Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

As we move into the third week of September, markets are poised for significant movements driven by key economic data releases, central bank decisions, and geopolitical events.

Investors are closely watching how inflation trends, interest rate policies, and corporate earnings will shape the trajectory of global markets.

KEY ECONOMIC INDICATORS

Federal Reserve meeting (FOMC) – 18 September 2024

• The U.S. Federal Reserve is set to announce its interest rate decision, which could provide further insight into the central bank’s stance on inflation and economic growth.
• Market participants will be analysing any potential signal of a pause or further rate hikes.

U.S. inflation data (CPI) – 19 September 2024

• The release of the Consumer Price Index (CPI) for August will offer critical data on the state of inflation in the U.S.
• Recent upticks in energy prices could push inflation higher, leading to market volatility and influencing future Fed policy decisions.

European Central Bank (ECB) President Speech – 20 September 2024

• ECB President Christine Lagarde is scheduled to deliver remarks on the Eurozone economy, likely offering insights into the ECB’s plans following its own recent rate hikes.
• This could impact the Euro and European equities.

Economic Calendar outlook for the week of 16 September 2024 to 20 September 2024, showing some of the most notable Economic Events to come.

US inflation falls to 2.5% in August

US inflation fell to 2.5 per cent in August, setting the stage for the Federal Reserve to start cutting interest rates gradually at its meeting next week.

The latest annual consumer price index compared with July’s 2.9 per cent pace and was marginally below the estimate of 2.6 per cent.

MARKET MOVERS

DJ30

DJ 30 inch higher as traders raise bets on bigger Fed rate cut.

S1-S3 mean potential Support points. If the market declines further, these are the potential levels it can reach.

R1-R3 mean potential Resistance points. If the market starts to increase again, these are the potential levels it can reach.

Potential long preference

• Long positions above 41384.18 with targets at 41481.00 & 41605.94 in extension.

Alternative scenario

• Below 41171.78.00, look for further downside with 41074.95 & 40943.77 as targets.

EUR/USD

Euro turns bullish, closes in on key resistance

Potential long preference:

• Long positions above 1.11051 with targets at 1.11210 & 1.11301 in extension.

Alternative scenario:

• Below 1.10831 look for further downside with 1.10758 & 1.10701 as targets.

XAU/USD

Gold price hits all-time high as Fed rate cut speculation grows

Potential long preference:

• Long positions above 2582.00 with targets at 2613.00 & 2628.00 in extension.

Alternative scenario:

• Below 2564.00 look for further downside with 2564.830 & 2557.503 as targets.

Gold pushes to new highs as media revives debate over Fed rate cuts

Gold hits a new all-time high as US jobless claims and producer inflation data reinforce a likely Fed rate cut.

Gold hit record highs on Friday as markets debated anew whether the Fed will cut by 50 or 25 basis points in September. 

The revival of the possibility of a “jumbo” 0.50% cut fuels another rally in Gold.

Market Instruments to look out for this week

• EUR/USD
• USD/JPY
• EUR/GBP
• Nasdaq100
• XAU/USD
• DJ30     

MARKET NEWS

European markets close higher after ECB cuts rates

• The pan-European Stoxx 600 provisionally closed 0.78% higher. All major regional bourses ended the day in the green, with Germany’s DAX closing 0.97% higher.
• The European Central Bank (ECB) slashed rates again by 25 basis points on Thursday, marking its second reduction to the deposit rate this year. However, the ECB said it was not “pre-committing” to a future path for rates.
• European investors are also digesting the latest consumer price index report from the U.S., which reflected a 0.2% increase in consumer prices in August. This puts the annual inflation rate at 2.5%—its lowest level since February 2021.

Dollar hits nine-month low versus yen as Fed debate reignites

• The U.S. currency fell more than 0.8% to 140.645 yen, the lowest since late December, and last traded 0.7% lower at 140.8. The euro, pound and Swiss franc made gains against the dollar.
• The euro was last up 0.15% at $1.1095 after rising 0.57% on Thursday after the European Central Bank cut interest rates by 25 bps.
• Sterling also ticked up 0.15% to $1.3146, around its highest in a week.
• The Bank of England is expected to hold interest rates at 5% next week after kicking off easing with a 25 basis point reduction in August.

Fed rate cut bets drive gold to all-time high

• Spot gold firmed 0.4% to $2,570.07 per ounce by 0857 GMT after hitting a record high of $2,570.91 earlier.
• U.S. gold futures rose 0.7% to $2,598.10.
• The dollar slipped 0.4%, making bullion more attractive to other currency holders.
• Spot silver added 0.7% to $30.13.
• Palladium fell 0.2% to $1,044.14 but gained 14% this week.
• Platinum gained 1.1% to $988.35.

Click here to open account and start trading.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

As part of our commitment to provide the most reliable service to our clients, there will be MT4 & MT5 server maintenance this weekend.

MT4 & MT5 Maintenance Hours:
14th of September 2024 (Saturday) 10:00 – 14:00 (GMT+3)

Please note that the following aspects might be affected during the maintenance:
1. The price quote and trading management will be temporarily disabled during the maintenance. You will not be able to open new positions, close open positions, or make any adjustments to the trades.
2. There might be a gap between the original price and the price after maintenance. The gaps between Pending Orders, Stop Loss and Take Profit will be filled at the market price once the maintenance is completed. It is suggested that you manage the account properly.

