The FX market is electronic and operates between 5 p.m. Eastern Standard Time on Sunday and 5 p.m. Eastern Standard Time on Friday (EST). From Monday up to Friday, each exchange has its trading hours. The four most crucial time slots (all in EST) for the average trader are as follows:

While each exchange is self-contained, they all deal in the same currencies. As a result, when two businesses are open, the number of traders actively buying and selling a currency increases dramatically. Bids and asks on any one currency market exchange affect bids and immediately ask on all other active discussions. This reduces market spreads while increasing volatility, as shown in the windows below:

ENCHANGE NAMEFOREX MARKET HOURSMARKET HOURS IN INDIA
SYDNEY10:45 AM TO 04:15 PM05:45 AM TO 11:45 AM
TOKYO09:00 AM TO 03:00 PM05:30 AM TO 11:30 AM
LONDON08:00 AM TO 04:30 PM12:30 PM TO 09:00 PM
NEW YORK09:30 AM TO 04:00 PM07:00 PM TO 01:30 AM

 

The time slots for different platforms to trade into Forex as per Indian timings are mentioned above, Refer to know in-depth about timings and trading slots of Forex markets. For overseas investors, the New York exchange is essential. Its transactions involve the US dollar, accounting for 90% of all currency trading. The dollar’s movements cause a huge impact all across the world.

The 8 a.m. to noon overlap of the New York and London markets is usually the best trading time. More than half of all forex trades are conducted through these two trading centers. On the other hands, trading takes place mainly between 5 and 6 p.m. on the Singapore and Sydney exchanges, with significantly less volume than during the London/New York window.

There are exceptions, and the projected trade volume is predicated on the premise that there would be no noteworthy news. Political or military events could significantly increase volatility and trading activity during ordinarily sluggish trading hours.

Specific economic data that can potentially impact the market are released regularly. It includes information on unemployment, the Consumer Price Index (CPI), trade imbalances, consumer confidence, and consumer spending. Knowing when this news will be released will help you time your trades.

Forex Trading Hours With High Volume Can Be Dangerous:

Forex traders should exercise caution because currency trading frequently involves high leverage ratios of 1,000 to 1. While this ratio provides enticing profit chances, it also exposes an investor to the risk of losing all of their money in a single trade.

According to a Citibank survey, only 30% of retail forex traders break even or make a profit. Surprisingly, 84 percent of individuals surveyed believe they may profit from the FX market. The main point is that new forex investors should open accounts with companies that provide demo platforms, which allow users to simulate forex trades and calculate hypothetical profits and losses. Investors can securely begin making actual forex trading once they have learned the ropes and gained enough experience.

While there is money to be gained, as with many other investments, there is also a lot of money to be lost.

Meaning of Forex Trading and its work structure:

In simple words, forex trading is the trade of multiple currencies to profit from changes in their relative prices. Rather than trading on exchanges, most of this trading is done through electronic platforms or over the phone. Pair of currencies is used in each trade.

How many hours of trading per day are required to make money in Forex?

Your capacity to profit from forex trading is determined by the percentage of transactions you win and the size of your trade profits. A typical trader who trades for two hours during peak hours can make around 100 deals in a month.

How can one get started with forex trading?

You only need to make an initial deposit with a brokerage to trade FX. Many brokerages don’t have a minimum deposit requirement for forex trading. However, it’s usually between $50 and $500. Before you start putting your money in forex trading, taking risks it’s also good to read in detail and length about the subject and practice making trades. Before investing your actual money, you can practice demo trading on various electronic trading platforms.

The Balance does not provide tax, investment, financial services, or advice. The material is being provided without considering any specific investor’s investment objectives, risk tolerance, or financial circumstances and may not be suitable for all investors. Past performance does not guarantee future outcomes. Investing is entitled to risk, including the possibility of losing money.

Understand Basic Details of Crypto Trading

Understand Basic Details of Crypto Trading

Understand basic details of Crypto Trading

Over 10 crore Indians possess cryptocurrency, according to a recent news story. During the upcoming times, the number is likely to rise much more.

