FOREX NEWS

The correction in precious metals continues. Gold fell by over $500 per ounce last week, a decline of over 10% and its third consecutive weekly loss. The precious metal dropped a further 3% this morning to around $4,300 and is now on track to close its ninth consecutive day in the red. Gold-backed ETFs are contributing heavily to the drop after seeing billions of dollars in outflows over the past several weeks. The long gold trade was perhaps somewhat overcrowded leading up to the strikes on Iran, which provided an apt excuse for many to book profits. The psychologically important $5,000 threshold seems further away than ever and as of this morning the precious metal is no longer in the green for the year. The same can be said of silver, which now sits at $65 per ounce after having lost an eye-watering 15% last week. Cryptocurrencies are holding up surprisingly well in comparison, with Bitcoin making marginal gains this morning and pushing over $68,000 per coin. The dollar has suspended its relentless push higher for the time being, causing the DXY to stabilise around 99.5. A number of Asian economies are beginning to feel the pinch of being cut off from Middle Eastern oil, pressuring their respective currencies. The yen flirted with 160 last week and is on the back foot again this morning, prompting Japanese monetary authorities to signal their readiness to step in to defend their currency should the need arise. Over in South Korea, the won fell to a 17-year low this morning, touching 1,511 per US dollar. Events surrounding Iran are weighing equally heavily on Japanese and Korean stock markets, with the Nikkei 225 falling as much as 5% at one point this morning and the Kospi index once again approaching circuit breaker territory with a 6% drop shortly after the opening bell. US futures are down around half a percent at the time of writing. The spread between Brent Crude and WTI remains wide open, with the former trading for $112 per barrel and the latter trailing behind at a comparatively modest $98. The difference between the two benchmarks is a useful illustration of the disruption to oil flows in the region, which remain severe. Iraq recently shut down production at all foreign-operated oil fields because no tankers were made available to pick up the precious cargo. Local oil storage has hit maximum capacity and there is simply nowhere left to store what is being extracted out of the ground. As per the latest ultimatum presented to Iran, the regime has around 24 hours left to open the Strait of Hormuz, failing which the US will launch attacks on Iranian power plants and electrical grids. With the deadline fast approaching, oil markets are braced for volatility. #BRENT #GOLD #IRAN

No trader wins every trade. In fact, one of the quickest ways to damage a trading account is to let a losing position run unchecked while hoping the market eventually turns around. A single unmanaged loss can wipe out the gains from several successful trades, which is why experienced traders always have a plan for when a trade goes wrong. A stop-loss order is that plan. It is a pre-set instruction that automatically closes a trade when the market reaches a specific price, helping to limit potential losses and remove emotion from decision-making. In this guide, we'll explore what a stop-loss order is, how it works, where to place one, the different types available, and the common mistakes traders should avoid. A stop-loss order automatically closes a position when the market reaches a predetermined price level. Its purpose is to limit losses without requiring you to constantly monitor your trades. While a stop-loss helps control risk, it does not eliminate losses completely. Most traders combine a stop-loss with a take-profit order to define both the potential risk and reward before entering a trade. Ready to put risk management into practice? Open a trading account and start building disciplined trading habits from day one. A stop-loss order is an instruction left with your broker to automatically close a position once the market reaches a specified price level, helping to limit the loss on that trade. In simple terms, a stop loss is a pre-planned exit point that caps your downside if the market moves against you. Rather than deciding what to do during a stressful market move, the decision is made before the trade begins. A stop-loss is effectively the loss-side mirror image of a take-profit order. While a take-profit locks in gains, a stop-loss limits losses. Together, they help traders define their risk before entering a position. Many traders use stop-loss orders because they remove emotional decision-making and reduce the need to watch charts all day. For example, if you buy EUR/USD at 1.1000 and place a stop-loss at 1.0950, your position will automatically close if price falls to that level. A stop-loss comes in several forms, each with its own advantages and trade-offs. A trailing stop is commonly used to protect profits while allowing a winning trade to continue running. A stop-loss comes in two main forms: a standard stop and a stop-limit. Both begin with a trigger price, but what happens after the trigger is different. As a practical rule, I generally use a standard stop-loss when exiting the trade