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How to Trade EUR/GBP?

Author: Igor Sayadov

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Dear Clients and Partners,

There are eight currencies in the world, recommended by the International Monetary Fund (IMF) for storing gold reserves. They would be:

1. USD – US dollar
2. EUR – euro
3. GBP – Great Britain pound
4. AUD – Australian dollar
5. NZD – New Zealand dollar
6. CAD – Canadian dollar
7. CHF – Swiss franc
8. JPY – Japanese yen.

The pairs constituted by 7 main currencies against the US dollar are called majors: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/JPY, USD/CHF.

All other pairs traded in Forex that do not include the USD are called cross-rates.

Majors make up for 70% of all daily turnover in Forex; cross-rates make up for the remaining 30%. While among majors, the most widely used is EUR/USD, among cross-rates, EUR/GBP is the most popular one.

This article is devoted to this currency pair, its history and peculiarities, and trading strategies that suit it.

Short history of EUR/GBP

The EUR/GBP pair appeared right after the European Union was formed because it was necessary to establish trade relations between the two largest economies in Europe. Britain entered the EU in 1998, keeping its own currency and credit and monetary policy.

In 2016, the country decided to exit the EU. Brexit, which used to be the main source of talks before the coronavirus, came into force in 2020. Naturally, such dramatic changes affected the cross-rate of EUR/GBP.

On MN, we can see an uptrend coming to an end in 2016 and a consolidation range form at this high until 2020. After Britain signed an agreement about its final exit from the EU, the quotations started a new wave of decline.

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What influences EUR/GBP quotations

EUR/GBP is neutral to the US economy and performs no stunts characteristic of other pairs when some important news in the USA emerge.

This pair mostly reacts to inflation data in the EU and Britain. Also, check the pair when the ECB and Bank of England change interest rates.

As a rule, cross-rates react to such events by long-term trends. So, before such news emerge, single out a consolidation area and wait for exiting these areas by the trend.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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What is Depth of Market and How Does It Work?

Author: Victor Gryazin

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Dear Clients and Partners,

What is DOM?

DOM (Depth of Market, a.k.a. Level 2, Order Book) is a list of current orders to sell and buy a certain trading instrument, presented as a handy table. It demonstrates prices that market players offer at the moment. DOM shows the actual balance of sellers and buyers and thus serves a handy instrument for traders and investors.

Stock market, in essence, is an auction in which sellers and buyers participate. For example, you want to buy 10 stocks at a price you set yourself. Your order gets into DOM, and if your price is close to the current market price, a seller will appear quite soon. However, if there are people in the market who want to buy the stocks at a higher price, you will need to wait until their orders are executed.

What does DOM look like?

Classic DOM is divided into two columns: in the left one prices and volumes of buyers (the number of lots) are presented; in the right one there are prices and volumes of sellers. The difference between the nearest orders to buy and sell is the current spread.

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The look of DOM depends on the trading terminal you use but general parameters are the same. Normally, orders to sell are at the top and orders to buy are at the bottom. DOM cannot accommodate for all orders placed by buyers and sellers real-time online. Hence, it shows online those orders that are the closest to the current market price.

They are what form the so-called DOM. For example, if DOM is 20*20, the table consists of 20 nearest buy prices and 20 nearest sell prices. This is quite a wide-spread look of DOM that brokers use. However, you can customize it in the trading terminal settings.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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RoboForex: upcoming changes to the trading schedule in view of Thanksgiving holiday in the US

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Dear Clients and Partners,

We are informing you that due to the Thanksgiving national holiday in the US, there will be some changes to the trading schedule*.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on CFDs on oil (WTI, Brent), Metals (XAUUSD, XAGUSD), CFDs on US indices (US500Cash, US30Cash, USTECHCash), and Japanese index JP225Cash

  • 25 November 2021 – trading stops at 7:40 PM, server time.
  • 26 November 2021 – trading stops at 8:00 PM, server time.


Schedule for trading on CFDs on US stocks

R StocksTrader platform

Schedule for trading on US stocks, CFDs on US stocks, US indices, and ETFs

  • 25 November 2021 – no trading.
  • 26 November 2021 – trading stops at 8:00 PM, server time.


Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (BRENT.oil, WTI.oil)

cTrader platform

Schedule for trading CFDs on Metals (XAUUSD, XAGUSD)

  • 25 November 2021 – trading stops at 7:40 PM, server time.
  • 26 November 2021 – trading stops at 8:00 PM, server time.


