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  • Vlad RF
    replied
    What Is Additional Issue of Shares and How Does It Influence Investments?

    Author: Maks Artemov


    When you invest long-term and medium-term, you can face such a stock market phenomenon as additional issue of shares. Not all investors understand how it influences the capitalization of companies or their share prices, so feel vulnerable in such situations. Today’s article is devoted to the details of additional issue of shares.

    What is additional issue of shares?

    Under additional issue we understand issuing and selling new shares of a company in order to attract new capital. This measure is meant to neutralize negative factors that influence the economic situation of the company, to help expand the business, or to launch new projects that require investments.

    How can a company attract money?

    A profitable company can allocate a part of the profit to reaching new goals. However, if the size of the profit is not enough or the new project requires a colossal influx of money, the company decides on an additional issue.

    Another option is using loans and credits. These require extra expenses on serving them and paying off interests. This is not always profitable and increases the financial load on the company.

    The influence of the additional issue on the share price is quite ambivalent. The share price may drop significantly and recovery will take quite long. However, the inflow of finance in the company generated at smaller expense will have a good influence on the company in the future.

    What is additional issue of shares meant for?
    1. Attracting extra money to support or develop the business
    2. Increasing authorized capital
    3. Expanding the share of large investors for making them more influential in the company
    4. Avoiding extra expenses on paying off loans
    How is additional issue organized?
    1. The board of directors and major investors decide to issue additional shares. They agree on the size of the issue and the initial share price.
    2. The decision is ratified based on the company charter.
    3. The authorities register the additional issue by all legal procedures.
    4. The issued shares are sold among the existing investors of the company. The remaining shares are placed in the stock market where they become available to anyone who wants them.
    5. The company charter gets amended, namely — the charter capital and the number of the shares in turnover.

    How does the additional issue influence the share price?

    In most cases, additional issue drives the share price down. In the future, the quotations can recover and even grow, but normally it takes quite long, several years sometimes.

    Example of additional issue

    The N production company had 1 million of shares in turnover that cost $1 each. Hence, the capitalization of the company reached $1 million. The board of directors and the stock meeting decided to attract additional investments sized $500 thousand. The money was necessary for building a new plant and expanding production to enter new markets.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to Trade Piercing Pattern and Dark Cloud Cover?

    Author: Victor Gryazin


    Today the article is devoted to two patterns — the Piercing Pattern and Dark Cloud Cover — their forming and trading principles.

    How do the patterns form?

    The Piercing Pattern and Dark Cloud Cover are reversal candlestick patterns that predict a correction or reversal of the current trade

    These patterns consist of two candlesticks each and mirror each other. The Piercing Pattern forms at the lows of the chart and forecasts a reversal upwards. The Dark Cloud Cover appears at the highs and warns of a decline beginning.

    Speaking metaphorically, the emergency of the Dark Cloud Cover in a growing market shows that the bulls are stuck in a serious obstacle, and if they fail to overcome it, a downward correction will follow. And vice versa: if after a market decline the Piercing Pattern appears, the bears are losing the grip, and the bulls are optimistic about an upward reversal.

    Dark Cloud Cover

    Japanese traders state that this pattern in the chart gives little chance for further growth. The pattern consists of two candlesticks, a white and a black ones.

    At the white candlestick, the market is growing actively, and a new local high is set. Thanks to the optimism and the pressure applied by buyers, the next trading session opens with a gap upwards. But then the market falls, and the black candlestick closes in the middle of the body of the white one or even lower.

    As a result, the optimism of the bulls reflected in the white candlestick gets fully destroyed by the black candlestick. The bears have managed to recover, stop the bulls, and are ready to fight back.

    The farther the closing price of the black candlestick reaches behind the preceding white one, the stronger this signal is considered. The signal can be canceled by the growth of the price above the high of the pattern.

    https://blog.roboforex.com/wp-content/uploads/2022/01/clouds-dark.png

    Closing thoughts

    The Piercing Pattern and Dark Cloud Cover form in a downtrend or an uptrend, respectively. They predict a reversal of the current trend.