is the priority. A stop-limit may be worth considering if you would rather remain in the position than accept a significantly worse exit price, while understanding that the order might not be filled. Read more:Types of forex orders: A complete beginner’s guide In forex trading, a stop-loss order works by automatically closing a position once the market reaches a price level that you have chosen in advance. The goal is simple: define your maximum acceptable loss before the trade begins. The process is straightforward. You enter a trade, decide where the trade idea would be considered invalid, and place your stop-loss at that level. If the market reaches the stop price, the order is triggered and your position is closed automatically. For a long (buy) position, the stop-loss is placed below the entry price because you want protection if the market falls. For a short (sell) position, the stop-loss is placed above the entry price because you want protection if the market rises. One of the most common misconceptions among beginner traders is that a stop-loss guarantees the exact exit price. In reality, a standard stop-loss guarantees execution, not price. When the stop level is reached, the order becomes a market order. If the market is moving normally, the difference between the stop price and execution price is usually small. However, during major news events, low-liquidity periods, or market gaps, the actual fill price may differ slightly from the stop level. This is known as slippage. Read more:Long vs Short Position Compared: How to Trade Each Like a Pro For example, if your stop-loss is set at 1.0950 but a major news announcement causes EUR/USD to jump directly to 1.0945, your trade may be closed at 1.0945 rather than exactly at 1.0950. This matters because a stop-loss limits losses, but it cannot always guarantee the exact amount lost under every market condition. Most traders use a stop-loss alongside a take-profit order. The distance between your entry price, stop-loss, and take-profit level determines the trade's risk-to-reward ratio. For example: In this example, the trader risks 50 pips to potentially make 100 pips, creating a risk-to-reward ratio of 1:2. Planning both the stop and target before entering a trade helps create consistency and removes emotional decision-making. This is why many experienced traders focus on managing risk first and profits second. What are pips in forex and how to calculate their value Setting a stop-loss is a simple process once you know how much you're willing to risk and where the market would prove your trading idea wrong. The first decision should never be where to place the stop. It should be how much money you are prepared to lose if the trade fails. Many professional traders risk only a small percentage of their account on any single trade. A common guideline is between 1% and 2% of account equity. For example: The key principle is that the stop-loss should be built around your risk plan rather than your emotions. Even when you feel highly confident about a trade, increasing risk dramatically can lead to unnecessary damage if the market proves you wrong. This matters because consistency is what keeps traders in the game long enough to benefit from winning opportunities. Once you know how much you're willing to risk, the next step is identifying a logical location for the stop-loss. A stop should sit at the point where the trade idea is no longer valid. For example: Many beginners place stops at random distances or round numbers simply because they feel comfortable. The problem is that markets frequently test obvious levels before continuing in the original direction. A better approach is to ask: If price reaches this level, would my trade idea still make sense? If the answer is no; that is often where the stop belongs. This is why experienced traders focus on market structure rather than arbitrary numbers. Once you've identified your stop level, place the stop-loss order immediately when opening the trade or as soon as possible afterwards. Leaving a position unprotected, even for a few minutes, exposes your account to unnecessary risk. Before confirming the trade, double-check: Personally, I always check the stop twice before clicking the trade button. A simple mistake in the stop placement can completely change the risk profile of a trade. I have done this in the past and it was an expensive lesson to learn. The final step is adjusting position size so that if the stop-loss is hit, the financial loss matches the amount you planned to risk in Step 1. This is why position sizing and stop-loss placement should always work together rather than being treated as separate decisions. Knowing that you need a stop-loss is one thing. Knowing where to place it is where trading becomes more of an art than a science. After more than a decade of trading, one lesson stands out: the market loves obvious stop levels. If you place your stop exactly on a support line or at a perfectly round number, there is a good chance normal market noise will find it. I prefer to read the chart structure, assess current volatility, and give the trade enough room to breathe while still keeping risk under control. Read more:What is forex volatility? Definition, causes, strategies There are