Interbanctrading - education center ( learn how to trade Fx Options , CFD , Forex , bond etc.
Interbanctrading - education center ( learn how to trade Fx Options , CFD , Forex , bond etc.
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education center

FX OPTIONS


Fx Options or Digital Options have the unique property of having only one of two values. For example , “yes” or “no”, “black” or “white” or “profit” or “loss”. We offer Fx Options on many underlying assets. An asset is the foundation of your option. It can be an index, a commodity, a currency or a stock. You can read more about these in our other lessons.

Did you know that car insurance is a kind of  Fx-Option? If you have an accident the insurance company will pay for the damage, if you don’t crash it won’t. The financial market is very similar: , you will generate profit by making good judgments, otherwise you won’t.”

 

60 SECONDS


In our “60 Seconds“ section you will find Fx Options with terms that are as short as possible, in contrast to those listed in our long term section. These work in exactly the same way as our standard Fx Options , except they expire much more quickly. This can be a significant advantage, since you are not forced to wait for certain intervals, but can trade these at any time you want.

No matter what time intervals you prefer to trade over , always stick to your strategy. The shorter the interval, the faster you’ll know your trading result. This means you have to process new inputs to your strategy quickly. But always remember: Power lies in peace!”

 

LONG TERM


Long Term Fx Options are similar to our standard Fx Options. They only differ in the time to expiry of the option. It ranges from one week to over a year in the future. We give you the possibility to diversify your investments based on different future time horizons. You could consider that longer term investments may be advantageous to your portfolio , but on the other hand you will not be able to react quickly to any significant market events. Your money will be tied up unless you sell off a current long term position.

Did you know that in the last 87 years from the beginning to the end of the year the Dow Jones Index rose 59 and fell 28 times? Your trades should always be based on observations.”

EMOTIONS OF A TRADER


Everyone who actively trades on the financial markets is going to experience range of emotions within a short time of starting their trading journey. Some of them are positive; however, there are also negative ones. Here you will learn , what you can expect to experience and, especially in the case of negative emotions, how you can deal with them. A difficulty level between 1 (easy) and 5 (difficult) is assigned to each feeling , which acts as a guideline when using coping techniques.

DEFINITIONS & GOALS


WHAT IS MONEY MANAGEMENT?

The term money management means using strategic planning to take care of your money. It’s about adapting your investments according to your predefined goals. Let’s investigate the meaning of money management using an example:
Let’s use a weight-loss plan analogy to help us distinguish between good and not so good money management. You can distinguish between good and poor money management. Poor money management would be spending your entire salary on yogurt. It would go out of date before you could eat it, and on top of that you’ll have a very boring and lactose-heavy diet! On the other hand good money management would be deliberately buying food according to a well-researched nutritional diet plan. This way your shopping would have a good balance of quantity and variety. You shouldn’t lose any money due to buying too much of one particular perishable food.

“Traders who have created a budget will always have an advantage over other traders.They have discipline, a goal in mind and can deal much better with setbacks.”

THERE ARE FOUR CLASSES OF UNDERLYING ASSETS


1. CURRENCIES

Due to their history , different countries and regions have developed different currencies. We’ve all experienced foreign exchange when travelling abroad , you might even still have a few coins or notes in a drawer.

“Did you know that the daily trading volume in currencies is about €4.8 trillion? That’s equivalent to Japan’s annual revenue being moved every day.

 

2. COMMODITIES

The term commodities refers to natural resources that are derived from nature. These are mostly used as raw material for other products. For example a luxury watch may contain gold and platinum. Petrol for your car is refined from crude oil.

“Did you know that approximately 155,000 tons of gold were produced in total since the beginning of mankind? That’s no more than a cube 20m on each side , this cube would be worth about €271 billion!”

 

3. INDICES

An index (plural indices) always represents a particular market. A few common variants are stock or sector indices. The most famous stock index (only listed companies) is the American Dow Jones, which is considered to be stable. It acts as a benchmark for the US economic development.

“Did you know that the Dow Jones index has been calculated daily since 1896? Half of the 30 companies it contains have been represented there for 20 years. The oldest company (General Electric) has been in the index since 1907 , that’s what I call stability.”

 

4. STOCKS

A stock price reflects the value of an investment in a company. This is determined by dividing the total value of the company by the total number of shares issued. The fluctuation in the market is mainly determined by supply and demand. Corporate data and competitor news will have significant influences on a stock price.

“Did you know that Apple and Google were the two most valuable brands in the world in 2014? Just think how many times a day you are searching for something on Google, or see an iPhone.”

TYPES & BENEFITS OF TRADING TOOLS


ECONOMIC CALENDAR

The term “economic calendar“ describes a list of all the news published throughout a trading day. The main advantage of the economic calendar is that this news is published at certain times. You have the chance to prepare and react accordingly.

That’s how it works

The news in the economic calendar is published line-by-line. The different symbols which are about to be explained are sorted by their relevance.

BASICS


Technical analysis – sometimes referred to as chart analysis tries to predict future price developments as well as key buy and sell signals by using historical data. As a trader you use a graph of the underlying asset and try to determine whether the price is going up or down according to the chart data in front of you. Perhaps surprisingly, in practice this analysis tool is used almost exclusively in short-term investment decisions. There is one specific reason why technical analysis like this is so popular: , it is a simple tool that actually works for most people, although its validity is still a controversial subject in some circles.

SIMPLE PATTERNS


INTRODUCTION

A recurring picture seen in a chart is called a pattern. Over time these patterns may repeat themselves over and over again. As a trader you can take advantage of your research into these patterns by predicting when specific buying and selling signals may be about to come around again. The patterns presented here are intended to point out future trends that will may assist you with your investment decisions.