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What are Employee Retention Credit and Its Requirements?

The employee retention tax credit is a refundable tax credit by an eligible firm between March 12, 2020, and before January 1, 2021, that wants to retain its staff on the payroll. The credit is 50% of up to $10,000 in wages paid by an employer whose company is completely or partially halted as a result of COVID-19, or those whose gross receipts have decreased by more than 50%. Employers who are qualified for the credit can get it right away by decreasing the amount of employment tax deposits they are needed to make.

Employers, especially tax-exempt organizations, are eligible for the credit if they run a trade or company in 2020 and experience one of the following:

  • a complete or partial cessation of their trade or activity during any calendar quarter as a result of governmental directives restricting commerce, travel, or group meetings as a result of COVID-19, or
  • a significant drop in gross receipts.

Availability of the Credit

Employers regardless of the size, notably including tax-exempt organizations, are eligible for the employee retention tax credit benefit. However, 2 exceptions apply for the availability of the credit:

  1.   state and local governments and their agencies, and
  2.   small enterprises that take out Small Business Loans.

To be eligible, the employer must fulfill one of two alternative tests. Each calendar quarterly, these tests are computed:

  • if the employer’s business is totally or partially halted by government mandate pursuant to COVID-19 during that calendar quarter, or
  • if the employer’s gross receipts are less than 50% of the same quarter in 2019. After the end of a comparable quarter in 2019, if the employer’s gross receipts exceed 80%, they are no longer eligible.

Impact of other reliefs or credits:

Other credits and relief laws affect a qualified employer’s right to claim the employee retention tax credit and some of which are:

  • Employers who obtain a Small Business Interruption Loan through the CARES Act-authorized Paycheck Protection Program shall not be eligible for the tax credit.
  • Wages used to calculate this credit cannot be used to calculate the credit for paid family and medical leave under Internal Revenue Code section 45S.
  • Wages for this tax credit are not inclusive of wages in which the employer earned a tax credit there under the Families First Coronavirus Response Act for the reason of paid sick and family leave.
  • If the employer is eligible for a Work Opportunity Tax Credit under section 51 of the Internal Revenue Code, the employees are not considered for this credit.

What is the procedure for obtaining credit?

The small company Employee Retention Credit allows companies to deduct 70% of an employee’s qualified pay up to $10,000 every quarter. The maximum credit amount per employee is $7000 per quarter. The employer’s Social Security tax burden is reduced by the credit. A refund from the IRS is received if the credit exceeds one’s Social Security tax liability.

Conclusion

Employers can receive immediate reimbursement for the credit by lowering the amount of payroll taxes deducted from employees’ salaries and deposited with the Treasury. In December 2020, the Employee Retention Credit was further extended by the Consolidated Appropriations Act (CAA or the Act). All employees don’t need to take advantage of the tax credit and employers who are eligible for the Employee Retention Credit may choose not to claim it.

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Finance

Which account is better: NRE or NRO?

As allowed by the Reserve Bank of India (RBI) under the FEMA (Foreign Exchange Management Act) guidelines, an NRI may open NRE or NRO accounts for their regular banking needs. The decision to choose a specific bank account depends on the specific needs. These accounts carry different features regarding inward remittances/ transfers, flexibility to repatriate the funds abroad, account operations, etc.

While no specific account can be termed as better than the other type of account, here are the significant differences between NRO and NRE accounts which may help an NRI to choose the account best suiting their banking needs:

  1. Inward Remittances into Bank Account – While NRE accounts can only accept credits through foreign currency remittances from abroad, NRO accounts are flexible in receiving the inward remittances into the account in any currency, including the Indian currency. NRE accounts can only be used for receiving foreign income in India, while NRO accounts can be used for both foreign and domestic income. In case an NRI needs to receive domestic income in an Indian bank account, like rental income, dividend income, sale proceeds from an Indian asset in Indian rupees, etc., NRO accounts are best suited for such operations. NRE accounts can also be funded through foreign currency remittances or through transfer from another NRE account.
  2. Repatriation of Account Balance – While NRO accounts are flexible in receiving inward remittances, such accounts restrict the free repatriation of the account balance. An NRI can transfer such balances outside India only subject to specified limits. While the repatriation of the principal amount is subject to specified limits, the interest income earned in such accounts is freely repatriable. In contrast, the funds in NRE accounts can be freely repatriated. As such, NRIs can transfer the funds in NRE accounts outside India without any limits.
  3. Taxation of Interest Income – As per the Income Tax Rules, the interest income from NRE accounts and term deposits is exempt for the account holders. In contrast, the interest income from NRO accounts is taxable in India. However, the benefits of the provisions of Double Taxation Avoidance Agreements (DTAAs) can be availed by the NRI account holders on such interest income. Govt. of India has entered into such agreements with several countries, wherein benefits are provided on a reciprocity basis to avoid hardships to the taxpayers concerning double taxation of similar income in different countries.
  4. Joint Operations – NRO accounts provide more flexibility to the NRI account holders regarding joint operations. One can hold a joint NRO account with either a resident Indian or another Non-Resident Indian. On the other hand, an NRE account can be held jointly with another Non-Resident Indian only. One cannot hold a joint NRE account with a resident Indian. However, one can appoint a resident Indian as a mandate holder for the NRE account for the convenience of the account operations.
  5. Foreign Currency Loan against Account – The balances in NRO accounts cannot be pledged against foreign currency loans taken outside India. This is due to the repatriation restrictions on such balances. In contrast, there are no restrictions on the NRE accounts to be pledged against foreign currency loans taken outside India.