several common methods traders use to determine stop placement. The percentage method is one of the simplest ways to place a stop-loss. The trader decides how much of their account they are willing to risk, often between 1% and 2%, and places the stop at a distance that reflects that amount. For example, a trader with a $10,000 account risking 1% would be prepared to lose a maximum of $100 on the trade. Advantages Limitations This is why many experienced traders use percentage risk for position sizing rather than for determining the actual stop location. Support and resistance remain among the most popular methods for stop placement. For a long trade, the stop-loss is usually placed slightly below a significant support level. For a short trade, it is typically placed slightly above a key resistance level. The reasoning is straightforward. If a major support level breaks decisively, the original bullish trade idea may no longer be valid. Likewise, if resistance breaks higher during a short trade, the bearish setup may be invalidated. For example: A small buffer is often useful because markets frequently test support and resistance before moving in the anticipated direction. This matters because a stop should be placed where the trade idea is wrong, not merely where it becomes uncomfortable. Moving averages can also be used to guide stop-loss placement, particularly in trending markets. Many trend traders use popular averages such as: In an uptrend, a stop may be placed slightly below a rising moving average. In a downtrend, it may be positioned slightly above a falling moving average. As the trend develops, the moving average gradually follows price, allowing the stop to move with it. For example, if EUR/USD is consistently respecting the 50-day moving average during an uptrend, a trader may trail their stop just beneath that level. This approach helps lock in profits while still allowing the trend enough room to continue. One of the most effective methods for setting stop-losses is using market volatility. The term Average True Range (ATR) refers to an indicator that measures how much a market typically moves over a given period. In simple terms: Rather than placing a stop at a fixed distance, traders often use a multiple of the ATR. For example: This method helps ensure that a stop-loss reflects current market conditions. A calm market may only require a relatively tight stop, while a highly volatile market needs additional breathing room to avoid being stopped out unnecessarily. This is why ATR-based stops are popular among both swing traders and professional money managers. Read more:The best forex indicators every trader should use in 2025 The easiest way to understand a stop-loss is through a simple example. Imagine you decide to buy EUR/USD at 1.1000 because you believe the euro will strengthen against the US dollar. To protect your capital, you place a stop-loss at 1.0950. The difference between your entry and stop-loss is 50 pips. If the market falls to 1.0950, the stop-loss is triggered and the position closes automatically, limiting the loss to approximately 50 pips. If the market instead rises, your stop is never triggered and the trade remains active. It is important to understand that if the market gaps directly through 1.0950, perhaps after a major economic announcement or a weekend opening, the actual execution price could be slightly lower. In that case, the realised loss may be somewhat larger than the original 50-pip estimate. For traders with a GBP-denominated account, the resulting profit or loss is automatically converted and settled in pounds sterling using the prevailing exchange rate at the time. Of course, these figures are purely hypothetical and are intended for illustration purposes only. Read more:ECONOMIC CALENDAR A stop-loss order is one of the most important risk management tools available to traders, but like every trading tool, it comes with both advantages and limitations. Understanding both sides helps you use stop-losses more effectively. The primary benefit of a stop-loss is that it limits how much you can lose on a single trade. Instead of allowing a losing position to spiral out of control, the stop closes the trade once your predefined risk level is reached. This helps protect trading capital and ensures that one bad trade does not wipe out weeks or months of steady progress. Fear and hope are two of the biggest account killers in trading. A stop-loss removes much of the emotional decision-making because the exit strategy is determined before the trade begins. Rather than wondering whether to hold on just a little longer, the decision has already been made. Most traders cannot sit in front of charts twenty-four hours a day. A stop-loss allows you to step away from the platform knowing that your risk remains controlled. This is particularly useful for swing traders and traders who have full-time jobs outside the markets. Using a stop-loss encourages traders to think about risk before entering a position. This simple habit promotes a more professional approach to trading. Over time, disciplined risk management often separates long-term survivors from traders who burn through their accounts. Supports Consistent Risk Management: When every trade has a predefined maximum