    Trading by these patterns can be augmented by tech analysis and indicators. In more details, this trading is described in a book called “Beyond Candlesticks: New Japanese Charting Techniques Revealed” by Steve Nison.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to Invest in Metaverse

    Author: Eugene Savitsky


    The stock market expects that the Federal Reserve System will soon increase the interest rate, and this cause a lot of tension. The S&P 500 index has already lost 8% since the beginning of the year and remains in a downtrend. The tech sector is also suffering: over the last three months it has lost 9%, becoming one more outsider.

    There is no crisis these days: the interest rate is being raised to cool down the economy a bit, i.e. slow down its growth and avoid forming of a bubble. Hence, the current decline of the indices can be looked upon as a correction.

    The decline of stock prices and, consequently, the decline of the capitalization of companies can be used by corporations that manager to accumulate plenty of cash on their accounts during the pandemic. They will start engulfing other companies, so that 2022 can become a year of mergers.

    Microsoft Corporation buys Activision Blizzard

    The one to get started is Microsoft Corporation (NASDAQ: MSFT): on 18 January, it became known that the company was buying Activision Blizzard Inc. (NASDAQ: ATVI). After such news, the shares of the game company grew by 33%.

    The purchase will cost 74 billion USD. Microsoft can afford such spending: according to its fresh financial report, it has about 130 billion USD on the balance.

    However, what is important here is not the sum that the IT giant will pay but the direction it is going in. As the official press release goes, buying Activision Blizzard will speed up the development of the game business of the corporation and, most importantly, will provide building blocks for the metaverse.

    This confirms the idea that the metaverse is developing, not just in the form of empty talks nowadays but as real mergers that aim at getting closer to the virtual reality.

    I have already touched upon this topic in the article about the trends of 2022. Today, it is of exception interest to many — just look at the dynamics of the "metaverse" inquiry in Google.

    https://blog.roboforex.com/wp-content/uploads/2022/01/meta.en_.png

    Let us get acquainted with several other companies that can increase their revenue thanks to the growth of the virtual reality industry.

    Autodesk

    Autodesk Inc. (NASDAQ: ADSK) is the largest software provider for industrial and civil building, car industry and entertainment in the world. With Autodesk software, you can create 3D animation for virtual and augmented reality, which is great for the metaverse.

    Hedge funds demonstrate vivid interest in the company. Autodesk shares are held in the portfolios of more than 50 investment companies.

    According to the report for Q3, 2021 — we will see the results of Q4 only in March — the revenue of the company reached 1.1 billion USD. This was 14% more than in Q3, 2020. EPS grew from 1.04 to 1.33 USD. However, these results turned out more modest than experts had expected, so Autodesk shares dropped and are trading in a downtrend.

    They are further pulled down by the general decline in the stock market. Hence, this investment should become a promising one, where you will be waiting for the negative influence to subside. Currently, the optimum purchase level for Autodesk shares will be the support level at 220 USD.

    https://blog.roboforex.com/wp-content/uploads/2022/01/adsk-1200x619.png

    Adobe

    Adobe Inc. (NASDAQ: ADBE) designs software and is well-known for such products as Acrobat, Photoshop, Creative Cloud, and Aero.

    Aero is an instrument for designers meant for creating images in the augmented reality and requiring almost no programming skills. Director-general of Adobe Shantanu Narayen considers Aero the best product for metaverse development of these days.

    Adobe shares, as well as those of Autodesk, dropped quite a deal after the quarterly report was published. However, the difference is that Adobe revenue lived up to the expectations of experts. Alas, they were unhappy about the forecast for the next year made by the management: EPS is expected to be 12.48-13.7 USD while now it is 10 USD.

    With that, the shares lost 20% of the price and keep going in a downtrend. Nonetheless, not all investors support the idea that Adobe shares are to be get rid of. Laura Desmond, a member of the board of directors of the company, used the downtrend to increase the number of the shares in her portfolio. On 7 January she bought 973 shares for about 500 million USD.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex is voted the Best Broker of the year by the Traders Union

    we are proud to announce that RoboForex has conquered a new peak – in 2021, the broker won new awards from the International Association of Forex Traders in several nominations:

    https://a.radikal.ru/a13/2202/9d/9dee26ba05d5.png

    We’re sincerely thankful to our clients for their trust and confidence, and want to meet their expectations by providing the most transparent and favourable trading conditions. Assess them yourself:


    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to Profit from Growing Uranium Prices?

