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.
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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 the GBP/USD exchange rate works?
So, let's say the price of GBP/USD is 1.2400. If you want to buy GBP/USD, then you need 1.24 USD to buy 1 GBP. But if you want to sell GBP/USD, then you will receive 1.24 USD for every 1 GBP.
A unit of measurement in forex trading is called a pip, whose value is 0.0001 of the quoted price. So, if the price moves from 1.24587 to 1.24597, this means one pip move. This is a part of the trading cost, so the wider the spread, the higher the cost.
Continue Reading at An Admirals' Guide to Trade GBP/USD Successfully
What are the most important US news for GBP/USD traders?
As in any other currencies traded directly with US Dollar, economic reports from the US will influence GBP/USD as well. This is especially notable for Federal Reserve (the Fed) decisions. The UK's central bank, the Bank of England (BoE) has a relatively lower influence than the Fed.
In this sense, here are some high-impact US news you should note if you want to trade GBP/USD successfully:
- FOMC Meeting and the subsequent Fed's interest rate statement.
- FOMC Meeting Minutes release (two weeks after the meeting).
- The Fed/FOMC Chairperson speeches.
- US GDP
- US Nonfarm Payrolls report which also includes wages and unemployment rate.
- US Retail Sales
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?
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