5 Currency Trading Strategies That Ensure Attractive Returns

All of us have heard about online currency trading. It is definitely one of the most volatile markets which offers great returns if traded strategically. Despite all the risks, it is its volatility that has attracted millions of traders from around the globe and has grown dramatically over the years. Though it is said that news and events make an impact on the market, it is still not determined how they actually affect it. The reason is, currencies are always traded in pairs which make the exact impact unpredictable. And, this uncertainty is the reason behind its popularity.

 However, to do good in any field, one needs to have extensive knowledge and know all the strategies that can be helpful. In case of online currency trading Dubai, we can say the same. There are many free online trading sites in UAE that keep posting blogs and articles for traders. In this blog, we have discussed 5 strategies that will help you with attractive returns:

1 Carry Trade Strategy

It is one of the best trading strategies under which the traders use the difference between interest rates for two countries for their advantage. Under this strategy, there are two factors that help make profit. The first factor is the difference between the interest rates, and the second factor is price fluctuation. All in all, it is one of the safest strategies.

2 Position Trading Strategy

This is a long term trading strategy that is done for weeks or months, or sometimes even years. Under this strategy, the long-term macroeconomic trends are considered for taking positions and earning profit. One needs to be very patient and diligent while using this strategy for online currency trading Dubai. If you don't like waiting, you can skip this one and try the other 4 trading strategies discussed in this blog.

3 Range Trading Strategy

Range trading strategy is another popular strategy among traders under which they trade within a predictable range of currency prices. This strategy works well for the currencies that are steady in nature and can hold their prices for some time as that is the basis of this strategy. To know more about this, you can refer to any of the free online trading sites in UAE and get relevant information.

4 Counter-Trend Strategy

Counter-trend is considered to be among the most efficient trading strategies. Counter-trend traders consider the extremes and use them for earning profits. However, the biggest challenge is recognizing the real extreme high or low. Predicting a reversal is usually a tougher task as compared to making predictions about trends.

5 Trend Trading Strategy

As the name suggests, this strategy is done following the trend of a currency. The trader identifies the trend followed by the currency price movement (whether it is upward or downward) and chooses an entry point. Trend trading is counted among the most successful strategies of currency trading because of higher success rate.