Like stock and commodity trading, Crypto trading comes with its own set of risks and drawbacks. Market participants must develop tactics that make trading exciting and safe to reap long-term gains from crypto trading. Let’s begin by looking through several tactics that can assist you in achieving favorable results.

Day trading is carried with the trading that entails entering and quitting positions on the same day. A trader using this strategy aims to profit from intraday price fluctuations in a cryptocurrency of his choice. Investors frequently use technical indicators to determine entry and exit points for specific cryptos to make a profitable transaction.

Trading on the range: 

Market participants often rely on expert analysts, who provide daily support and resistance levels. The term resistance refers to the maximum price that may be reached. Therefore a resistance level is a price that is higher than the current price. On the other hand, ‘Support’ is a level below which a crypto price is not supposed to fall; thus, a support level is always lower than the current price. 

Scalping: 

This trading method entails increasing trading volumes to make a profit. Despite the risk, a savvy trader pays attention to the margin requirement and other crucial rules to avoid having a terrible trading experience. Scalpers examine the crypto asset, historical trends, and volume levels before deciding on an entrance and exit point within a day. 

Trading at a High Frequency (HFT): 

Quant traders utilize HFT, which is an algorithmic trading approach. This includes the creation of algorithms and trading bots that aid in the speedy entry and departure of a crypto asset. The design of such bots necessitates a thorough comprehension of complicated market principles and a strong solid foundation in mathematics and computer science. Which results, it being more suited to experienced traders than newbies. 

Averaging Costs in Dollars: 

It’s important to consider that timing the market is nearly impossible when identifying the optimum entry and exit points in a crypto market. So, ‘Dollar Cost Averaging’ is excellent for technique investing in cryptos (DCA). DCA is a term that refers to investing a set amount at regular intervals. This method allows investors to avoid the time-consuming task of market timing and achieve long-term riches. 

On the other hand, exit strategy could be problematic in the DCA approach. It necessitates a thorough examination of market trends and a grasp of the market cycle. Reading technical charts can also assist you in determining when to exit. Before buying a cryptocurrency, buyers should watch the oversold and overbought zones. 

Create a well-balanced portfolio: 

Cryptocurrency trading is still in its infancy. While certain countries encourage cryptocurrency trading, others remain skeptical. Central banks worldwide are working on better ways to control digital currencies, making crypto trading a risky proposition. There are, however, measures that can assist investors in avoiding severe volatility. 

Building a well-balanced cryptocurrency portfolio that includes Bitcoin, Dogecoin, and Ethereum could help you beat volatility. 

Furthermore, investors can invest a set amount of money in various cryptos every month. This will increase your risk appetite methodically, allowing your portfolio to provide favorable long-term returns. 

Make no trading decisions based on rumors: 

One silly mistake the investors made is relying on social media for cryptocurrency news. Social media buzz should never be used to make investment decisions. Because digital currency is such a trendy topic, misleading information about it spreads quickly. 

Primary Sources: 

Primary research is one of the most significant trading tactics. To perform a preliminary analysis on the item’s worth you desire to purchase. You do not need to be a trading expert. This entails keeping up with all of the latest developments in the crypto business. EnclaveFX makes this easier by compiling all of the news stories you need to read before starting your day. 

Furthermore, before betting on a risky asset class like crypto, you should assess your funds and define an investing goal. You can learn about Bitcoin, Ethereum, Tron, Ripple, Litecoin, etc. 

Arbitrage: 

Arbitrage is a trading method in which a trader purchases cryptocurrency in one market and sells it in another. The spread is the difference between the buy and sell prices. Traders may book profit due to the differential in liquidity and trading volume. To take advantage of this opportunity, you’ll need to register accounts on exchanges that have a significant price difference for the cryptocurrency you’re trading. 