    Author: Eugene Savitsky


    Market players already understand that in 2022, the QE monetary policy will be coming to an end, and the US Federal Reserve System will increase the interest rate.

    This understanding makes investors every time less optimistic and sends stock indices down. For example, NASDAQ Composite (NAS100) has lost 4% since the beginning of the year, and S&P 500 (US500) – 1.5%. Dow Jones Industrial Average (US30) is the only one to withstand the troubles: its decline remains within 1%.

    In such a market, do not hurry to buy even those shares that look promising. Their prices may fall even deeper down. However, we still need to look for efficient investment ideas. So, in this article I am driving your attention to the green energy sector and another one that is somewhat connected – the atomic energy sector.

    Some history

    Canada is a country with the largest territory in North America. The name of the country stands for “kanata”, which means “settlement, land” in the language of local Indian people. The history of Canada started in 1534 when a French seafarer Jacques Cartier explored the country. One of the first French colonies was founded on the territory of modern Quebec, initially populated by indigenous people.

    Canada is a federative country that consists of ten provinces and three territories. As early as the 1850s, the country gave up the colonial Canadian pound and switched to the Canadian dollar. Traders also use a slang name “loony”, from “loon”, the name of the bird on the 1 dollar coin. This bird is a mascot o Canada. Since 1970, the CAD has been a free tradable currency; the monetary policy is regulated by the Bank of Canada, the Central Bank of the country.

    The CAD is a popular currency that takes part in 3% of all trading operations of international trade. Many leading countries keep a part of their gold reserves in the CAD. Thanks to free conversion and good volatility, the CAD is one of the seven Forex majors.

    Looking for clean energy

    Renewable energy sources (sun and wind) cannot replace hydrocarbons yet because the humanity has not figured out how to store lots of energy for a long time.

    Using solar and wind power, people become dependent on weather.
    Meanwhile, hydrocarbons are more user-friendly and reliable, as well as economically efficient. However, it has a negative influence on the environment. Ecological concerns and the threat of global warming make people look for replacements for hydrocarbons.

    Options are few:
    • Solar energy
    • Wind energy
    • Sea wave energy
    • Water energy
    • Atomic energy
    • Thermonuclear energy
    Why we do not use thermonuclear energy

    Thermonuclear energy is a dream of the humanity. First attempts to get electricity from thermonuclear reactions were made as long ago as in 1950. yet, scientists fail to achieve any satisfactory results: they still spend more energy on carrying out those processes than they get in the end.

    This sector is developing actively anyway. A good example is the International Thermonuclear Experimental Reactor project, originating back in 1980. Nowadays, no one can confidently say when the dream will come true, while we need electricity every day, and the need for it is growing constantly.

    The EU plans to consider atomic energy “green”

    Some steps have already been made in this direction. On January 1st, the Euro Commission presented to member countries a draft bill where it is suggested to consider atomic energy ecologically clean. This means financing of nuclear energy plants construction at least until 2045.

    Germany opposes constructing nuclear energy plants

    Germany speaks against this project, referring to the consequences of nuclear power plants accidents. German government does not only speak against this project – it takes actions.

    By January 1st, it had shut down three nuclear power plants, leaving just three more in the energy system of the country, that are also going to be shut down by the end of 2022.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to Trade USD/CAD Currency Pair?

    Author: Victor Gryazin


    USD/CAD – US dollar vs Canadian dollar – is a major currency pair, popular in the Forex market. Let us see, what influences its quotations and what the main trading methods are.

    Some history

    Canada is a country with the largest territory in North America. The name of the country stands for “kanata”, which means “settlement, land” in the language of local Indian people. The history of Canada started in 1534 when a French seafarer Jacques Cartier explored the country. One of the first French colonies was founded on the territory of modern Quebec, initially populated by indigenous people.