While NRO accounts allow inward rupee transactions and joint operations with resident Indians, NRE accounts provide flexibility in funds repatriation outside India and tax exemption for interest income. One may choose the specific type of bank account as per their specific transaction requirements.

Disclaimer – The information provided in this article is for informational purposes only. You may consider consulting tax professionals for specific guidance for the applicable Income Tax rules, as tax benefits are subject to changes due to change in tax laws.

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Finance

Comparing 3 best postpaid plans by Airtel

If you are looking for the best postpaid plans offered by Airtel in India, then this blog is exclusively for you. The telecom operator has recently revamped its postpaid plans and has come up with special plans for its postpaid subscribers. While the entry-level postpaid plan starts at Rs.399, other postpaid plans offer a lot of additional benefits to the users. This blog will be analyzing the top three postpaid Airtel recharge plans that are offered by Airtel.

  1. ₹399 Postpaid Plan: This entry-level postpaid data plan was initially limited to select telecom operators, but now this plan has been activated across India for all telecom operators. Activating this plan allows a subscriber to avail of unlimited voice calls, 40GB of data, and 100 text messages per day. Complementarily, Airtel has also bundled its Airtel Xstream Premium subscription with this postpaid plan, allowing users to avail themselves of memberships of Wynk Music while enjoying Airtel Thanks rewards like free one year access to Shaw Academy, Juggernaut books and more. Besides, users have the leverage to add more family connections to this plan that shall be chargeable at Rs. 299 for regular 30GB data, unlimited calls and a hundred SMS per day.
  1. Rs. 499 postpaid plan: This postpaid plan provides 75GB of data, 100 SMS per day and unlimited local and roaming calls. Besides these, under Airtel Thanks Rewards, users get a one-year free subscription to Amazon Prime, handset protection and access to Disney plus Hotstar Mobile.
  1. Rs. 999 postpaid plan: Airtel postpaid bill payment of Rs. 999 is yet another unique offering by Airtel that is a specially curated for people who live in a family or who have greater requirements from their postpaid plan. With a monthly rental of Rs. 999, users get 150 GB of data with rollover, unlimited local and roaming calls and a hundred SMS per day. Apart from this, they get two free add-on connections, Disney plus Hotstar mobile subscription, a free one-year Amazon Prime Video subscription, handset protection and access to the Airtel Xstream app.

Making faster bill payments

Airtel bill payment Can be made easily through various websites like Paytm, Mobikwik and Airtel Payments Bank. Making postpaid bill payments from these websites is now being preferred over traditional methods because it allows users to save up immensely on their monthly payment plans in the form of discount coupons and cashback offers. Airtel Payments Bank is your go-to destination for making all kinds of bill payments including water bills, electricity bills, broadband bills, Dth pills and even purchasing a FASTag.

Secured OTP-enabled transactions

Paying your postpaid bills via Airtel Payments Bank is not only safe but also quick and hassle-free. If you are in a rush you can simply browse through the website, enter your number and billing details and save up on every transaction. Your recharge shall be done instantly.

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Finance

Advantages Of Banking As A Service Which Everyone Should Know

Most experts claim Banking as a Service (BaaS) to be a win-win situation for businesses, banks and customers. This model enables companies to provide a range of financial services and products to their customers without having to pledge or secure their own banking licenses. E-money providers and licensed banks move forward with BaaS to offer digital banking services to non-banking businesses. Click here https://blog.cashfree.com/banking-as-a-service-baas/ to know more about the structure of Banking as a Service. First, let us discover all the facts about its advantages to all the associated parties.

Benefits of BaaS Model To Banks

Licensed banks and banking service providers benefit largely from the BaaS model. Depending upon how well they integrate the system with their customers (the businesses they associate with), banks can reap the following benefits.

1.   Increase In Revenue Generating Sources

With BaaS, banks can use APIs to share data securely with reliable third-party financial institutions. Banks enjoy customer trust and funding capabilities at a large scale whereas tech companies take the lead on fast connectivity and innovation. Both these parties can work together with Banking as a Service to generate high revenues.

2.   Acts As An Initiative To Save Costs

BaaS does not require banks to invest in any form of technological development. They can reap benefits from reliable partnerships by accessing the well-developed solutions offered by the tech firms.

3.   Progress In Customer Insights

Every third-party collaboration yields an increase in the number of customers. With this reach, banks get insights into their spending habits and preferences. Banks can utilise this information and come up with personalised offers and gifts.

