what is hfx?

You may have heard mention of HFX or High Frequency Forex but what is it and how does it work?

WHAT IS HIGH FREQUENCY FOREX (HFX)?

High Frequency Forex - or HFX as it is sometimes referred - is a different way of trading Forex. You still have access to trade the same currency pairs and even crypto currencies and commodities. 

So what's the difference from trading Forex using the traditional route to trading the High Frequency Forex route?  

Well the main difference is your trade is timed and you either win or you lose. There is no counting of pips captured. Instead of using a lot size (calculated by using proper risk to reward), you would use a "stake" amount. For example, if you were to use a stake of $10.00 your potential return could be $8.30 (it does fluctuate). If you lose that trade, you lose your $10.00.

So you could look at this as a switch - it's either on or it's off, you win or you lose, it's a one or a zero. And that is why it is also known as Binary Options. Binary as in 1 or 0. Now... before you run a mile (which was why I kept my distance from this way of trading Forex for quite a while), there is more to it than that.

I have been looking at the way that I trade Forex (using the traditional trading routes), charting, support and resistance and so on and the process is very similar when it comes to trading HFX. 

When you place your position using the HFX route, you are expecting price to go up and to stay above your entry by the time the position expires, which is typically 30 seconds to 60 seconds - if you've placed a "call" (buy) and vice versa if you're placed a "put" (sell). 

DAY ONE

TRADE 01 OF 100 TRADES

DATE: 20/10/2020 09:40
CURRENCY PAIR: GBPAUD
RESULT: WIN
NUMBER OF PIPS: 8

REASON FOR ENTERING THE TRADE:

I entered this trade based on thinking that the swing high had appeared with a "slight" break of structure. However, price moved up creating a new swing high but I held this position - it hit 40 pips drawdown but I was confident it would come back... and come back it did (and more). 

TOTAL PIPS FOR DAY 1 IS: 134 

Tuesday 20/10/2020

WIN RATE: 97%

(So far... based on 94 winning trades out of 96 taken)
TOTAL PIP COUNT SINCE 19/10/2020: 1,600 PIPS
What is a PIP worth?
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