Liquidity is essential to efficient trading in the foreign exchange market or any market for that matter. Low levels of liquidity can cause sudden price moves in a currency pair. For example, if an institution such as bank receives a very large order, this transaction could move the market significantly in the short term. In the forex market, the term…
Before making any investment or trade, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice. Learn to calculate different outcomes on profits, losses and margin loan repayments when trading shares of overseas-listed companies in foreign currencies, including from exchange rate fluctuations and stock price moves. Order types and algos may help limit…