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FX traders are typically divided into three-four distinct styles, they’re generally listed as: scalping, day trading, swing trading and position trading. Scalping is extreme, short term trading, with trades generally lasting for seconds, or minutes. At the other end of the spectrum, position traders can remain in their positions for weeks or months, as typically they’ll take positions based on events such as interest rate rises. An example of a position trade could be; taking long positions in pairs where USD is the base currency, based on the FOMC/Fed in the USA raising the key interest rates for the USA economy to 2.5% in 2018, completely out of step with many other central banks’ policy.
As a result of such a monetary policy as the FOMC’s, major currency pairs have generated significant gains for the U.S. dollar yearly. EUR/USD is down circa -8.60%, GBP/USD down -8.16%, AUD/USD is down -7.52%. USD/CHF and USD/JPY are up circa 4.5%. However, the rises versus JPY and CHF have...
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