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Random article: Margin trading on the Forex market

Margin trading is a trading with borrowed funds. The idea of such a trading is to borrow money from a broker and trade with funds greatly exceeding trader’s own. This pledge is called margin. Margin funds are measured by the currency of deposit (for instance, US dollar). Margin depends on liquidity of a trading instrument (products). The essential part of the margin trading mechanism is to provide a leverage. To calculate margin-based leverage, divide the margin amount by the total value of a transaction. For example, the ratio 1:100 shows that in order you can trade, the balance of your trading account have to be 100 times less than the value of a transaction.

Popular article: Andrew’s Pitchfork

Andrew’s Pitchfork is the indicator which is used in market technical analysis and was designed by Alan Andrews. It represents three lines, parallel to each other, upon that, median line is equidistant from upper and bottom lines of channel. This way trend channel is constituted, which is divided into two smaller channels (watch pic. 1). Each of the lines is the support or resistance line. In Alan Andrews' terms, maximum and minimum points serve as pivot points in which price changes its direction. Author used B and C lettes for designation. A letter marks the start of the median line – starting point of trend. For building the median line, it is required to find an average price between those two points which in its turn should be pivot as well and be the price of the previous maximum or minimum.(watch pic. 2).

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