The higher degree of leverage as high as. This makes the issue of trade timing and selection that much more critical to success. Because of the lack of volume data in the spot currency market i. It is a day-trading technique that takes advantage of the shift from trad- ing from one market center to another in the hour forex trading environment. Big Ben is a currency-specific trading strat- egy designed to capture the first direction- al intraday move that often occurs within the.

Because this currency rate trades lightly outside of London trading hours, the surge in trading every morning in the U. Opening-range breakout techniques have long been favorites of intraday stock index traders. A similar technique can be used in the currency market to capitalize on price moves in the British pound. ET , leading to a more emotional and chaotic open when European trading desks enter the picture.

This creates an ideal situation for day traders. The following rules are for short trades, but the strategy can be reversed to trade on the long side. Previously, access to this market had been restricted to corporations, hedge funds, large Commodity Trading Advisors and other institutional investors. ET each Sunday, trading begins as markets open for the week in Wellington, New Zealand, followed by Sydney and Singapore.

ET the Tokyo market opens, followed by London at 2 a. This overlapping movement of curren- cy trading among market centers allows traders to react to news immediate- l y , and also provides the added flexibility of determining their trading sched- ules. If important overseas news occurs while the U.

The Simple Strategy Of Big Ben For Spreads | Benzinga

Many but not all currency broker-dealers do not charge outright com- mission fees to individual traders. Instead, they profit from the bid-ask spread they set.

As a result, many currency firms promote their low spreads rather than their low commission rates. Whether this is a good deal or not depends on the size of the spread in a given currency.

The way currencies are quoted against each other can initially seem a lit- tle confusing. The Big Ben trade sets up when interbank dealing desks use this intelligence to trigger stops on both sides of the market, resulting in new intraday highs and lows.

Once these orders are cleared from the books, the market is primed for its first. F i g u re 2 shows a prototypical Big Ben trade on a five-minute chart. The first ver- tical line marks midnight ET. The second vertical line denotes the Frankfurt open and the third line shows when London players begin entering the market. Within 15 minutes of London entering the picture, h o w e v e r, the market reversed to the upside.

Figure 3 illustrates a variation of the Big Ben strategy that commonly occurs when there is an abnormally wide open- ing range. In this case, the pound traded up 26 pips after the London open to 1.

It then came under pressure and sold off 65 pips to make a low of 1. Next, the currency traded up This kind of action is typically associated with wide opening.

This is a textbook example of the Big Ben strategy. Stops to the downside are immediately taken out when the Frankfurt market opens. The market quickly reverses and triggers upside stop orders when London enters the picture. The pair is now free to make the first real directional move of the day and falls 90 pips before buyers step in. This action might not be possible to undo. Are you sure you want to continue? BROWSE BY CONTENT TYPE Books.

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The pair then reverses and trades The pair then reverses once again to. Sell a breakout at least seven pips.

"Big Ben" Strategy by Kristian Kerr | Foreign Exchange Market | World Economy

Once filled, place an initial protec-. After the market moves lower by.

Big Ben Strategy | Forex Peace Army - Your Forex Trading Forum

Term used to describe the exchange rate between the. The rate at which the major banks Deutsche, Citibank,. Bank of Tokyo trade in foreign exchange. The monetary value of volume traded. A market in which commodities, securities or currencies.

Another term for the British pound. Breaks the range low to the.

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