Hungary’s forex market continues to mature with its overall economy. The National Bank of Hungary (MNB) has taken a more active role in changing the public perception of foreign exchange. It has also created a secure environment for trading as one of the only central banks in Europe that is also an independent regulatory body.
Attribution: Wikimedia
Hungary also abides by the directives of the Markets in Financial Instruments Directive (MiFID) and the European Economic Area (EEA) Agreement. The result is that many unscrupulous brokers simply choose to steer clear of Hungary, making way for Hungarian forex investors to have solid connections to the market.
Get Started with Forex in Hungary
Hungary’s secure regulatory infrastructure does not relieve you of the responsibility to your own financial health. No regulatory system can catch everyone who is trying to commit fraud. Make sure that your personal financial infrastructure is solid so that you can trade knowing that you are protected.
- Internet: Connecting to the internet should be a relatively simple process if you live in the more developed areas of Hungary. Make sure that your connection is solid and private — it is best not to trade over public connections.
- Broker: The MiFID, EEA and MNB all regulate forex brokers that are doing business in Hungary. This is a start, but you also need a broker that provides services beyond the minimum officially required. Integration into your personal financial system and good customer service are also very important.
- Bank: Brokers that are in compliance with Hungary’s strict standards must keep your money separate from theirs. They must also provide a certain level of security for your deposits and withdrawals. You can check a broker’s terms of service to see exactly what you should get. Don’t be afraid to pay higher fees for better service, especially if you plan on using margin.
- Funding: Once you have vetted your broker and tested your bank connection, you should feel confident to fund your investment account through your attached bank or credit card. Some brokers are also integrated with popular fintech apps.
- Interface: Your trading interface should provide you an intuitive landscape from which to make your trades. It should be streamlined to add no latency to your software chain. It should also work well with your preferred device, whether that is a desktop setup or a smartphone.
- Trading: You can now start investing in the forex market safely. You should probably begin with your broker’s demo account (the account that trades with fake money).
Hungarian Forex Trading Strategies
Your personality is vitally important when learning how to trade forex. If you do not have the patience for position trading, you may like day trading more, or vice versa.
Day Trading
Your internet connection and broker play a huge part in your success as a day trader. Because of the speed and frequency of trades in this space, day traders need to consume information in real time and have access to an uninterrupted feed. Make sure that your broker can do this without slowing down your execution. You may have to exit a trade within seconds of entering it and you can’t do this if you are experiencing downtime or buffering.
Swing Trading
Swing traders are masters of the hourly and daily price charts. They don’t trade with an extremely high frequency like day traders, but they may keep many investments open at one time. Swing traders may have to let a position develop over days or weeks. News that affects the price of a currency does not always take effect immediately, but the swing trader is an expert on how certain news will affect a currency pair.
Positional Investing
Positional investors are the investors who buy and hold for long periods of time. The irregularities between price and value show themselves over months or years, so investments based on this may take that long to develop. Charts, indicators and news cycles are not as important to this type of investor. If you like translating the political relationships between countries into economics, then position trading may be for you.
Forex Trading Example in Hungary
0.0032/0.0036 is the price right now for the HUF/USD currency pair. Because you think this bid/ask spread is low, you order Ft1,250,000 with your broker. The margin rate on HUF/USD is 5.33%. You can control an Ft1,250,000 investment with $226.53 cash in your account.
After 6 hours, the HUF/USD price is 0.0040/0.0044. This is a 4-point move that makes you a total profit of (Ft1,250,000 x 0.0040) – (Ft1,250,000 x 0.0036), or $500.
Making Money with Forex in Hungary
Attribution: Netcials
Now that you are trading according to your personality, you can move into the day to day strategies that will make money in the forex market.
- Short selling: Short sellers sell weak currencies against strong ones and profit when the weaker currency falls in value.
- CFDs: Contracts for differences let you follow the price of a currency without owning it.
- Binary options: Most options track currency prices directly, but binary options offer only a yes or no scenario.
Best Online Forex Brokers in Hungary
There are plenty of forex brokers that are regulated through the MNB, but this is just a minimum standard. Make sure that your chosen broker provides you with the ability to move money and answer your questions quickly.
Pairs Offered
69
Pairs Offered
80+
Account Minimum
100 of your selected base currency
Pairs Offered
80+
1 Minute Review
FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.
Best For
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
Pros
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
Cons
- Cannot buy and sell other securities (like stocks and bonds)
- Confusing margin requirements that vary by currency
- Limited customer support options
- Cannot open an IRA or other retirement account
Pairs Offered
47
Account Minimum
$50 USD
Pairs Offered
47
1 Minute Review
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
Best For
- International Forex/CFD Traders
- New cryptocurrency traders looking for an easy-to-use platform
- Traders who want to buy and sell cryptocurrencies on-the-go
Pros
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
Cons
- U.S. traders currently limited to cryptocurrencies
- Only 15 major coins available to trade
Pairs Offered
50+
Account Minimum
100 EURO
Pairs Offered
50+
1 Minute Review
A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
Best For
- Beginners
- Advanced traders
- Traders looking for a well-diversified portfolio
Pros
- Controlled by regulatory agencies of multiple countries
- Choice offered in terms of trading platforms
- Support available in 14 languages and trading platforms in 20 languages
- Practice/demo account available for trying out
- Breadth of trading assets
Cons
- Does not accept customers from the U.S. as it isn’t regulated in the U.S.
- Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
Forex Terminology
Forex shorthand is a way that market investors communicate with one another easily. Here are some of the most important terms.
- Pip: $0.0001, shorthand for “percentage in point”
- Lot size: Your order size
- Orders: The way you describe your buy or sell in the market
- Calls: A contract to control a future currency order
A Culture of Investing
Hungary has a reputation for investing, and its government seems as though it wants to create more investors in the future. If you are trading forex from Hungary, you have the advantage of a strong regulatory body and a solid currency. Build your personal financial infrastructure carefully, and you will be in a strong starting position to trade.
If you are looking for up to date information and the latest strategies for the forex market, bookmark this website and check back often.
Hire a Pro: Compare Financial Advisors In Your Area
Finding the right financial advisor that fits your needs doesn't have to be hard. SmartAsset's free tool matches you with fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is legally bound to act in your best interests. If you're ready to be matched with local advisors that will help you achieve your financial goals, get started now.
https://www.benzinga.com/money/forex-trading-in-hungary/
2020-07-14 17:08:18Z
CBMiOGh0dHBzOi8vd3d3LmJlbnppbmdhLmNvbS9tb25leS9mb3JleC10cmFkaW5nLWluLWh1bmdhcnkv0gEA
Bagikan Berita Ini
0 Response to "Forex Trading in Hungary • Forex Strategies • Benzinga - Benzinga"
Post a Comment