    Canada is a federative country that consists of ten provinces and three territories. As early as the 1850s, the country gave up the colonial Canadian pound and switched to the Canadian dollar. Traders also use a slang name “loony”, from “loon”, the name of the bird on the 1 dollar coin. This bird is a mascot o Canada. Since 1970, the CAD has been a free tradable currency; the monetary policy is regulated by the Bank of Canada, the Central Bank of the country.

    The CAD is a popular currency that takes part in 3% of all trading operations of international trade. Many leading countries keep a part of their gold reserves in the CAD. Thanks to free conversion and good volatility, the CAD is one of the seven Forex majors.

    Trading characteristics of USD/CAD

    USD/CAD demonstrates the relation of the US dollar to the Canadian dollar. The quotation demonstrates how many Canadian dollars you will need to buy one Us dollar. The growth of USD/CAD means that the USD becomes stronger on the expense of the CAD. And when the USD/CAD falls, the CAD becomes stronger against the USD.

    Here are several trading characteristics of the USD/CAD:
    • Trading time: the pair trades 24/7 except weekends and holidays. Its trading volumes and volatility reach their peaks during the American trading session when important economic statistics from the USA and Canada is published, influencing the quotations of the pair.
    • Volatility: USD/CAD is a quite volatile pair. Its average daily movements are about 80-100 points. Strong surges bring the volatility to 200-300 points a day for a short while.
    • Spread: this pair is a major, popular and liquid enough for the spread to be small. On popular ECN accounts in normal market conditions it amounts to 1-1.5 points.
    Trading USD/CAD

    To trade the pair, you can use fundamental analysis, tech analysis, and indicators.

    Fundamental analysis
    This approach analyzes various fundamental factors: economic statistics, expectations of changes in the interest rate, or the current trend in global currency and commodity markets.

    Example:

    In 2020, when the stock market collapsed due to the pandemic, global oil prices were falling fast. At that time, two negative factors at once influenced the CAD: the US dollar was growing because investors were fleeting from risks, and oil prices were falling. As a result, the USD/CAD pair was growing fast; one could buy it and hold until its growth stopped with the end of the acute phase of the crisis and the beginning of economic recovery.

    https://blog.roboforex.com/wp-content/uploads/2021/12/usdcad-fundament-1020x630.png

    Closing thoughts

    Thanks to good liquidity, volatility, and a small spread, USD/CAD is actively used by Forex traders. Trading decisions are based on various methods, including analysis of economic statistics, price charts, and indicator signals.

    To get started, use a demo account so you could practice and only then switch to a real account with minimal risks.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex: upcoming changes to the trading schedule in view of Martin Luther King Jr. Day in the US


    We are informing you that due to the public holiday in the USA, Martin Luther King Jr. Day in the US, there will be some changes to the trading schedule*.

    MetaTrader 4 / MetaTrader 5 platforms

    Schedule for trading on CFDs on US indices (US30Cash, US500Cash, USTECHCash) and Japanese index JP225Cash
    • 17 January 2022 – trading stops at 7:45 PM server time.
    • 18 January 2022 – trading starts as usual.
    Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on oil (Brent, WTI)
    • 17 January 2022 – trading stops at 7:45 PM server time.
    • 18 January 2022 – trading starts as usual.
    Schedule for trading on CFDs on US stocks
    • 17 January 2022 – no trading.
    • 18 January 2022 – trading starts as usual.

    R StocksTrader platform

    Schedule for trading on US stocks, CFDs on US stocks, and ETFs
    • 17 January 2022 – no trading.
    • 18 January 2022 – trading starts as usual.
    Schedule for trading on CFDs on US indices (US500, US30, NAS100)
    • 17 January 2022 – no trading.
    • 18 January 2022 – trading starts as usual.
    Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (BRENT.oil, WTI.oil)
    • 17 January 2022 – no trading.
    • 18 January 2022 – trading starts as usual.

    cTrader platform

    Schedule for trading on Metals (XAUUSD, XAGUSD)
    • 17 January 2022 – trading stops at 7:45 PM server time.
    • 18 January 2022 – trading starts as usual.
    Please take note of the above trading schedule changes when planning your trading activity.