Bitcoin Volatility Betting: 

It’s no secret that cryptocurrency is one of the most volatile asset classes on the market right now. Bitcoin prices have fluctuated by roughly 30% in a single session. Trading Bitcoin futures allow you to bet on volatility. The best method to do it is to buy both a call and a put option simultaneously. Both the strike price and the expiration date must be the same. You must sell both the call and put option at the same time to exit when crypto prices fall or increase sharply.

How to Use Forex Economic Calendar

How to use Forex Economic Calendar

How to use Forex Economic Calendar

 Correct methodology of reading and analyzing economic calendar for Forex Trading: 

Scheduled national and worldwide events that are likely to affect the price and popularity of specific markets or assets are included on economic calendars, along with their possible impacts. The kind and date of each event on a financial calendar can be utilized as a trading indicator to maximize profit potential because some sorts of events have been known to have a significant, predictable impact on trade. 

Frequent news occurrences are the most apparent indicators because their effects on trade sentiment and volume are predictable. Scheduled publishing dates for generally respected market statistics or surveys, as well as scheduled events such as federal interest rate, trade balance, and inflation decisions, are examples.

Although other foreign events can influence market volatility, single occurrences’ economic impact and timeline are less predictable, making trading them more difficult. 

Although many free economic calendars are available online, designated trading platforms often provide account members with a more flexible and all-encompassing calendar. Before picking a forex economic calendar at random, keep in mind that the events on the calendar are only as valuable as they are relevant to the market you’ve chosen. 

Because forex trading is so global, having a calendar that allows you to specify specific qualification criteria and filter results by country and currency utilized is useful. 

The majority of economic calendars include a summary of each event as well as a value for “actual,” “prediction,” and “prior.” The “forecasted” amount, which can be stated as a percentage or currency value, shows the expected market impact, whether positive or negative. Before a news occurrence, this figure influences trading sentiment and behavior. The term “previous” refers to the change following the most recent news occurrence. 

“Actual” tracks the objective price movement that occurs after an occurrence of this sort, and “historical” tracks the historical price movement. 

A more advanced economic calendar will allow you to filter results by relevance to your chosen markets and let you analyze the impact of each event based on your specific qualification criteria, in addition to providing this essential information. 

The Advantages of Using an Economic Calendar: 

The primary rationale for using economic calendars is self-evident: The world’s financial news has a direct impact on your existing portfolio as well as the development of new trading chances if you’re a forex trader. An economic calendar helps you keep track of events and comprehend their possible impact on the global currency market by organizing them and providing context. 

You can account for impending news and events while planning trades and looking forward to potential market movers when you have an easy-to-use calendar at your disposal. Traders that wish to think ahead and take a predictive approach to their business utilize economic calendars frequently in their strategies to trade. 

While taking a forward-thinking approach to your trading strategy is typically good, it’s also crucial to avoid overreacting to forthcoming events or the discoveries of a recently issued news piece. Events on your economic calendar might cause rapid volatility in a currency pair or the forex market as a whole. Still, these overreactions can result in significant losses if you trade recklessly. Take a balanced approach to evaluate news as it breaks, and keep an eye on the larger macro-environment influencing a currency pair’s market. 

It’s only a matter of time before you get burned when you try to make quick money by trading on other traders’ instinctive reactions. 

As Trading Indicators, News Events: 

Start by picking a big currency pair likely to be influenced by a major news event to profit from news happenings. Because the NFP data is a barometer of US markets, you should look for a critical USD currency pair when utilizing it as an indication. 

After you’ve found a currency pair, deciding which direction to trade is a little more complicated, interpret this information in the context of your other technical indications and insights, rather than putting orders based just on anticipated figures or market bias. 

Examine the current market trend, strength, and direction, as well as support and resistance levels, both before and after the news event. If a news event is expected to offer good market information, you may observe a sharp rise in price action leading up to the news release, followed by a sharp drop if the news disappoints. 

Timing is crucial in any good trading approach. Day traders may seek to profit on price volatility induced by market biases in the run-up to important events, but long-term trading methods reward those who take a more cautious approach. 

Traders can profit from the volatility created by the event by waiting until after it has occurred to enter a position and using the actual vs. projected values to predict reactionary market movement. 

