The largest volume market in the world is currency exchange, with a daily turnover of four trillion dollars. Traded across the global banking system, the spot forex market�offers tremendous�liquidity and opportunity. Many trading Forex signals provide you with a complete set of instructions in order to take the trade. Frequently the signal will have multiple exits, which enable a trader to take money off the table in small steps. So this enables the currency trader to input all of these prices into his trading platform when he gets the signals, and then to switch off the computer.
These opportunities happen all the time, depending on time frame. Current example is a monthly chart of EUR-GBP. Ranges of last 3 bars have been getting smaller, which might present an opportunity for a successful straddle trade. The buy order can be placed at 0.8035 and sell at 0.7840. Protective stop of 80 pips for each order is about right. Profit target of 150 pips is in line with risk. Alternative exit is at the end of July, regardless of profit or loss.
Economic indicators play a huge role in the forex trading especially for traders who approach the market through fundamental analysis and trade the news. The Federal Open Market Committee (FOMC) interest rate decision is one of the most influential indicators for the US dollar and you can be sure after the news is released there is going to be volatility in the markets and volatility is what traders thrive on.
Another way of using straddles involves fundamental announcements. A lot of these events cause rapid price movement, yet the direction of moves after number releases is notoriously difficult to predict. Particularly popular among traders are FED interest rate announcements and unemployment data release. These are also times when a great deal if indecision is present, resulting in both legs of straddle being stopped out. In spite of its popularity, this is perhaps the worst way of using straddles.
Forex trading is a risky business and it takes some time to master the art of Forex trading signals. There are a number of fx signal providers but before you choose, you need to make sure you have done your homework. Always ask for the Free signals to deliver for 3 to 5 days and test those signals in your Demo Account.