    * - This schedule is for informational purposes only, and may be subject to further change.

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    What Are Fractional Shares, and How to Use Them for Investments?

    Author: Maks Artemov


    Every day more and more people get interested in investments and the stock market. However, not every investor has a sum substantial for a starting capital. Naturally, you can borrow money from your friends or a bank, but in this case, psychology will work against you, and if you make a mistake, you will have to return the loaned money as well.

    Future and beginning investors have a stereotype that they need a serious sum to get started. However, nowadays this idea is not completely fair.

    Clearly, a million dollar is more efficient and nicer to invest, but what beginners with a modest capital should do? Here is where fractional shares come to the scene: they let you buy a share even in expensive companies for the money you actually have.

    This means you buy a part of a share and become a co-owner of the company. Of course, such a way of shareholding has certain details, and in some cases there is no way to give a voice to a holder of a fractional share, yet there are advantages as well.

    What is a fractional share?

    A fractional share is a normal share broken down into several parts. There are several reasons for and goals of such a split and one of them is to give small investors an opportunity to buy a share in the company, driving more money into the company.

    The share price of many companies is much more than 1,000 USD, which sifts away a lot of potential investors. This is the problem that stock split is to solve.

    Where do fractional shares appear from?
    • Consolidation of shares is the process of uniting several shares in one. In this case, so-called remainders appear sometimes. They cannot be united in one share for some reasons and turn into fractional shares in the end.
    • During additional issue of shares new shares get to the market, and shareholders can buy new shares in proportion to those they already have. In this case, fractional shares can also appear.
    • As a result of merger or acquisition of companies fractional shares can also appear. They trade and participate in all other processes as normal shares do, only proportional to their volume.
    • Stocks split of a broker: a broker gathers applications from those who want a certain share, buy it when possible, and spreads it between the participants. However, the share itself is kept by the broker, while fractional shareholders own their parts and can sell it to the broker at any moment.
    How to trade fractional shares

    There is nothing supernatural in trading fractional shares. The quotations are the same as with a normal share, and you can use any trading strategy.

    For example, you can use fundamental analysis alongside tech analysis. If you invest medium-term and long-term, you will have to study the work of the company carefully and spread the money in the portfolio wisely.

    Trading fractional shares imposes the same obligations on you and the same risks as when you trade a share or a pack of shares.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    Financial Reports of Companies: Main Reference Point for Investors

    Author: Maks Artemov


    When you are investing in the stock market, you need to account for various factors and data from companies that you will be basing your investment decisions on. One of the most important and complex indicators of success of businesses is the financial report. It helps predict further development of the company and decide whether its shares are worth putting your money in.

    Companies that do not have their shares traded in the stock market may not reveal their reports to all those who are curious. On demand, they can provide this information to tax authorities or potential investors. However, only public companies must reveal their financial reports fully.

    As a rule, reports are published in open sources or on the websites o companies. The reporting period that ends up in a financial report, can be a quarter, six months, or a year. In certain cases, companies provide reports for longer periods for the sake of clearance of analysis.

    Types of financial reports

    Internationally accepted practice offers several types of standard reports:
    • IFRS – International Financial Reporting Standard
    • US GAAP – US Generally Accepted Accounting Principles.
    The latter standard is used by companies that have their shares traded in US stock markets.

    As the name reveals, the IFRS is an international reporting standard. Quite often, the IFRS report is adjusted to the standards of US GAAP for simpler analysis.

    How to use financial reports

    Having studies financial reports of a company or several companies, an investor can carry out a comparative analysis of their business. This is quite a simple thing to do.

    First, choose the companies you would like to compare, but make sure they are working in one sector or make similar products. It would be wrong to compare a company that produces heavy metals and an entertainment company. In such a case, comparison will be incorrect for a number of reasons.

    Draw a table of the indicators you are interested in. Thus you can assess the perspectives of development and potential profit from investments. As a rule, for comparison previous reports of both companies are taken, and comparative analysis is carried out that, among other things, helps assess potential dividends and the market sustainability of the company.

