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Abstract:Fixed-time trading is a basic trading approach with huge potential rewards. However, the broker defines the returns, thus the chances alter based on the possibility of an accurate forecast. Overall, the chances are skewed against the trader, so a successful transaction will provide a lesser bonus than a probable loss.
Fixed-time trading is a basic trading approach with huge potential rewards. However, the broker defines the returns, thus the chances alter based on the possibility of an accurate forecast. Overall, the chances are skewed against the trader, so a successful transaction will provide a lesser bonus than a probable loss.
As a result, many individuals see fixed-time trading as gambling. This is not the case when creating forecasts using analysis and study.
What is Fixed-Time Trading?
When engaging in fixed-time trading, there are various actions to take:
1. Choose a Market
Fixed-time trading may be used in a variety of markets such as FX, equities, indices, commodities, and cryptocurrencies. Trading in these markets will diversify your portfolio and lower your overall risk exposure. However, regardless of whatever market you select, keep in mind that you will simply be guessing the result of the deal and will not really own the asset.
2. Choose an Expiry Date
Expiry periods might range from a few minutes to many hours. Longer-term trading is available from certain brokers, although it is uncommon. Fundamentals, such as firm performance or economic news, are more likely to impact longer-term fixed-time trading. Avoid trading around news releases for short-term trading since prices may become very volatile and difficult to anticipate.
3. Select Your Investment Level
Always decide how much to invest as a proportion of your whole money. A common rule of thumb is to never risk more than 1% of your money on a single deal.
4. Choose the Price Direction
This will be based on your analysis of whether you believe the price will rise or fall from the moment you enter the transaction (strike price) to the time expires.
5. Confirm
Once the deal is verified, the only thing left to do is wait to see whether the forecast was true. However, some brokers now provide the ability to change the deal after it has been made. This might involve terminating the deal early, extending it, or putting extra money into the trade (for example if you become more confident that you will make a profit). The possible award will be adjusted as needed.
Selecting a Fixed-Term Trading Broker
The first decision to make when trading is which broker to select. In this section, we summarize the essential factors to consider while looking for the finest suppliers.
Platform
When it comes to fixed-time trading, high-quality PC platforms and mobile applications are important. They should include solid technical analysis tools, including charts and indicators, as well as user-friendly interfaces that you can browse with confidence.
Profitability Potential
The profit potential is established by the dealer and hence varies across brokers. Compare prospective percentage returns as well as any costs to ensure that they will not deplete your earnings. Also, be sure the minimum deposit criteria are adequate for your investing level.
Check to see whether the broker provides a demo account. This is an excellent opportunity to practice fixed-time trading with virtual money while also becoming acquainted with the platform environment.
Fixed-Time Trading Techniques
Trading at fixed times should not be a risk, therefore employ technical analysis to make educated trading selections. Here are some examples of tactics.
Taking advantage of short-term trends is one of the easiest methods to carry out fixed-time trading. Find an upswing using candlesticks, for example, and then initiate an 'up' trade. An uptrend happens when each candlestick peak exceeds the previous peak and each dip exceeds the preceding trough.
Fixed-Time Trading Suggestions
Here are some pointers for novices wishing to get started with fixed-time trading:
Only invest a little portion of your funds in each deal. Because each transaction has the potential to lose the whole investment, losses may add up rapidly.
When first starting out in fixed-time trading, use lengthier time frames. This will make the procedure easier to bear initially.
Set and stick to trading limitations. This contains the number of transactions each day as well as the money invested. This should be determined by how much money you are willing to lose if you anticipate all of your transactions wrong.
Use online resources, classes, and books to learn about the asset you're trading or to learn how to learn about fixed-time trading.
Check for news releases for the asset you're trading, such as corporate reports and central bank updates. This will help you to properly prepare your approach.
Is it legal to trade at fixed times?
Fixed-time trading is allowed, yet it is prohibited in certain nations by regulatory bodies. For retail traders, the ESMA in the EU and the FCA in the UK, for example, prohibit fixed-time trading. Retail traders would be permitted to utilize an unregulated broker in these places, but their money would be at risk. It is preferable to utilize a broker licensed outside of the UK or EU, as long as the regulator is credible.
According to SEBI, fixed-time trading brokers cannot be situated in India, although Indians may engage in fixed-time trading via a broker based outside of India.
Fixed Time Trading vs. Forex Trading
While both forex trading and fixed-time trading require forecasting an asset's future price, forex trading does not have a specific time period. This implies the trader has the freedom to sell at any time and at any price. Forex pricing is partially determined by market circumstances, while fixed-time trading returns are set by the broker.
The Last Word on Fixed Fixed-time trading is one of the simplest investment ideas to grasp, but it takes thorough study and analysis to be implemented correctly. While it may provide huge returns even in calm markets, it also requires discipline to prevent losing large sums of money in a short period of time.
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Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
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