Please take note of the above trading schedule changes when planning your trading activity.

* - This schedule is for informational purposes only, and may be subject to further change.

Sincerely,
RoboForex team

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Merger and Acquisition: What Are the Types and How Shares React?

Author: Maks Artemov

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Dear Clients and Partners,

No doubt, each investor is interested what happens to the company they put their money in after it goes through a merger or acquisition. What to do, especially with the shares in your portfolio? Most importantly, what profit one will receive after such business events? This article attempts at answering these questions and giving some options of behavior in the case of merger or acquisition.

Company M&A

Merger is a process in which two or more companies take some economic actions to enlarge or expand their business. The abbreviation M&A stands for Mergers and Acquisitions. After the merger, a larger company appears in the market. The aim of the process is to make business more efficient, increase production powers, take over new markets, and create a full or partial monopoly.

Types of mergers

There are two main types of M&A:

  • Friendly M&A happen when two companies agree on mutually profitable conditions and act by the agreement.
  • Hostile M&A happen when the management of the acquired company does not agree with the unprofitable conditions of the merger but usually has no choice. A hostile merger becomes possible when the acquiring company owns over 30% of the company that is acquired. If the former holds the control package of stocks (over 50%), the latter has no chances to oppose the merger.


The influence of M&A on the quotations

Firstly, let us get to know what happens to the shares of merging companies. In most cases, the quotations of the acquired company grow. The reason is a profitable share exchange offer and other bonuses for investors and shareholders.

Normally, the shares of the acquiring company can drop. The reason is increased expenses at the start. After a successful merger and successful reshuffling, the shares recover and start growing.

In certain cases, it so happens that the shares of the companies on both sides start falling after the merger is announced. Usually this happens when investors do not think that the merger is reasonable and see no perspectives.

The opposite can also happen: the shares of both companies grow. This happens when the merger looks promising for all and investors see no bad sides of it.

Bottom line

M&A is a market trade that has both good and bad sides. To make the best of it you need to study and understand all the processes. A good way to do it is to study identical agreements in other companies. This does not guarantee you success yet might give an idea of what will happen and what are the stumbling rocks.

M&A is a complicated process that can take a long time, so be patient and try to avoid emotional decisions.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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RoboForex: ticker changes following Facebook's company rebranding

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Dear Clients and Partners,

Facebook, Inc. (NASDAQ: FB) announced the change of its name to Meta Platforms, Inc. (“Meta” for short), as part of its company rebranding.

If you have open positions in FB or you plan to open positions, please take into consideration the changes that will take effect prior to the trading session start on 1 December 2021.

How will this change affect positions and orders?

Accounts on MetaTrader 4 / MetaTrader 5

  • The ticker of all open positions in CFDs on Facebook's shares will change from FB to MVRS as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.
  • The ticker of all open positions in Facebook's shares will change from FB.nq to MVRS.nq as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.


Accounts on R StocksTrader

If you are using Expert Advisors (EA), check their settings to make sure they are operating correctly after the ticker changes.

All other trading conditions remain the same. Please take the above ticker changes into consideration when planning your trading activity.

Sincerely,
RoboForex team

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 How to Use Personal Income and Personal Spending in For example

Author: Victor Gryazin

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Dear Clients and Partners,

This overview is devoted to two macroeconomic indicators — Personal Income and Personal Spending —and their influence on the stock market.

What is Personal Income

Personal Income represents monthly changes in the income of physical persons. This indicator assesses in percent the changes of the aggregate income of people in the country over a reporting month compared to the previous month. For calculations, income from several sources is used:

  • Wage/salary
  • Bonuses
  • Income from owning real estate
  • Income from holding financial assets
  • Income from enterprises
  • Subsidies and social payments
  • Insurance, pension, etc.


In the USA, Personal Income is calculated and published by the Bureau of Economic Analysis (BEA), alongside Personal Spending.

Monthly changes of personal income is one of the key macroeconomic indicators that the BEA uses for assessing business activity in the country. Personal Income changes are published monthly in the Economic Calendar.

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What is Personal Spending

Personal Spending demonstrates monthly changes in expenses of physical persons. It assesses in percent how aggregate expenses of people in the country have changed over the reporting month compared to the previous one. This includes all main expenses of the population:

  • Spending on services
  • Spending on durable and not goods
  • Spending on banking transactions, commission fees, etc.