Strategies For Beginners To Earn On Cryptocurrencies

Strategies For Beginners To Earn On Cryptocurrencies

Strategies For Beginners To Earn On Cryptocurrencies

What is Cryptocurrency? 

 

Cryptocurrency is a digital currency that has revolutionised the virtual economy. Created based on the ideas of the mysterious Satoshi Nakamoto, a cryptocurrency can be bought, sold, or exchanged directly without any intermediary like banks. 

Similar to stock, you can invest in cryptocurrency. However, choosing the right strategy and opportunity is what can make or break your return on investment (ROI). 

Here are a few basic strategies to help you start your online cryptocurrency trading :

Easy Strategies for Beginners

 
  • Buying and Holding (Holding)

One of the easiest ways you can invest in bitcoin is through the buying and holding method. It is a passive investment strategy where all you have to do is buy a cryptocurrency that you think has the potential to grow and hold on to it for a longer period–months or years. 

However, cryptocurrencies often undergo radical fluctuations. So, avoid checking the price frequently as that may spook you into an early sell.

  • Day Trading Cryptocurrencies

Contrary to buying and holding, day trading is an active investment strategy where traders enter and exit positions within 24 hours. If done the right way, day trading offers you high ROI. 

However, the cryptocurrency market is highly volatile, and you may lose a significant amount of money during a crash. Hence, only use an amount you can afford and set an appropriate limit to prevent any losses.

  • Scalping

As one of the fastest trading strategies, scalping allows traders to exploit small fluctuations in the market over very small time frames. Although you will earn a healthy profit every day, scalping can be highly risky and needs serious commitment to execute. 

Therefore, this strategy is ideal for traders with high liquidity, which makes getting in and out of positions predictable and smooth.

  • Swing Trading

Swing trading is a long-term trading strategy compared to day trading, where traders hold on to investments for a few weeks or a month. While using this strategy, consider both technical and fundamental analysis to predict market change.

If you have small or medium-sized investment capital, swing trading is for you. However, make sure to stay in flow with the trend.

  • RSI Trading Strategy

The idea behind a Relative Strength Index (RSI) is to create a group of crypto-assets to create a token that tracks the momentum of recent market prices. It helps traders determine if the market is overbought or oversold. 

However, even this strategy is not foolproof, so make sure you set a stop value that is closely below your entry price to help you avoid a significant loss. 

  • Avoid Pump and Dump Groups

As a potential cryptocurrency investor, you are bound to encounter pump and dump groups that will offer you profits. However, these profits are based on inaccurate and misleading statements, manipulating the market by driving up the price of an asset. 

They then dump the asset onto investors, which leads to a loss for the traders and a significant profit for the pump groups. 

  • Cryptocurrency Arbitrage

Arbitrage is another easy method where all you have to do is purchase a cryptocoin at a low price and then find an exchanger and sell your coin at a higher price to obtain a profit.

Although a commission fee may use up your profit, you will still make a good ROI through this strategy.

Wrapping up

Cryptocurrencies are the new way to trade, and investing in them can help you gain massive profits. There are several ways to perform digital currency trading, and choosing the right strategy depends on what kind of returns you wish to obtain. Make sure you consider the risks as well before you start applying your chosen strategy.

Understanding a Forex Economic Calendar

Understanding a Forex Economic Calendar

Understanding a Forex Economic Calendar

When it comes to Forex trading, there are several risks that a trader is undertaking at a given point in time. The market is constantly changing, resulting in a profit for one trader but a loss for another. Therefore, traders now utilize an economic calendar to make the process of forex trading somewhat predictable. 

What is an Economic Calendar? 

An economic calendar is essentially a list of all the important upcoming events that may have an impact on the forex market. The events tend to form the basis of an individual’s fundamental analysis. Traders will keep track of events like GDP, Consumer Price Index or CPI, and more in real-time if they use the forex economic calendar live. This calendar will keep track of the days on which major economic news will be declared concerning certain economies. 

