Want to know about, forex spread trading strategies ? check it out guys! ;) before we talk more further about forex spreads strategy, I will discuss a little about forex spreads! if we talk about spread in forex it mean difference between ask and bid price! you can see the image above! there's the lowest forex spread broker at fxgrow, and the highest spread are with FXCM!
To be honest, I am not sure about forex spreads strategy! all i know its forex Nedging strategy(newbie hedging), Arbitrage strategy, Organic strategy, and swap strategy! but it seem some people already explain about what is forex spread strategy, in forex factory, and investopedio! and from I read their explanation, the strategy same like swap, or Nedging long term! meanwhile at forex factory, they explain about spread strategy are same like organic strategy!
But since I am really good about forex stuff! 😎 I will make this question goes to bed for good! 😂 to be honest, there's no spread strategy! but if you looking for about swap strategy yes! there is! some people use that strategy to make easy money! the idea about swap strategy is, they use 2 different brokerage company! one with Islamic account (no swap/interest) and the second account are using normal account! for example, if we long/buy AUD/USD and hold more than 24 hours! we'll get positive interest, and we hold this trade forever! or more than 1 month! you can get easy profit without doing anything! 😎
Sound easy, right ? 😎(for sure) but there is 1 problems with this strategy! if market movement against our trade, you can lose all money! there are 2 reason why this happen! first, all broker doesn't allow Nedging(buy sell on same pair) and the second one is, you can't use Tight stop loss! because you get positive swap after 24 hour! so to avoid margin call! the most reasonable solution is by hedging that pair, on different broker company! if you do this, believe it or not! you can make easy money every month! but make sure, you know what you're doing! try to practice with demo account first to see the effect! or test with small capitals! if you fit with this easy strategy, then scale the hell up! 😂
FYI put 2000 point stop loss or more, on each account! cause most pair never move more than 2000 point per day! but I could be wrong with this theory! to be honest, I never saw forex pair, move more than 2000 point per day! unless something bad really happen with their economy!
For spread strategy that some people talk in Forex factory! actually what they mean is, Organic hedging! if we talk about organic hedging, basically its no different with arbitrage ! but since most broker not allowed this kind of strategy! so some trader, tweak a little bit, about this strategy, to be more advance! the idea about organic hedging or arbitrage, basically its all about anomaly movement! for example! you trade 3 pair!
Buy GBP./JPY SELL JPY/USD, and sell GBP/USD if you do this with perfect or good timing, believe it or not! you will make some profit in your forex account! but since I already test this kind of strategy more than 1 years, to be honest with you guys! actually you can make consistence profit with this cool strategy! 😎
Hint! don't trade this strategy on busy hour! and learn about when and what time, they not busy!
Get Demo account! choose 3 pair, it could be anything! but my Fav is that 3 pair above! GBP, USD and yen! why I choose those 3 pair ? well, the reason simply because, when they move, they not wild as Aussie dollar movement! so its safe! good for noobs! but if you risk taker! try to Aussie dolar! AUD USD JPY, but I have to warn you! you can get big profit with these 3 pair!, but when you loose, it could be big! 😂
To recognize which pair that safe for organic hedging, you can see, their interest rate! if their central bank, give high interest rate, they can move very wild(500 point)! but if their interest rate very low, or about 1%, the movement are quite reasonable(50-200 point per month)! to make sure , just test it with demo account! then you will see, what I am talking about! 😎