This indicator is also calculated monthly and published by the BEA alongside Personal Income. Consumer expenses are part of the GDP, hence, PS helps forecast its growth. Also, it is one of inflation growth indicators. Changing Personal Spending us published monthly in the Economic Calendar.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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How to Trade Dragon Pattern: Manual

Author: Andrey Goilov

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Dear Clients and Partners,

In technical analysis, there are patterns that can help you catch a market reversal on time. Among strong patterns, people name Double Top and Double Bottom, a.k.a. W-top and M-top.

Fairly enough, the market does not normally reverse by a single strong movement in the opposite direction. Most often, it forms a reversal pattern to get started.

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Apart from using classical reversal patterns, some traders modernize identification and trading rules of existing structures. One example is the Dragon pattern.

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The Dragon pattern looks very much like a Double Bottom but features some unique rules that identity it as a separate pattern, not a classical price structure. As the author puts it, the Dragon can be traded on various timeframes, while a low risk-to-profit ratio makes it even more attractive for traders.

The article is devoted to distinguishing the Dragon from a classic Double Bottom, the rules of trading, levels of taking the profit and leaving the market if necessary.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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How to Use EPS for Evaluating Shares

Author: Victor Gryazin

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Dear Clients and Partners,

To choose interesting stocks for investing, market players evaluate carefully various economic indices and statistics. This overview is devoted to one index called Earning per Share, or EPS.

What is EPS?

This Earning per Share index evaluates how profitable a certain company is in terms of one share. This multiplier shows the relation of net profit over a year’s time and the number of its ordinary shares in turnover, giving an idea of what profit can be brought to the investor by each share they buy.

In essence, each shareholder holds their share of the authorized capital of the company that equals to the number of issued shares. The profit made is given proportionally to each shareholder. So, the EPS multiplier reveals how much money out of the invested sum will return to the investor. The higher the EPS, the more profitable it is to invest in the company.

The profit made by the company can be fully or partially given to the shareholders as dividends. Here, things depend on the decisions of the board of directors. Shareholders via their representatives on the board can influence the issue, altering the share of the profit that will be given out to the shareholders in the form of dividends.

How is EPS calculated?

For calculating EPS, we use the net profit minus dividends on privileged shares. the formula is as follows:

EPS = (P – Div) / N

Where:

  • P is the net profit of the company for the reporting period (after taxes)
  • Div is the dividends on privileged shares
  • N is the number of ordinary shares in turnover in the reporting period


Example of calculation:

As an example, let us use Netflix (NASDAQ: NFLX). Over the last financial year, the company reported 2,761,395,000 USD of net profit, while the total number of ordinary shares in turnover was 440,922,000 shares.

The balance report says that Netflix did not issue privileged shares, so in the calculation formula, we subtract nothing.

Dividing the net profit of 2,761,395,000 USD by 440,922,000 shares, we get EPS of 6.26 USD per share.

You can check EPS in economic reports or on websites. For EPS or American companies, for example, go to Finviz.com:

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Closing thoughts

EPS gives a chance to assess the potential profit made on one shares of the company you are planning to invest in. The multiplier has equally advantages and drawbacks, so it is recommended to be used alongside other multipliers, P/E being the most frequently used one.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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How to Choose Shares for Investing in Correcting Market

Author: Eugene Savitsky

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Dear Clients and Partners,

Over the last 10 days, the stock index S&P 500 corrected by 5%. Previous correction was longer but amounted finally to just 6%. Since the beginning of 2021, the index has had five corrections, yet the price has never fallen more than by 6%.

Based on this, we can suppose that the current correction is close to an end, and soon the quotations will start growing again. In this case, the question is: which stocks to buy in such a market?

Today, I will drive your attention to major market players and see which shares they prefer investing in.

At present, the top-3 market participants managing a capital of more than 1 trillion USD includes:

  • VANGUARD GROUP INC – 4.2 trillion USD
  • BlackRock Inc. – 3.57 trillion USD
  • STATE STREET CORP – 1.89 trillion USD


I suggest looking into the portfolios of these funds and check their recent investments. I guess, you will be surprised because you will not see there such well-known companies as Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), or Amazon.com, Inc. (NASDAQ: AMZN).

VANGUARD GROUP INC

Let us start with VANGUARD GROUP INC. Note that I range the shares by their “weight” in the portfolio, and these are brand-new purchases, i.e. these shares had not been in the portfolios before.

Number one is Lucid Group, Inc. (NASDAQ: LCID).

Lucid Group, Inc. was founded in 2007. It manufactures cars. This investment is evaluated as 900 million USD. In the last quarter, the average share price of the company was 25.38 USD, while now they are trading for 48 USD.