Using a Forex Economic Calendar

As a beginner in trading, one must use the real-time economic calendar to decide on which days they will be trading. To choose an event, one has to keep in mind that price movements and volatility on a given day are high. These days, a trader must look to place the stop loss at a value that mitigates the most risk. 

This is because choosing a highly volatile event will mean that the following scenarios could take place: 

  • The price increases in one direction and then plummets after a while resulting in a zig-zag pattern. 
  • The price displays a steep incline which later subsides and continues moving upwards again. 
  • Prices can also show a steep decline, plateaus for a brief moment, and decrease again. 

How to Read a Forex Economic Calendar?

Reading a Forex Economic Calendar live will help to maximize one’s profits before and after a major announcement. 

Special attention is given to announcements affecting major economies as they can bring in the most profits as well as devastating losses. To filter the information one obtains from the calendar, one can also customize it.  

Daily Real-Time Forex Economic Calendar

Traders can customize their calendars according to the desired day. One can choose to set the date to the present day or even the next seven days. However, the change must take place according to the timezone that one is most familiar with. 

In addition to this, a trader also has a choice to choose the currency they want to trade with and pin the important events that they wish to keep track of. Thus, the Forex Economic Calendar allows one to focus on the state of the market daily. 

Important Items to Look For in a Forex Economic Calendar

The most common one that traders notice is the interest rate decisions put forward by the central bank.

  •  The Consumer Price Index is another announcement that has an influential effect on forex trading. 
  • The Gross Domestic Product or GDP indicators can influence the exchange rate. 
  • The US Non-Farm Payrolls represent the number of jobs added and so on. It affects the US dollar. 
  • The Produce Price Index is the average change in the price provided by producers. 

There are many other minor events as well. 

Trading with a Forex Economic Calendar

On the basis of the impact that the event will have on the currencies, the events are marked as follows: 

  • High Volatility:

    These represent the more important events like GDP, Unemployment Rate, Non-Farm Payroll numbers, and more, along with interest rate decisions. 
  • Medium Volatility:

    Events like the retail sales, trade balance and typical household spending data are placed in this category. 
  • Low Volatility:

    This includes low impact events like minor bond sales, results of surveys, and more. 

Therefore, the Live Forex Economic Calendar is a crucial tool that can help one make the right decisions at a given time. A trader can thus maximize their profits by making informed decisions.

What are the Laws for Cryptocurrency?

What Are the Laws for Cryptocurrency?

What are the Laws for Cryptocurrency?

What is Cryptocurrency?

Cryptocurrency is a mode of online payment which uses blockchain technology. Such currency can be exchanged for various goods and services worldwide. Unlike paper notes and coins, cryptocurrency is not available in physical form. Usually, it is not controlled by any centralized body.

Current and Proposed Cryptocurrency Regulations

In recent years, cryptocurrency regulations have grown to be very strict in India. The Reserve Bank of India decided in 2018, that no financial institutions or banks shall deal with such virtual currencies. In the same year, it was confirmed by RBI, that no authority had been given to any entity to issue any license or give permission for the use of virtual currency. Instead, it had given a warning against such illegal use. However, in 2020, the Supreme Court ruled down this ban on cryptocurrency trading, giving birth to a new era of digital currency use in India.

The future of cryptocurrency lies in great uncertainty. Rumors state that the center plans to introduce a bill that shall hold the provisions for a ban on a cryptocurrency exchange.

In the United Nations, several fraud cases have been reported in the past few years. Almost $119 billion of transactions were considered suspicious in 2019 according to Suspicious activity goes undetected as banks struggle to keep up. The FinCen had proposed new rules in December 2020, which were aimed at reducing such fraud and suspicious instances. However, the Biden administration has put a pause on the rules until further notice.

Legal Concerns Around Cryptocurrency Use

Three major concerns have been listed by the U.S Attorney General’s cyber-digital task force – 

  • Investment fraud and cryptocurrency theft.
  • Evading taxes and laundering money using cryptocurrency.
  • Committing financial terrorism and crimes by cryptocurrency use.