loss, performance becomes easier to analyse and improve. Consistency in risk often leads to consistency in decision-making. Read more:10 Forex risk management tips every trader should know A standard stop-loss generally guarantees execution but not the exact exit price. If the market gaps through your stop level during major news releases or after a weekend opening, the final execution price may be worse than expected. Read more:What is slippage and how to avoid it in trading Markets rarely move in straight lines. Short-term volatility can trigger a stop-loss before the larger trend resumes. This can be frustrating, particularly when price immediately reverses and moves in your original direction. Even a well-placed stop can occasionally be hit moments before the market turns around. Unfortunately, no stop placement method is perfect, and avoiding every false stop-out is impossible. A stop-loss limits losses, but it does not guarantee profitability. Poor trade selection, excessive leverage, overtrading, and weak risk-to-reward ratios can still lead to losses even when stop-losses are used correctly. Trading involves accepting losses as part of the process. A series of stop-losses can create a drawdown if market conditions are difficult. This is why traders should focus on overall risk management rather than viewing stop-losses as a magic solution. Even experienced traders occasionally make stop-loss mistakes. The good news is that most are avoidable with a little planning and discipline. One of the most common mistakes is placing a stop so close to the entry price that normal market fluctuations trigger it. I learned early on that the market does not care how much I want to risk. The stop must fit the market's volatility, not my preferred loss amount. The opposite problem is giving a trade so much room that the stop becomes meaningless. If a logical stop requires a larger distance than you are comfortable risking, reducing the position size is usually a better solution than widening the stop indefinitely. This is perhaps the most dangerous habit in trading. We all have done it, but you will soon learn this is a complete – NO! You will lose money if you do this. Once a stop-loss is placed, moving it further away simply because the trade is losing usually turns risk management into wishful thinking. If the trade idea is invalidated, it is generally better to accept the loss and move on. Markets often probe well-known support, resistance, and round-number levels before reversing. Instead of placing a stop exactly on an obvious level, consider using a small buffer beyond it to allow for normal market testing. A stop that works perfectly during a quiet trading session may be far too tight during major economic announcements. Before entering a trade, it is always worth checking the economic calendar and considering whether upcoming volatility could affect your stop placement. A stop-loss is an automated order placed with a broker to close a trade when it reaches a specific price level. For example, if you buy EUR/USD at 1.1000 and place a stop-loss at 1.0950, the position will automatically close if the market falls to that level, helping limit your loss. You should use a stop-loss whenever you enter a trade and want to define your maximum acceptable loss. Stop-losses are particularly important for day traders and swing traders who may not be able to monitor markets continuously. Some traders dislike stop-losses because they have experienced situations where price hit their stop before reversing and moving in their favour. However, most professional traders accept occasional stop-outs as the cost of protecting themselves from much larger losses. Stop-loss orders generally work as intended, but they do not guarantee the exact exit price. During periods of extreme volatility or market gaps, the trade may be executed at the next available price rather than the precise stop level. If the market gaps beyond your stop-loss level, the order will usually execute at the next available market price. This means the actual loss may be slightly larger than originally planned. Yes. Many traders adjust stop-losses as a trade develops, particularly when protecting profits. However, moving a stop further away to increase risk is generally considered poor risk management. A stop-loss order is one of the simplest and most effective tools available for managing trading risk. By automatically closing a trade when a predefined price level is reached, a stop-loss helps limit losses, remove emotion from decision-making, and promote consistent trading discipline. While it cannot eliminate losses entirely or guarantee an exact exit price in every market condition, it provides a structured framework for protecting trading capital. The most successful traders understand that trading is not about predicting every market move correctly. It is about managing risk when the market proves you wrong. For this reason, a stop-loss works best when paired with a take-profit order, sensible position sizing, and a logical chart-based level. In many ways, trading like a professional starts before the trade is even placed. Plan the exit before the entry, define your risk before your reward, and let the stop-loss do the job it was designed to do.