VANGUARD invested in GXO Logistics about 798 million USD. In the last quarter, the average share price was 78.44 USD and the current market price is 92 USD.

Meanwhile, number three is SoFi Technologies, Inc. (NASDAQ: SOFI).

SoFi Technologies is a financial company founded in 2011. It gives loans for education, refinancing older loans, insurance, mortgage, and provides other financial services.

In SoFi Technologies, VANGUARD invested 751 million USD. In Q3, its average share price was 15.88 USD and the current price is 16.40 USD. Note that with the current price growth, the investments of VANGUARD GROUP already demonstrate profitability.

Tech analysis of GXO Logistics shares

Now to the charts of the companies. The shares were bought in Q3, so now we can check how this process affected the share prices of the issuers.

The leader in terms of the sum of investment is GXO Logistics. Since the IPO, the shares of the company have been growing, which is no surprise. Average daily trade volume amounts to 55 million USD. Hedge funds created demand for the shares with their 1.6 billion USD of investments, making the share price grow.

Today, there is an uptrend on the chart, and the quotations have declined to the lower trendline, which means the correction will soon be over, and growth will start again. Another signal to buy the shares will be a bounce off 90 USD.

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Bottom line

Corrections give investors a great chance to buy some shares at lower prices. However, there is always a question, which shares to buy. I suggest that we look for possible investments in the reports of major market players that employ dozens or perhaps hundreds of analysts all over the globe.

All the three funds spent on the shares of the named companies no more than 0.02% of their portfolios, which means in the future they will be investing more, making the shares grow.

Currently, keep a close eye on the charts of the shares, checking for support levels, as with Victoria's Secret & Co quotations. This will be a hint on the price, at which it is better to buy the shares.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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RoboForex receives the "Best Stocks Broker (Global)" Award

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Dear Clients and Partners,

In late 2021, RoboForex became the recipient of the “Best Stocks Broker (Global)” award from the prestigious media Global Business Review.

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For much of 2021, we were paying extra attention to the improvement of our multi-asset platform R StocksTrader, which allows to invest in a lot of different instruments, including over 3,000 stocks and more than 8,000 CFDs American and European stocks.

  • We extended the list of assets by adding over 700 new instruments.
  • We added the opportunity to invest in SPAC.
  • We enabled access to trading fractional shares.
  • We expanded the platform functionality.
  • We improved the mobile application.


Another award in the "Best Stocks Broker (Global)" nomination is proof that the company is moving in the right direction. It motivates us to consistently improve our products and services for our clients.

Are you ready to try stock trading?

See the quality of our provided services for yourself!

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Sincerely,
RoboForex team

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What Are Futures and How to Trade Them?

Author: Andrey Goilov

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Dear Clients and Partners,

Many traders start by trading currency pairs, trying later CFDs, stocks, and futures. Today I will be talking about the latter ones.

A futures is a contract between the seller and buyer by which they agree to sell/buy the asset in the future for a set price. Initially, such contracts were meant for companies, so that they could avoid unnecessary expenses.

Here is an example. We sell coffee yet we understand that due to the pandemic, the price for it will only be growing, and quite noticeably. To avoid a steep increase in the price and a decrease in sales, we agree with the supplier on a large supply of beans at the current price but in six months.

If the price for coffee indeed grows in the future, we will only win because we will buy the beans at a lower price. If the price does not grow and even fall, the one to profit from the trade is the seller because they will sell the coffee at a higher price than the current one.

Most often, base commodities for futures contracts are crude oil, wheat, corn, stock indices. Such contracts, as a rule, are trading in the exchange, and real supply of the commodity never happens.

Why are futures interesting to traders?

On the whole, futures contracts are somewhat different from, say, stocks. When an individual trader buys stocks, it is more like an investment, while trading futures is more of a speculation.

Simultaneously, thanks to this peculiarity, futures have certain advantages, unavailable for investments in the stock market. For example, futures are traded almost 24 hours a day six days a week, while shares have a limited trading time.

Another advantage of futures is easier margin requirements when selling than those to stocks. A short position in stocks means selling the asset that has been loaned and then buying this one for less money. For stocks, this trading operation has high margin requirements, while with futures, they are the same for selling and buying.

Futures also allow diversifying certain classes of assets and invest in them more actively.

For example, the share price of an oil company will depend not only on oil prices but also on the work of the management and rivals. However, a futures itself can depend only on the oil price without any factors created by the work of the company and its rivals.