Anonymity serves as the biggest threat in the world of cryptocurrency. Due to anonymous identities performing the transactions, it becomes difficult to track criminal activities. Various enhanced crypto coins like Monero, Zcash, etc., have been released for making tracking difficult.

Silk Road

Silk Road is one of the most well-known examples of cryptocurrency crimes. It was a site operating between 2011-13, dealing with various criminal activities. For example, the exchange of forged documents, illegal goods, services, etc. The clients used bitcoins to pay for the services so that nobody could trace them. The founder of the site was tried in 2015 for the crime.

Cause for Caution with Crypto Investing

The cryptocurrency exchange is not considered legal in the United States. No government or central bank supports such trading. Although the returns on crypto investing can be immensely high, there are numerous risks associated with it. Due to the anonymity of the transactions, hackers get an opportunity to sabotage the process. Once lost, bitcoins cannot be retrieved again. Being highly volatile, cryptocurrency isn’t likely to become a stable currency anytime soon. If the FinCen regulations are passed, the level of consumer protection and safety shall improve to some extent.

The example of the Mount Gox cryptocurrency exchange serves the purpose of caution against crypto investing. The exchange was hacked in 2014 which led to a loss of hundreds of million dollars of bitcoins. Thus, one should choose the best cryptocurrency brokers for a safe bet. 

Undoubtedly cryptocurrency has the potential to gain massive profits. But with the benefit comes various risks, which are equally huge. There are not many safety nets for the customers in this context, which makes it more problematic to deal with. Hence, before trading or investing in cryptocurrencies, always check the risks associated with them. Making an informed decision shall minimize the chances of any loss.

5 Proven Trading Strategies For Beginners

5 Proven Trading Strategies for Beginners

5 Proven Trading Strategies For Beginners

Being a beginner in Trading, you will need to exercise caution in choosing which trading strategies you are going to use at the start of your trading journey. Recent data shows that around 80% of traders lose money in the long run, and the wrong choice of trading strategy is why most traders lose their money, which is usually unrealistic. When trading with forex, you need to have a fair idea about some strategies that can help you trade in a fruitful way.

As a new trader, you can keep the ball in your court by choosing the best trading strategy for beginners. The article below describes some simple and effective trading strategies for beginners. 

Choosing the right trading strategies

 
  • Technical Analysis Strategy

In the field of Trading, technical analysis is a prediction of price changes in the future based on the analysis of price changes in the past. Many new traders follow strategies based on the results of this analysis. Technical analysis includes the study of chart figures and the identification of patterns. 

Mathematical and statistical calculations are often used to convert patterns and figures formed on the chart to determine which patterns can be open for Trading and give advice to the trader.

  • Trading the News

As a global market, Forex is influenced by financial events. Examining economic news events and their potential impact on currency pairs aids traders in predicting market movements or short-term breakouts (intraday or multi-day). It’s vital to remember that, like any other worldwide trading market, Forex can be influenced by unplanned and one-time occurrences like natural disasters or political developments.

Economic calendars and indices, such as the Consumer Confidence Index (CCI), are used by news traders to predict when and in which direction a change will occur.

  • Trading the Gap

When trading with candlestick charts, you will occasionally notice a gap that occurs between two candlesticks. A gap is a blank space on a chart that appears between two candles, and Trading with those gaps is called Gap Trading. 

The gap will appear when the price of an asset moves sharply up or down with nothing in between. This indicates that the market opened at a different price than its previous close. Typically, this occurs between the close of one day and the opening of the next day. 

  • Trade Pairs

A pair trading strategy is based on the historical correlation of two securities. The values ​​in a pair trade should have a high positive correlation, which is the main driver of the strategy’s profits.

A pair trading strategy is best implemented when a trader identifies a correlation discrepancy. Depending on the historical notion that the two values ​​will maintain a specific correlation, pair trading can be implemented when this correlation fails.

