Weekend Forex Analysis - A strategy worth exploring

While the forex markets operate 24 hours a day, trading is at its minimal during the weekends are most of the major trading markets such as London, US, Asia are closed on the weekends. Some traders tend to make use of this slow periods in order to draft up a trading plan for the week ahead. When markets are closed, it provides a different environment, where in the trader doesn't have to do much expect to focus on the week's upcoming events and how the currencies will react in the week ahead.

In this article, we'll outline some ways on how you can conduct your weekend forex trading analysis and how it can help you out for the week ahead.

Forex Charts - Past Week's Analysis

Looking at forex charts during the past week can prove to be detrimental for traders in order to get an idea on how and where the markets are by the time the markets were closed on the weekends. Furthermore the price movements can offer a great source of information to get an idea on how the prices were moving during the previous week. Reflecting on past week's charts and also analyzing any of the trades made can provide some insights for traders and rectify any mistakes that might have been made. Various trading strategies such as forex hedging and scalping can be planned out in advance.

Forex Economic Calendar - Looking ahead

The Forex economic calender is a great way to plan the trading week ahead. Traders know that currencies tend to get very volatile during important news releases. By preparing a trading plan for the week ahead, based on the economic calendar can be a great way to build a trading strategy. Coorelating the week ahead based on previous weeks price movements can help traders to identify potential trading opportunities and prepare for any eventualities as well.

Focus on the fundamental

Forex fundamental analysis can be a great way to gain insights into the most important market movements and also the price action on the currencies in focus. Fundamental analysis can help give the trader insights into the market and thus enable traders to plan their trades accordingly. As traders know that there are many factors that influence the currency prices, fundamental analysis can help the traders to get a better economic and political idea on the countries in question which can tend to influence the currencies.

Forex weekend analysis is a great way for traders to relax and observe the forex markets without having to spend a great deal of time focusing on their trades. Weekend forex analysis should infact become one of the basic steps for traders in order to plan for the long term and also prepare for the trading week ahead.

ECN Forex broker - Price Aggregation

The Forex markets while boasting of the largest daily turnover in comparison to any business or industry is still a non centralized industry which is highly fragmented with most of the countries impementing their own regulatory frameworkds. Due to the ever increasing popularity in forex trading, new models and ways of trading come into the open just about every day.

The growth of the forex industry has been tremendous, to the point that in the last few years there has been an explosion in the growth of forex brokers, especially in the ecn forex trading niche. This growth has given rise to microscopic details such as liquidity providers, transparency in the pricing mechanisms, the feed aggregators and so on.

In ecn forex trading terminology, liquidity aggregators essentially aggregate the feeds from various liquidity providers or market participants and provides the best possible price feeds for the ecn traders.

Most ECN brokers tend to make use of a pricing aggregation engine that is fed into from the various participants that make up the broker's ECN network. By doing so, ECN brokers make up a virtual market for the traders on the buy side, where the feeds are fed in from the sell side of the market. Thus, traders, when trading with ecn brokers are able to see the best bid and ask prices and in most cases, be able to get a complete fill on their orders.

When ECN brokers offer the aggregated pricing, they are in effect reducing the costs and time involved in terms of providing the buy and sell side of the market in terms of the orders. However, there are times when the ECN broker is unable to find a matched order, which usually results in "last look" or a partial fill. Learn more about what is last look in ecn trading.

Another advantage comes from the fact that when a trader places an order, it is executed in anonimity, thus keeping the trader's trading style, strategy and other such details secure. This is one of the important points that differentiates a market maker broker, where they exactly know the trader and their trading style, thus enabling them to adjust the market maker's dealing desk trades accordingly.