How to trade futures, after all?

To work actively with futures, the trader needs to focus on a limited number of instruments to stay concentrated and accumulate experience. With futures, you can take long and short positions: the direction of the work depends on your tolerance to risk and your goals.

A long position means that you buy a contract and wait for the base asset to grow in the future. Then you sell it at a higher price and make money on it. Risks emerge from the base asset not growing or even falling – this way you lose your money.

A short position means that you sell your futures and wait for the price of the base asset to fall in the future. Here are also risks: if you are in a short position, and the price for the base asset grows, your losses can be unlimited because there are no limits to growth.

There is also such a notion as calendar spread. This is a strategy by which the trader takes both a long and short position in one asset with different delivery dates.

The potential profit emerges from the small difference between the sold and bought contract. If the calendar spread is positive, the trader buys a futures with a shorter delivery term and sells a futures with a longer one. If the calendar spread is negative, they sell the futures with a shorter delivery term and buy the futures with a longer one.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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How to Trade Marubozu Candlestick Pattern?

Author: Victor Gryazin

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Dear Clients and Partners,

This article is devoted to a universal candlestick pattern Marubozu: what it looks like on the chart and in which cases it can be used for trading.

What Marubozu candlestick is

The pattern is named after the only candlestick that it includes – Marubozu. From Japanese, the name is translated as “bald”, “with shaved head”. The candlestick has a large body and almost no shadows, so it looks as if its shadows have been “cut off”, leaving the candlestick with just a “bald” body.

There are three Marubozu types:

  • Marubozu Full almost lacks both shadows;
  • Marubozu Open lacks the shadow at the side of the opening price and has a small shadow at the side of the closing price.
  • Marubozu Close, on the contrary, lacks the shadow at the closing side and a small one at the opening sid


The pattern can consist of any Marubozu, the type does not matter. As for the strength of the candlestick, it is considered quite strong and does not appear too often. When it does appear, however, this means bulla or bears are going to take action.

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Types of Marubozu pattern

Depending on the color of Marubozu body, traders single out two types of the pattern: Bearish Marubozu and Bullish Marubozu. Sometimes you can hear about Marubozu Brothers, which means there are both types of the candlestick: a white bullish and a black bearish candlestick. I would say, one brother tries to push the market upwards (the Bullish Marubozu), while the second brother, on the contrary, plans to send the market down (the Bearish Marubozu).

Bullish Marubozu

The pattern consists of a large white candlestick and demonstrates that bulls are ready to attack. The place on the chart where the pattern forms, indeed, matters. There are two main trading scenarios.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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Financial Reports of Companies: Main Reference Point for Investors

Author: Maks Artemov

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Dear Clients and Partners,

When you are investing in the stock market, you need to account for various factors and data from companies that you will be basing your investment decisions on. One of the most important and complex indicators of success of businesses is the financial report. It helps predict further development of the company and decide whether its shares are worth putting your money in.

Companies that do not have their shares traded in the stock market may not reveal their reports to all those who are curious. On demand, they can provide this information to tax authorities or potential investors. However, only public companies must reveal their financial reports fully.

As a rule, reports are published in open sources or on the websites o companies. The reporting period that ends up in a financial report, can be a quarter, six months, or a year. In certain cases, companies provide reports for longer periods for the sake of clearance of analysis.

Types of financial reports

Internationally accepted practice offers several types of standard reports:

  • IFRS – International Financial Reporting Standard
  • US GAAP – US Generally Accepted Accounting Principles.


The latter standard is used by companies that have their shares traded in US stock markets.

As the name reveals, the IFRS is an international reporting standard. Quite often, the IFRS report is adjusted to the standards of US GAAP for simpler analysis.

How to use financial reports

Having studies financial reports of a company or several companies, an investor can carry out a comparative analysis of their business. This is quite a simple thing to do.

First, choose the companies you would like to compare, but make sure they are working in one sector or make similar products. It would be wrong to compare a company that produces heavy metals and an entertainment company. In such a case, comparison will be incorrect for a number of reasons.

Draw a table of the indicators you are interested in. Thus you can assess the perspectives of development and potential profit from investments. As a rule, for comparison previous reports of both companies are taken, and comparative analysis is carried out that, among other things, helps assess potential dividends and the market sustainability of the company.

If the results of a company are disappointing, hold back from investing in it. Promising companies with innovative products can be an exception, but never forget about increased risks.