  • Trade with Trend lines

Trade with trend lines moves in a general direction in which the value of a financial market or the price of an asset moves. A trend line is an identifiable straight line that connects a sequence of price points and then continues to show support or resistance, depending on the trend’s direction.

Today, trend lines have become very popular to identify support or resistance levels as a form of technical analysis. Thus, it can be a profitable strategy for beginners to trade effectively.

Newbies to the world of Forex can benefit from using the best simple trading strategies that work in Forex because these strategies are relatively easy to follow. They have a reputation for being profitable in the long run, putting the odds on their side. Therefore, it would be best to try various trading strategies and then choose the one that is best suited psychologically. Thus, following the above strategies, you can start forex trading online in an effective way with more profit in return.

ECN Brokers: The Reliable Way To Trade

ECN Brokers: The Reliable Way To Trade

ECN Brokers: The Reliable Way To Trade

What is an ECN Broker?

 

A broker or organisation that employs ECNs to conduct customer trades is known as an ECN (Electronic Communication Network) broker. Traditional business makers are bypassed as ECN brokers transfer market data straight to the ECN. They are online forex trading broker experts who employ electronic communications networks ( ECNs ) to provide clients with direct access to other currencies market players.

7 Facts About ECN Brokers

 

1. Enhanced Trading Time

For prospective buyers, an ECN broker performs trades over the ECN. Engaging with such brokers also leads to lower expenses and greater trading time due to the way ECN functions.

2. Absolute Anonymity

With an ECN broker, your trading behavior is confidential. It implies that dealers can only trade on impartial pricing that fits the actual state of the market. Neutral prices aren’t skewed in one direction or the other based on a trader’s techniques, existing market positions, or tactics.

3. Wider access

The ECN technology is used by a forex online broker to connect traders and liquidity providers in the marketplace. Similarly, due to FIX software, ECN traders have access to a wide range of prices given by financial institutions on the money markets in STP mode. It is how most brokers may provide their customers with a market rate and sell their products.

4. Prompt Actions

The benefit of using an ECN broker is the speed with which transactions may be completed. Trading orders are executed quickly and without re-quotation. It allows for the avoidance of any potential conflicts of interest. Another benefit is that traders have perfect anonymity; each client’s stop orders are kept secret.

5. Programmed Data

A trader’s purchasing situation strategy and risk management process can be linked to the trader’s market data and corresponding algorithm. It provides the trader exposure to the highest bid and best pricing, along with a variety of other information.

6. Commission Per Transaction

Since it balances transactions across market participants, an ECN broker is banned from trading against its customer or clients. ECN brokers charge a predetermined commission per transaction to their customers since ECN spreads are substantially less than those used by traditional brokers.

7. No Trade Against The Client

An ECN online forex trading broker simply acts as a middleman between your buying and selling orders, connecting you to various market players. As a result, an ECN broker never bets against you.

Why should you trade with an ECN broker?

 
  • When a trader uses an ECN network, he is safe, and his trades cannot be identified or tracked by other market participants.
  • This sort of account allows traders to continue trading without interruption. Using the ECN account lets you trade in real-time during breaking news and events.
  • The surge of orders is not routed through ECN brokers to retail investors. Instead, they digitally connect the trade parties and pass the requests to the financial market’s middlemen.

Advantages of ECN Brokers

 
  • Lower Bid and Ask Spreads

Since an ECN instantaneously combines trader requests with the current best transaction pricing from all forex market players, bid-ask spreads are often tighter.

  • Flexibility

Customers or traders can use ECNs to engage in trading activities and enable deals outside of usual trading hours.

  • Speed

Trades are executed instantly and with drastically reduced spreads. Many different liquidity providers compete for trade orders. It encourages them to offer the lowest prices possible to outperform the market and recruit traders.

  • Flat Commission Rate

ECN brokers often impose a set transaction fee on each trade rather than profiting from the bid-ask difference.

An ECN forex online broker is gaining traction because they offer cutting-edge technology that connects small market players with liquidity providers. They are the safest way to trade due to improved visibility and no conflicts of interest.