Yesterday’s FOMC meeting provided more drama than most traders were expecting. The Federal Reserve elected to leave interest rates unchanged, to the surprise of no one, but during the subsequent press conference, Fed Chairman Jerome Powell floated the dreaded possibility of a rate hike. This would have been unthinkable just a few months ago, but the threat of inflation resulting from a prolonged conflict in the Middle East has changed the playing field. A rate hike remains unlikely in the immediate future, but the mere mention of such has sent shockwaves throughout financial markets. Precious metals were among the hardest hit. Gold plummeted all the way down to $4,500 per ounce at one point before rebounding to $4,650 by the daily close, a loss of 3.5% on the day. The price action in silver was even more extreme, with the white metal dipping to just $65 per ounce before climbing back up to $72 by the end of the session. The dollar currency index also took a decent hit, falling from 100.2 to 99.1 on Thursday, while US indices incurred only minor losses. Oil markets continue to provide entertainment. The Brent Crude index shot all the way up to $114 yesterday before settling lower, but the more interesting point of note is the widening gap between Brent and WTI. Seaborne futures are currently trading for around $105 per barrel, while West Texas Intermediate futures are a mere $92 in comparison. The last time the spread was this high was over a decade ago. Brent Crude remains at the mercy of acute supply disruptions in the Middle East, which are affecting oil deliveries around the world and adding a considerable premium to prices. WTI meanwhile is relatively isolated from such concerns, with supplies remaining stable and contracts being priced accordingly. The lack of oil shipments out of the Persian Gulf has forced many countries to pursue alternative procurement options. Japanese refineries have stepped up purchases of Midland crude to cover the shortfall in regular deliveries, while other countries in Asia are also diversifying their oil suppliers. #FOMC #GOLD #OIL

With all the squabbling around surging crude prices, now is as good a time as any to talk about where our oil comes out of the ground. For a long time, the Middle East has had a reputation for being the world’s petrol pump, but how true is this today? From the 1960s onwards, the Gulf has indeed been a dominant region for oil production, with Saudi Arabia contributing the bulk of exports and Iran, Iraq, the UAE and Kuwait bringing up the rear. Except for a brief period in the mid-1980s, the Middle East produced more oil than any other region on the planet, by a sizeable margin. The United States and Russia (at the time the Soviet Union) were typically the second and third largest producers respectively, while the rest of the world combined to fill in the gaps. From the Arab perspective however, the early days presented a major problem. At the time, oil extraction in the Gulf states was in the hands of Western oil companies, often called the “Seven Sisters”, including the likes of British Petroleum, Shell, Chevron, ExxonMobil, etc. Local governments in the Middle East received royalties but had little to no say over the decisions made by these companies. Despite sitting on vast reserves, the countries in question were almost powerless on the world stage. Something had to change. OPEC, or the Organisation of the Petroleum Exporting Countries, was formed in 1960 and included Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The group was founded to wrestle control of its hydrocarbon resources out of the hands of foreign powers and back into the hands of its member states. The group would gradually add new members to its roster, slowly gaining prominence and quietly clawing back control over the years that followed. Oil prices remained stable throughout the 1960s at around $2.50 per barrel (roughly $25 in today’s money), but by the next decade OPEC had doubled its membership count and had gained enough autonomy to allow the organisation to control the supply, and therefore price, of oil on the world stage. Things were about to change dramatically. In 1973, Egypt and Syria attacked Israel. As a result of Western support for Israel following the attack, OPEC imposed an oil embargo on the US and Western Europe, quadrupling prices within months and causing petroleum shortages. OPEC used its new-found might to launch an all-out price war, which it decisively won. The organisation proved, convincingly, that it had a stranglehold over global oil markets, which gave the United States a proverbial kick up the backside to secure its own position. OPEC’s strength would remain unchallenged over the following decades, and indeed until the modern era. But then something changed. Something changed because of a specific technological breakthrough. Something that would completely upend the international balance of crude oil production. Enter: shale. Extracting oil from shale rock is difficult, hence why it was not done at scale until recently. Fracking was first tested all the way back in the 1940s but did not become economically viable until much more recently. In the early 2000s, hydraulic fracturing, combined with horizontal drilling, suddenly made extracting oil from shale an industrial possibility. This turned out to be a game changer. The US sits upon massive shale fields, the most prominent of which being the Permian Basin. If these shale fields were the vault, then fracking was the key. Not only could the US finally exploit its oil fields, but it could do so relatively efficiently. Extracting oil from shale has several major advantages. Firstly, setting up drilling operations take weeks or months, compared to multiple years for large, conventional oil fields. Secondly, initial costs are