Bottom line

There is no reason for an investor to study the whole of financial report. Reports can contain up to 200 pages and some information meant for a very small number of people.

An optimum way out is to choose several indicators and use only them. Note that you need to study the reports for the previous reporting period. To see the full picture, annual reports are usually used.

When making decisions, investors are often perplexed by impulsive statements or negative news about the company. In this case, it will be safer to act based on digits and facts instead of emotions.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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What Are Fractional Shares, and How to Use Them for Investments?

Author: Maks Artemov

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Dear Clients and Partners,

Every day more and more people get interested in investments and the stock market. However, not every investor has a sum substantial for a starting capital. Naturally, you can borrow money from your friends or a bank, but in this case, psychology will work against you, and if you make a mistake, you will have to return the loaned money as well.

Future and beginning investors have a stereotype that they need a serious sum to get started. However, nowadays this idea is not completely fair.

Clearly, a million dollar is more efficient and nicer to invest, but what beginners with a modest capital should do? Here is where fractional shares come to the scene: they let you buy a share even in expensive companies for the money you actually have.

This means you buy a part of a share and become a co-owner of the company. Of course, such a way of shareholding has certain details, and in some cases there is no way to give a voice to a holder of a fractional share, yet there are advantages as well.

What is a fractional share?

A fractional share is a normal share broken down into several parts. There are several reasons for and goals of such a split and one of them is to give small investors an opportunity to buy a share in the company, driving more money into the company.

The share price of many companies is much more than 1,000 USD, which sifts away a lot of potential investors. This is the problem that stock split is to solve.

Where do fractional shares appear from?

  • Consolidation of shares is the process of uniting several shares in one. In this case, so-called remainders appear sometimes. They cannot be united in one share for some reasons and turn into fractional shares in the end.
  • During additional issue of shares new shares get to the market, and shareholders can buy new shares in proportion to those they already have. In this case, fractional shares can also appear.
  • As a result of merger or acquisition of companies fractional shares can also appear. They trade and participate in all other processes as normal shares do, only proportional to their volume.
  • Stocks split of a broker: a broker gathers applications from those who want a certain share, buy it when possible, and spreads it between the participants. However, the share itself is kept by the broker, while fractional shareholders own their parts and can sell it to the broker at any moment.


How to trade fractional shares

There is nothing supernatural in trading fractional shares. The quotations are the same as with a normal share, and you can use any trading strategy.

For example, you can use fundamental analysis alongside tech analysis. If you invest medium-term and long-term, you will have to study the work of the company carefully and spread the money in the portfolio wisely.

Trading fractional shares imposes the same obligations on you and the same risks as when you trade a share or a pack of shares.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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How to Trade USD/CAD Currency Pair?

Author: Victor Gryazin

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Dear Clients and Partners,

USD/CAD – US dollar vs Canadian dollar – is a major currency pair, popular in the Forex market. Let us see, what influences its quotations and what the main trading methods are.

Some history

Canada is a country with the largest territory in North America. The name of the country stands for “kanata”, which means “settlement, land” in the language of local Indian people. The history of Canada started in 1534 when a French seafarer Jacques Cartier explored the country. One of the first French colonies was founded on the territory of modern Quebec, initially populated by indigenous people.

Canada is a federative country that consists of ten provinces and three territories. As early as the 1850s, the country gave up the colonial Canadian pound and switched to the Canadian dollar. Traders also use a slang name “loony”, from “loon”, the name of the bird on the 1 dollar coin. This bird is a mascot o Canada. Since 1970, the CAD has been a free tradable currency; the monetary policy is regulated by the Bank of Canada, the Central Bank of the country.

The CAD is a popular currency that takes part in 3% of all trading operations of international trade. Many leading countries keep a part of their gold reserves in the CAD. Thanks to free conversion and good volatility, the CAD is one of the seven Forex majors.

Trading characteristics of USD/CAD

USD/CAD demonstrates the relation of the US dollar to the Canadian dollar. The quotation demonstrates how many Canadian dollars you will need to buy one Us dollar. The growth of USD/CAD means that the USD becomes stronger on the expense of the CAD. And when the USD/CAD falls, the CAD becomes stronger against the USD.

Here are several trading characteristics of the USD/CAD:

  • Trading time: the pair trades 24/7 except weekends and holidays. Its trading volumes and volatility reach their peaks during the American trading session when important economic statistics from the USA and Canada is published, influencing the quotations of the pair.
  • Volatility: USD/CAD is a quite volatile pair. Its average daily movements are about 80-100 points. Strong surges bring the volatility to 200-300 points a day for a short while.
  • Spread: this pair is a major, popular and liquid enough for the spread to be small. On popular ECN accounts in normal market conditions it amounts to 1-1.5 points.


