Tag: risk management

List view Grid View
29 Mar 2019

An Introduction to Hedging

IC Markets No Comments Tags: , , , ,

The verb ‘to hedge’ derives from the noun ‘hedge’ – that is, a fence or boundary formed by closely growing bushes or shrubs. Sadly (for gardening enthusiasts) this is not an instruction in horticulture. Hedge has been used as a verb in the English language since the 16th century, with the meaning to ‘avoid commitment’. … Continue reading An Introduction to Hedging

13 Jul 2018

Combatting the Dreaded Analysis Paralysis

IC Markets No Comments Tags: , , , , ,

Common among newer traders, the temptation to incorporate as many trading indicators as possible is appealing. The rationale behind this approach is simple: if most of the technical studies reach a similar conclusion, buy or sell in the direction of consensus. While this may appear a reasonable technique, it encourages a phase known as analysis … Continue reading Combatting the Dreaded Analysis Paralysis

01 Jun 2018

Understanding Risk/Reward Ratio in the Foreign Exchange Market

IC Markets No Comments Tags: , , , , , , ,

Should a colleague, one who has a reputation of borrowing money and returning it later than proposed, ask to borrow $100 and offer to pay back $110 the following month, what would your initial thought be? It’s probably not worth the risk or the hassle, right? However, what if the said colleague offered to repay … Continue reading Understanding Risk/Reward Ratio in the Foreign Exchange Market

16 Feb 2018

What is Risk-On and Risk-Off?

IC Markets No Comments Tags: , , , , , , ,

Updated April 2020 Irrespective of whether you trade an individual market or several, understanding the dynamics behind broader risk sentiment is imperative. This adds a crucial tool to a trader’s arsenal. Risk-On – Risk-Off The market continually cycles between two modes: Risk-on and Risk-off. Rising and falling confidence dictates market movement, leading to traders favouring … Continue reading What is Risk-On and Risk-Off?

16 Feb 2018

Position Sizing – Where SIZE Does Matter

IC Markets No Comments Tags: , , , ,

Risk comes from not knowing what you’re doing – Warren Buffet. Updated March 2020 Foreign exchange (forex or FX) trading, once the domain of commercial banks, hedge funds, large corporations and high net worth individuals, is now available to anyone with an internet connection and sufficient funds to meet balance requirements. Although a low barrier to … Continue reading Position Sizing – Where SIZE Does Matter