Brokers With the Highest Volume for GBP/USD
High volume usually refers to the number of lots traded in currency pairs. There is some advantage of trading in high volume. For example, it minimizes volatility, reduces liquidity risk, and tends to have a smaller spread. Trading with high volume also offers more opportunities for traders. That is why a lot of experienced traders choose forex broker with the highest volume .
Choosing the right broker is very important. A different broker might have different rules and this might affect your trading activities. If you trade on GBP/USD, you can refer to this list of brokers with the highest volume for GBP/USD.
Scroll for more details
Why are consumer data important in GBP/USD analysis?
When analyzing GBP/USD from the fundamental perspective, you will find that retail sales, housing, and employment reports are highly impactful. The key here is consumer spending. The UK's economic growth is partly driven by consumption, and the trade relationship with other influential countries relates closely to that particular factor. Hence, there goes the following principle:
Anything that benefits consumer spending in the UK may strengthen GBP, while anything that hurt consumer spending in the country may weaken it.
Continue Reading at Tips on How to Trade GBP/USD
How does trading volume affect floating leverage?
Floating leverage can change under certain conditions, one of which is based on the trading volume. Volume-based floating leverage typically decreases along with the increase in trading volume.
Say you initially trade with 1:200 leverage. When your trading volume amounts to more than $3 million, the leverage would be automatically changed to 1:100. The adjustment can apply to the next level of volume increase, depending on how your broker sets the rule. It is important to note that the change of margin requirement that is brought by the new leverage would only apply to positions opened after the adjustment So, you don't have to worry about increased margin in your previous trades.
Continue Reading at What is Floating Leverage in Forex Trading?
Why is GBP/USD called the Cable?
In the currency market, GBP/USD is often known as "the Cable", which is a term derived from the first transatlantic cable that was laid from the US to the UK for communication purposes back in 1858. Currency quotes were some of the types of information transmitted through the system, so since then, the exchange rate between the British pound and the US dollar has been referred to as the cable.
Continue Reading at An Admirals' Guide to Trade GBP/USD Successfully
Why is trading volume less favored in floating leverage?
For a trader, volume-based floating leverage is much more complicated because it's vulnerable to market changes. It's common knowledge that the forex market is full of uncertainties, so the probability of getting a leverage adjustment due to volatility changes is higher than you initially thought. Another thing is, the volume-based policy's stance towards leverage change always leads to a decrease, so traders are consistently required to pay attention to margin increase.
Continue Reading at What is Floating Leverage in Forex Trading?