Trading USD/CAD

To trade the pair, you can use fundamental analysis, tech analysis, and indicators.

Fundamental analysis
This approach analyzes various fundamental factors: economic statistics, expectations of changes in the interest rate, or the current trend in global currency and commodity markets.

Example:

In 2020, when the stock market collapsed due to the pandemic, global oil prices were falling fast. At that time, two negative factors at once influenced the CAD: the US dollar was growing because investors were fleeting from risks, and oil prices were falling. As a result, the USD/CAD pair was growing fast; one could buy it and hold until its growth stopped with the end of the acute phase of the crisis and the beginning of economic recovery.

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Closing thoughts

Thanks to good liquidity, volatility, and a small spread, USD/CAD is actively used by Forex traders. Trading decisions are based on various methods, including analysis of economic statistics, price charts, and indicator signals.

To get started, use a demo account so you could practice and only then switch to a real account with minimal risks.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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How to Profit from Growing Uranium Prices?

Author: Eugene Savitsky

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Dear Clients and Partners,

Market players already understand that in 2022, the QE monetary policy will be coming to an end, and the US Federal Reserve System will increase the interest rate.

This understanding makes investors every time less optimistic and sends stock indices down. For example, NASDAQ Composite (NAS100) has lost 4% since the beginning of the year, and S&P 500 (US500) – 1.5%. Dow Jones Industrial Average (US30) is the only one to withstand the troubles: its decline remains within 1%.

In such a market, do not hurry to buy even those shares that look promising. Their prices may fall even deeper down. However, we still need to look for efficient investment ideas. So, in this article I am driving your attention to the green energy sector and another one that is somewhat connected – the atomic energy sector.

Some history

Canada is a country with the largest territory in North America. The name of the country stands for “kanata”, which means “settlement, land” in the language of local Indian people. The history of Canada started in 1534 when a French seafarer Jacques Cartier explored the country. One of the first French colonies was founded on the territory of modern Quebec, initially populated by indigenous people.

Canada is a federative country that consists of ten provinces and three territories. As early as the 1850s, the country gave up the colonial Canadian pound and switched to the Canadian dollar. Traders also use a slang name “loony”, from “loon”, the name of the bird on the 1 dollar coin. This bird is a mascot o Canada. Since 1970, the CAD has been a free tradable currency; the monetary policy is regulated by the Bank of Canada, the Central Bank of the country.

The CAD is a popular currency that takes part in 3% of all trading operations of international trade. Many leading countries keep a part of their gold reserves in the CAD. Thanks to free conversion and good volatility, the CAD is one of the seven Forex majors.

Looking for clean energy

Renewable energy sources (sun and wind) cannot replace hydrocarbons yet because the humanity has not figured out how to store lots of energy for a long time.

Using solar and wind power, people become dependent on weather.
Meanwhile, hydrocarbons are more user-friendly and reliable, as well as economically efficient. However, it has a negative influence on the environment. Ecological concerns and the threat of global warming make people look for replacements for hydrocarbons.

Options are few:

  • Solar energy
  • Wind energy
  • Sea wave energy
  • Water energy
  • Atomic energy
  • Thermonuclear energy


Why we do not use thermonuclear energy

Thermonuclear energy is a dream of the humanity. First attempts to get electricity from thermonuclear reactions were made as long ago as in 1950. yet, scientists fail to achieve any satisfactory results: they still spend more energy on carrying out those processes than they get in the end.

This sector is developing actively anyway. A good example is the International Thermonuclear Experimental Reactor project, originating back in 1980. Nowadays, no one can confidently say when the dream will come true, while we need electricity every day, and the need for it is growing constantly.

The EU plans to consider atomic energy “green”

Some steps have already been made in this direction. On January 1st, the Euro Commission presented to member countries a draft bill where it is suggested to consider atomic energy ecologically clean. This means financing of nuclear energy plants construction at least until 2045.

Germany opposes constructing nuclear energy plants

Germany speaks against this project, referring to the consequences of nuclear power plants accidents. German government does not only speak against this project – it takes actions.

By January 1st, it had shut down three nuclear power plants, leaving just three more in the energy system of the country, that are also going to be shut down by the end of 2022.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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RoboForex improves Affiliate programme conditions

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Dear Partners,

We’ve updated our cooperation conditions – now the maximum profit you can earn as a RoboForex partner is 84% of the broker’s revenue.