    If the results of a company are disappointing, hold back from investing in it. Promising companies with innovative products can be an exception, but never forget about increased risks.

    Bottom line

    There is no reason for an investor to study the whole of financial report. Reports can contain up to 200 pages and some information meant for a very small number of people.

    An optimum way out is to choose several indicators and use only them. Note that you need to study the reports for the previous reporting period. To see the full picture, annual reports are usually used.

    When making decisions, investors are often perplexed by impulsive statements or negative news about the company. In this case, it will be safer to act based on digits and facts instead of emotions.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to Trade Marubozu Candlestick Pattern?

    Author: Victor Gryazin

    This article is devoted to a universal candlestick pattern Marubozu: what it looks like on the chart and in which cases it can be used for trading.

    What Marubozu candlestick is

    The pattern is named after the only candlestick that it includes – Marubozu. From Japanese, the name is translated as “bald”, “with shaved head”. The candlestick has a large body and almost no shadows, so it looks as if its shadows have been “cut off”, leaving the candlestick with just a “bald” body.

    There are three Marubozu types:
    • Marubozu Full almost lacks both shadows;
    • Marubozu Open lacks the shadow at the side of the opening price and has a small shadow at the side of the closing price.
    • Marubozu Close, on the contrary, lacks the shadow at the closing side and a small one at the opening side
    The pattern can consist of any Marubozu, the type does not matter. As for the strength of the candlestick, it is considered quite strong and does not appear too often. When it does appear, however, this means bulla or bears are going to take action.

    https://blog.roboforex.com/wp-content/uploads/2021/12/Marubozu.png

    Types of Marubozu pattern

    Depending on the color of Marubozu body, traders single out two types of the pattern: Bearish Marubozu and Bullish Marubozu. Sometimes you can hear about Marubozu Brothers, which means there are both types of the candlestick: a white bullish and a black bearish candlestick. I would say, one brother tries to push the market upwards (the Bullish Marubozu), while the second brother, on the contrary, plans to send the market down (the Bearish Marubozu).

    Bullish Marubozu

    The pattern consists of a large white candlestick and demonstrates that bulls are ready to attack. The place on the chart where the pattern forms, indeed, matters. There are two main trading scenarios.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    What Are Futures and How to Trade Them?

    Author: Andrey Goilov

    Many traders start by trading currency pairs, trying later CFDs, stocks, and futures. Today I will be talking about the latter ones.

    A futures is a contract between the seller and buyer by which they agree to sell/buy the asset in the future for a set price. Initially, such contracts were meant for companies, so that they could avoid unnecessary expenses.

    Here is an example. We sell coffee yet we understand that due to the pandemic, the price for it will only be growing, and quite noticeably. To avoid a steep increase in the price and a decrease in sales, we agree with the supplier on a large supply of beans at the current price but in six months.

    If the price for coffee indeed grows in the future, we will only win because we will buy the beans at a lower price. If the price does not grow and even fall, the one to profit from the trade is the seller because they will sell the coffee at a higher price than the current one.

    Most often, base commodities for futures contracts are crude oil, wheat, corn, stock indices. Such contracts, as a rule, are trading in the exchange, and real supply of the commodity never happens.

    Why are futures interesting to traders?

    On the whole, futures contracts are somewhat different from, say, stocks. When an individual trader buys stocks, it is more like an investment, while trading futures is more of a speculation.

    Simultaneously, thanks to this peculiarity, futures have certain advantages, unavailable for investments in the stock market. For example, futures are traded almost 24 hours a day six days a week, while shares have a limited trading time.

    Another advantage of futures is easier margin requirements when selling than those to stocks. A short position in stocks means selling the asset that has been loaned and then buying this one for less money. For stocks, this trading operation has high margin requirements, while with futures, they are the same for selling and buying.

    Futures also allow diversifying certain classes of assets and invest in them more actively.

    For example, the share price of an oil company will depend not only on oil prices but also on the work of the management and rivals. However, a futures itself can depend only on the oil price without any factors created by the work of the company and its rivals.

