Monday, January 19, 2015

European Central Bank Meeting 22/01/2015 - What to Expect

The European Central Bank has complete control over monetary policy over the thirteen member states in the Euro Zone. Each month the ECB meets to keep inflation within the targeted levels.

Regardless of the ECB decides to raise, lower or maintain the interest rate levels, the decision always has an effect on Euro related Forex pairs

When the ECB increases the interest rates:

When the interest rate is increased, the ECB is selling government securities to large financial firms and these firms are paying for the securities in the Euro currency. This reduces the amount of the currency in circulation and decreasing supply to raise demand, and subsequently increasing the value of the currency. 

When the ECB decreases the interest rates:

In this case, the ECB floods the market with the Euro currency, which is done by purchasing government securities from financial companies. These transactions are paid for in Euro and therefore, increasing the amount of Euro in circulation.  because supply increases, the value decreases. 

How do Forex markets react to ECB interest rate decisions?

Before the interest rate decision is released, many traders operate in the market bases on rumours and speculation. This can create volatility even days before the decision is due. This in turn creates market movements that are ideal for scalpers and intraday traders. 

After the decision from the ECB, If the market’s expectations are different from the actual rate decision from the ECB,  there can be some excellent trading opportunities for savvy traders. 

For example, if there is an interest hike expected, but the ECB decides to cut the rate, there is a window of 1-2 hours where selling the Euro can be successful.

On the other hand, if there is a cut expected, but the ECB decides to increase the interest rate, traders may want to place a short-term long position on the Euro for 1-2 hours to benefit from the expected price movement.

Yadix Forex Broker provides retail and institutional traders the trading environment and conditions for clients to benefit from such high impact news releases. Benefits include core (inter-bank) pricing from 0.1 pips, fast execution and no-conflict trading with 100% anonymity for strategy protections.

Monday, January 5, 2015

Happy New Year From

Happy New Year to all Yadix clients, partners and associates.

2014 was a successful year of business and helped to again strengthen its strong reputation as a leading, true STP Forex broker servicing clients from around the world with fair and transparent trading conditions.

During 2015, we are planning some exciting business development advances that are of course focused on providing even better trading conditions, options, rewards and above faster and more accurate Forex trading so that our clients can really benefit their strategies on the real Forex markets.

In particular, we will be focusing on the costs to our clients by continuing to focus attention on adding more liquidity strength to trading at and at the same time, bettering the already tighter spreads and execution speeds. We understand that conditions and execution for Forex traders are the most important aspects of choosing a Forex broker and we are committed to continual improvements in these departments.

Current TradingBenefits Include:

ZERO limits/levels on your S/L, T/P
Zero market distance levels or limits allows all Stop Loss, Take Profit and pending orders without and limitations. This also allows scalpers to open and close orders in the same second.

True STP Trading Experience
Price aggregators match and execute orders, using fibre-optic connectivity directly to global banks and financial institutions without dealing desk manipulation.

Smart Order Routing & Aggregation
The MT4 Bridge connects Forex traders to our advanced Smart Order Routing and Aggregation Engines with the capacity of executing thousand of orders per second.

Supporting Profitable Trading
Our unique no conflict of interest infrastructure, leading technologies and trading conditions makes ideal for profitable trading systems and strategies.
Transparency & Anonymity
Client’s positions are protected with 100% anonymous execution to execution venues (Liquidity Provider) to protect all strategies.

Market Execution - No Re-quotes
Orders are filled to inter-bank FX exchanges on a “Fill or Fill” basis with no last look and no re-quotes. No dealing desk intervention provides complete pre and post-trade transparency.

Best Bid/Ask Pricing
As is connected to multiple inter-bank exchanges and execution venues (liquidity providers) allows clients to take advantage of best Bid/Ask institutional level pricing, with floating core spreads from 0.1 pips. Prices are feed continuously to ensure the spread remains competitive during all market conditions.

Should you have any questions about trading with or have any strategy related questions, please feel free to contact our professional support team who will be more than happy to answer all queries.