Payout amounts have been increased from 50 to 70%

The Affiliate programme is now even more profitable: the rates for Cent Affiliate, ECN Affiliate and Pro Affiliate accounts have been increased up to 70% for all partners and the commission is on a daily basis.

We’ve also launched a dedicated server for Pro Affiliate accounts. It will help to distribute the load and increase the order execution speed.

The Loyalty programme conditions have also been improved

A greater number of partners can now join the programme – the minimum commission amount for receiving payouts is now 100 USD.

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Earn more with RoboForex!

Advertising banners and other materials available in your Members Area will help to get the maximum commission of 84%. Do you want to calculate your potential profit? Use the interactive Affiliate calculator.

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Sincerely,
RoboForex team

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The Most Anticipated IPOs of 2022

Author: Vadim Kovalenko

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Dear Clients and Partners,

Last week, we told you about the IPO of Justworks, the company that created the management accounting platform. Due to the current market situation, the underwriters decided to postpone the IPO to a more favourable period. The underwriters of other IPOs followed in their footsteps, that’s why today, we’ll talk about the most anticipated IPOs of 2022.

SDiscord, a messenger

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The company was established in 2015 with headquarters in San Francisco, California. Developers decided to create a messenger for gamers with a wide range of free services – text, voice, and video chats. Users can communicate while playing without risking disconnecting. It’s particularly important for cyber athletes, who were indeed instrumental in the growth of Discord popularity.

The messenger is compatible with all operating systems, including Windows, macOS, and Linux. In addition to that, it can be installed on a mobile device. Discord’s key competitive advantage is that it can be used even with gaming consoles, such as Xbox and PlayStation. The messenger audience is over 140 million people all over the world.

Microsoft took interest in buying Discord but the acquisition didn’t happen. Now Discord intends to go public at the end of 2022. The preliminary estimate was made during the latest round of financing and amounted to about $15 billion.

Databricks, software for data analysis

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In the last few years, large corporations tend to use data analysis for making management decisions. It resulted in the growth of demand for software intended for this purpose. In 2013, seven scientists from the University of California, Berkeley, founded Databricks. Its speciality is the development of software for BigData analysis.

According to BusinessWire, the global BigData analysis market is expected to reach $142.5 billion by 2024. As a result, the average annual growth rate could be 20%.

Databricks already has over 5,000 clients. Among them are such famous companies as Comcast and T Mobile. In 2020, the company’s revenue demonstrated 75% growth, up to $350 million. The revenue in 2021 is expected to pass $500 million. the company’s goal for 2022 is $1 billion in sales. Databricks capitalization is estimated at $28 billion. The exact IPO date hasn’t been announced yet.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

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RoboForex improves conditions of Cryptocurrency trading and Affiliate Programme

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Dear Clients and Partners,

Trading Cryptocurrencies at RoboForex is now even more profitable: we’ve reduced commissions on Prime accounts and brought our trading conditions as close to the ones offered by cryptoexchanges as possible.

  • 24/7 access to 26 cryptoinstruments
    BTC, ETH, XRP, LTC, BCH, SOL, LINK, TRX, XMR, ADA, and others. BTC, ETH, XRP, LTC, BCH, SOL, LINK, TRX, XMR, ADA, and others.


  • A single account for all investments
    You won’t need another wallet or account at a cryptoexchange.


  • Conditions at the level of cryptoexchanges
    Commission for cryptocurrencies on Prime accounts is 0.1%.


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Invest in Cryptocurrencies on the best conditions

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Up to 25% of the company’s revenue on Prime for partners

The conditions of the Affiliate VIP programme for Prime accounts have been improved. The partner commission for attracting new clients is now 25% of the company’s revenue instead of 20% before.

In addition to that, you can also receive up to 20% of your total partner commission within the frameworks of the Loyalty programme. To calculate your potential profit as a RoboForex partner, use the Calculator on our website.

Sincerely,
RoboForex team

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RoboForex is voted the Best Broker of the year by the Traders Union

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Dear Clients and Partners,

we are proud to announce that RoboForex has conquered a new peak – in 2021, the broker won new awards from the International Association of Forex Traders in several nominations:

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We’re sincerely thankful to our clients for their trust and confidence, and want to meet their expectations by providing the most transparent and favourable trading conditions. Assess them yourself:

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Sincerely,
RoboForex team

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