    How to trade futures, after all?

    To work actively with futures, the trader needs to focus on a limited number of instruments to stay concentrated and accumulate experience. With futures, you can take long and short positions: the direction of the work depends on your tolerance to risk and your goals.

    A long position means that you buy a contract and wait for the base asset to grow in the future. Then you sell it at a higher price and make money on it. Risks emerge from the base asset not growing or even falling – this way you lose your money.

    A short position means that you sell your futures and wait for the price of the base asset to fall in the future. Here are also risks: if you are in a short position, and the price for the base asset grows, your losses can be unlimited because there are no limits to growth.

    There is also such a notion as calendar spread. This is a strategy by which the trader takes both a long and short position in one asset with different delivery dates.

    The potential profit emerges from the small difference between the sold and bought contract. If the calendar spread is positive, the trader buys a futures with a shorter delivery term and sells a futures with a longer one. If the calendar spread is negative, they sell the futures with a shorter delivery term and buy the futures with a longer one.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex receives the "Best Stocks Broker (Global)" Award


    In late 2021, RoboForex became the recipient of the “Best Stocks Broker (Global)” award from the prestigious media Global Business Review.


    For much of 2021, we were paying extra attention to the improvement of our multi-asset platform R StocksTrader, which allows to invest in a lot of different instruments, including over 3,000 stocks and more than 8,000 CFDs American and European stocks.
    • We extended the list of assets by adding over 700 new instruments.
    • We added the opportunity to invest in SPAC.
    • We enabled access to trading fractional shares.
    • We expanded the platform functionality.
    • We improved the mobile application.
    Another award in the "Best Stocks Broker (Global)" nomination is proof that the company is moving in the right direction. It motivates us to consistently improve our products and services for our clients.
    Are you ready to try stock trading?

    See the quality of our provided services for yourself!

    Start trading


    Sincerely,
    RoboForex team

    Leave a comment:


  • momo3HC
    replied
    A lot of useful info here. Cheers.

    Leave a comment:


  • Vlad RF
    replied
    RoboForex: changes to the trading schedule (in view of the Christmas and New Year holidays)


    We are informing you that there will be some changes to the trading schedule* during the Christmas and New Year holidays.

    MetaTrader 4 / MetaTrader 5 platforms

    Schedule for trading on DE30Cash and DE40Cash
    • 24 December 2021 – no trading.
    • 27 December 2021 – trading as usual.
    • 31 December 2021 – no trading.
    • 3 January 2022 – trading as usual.
    Schedule for trading on CFDs on GDRs
    • 24 December 2021 – no trading.
    • 27 December 2021 – no trading.
    • 28 December 2021 – no trading.
    Schedule for trading on other instruments
    • 24 December 2021 – no trading.
    • 27 December 2021 – trading as usual.
    • 31 December 2021 – trading stops at 8:00 PM, server time.
    • 1 January 2022 – no trading.
    • 2 January 2022 – trading as usual.

    R StocksTrader platform

    Schedule for trading on GER40
    • 24 December 2021 – no trading.
    • 27 December 2021 – trading as usual.
    • 31 December 2021 – no trading.
    • 3 January 2022 – trading as usual.
    Schedule for trading on UK100, SPA35, FRA40
    • 24 December 2021 – no trading.
    • 27 December 2021 – no trading.
    • 28 December 2021 – no trading.
    • 29 December 2021 – trading as usual.
    • 31 December 2021 – no trading.
    • 3 January 2022 – no trading.
    • 4 January 2022 – trading as usual.
    Schedule for trading on UK stocks
    • 24 December 2021 – no trading.
    • 27 December 2021 – no trading.
    • 28 December 2021 – no trading.
    • 29 December 2021 – trading as usual.
    • 31 December 2021 – no trading.
    • 3 January 2022 – no trading.
    • 4 January 2022 – trading as usual.
    Schedule for trading on CFDs on EU stocks
    • 24 December 2021 – no trading.
    • 27 December 2021 – trading as usual.
    • 30 December 2021 – no trading.
    • 31 December 2021 – no trading.
    • 3 January 2022 – trading as usual.
    Schedule for trading on other instruments
    • 24 December 2021 – no trading.
    • 27 December 2021 – trading as usual.
    • 31 December 2021 – trading stops at 8:00 PM, server time.
    • 1 January 2022 – no trading.
    • 2 January 2022 – trading as usual.

    cTrader platform

    Schedule for trading on all instruments
    • 24 December 2021 – no trading.
    • 27 December 2021 – trading as usual.
    • 31 December 2021 – trading stops at 8:00 PM, server time.
    • 1 January 2022 – no trading.
    • 3 January 2022 – trading as usual.

