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What is a swing trade in forex? – Swing Trading Strategy Guide Ally Sheedy Young

A swing trade is a short/short trade that involves both the market price and a margin call spread, where you offer to buy or sell the same currency for a shorter amount than the market price. A short trade can be broken down in two different types:

Fixed rate/percentage trade: This requires that the trade be done on the market price. The buyer must pay an exact amount in the same currency for the same currency, which is an easy trade. The difference between the market price and the margin call spread, will be the swing trade spread. Example: On the forex market, if the market price is $1,000 and you sell $1,000 in USD, you would pay the trader who is trading at that market price $700, and vice-versa.

Fixed ratio: This requires that any price in that currency move up or down with that currency. A fixed ratio requires a fixed amount in that currency, and to trade a fixed rate/percentage, a trader must borrow that amount from the market. Example: If A is trading, A will borrow $10,000 from the market to trade the swing trade, and $800 from the forex market to trade the fixed rate/percentage.


Strip trade is when you need to make a very little margin call spread without actually buying or selling any currency with it. If this is something you need to do, a split spread will work better than a fixed ratio because any rate in your trade is negotiable. Split trade also allows traders to sell their currency to a foreign exchange company and take a credit for $1000 for the transaction. A very important aspect to note is that when it is time to buy or sell, if the forex price and the margin call spread are the same, margin calls will be allowed. With a split trade, the trader must have a negative amount of your currency outstanding in the forex market.

Some people use multiple currencies, such as selling and buying EUR/$USD on two different exchanges. This is called a currency swap and is usually done in forex to cover your margin requirements.

In general, trading involves a margin call spread, a fixed rate trade or a currency swap in relation to the currency of trade on each side of the trade.

There are two main options available in forex:

Forex Clearing: This is the most traditional form of forex trading. It involves clearing your currency out of the forex market and then

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