minor and incremental, unlike traditional operations, which require billions in investment upfront. Thirdly, shale exploitations are extremely flexible. Environmental and bureaucratic concerns are obviously nothing trivial when it comes to fracking, but shale is much easier to set up and start pumping compared to the colossal headache of regular oil drilling. Offshore deep-water drilling is another beast entirely, sometimes requiring a decade of groundwork before the first drop of oil is produced. The floodgates opened. In 2010, the US was pumping out 5 million barrels of oil per day. At the tail end of 2025, that figure rose to almost 14 million barrels per day. Hard to argue with such results. The increase in domestic production caused a fundamental shift in global oil markets. The surge in oil extraction meant that the US turned from a net importer to a net exporter of crude oil. Quite suddenly, the US was producing more crude oil than it needed, something that had not happened since the early twentieth century. The additional supply of crude oil from America diluted OPEC’s influence on the world stage, and the group of oil producing nations was not happy about it. In 2014, the organisation once again started throwing its weight around, but this time, instead of tightening the supply of oil, Saudi Arabia and other countries began to flood the market with massive amounts of crude, in an attempt to lower prices as much as possible. They were successful. The price of oil went from over $100 per barrel in 2014, down to $30 per barrel by January 2016. The goal was to drive US producers out of business. Given the novelty of the shale business at the time, extraction operations in the United Stated were still relatively costly compared to Gulf drilling, so the idea was to drive the price per barrel below what it would cost US companies to extract from the ground. It was similar to the strategy that Subway used back in 2008 when it launched the $5 footlong to increase the company’s foot traffic and undercut its competitors in a bid to gain market dominance. The first price war in 1973 was an undeniable success and showed the world who really wore the trousers in the global oil relationship. In contrast, the second price war failed with flying colours. The collapse in oil prices did indeed cause a degree of short-term pain in the United States, resulting in many bankruptcies and many more job losses, but ultimately the event forced the US to become more efficient, more technologically advanced, and more economically resilient. The results speak for themselves; US shale operations continued to ramp up over the following decade, finally reaching the current paradigm whereby the United States dwarfs all other nations in terms of crude oil production. OPEC no longer had the gravitas to dictate oil markets, that much was clear. The answer? Add more members. OPEC+ formed at the end of 2016 as a direct result of growing American influence in international oil markets. The 13 members of the original group welcomed 10 more countries, including Russia, Mexico, Sudan, as well as a wave of countries from across Central and South East Asia. OPEC boasts over a quarter of the globe’s oil production, but OPEC+ extends that to more than half. On the other hand, just by themselves, the US and Canada also produce a quarter of all crude oil worldwide, the vast majority of which comes from the United States. While the inner core of OPEC remains well coordinated and responsive to market fluctuations, the same cannot be said of OPEC+, which is a much more flexible group. The interests of Saudi Arabia do not necessarily line up with those of Russia for example. The lack of internal cohesion, as well as the lack of enforcement in production targets, often translates to lesser effectiveness overall. In contrast, the US is a single nation, one that now produces as much crude oil and other liquid fuels as Saudi Arabia and Russia combined. Oil markets are in a new era. Just as the formation of OPEC disrupted the status quo in the 1960s, shifting the balance of power away from Western petroleum companies and towards Middle Eastern nations, the US shale revolution has likewise tipped the scales, this time in favour of the United States. International crude markets are in unchartered waters; the old rulebook has been discarded. The Middle East remains vital for European and Asian oil markets, but not for the United States. The consequences of this simple fact are far reaching, particularly in light of current events.

Markets have stabilised a little over the past couple of days, with the US dollar making a minor retreat from recent highs. The DXY remains above 99.5 but has halted its relentless push higher for the time being. Gold has been almost completely flat so far this week, oscillating around the $5,000 mark and content to go no further. Stock markets around the world rose cautiously during the last two sessions and Asian stocks were on the front foot again earlier today, with the Nikkei 225 being uplifted by better-than-expected balance of trade data this morning in Japan. US futures contracts edged higher last night, but market sentiment remains temperamental ahead of the FOMC meeting later today. Even oil prices have calmed down in recent days, with Brent Crude stable around $100 per barrel and the WTI index falling to $94 following reports of a surprise build-up in US crude inventories. Attentions are quickly turning to the FOMC meeting later today. The Fed is not expected to enact a rate cut on the dollar any time soon, but market participants will nevertheless be eager to know what the central bank has to say about rising oil prices and the downstream threat of inflation. The meeting will be Jerome Powell’s second-to-last at the helm of the Fed, that is unless there