    Please take note of the above trading schedule changes when planning your trading activity.
    * – This schedule is for informational purposes only and may be subject to further change.

    Sincerely,
    RoboForex team

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  • Vlad RF
    replied
    How to Choose Shares for Investing in Correcting Market

    Author: Eugene Savitsky


    Over the last 10 days, the stock index S&P 500 corrected by 5%. Previous correction was longer but amounted finally to just 6%. Since the beginning of 2021, the index has had five corrections, yet the price has never fallen more than by 6%.

    Based on this, we can suppose that the current correction is close to an end, and soon the quotations will start growing again. In this case, the question is: which stocks to buy in such a market?

    Today, I will drive your attention to major market players and see which shares they prefer investing in.

    At present, the top-3 market participants managing a capital of more than 1 trillion USD includes:
    • VANGUARD GROUP INC – 4.2 trillion USD
    • BlackRock Inc. – 3.57 trillion USD
    • STATE STREET CORP – 1.89 trillion USD
    I suggest looking into the portfolios of these funds and check their recent investments. I guess, you will be surprised because you will not see there such well-known companies as Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), or Amazon.com, Inc. (NASDAQ: AMZN).

    VANGUARD GROUP INC

    Let us start with VANGUARD GROUP INC. Note that I range the shares by their “weight” in the portfolio, and these are brand-new purchases, i.e. these shares had not been in the portfolios before.

    Number one is Lucid Group, Inc. (NASDAQ: LCID).

    Lucid Group, Inc. was founded in 2007. It manufactures cars. This investment is evaluated as 900 million USD. In the last quarter, the average share price of the company was 25.38 USD, while now they are trading for 48 USD.

    VANGUARD invested in GXO Logistics about 798 million USD. In the last quarter, the average share price was 78.44 USD and the current market price is 92 USD.

    Meanwhile, number three is SoFi Technologies, Inc. (NASDAQ: SOFI).

    SoFi Technologies is a financial company founded in 2011. It gives loans for education, refinancing older loans, insurance, mortgage, and provides other financial services.

    In SoFi Technologies, VANGUARD invested 751 million USD. In Q3, its average share price was 15.88 USD and the current price is 16.40 USD. Note that with the current price growth, the investments of VANGUARD GROUP already demonstrate profitability.

    Tech analysis of GXO Logistics shares

    Now to the charts of the companies. The shares were bought in Q3, so now we can check how this process affected the share prices of the issuers.

    The leader in terms of the sum of investment is GXO Logistics. Since the IPO, the shares of the company have been growing, which is no surprise. Average daily trade volume amounts to 55 million USD. Hedge funds created demand for the shares with their 1.6 billion USD of investments, making the share price grow.

    Today, there is an uptrend on the chart, and the quotations have declined to the lower trendline, which means the correction will soon be over, and growth will start again. Another signal to buy the shares will be a bounce off 90 USD.

    https://blog.roboforex.com/wp-content/uploads/2021/12/GXO-D1-1200x620.png

    Bottom line

    Corrections give investors a great chance to buy some shares at lower prices. However, there is always a question, which shares to buy. I suggest that we look for possible investments in the reports of major market players that employ dozens or perhaps hundreds of analysts all over the globe.

    All the three funds spent on the shares of the named companies no more than 0.02% of their portfolios, which means in the future they will be investing more, making the shares grow.

    Currently, keep a close eye on the charts of the shares, checking for support levels, as with Victoria's Secret & Co quotations. This will be a hint on the price, at which it is better to buy the shares.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

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