Please refer to the MT4 & MT5 software for the specific maintenance completion and marketing opening time.

Thank you for your patience and understanding about this important initiative.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com

On 16 September 1992, a day known as “Black Wednesday,” George Soros made forex trading history. The legendary investor had taken a massive short position against the British pound, betting USD 10 billion that the currency would fall. Soros was right. The Bank of England, unable to prop up the pound’s value, was forced to withdraw from the European Exchange Rate Mechanism and devalue the currency.

In a single day, Soros’s fund made a profit of USD 1 billion. This audacious trade earned Soros the nickname “The Man Who Broke the Bank of England” and cemented his place in forex trading lore.

While Soros’s billion-dollar bet showcases the potential for enormous profits in forex trading, it also highlights the extreme risks involved. For every George Soros, countless traders have lost their investments due to poor risk management. The foreign exchange market, with its USD 6.6 trillion daily trading volume, offers tremendous opportunities—but also significant dangers for the unprepared.

For traders venturing into this complex market, understanding and managing these risks is essential for survival and success. This article will explore practical strategies that everyday traders can use to effectively manage risk in forex trading.

Understanding forex risk

Before diving into risk management strategies, it is crucial to understand the types of risks forex traders face:

1. Market risk: Losses due to changes in market prices or rates.

2. Leverage risk: Forex trading often involves leverage, which can amplify both gains and losses.

3. Interest rate risk: Changes in a country’s interest rates can affect its currency value.

4. Liquidity risk: Some currency pairs may be difficult to trade during certain times.

Key risk management strategies

Strategy 1. Set a risk-reward ratio

A risk-reward ratio helps you determine if a trade is worth taking. It compares the potential profit of a trade to its potential loss. For example, a 1:2 risk-reward ratio means you are risking USD 1 to potentially gain USD 2.

To calculate the risk-reward ratio:

1. Determine your entry point.

2. Set your stop-loss level.

3. Set your take-profit level.

4. Calculate the ratio: (Take-profit – Entry) / (Entry – Stop-loss).

For beginners, a minimum risk-reward ratio of 1:2 is often recommended.

Strategy 2. Use stop-loss orders

A stop-loss order automatically closes your position when the market moves against you by a specified amount, limiting your potential loss.

Tips for setting effective stop-losses:

• _{Give your trade room to breathe, but don’t risk more than you are comfortable losing.}
• _{Use technical analysis to place stop-losses beyond key support or resistance levels.}
• _{Avoid obvious round numbers, as these are common targets for large market players.}

Strategy 3. Implement position sizing

Position sizing refers to how much of your capital you risk on each trade. Two common methods are:

1. Percentage-based: Risk a fixed percentage of your account on each trade (e.g., 1-2%).

2. Fixed dollar amount: Risk the same dollar amount on every trade.

For example, with a USD 10,000 account using the 1% rule, you would risk no more than USD 100 per trade.

Strategy 4. Diversify your portfolio

Trading multiple currency pairs can help spread your risk. However, be aware that many pairs are correlated. True diversification involves trading pairs with low correlation.

Consider including both major pairs (like EUR/USD, GBP/USD) and minor or exotic pairs in your portfolio, but understand the specific risks associated with each.

Strategy 5. Use proper leverage

Leverage allows you to control a large position with a small amount of capital. While this can amplify profits, it also magnifies losses.

For beginners, it is wise to use lower leverage ratios, such as 10:1 or 20:1. This reduces your risk of large losses and gives you more room for error as you learn.

Developing a risk management plan

Creating a personalised risk management plan is crucial for long-term success. Here are steps to develop your plan:

1. Define your risk tolerance: How much are you willing to lose on a single trade or in a day?

2. Set clear rules: Establish guidelines for position sizing, stop-losses, and take-profits.

3. Create a trading journal: Record all your trades, including the reasoning behind them and their outcomes.

4. Regularly review and adjust: As you gain experience, revisit your plan and adjust as necessary.

Consistency and discipline in following your plan are key. Even the best risk management strategy won’t help if you don’t stick to it.

Common risk management mistakes to avoid

1. Overtrading: Don’t feel pressured to always be in a trade.

2. Neglecting stop-losses: Always use stop-losses, and avoid moving them further away just to stay in a losing trade.

3. Risking too much on a single trade: Never risk more than your predetermined limit.

4. Ignoring economic news: Be aware of upcoming events that could affect your trades.

In conclusion, effective risk management is the foundation of successful forex trading. While it may not be as exciting as picking winning trades, it is what allows traders to survive and thrive in the long run. By implementing these strategies—setting appropriate risk-reward ratios, using stop-losses, sizing positions correctly, diversifying your portfolio, and using leverage wisely—you can significantly improve your chances of success in the forex market.

Remember, the goal of risk management isn’t to eliminate risk entirely—that’s impossible in trading. Instead, it is about managing risk to a level that allows you to withstand losing streaks and capitalise on opportunities when they arise. With patience, discipline, and a solid risk management plan, you can navigate the forex market’s challenges and work towards becoming a consistently profitable trader.

Ready to put these strategies into action? Open a live account with VT Markets today and start trading with the right tools and support to manage your risk effectively. It’s time to take control of your financial future!

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.