Trade.com DMA trading

So wait a minute. If bonds’ yield depends on the interest rate, then why you said that it’s inversely proportional I don’t get it.
 
Because if the central bank raises interest rates, the bonds’ yield rises also. In this case the next bonds that are released by the government have higher yield right? So the bonds with lower yield have less demand on the market, thus you have to lower the price to sell them. That’s what happens in simple terms.
 
Oh, that makes sense! In this case if we know that central bank would likely raise interest rates then we can use it in our favor as traders.
 
Mesida said:
Oh, that makes sense! In this case if we know that central bank would likely raise interest rates then we can use it in our favor as traders.
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Pretty much so. Nowadays the situation with the Federal reserve and interest rates is quite straightforward. Meaning that until the inflation will reach the desired value, the Fed will hike rates almost certainly.
Therefore Trade.com DMA, which has an abundance of the U.S. bonds, can bring profits.
 
That’s exactly what I meant by saying DMA account is more for pros, rather than ordinary traders. Because these are the things that 99% of retail traders don’t know about.
And all of the instruments presented in the DMA account are like that. Even the most common equities or ETFs require a lot of fundamental knowledge.
 
Bandiginn said:
That’s exactly what I meant by saying DMA account is more for pros, rather than ordinary traders. Because these are the things that 99% of retail traders don’t know about.
And all of the instruments presented in the DMA account are like that. Even the most common equities or ETFs require a lot of fundamental knowledge.
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Well… I wouldn’t necessarily say that a DMA account requires such knowledge. You can still trade there with just your technical background too.
However as we can see, fundamental understanding of the processes can give you some edge over other traders, that's true.
 
Kalanim said:
Well… I wouldn’t necessarily say that a DMA account requires such knowledge. You can still trade there with just your technical background too.
However as we can see, fundamental understanding of the processes can give you some edge over other traders, that's true.
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It’s much more simpler to execute trading ideas if you know the fundamental peculiarities of a certain asset. So it's almost like trading without risks. As you are aware where the price is gonna be anyways.
 
To be honest I tried fundamental trading at some point, and it didn’t go well for me. Maybe I did something wrong, I don’t know. So I gave up this idea completely.
 
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