are delays in appointing the next Chairman. Kevin Warsh is the next in line but has yet to be officially confirmed by the US Senate, a process that is being held up because of a legal dispute involving Jerome Powell. Before the meeting, traders may want to keep an eye on US PPI figures, which will give an insight into rising production costs. The crypto sphere received a surprising dose of good news yesterday following a joint statement from the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC), asserting that most cryptocurrencies are not securities. The ruling is very straightforward, but cryptocurrency traders have been waiting for over a decade to hear it. According to SEC Chairman Paul Atkins, “this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws”. In many ways, the interpretation marks the end of an era of uncertainty, one that has mired the industry for a long time and slowed development to a crawl in recent years. Not much of a reaction in cryptocurrencies so far this morning, with Bitcoin keeping to $74,500 per coin and the wider crypto markets staying the course. #FOMC #SEC #CRYPTO

If forex trading is like a polite dinner party, oil trading is like a full-on bar fight between two rival biker gangs hard at it! Brent crude oil is one of the most actively traded commodities in the world, and it doesn’t just “move”, it reacts. One headline, one unexpected geopolitical escalation, or one disrupted shipping route, and suddenly the market is doing things that make absolutely no sense… until you realise, they make perfect sense. Right now, oil is being driven heavily by tensions involving Iran, the United States, and the wider Middle East. This has created the kind of environment traders both love and fear: high volatility, strong trends, and unpredictable spikes. In this guide, you’ll learn: The term Brent crude oil refers to one of the main global benchmarks used to price oil worldwide. There are two main oil benchmarks: Brent tends to be more relevant for global traders because: Brent crude is attractive because it offers: In simple terms: If EUR/USD is the “calm professional”. Brent crude is the “risk taking rookie” Oil prices are technically based on supply and demand, but in reality, they’re driven by expectations of supply and demand. Oil is one of the few markets where global conflict directly affects price. Current tensions involving Iran and the United States have created: Markets react instantly because: Less supply = higher prices This narrow shipping route is one of the most important trading routes in the world. Approximately: 20% of the oil produced in the world has to sail through the Strait of Hormuz. So, when tensions rise here: Think of it as: The world’s most important traffic jam or the current situation; the world’s emptiest motorway as hardly any ships are passing through. Supply shocks occur when oil production is suddenly reduced. Causes include: And when supply drops suddenly: Prices don’t gently rise, they spike Oil is heavily influenced by sentiment. This leads to: Overreactions Sharp reversals “What just happened?” moments To trade oil effectively, you need to know what actually moves it. Oil demand is tied to economic activity. Key data includes: Weekly inventory data is one of the most important short-term drivers. Indirect but important. Higher interest rates: Lower rates: If you’re coming from forex, oil trading will feel… different. Oil is one of the most exciting, and dangerous, markets. In simple terms: Oil gives opportunity. But demands respect Let’s get practical and put our sensible heads on for a minute. Oil reacts strongly to: But remember: The first move is emotional. The second move is tradable During geopolitical events, oil trends can last longer than expected. Approach: Identify trend → Wait for pullback → Enter with confirmation Important levels include: These act as: Support/resistance zones Best results come from: Let’s go one level deeper. Oil often breaks strongly during news events. Approach: Safer for beginners. Advanced but powerful. When markets stabilise: Oil is most active during: Oil doesn’t move alone. The Canadian Dollar for example is a commodity currency Let’s break it down like a professional oil trader. Let’s be blunt: Oil is unforgiving and downright ruthless Oil can move: Entering late = You get caught out and incur losses Oil is news-driven, always keep an eye out on the news, it is a must have survival aid when trading oil! Fast account destruction: don’t do it otherwise you will have red margin call warnings all over your screen in no time at all. Volatility amplifies emotions. Trading oil is not for the faint hearted but if you like you’re trading to be fast then trading oil will fit the bill. Yes, but carefully. Very carefully. Yes, oil trading can be profitable due to its volatility and strong trends, but it requires discipline and effective risk management. Geopolitics, supply disruptions, OPEC decisions, and global demand are the primary drivers of oil prices. Yes, beginners can trade oil, but they should start with a demo account and use proper risk management strategies. The best time is during the London and New York sessions, especially during major news events or inventory releases. Study fundamentals, follow global news, practice on a demo account, and gradually apply technical analysis strategies. Trading Brent crude oil is not for the faint-hearted. It’s fast. It’s reactive. And at times, it feels completely irrational. But that’s exactly what makes it one of the most opportunity-rich markets available. Right now, with geopolitical tensions driving volatility, oil offers: Approach it with discipline, and it can become a powerful addition to your trading strategy. Approach it recklessly… And oil will happily teach you a very expensive lesson.