Benefits of BaaS Model To Fintech Members

Banking as a Service is also beneficial to Fintech members. As long as these third parties have the required resources to utilise this model, they can reap the following benefits.

1.   Access To More Customers

The trust banks enjoy in the market is not easily penetrable by new firms and businesses. With a successful integration with leading banks, firms can leverage this enormous trust to expand their customer base. This simple procedure is way more convenient and cost-effective than one may perceive.

2.   Rise In The Pace of Startup Launch

Acquiring a valid bank license is neither an overnight task nor a cost-saving option. It requires enormous capital requirements which are not possible for all firms to access. Fintech members and businesses can efficiently bypass this licence regulation and utilise banking capabilities using the BaaS model. This way, the rise in startups is quite natural and economical.

Benefits of BaaS Model To The End-Customers

The end-customers, who utilise the products of this collaborative Banking as a Service model, also reap benefits.

1.   Innovative Financial Services & Products

BaaS increases the level of competition in the market which invokes firms to take possible initiatives to improve the quality of their financial products and services. This healthy competition leads to an improvement in the market output available to customers. Therefore, customers reap the passive impact of BaaS integration.

2.   Reap Superior Experience

Leading tech giants have habituated today’s customers with high-quality services and advanced technologies. This rise has led to an increase in customer expectations too. The BaaS model keeps this competition alive and active to allow customers to enjoy the superior experience they expect from the service providers.

Banking as a Service is a developing model with a wide range of features and benefits for all the parties associated with it. Businesses just have to identify the most trustworthy service provider who can help them multiply these advantages and set new standards of financial services. With a progressive model like BaaS, online businesses can reach new heights of success!

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Finance

Cryptocurrencies, Bitcoin And The Right Time To Buy Them

As a prospective Bitcoin (BTC) investor, you will need several things: a cryptocurrency exchange account, personal identification documents, if you are using a Know Your Customer (KYC) platform, a secure internet connection, and a payment method. It is recommended that you have your wallet outside of the exchange account. Valid payment methods using this path include bank accounts and debit and credit cards. It is also possible to buy BTC at specific ATMs and via P2P (peer-to-peer) exchanges.

For Bitcoin investors, privacy and security are issues of utmost importance. Anyone who gains the private key to a public address on the Bitcoin blockchain can authorise transactions. Private keys need to be a secret as criminals may attempt to steal them if they learn that you have large holdings. The balance of the common address you use can be seen by anyone. The downside to this public information is that an individual may create more than one public address for themselves. Thus they can distribute their shares of Bitcoin over many addresses that are indirectly connected to the ones that are used for transactions.

The history of transactions made on the blockchain can be viewed by anyone, even you. While transactions are recorded publicly on the blockchain, identifying information about users is not. A bitcoin transaction appears on the blockchain only with a public key of the user, so it is not anonymous, but it is confidential. All bitcoin transactions are public and can be traced, unlike private cash transactions. But Bitcoin transactions also have an element of anonymity builts into their design. It is tough to trace both the transacting parties, the sender and the recipient, on the blockchain.

The right time to buy Bitcoin

In theory, it would make sense to buy when prices are low and sell once the price reaches its peak on the crypto charts. Although, it does not work like that. Timing the market is incredibly challenging. And it is even more strenuous with cryptocurrency because these investments are far more unstable than the average stock.

Crypto prices have been on a rollercoaster ride, so trying to find the right time to buy is nearly impossible. If you buy now because it seems like prices have reached their lowest, then there’s a chance they could fall even further, and you’ll have invested too soon. Nonetheless, if you wait too long, prices may skyrocket, and you will have missed the opportunity.

It does not necessarily matter when you buy crypto, as long as you are strategic about it. Investing in successful or promising businesses and holding them over the long term is the key to making money in the stock market. If they are desirable investments, they should grow over time, and their prices should increase along with them.

If you are interested in investing in Bitcoin or any other cryptocurrency, it should be because you believe in its potential. As well as because you are willing to hold on to your investments for years or even decades.

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Finance

Why Do Investing Projects Need Listing?

Investing in your saving is a wise decision to make your funds double. There are various methods of investing worldwide, among which crypto is being followed at a high rate by the investors. This is because of the high possibility of earning more profit and the option available on the investment floor. Compared to all other investment plans, crypto investment demands several experimental analyses and implementation with the fun. You can handle crypto investment better with the best crypto exchanges service that is available online. There your investment process will be carried perfectly. They guide you with the most important process of investment which is listing. Do you know why token listing plays a vital role in almost every investment project? You can find the answer to this question on this page.

Importance Of Project Listing

There are several main reasons behind listing on exchanges. Many investors do not know the benefit of listing and what it will give them during their investment. Generally, these listings are made by the best exchange listing services provider with a high-level experiment that increases the earning possibility with your investment placement. You have to make sure with the quality list from the reputed place of exchange listing service providers online for the list of several benefit components. Your quality listing can result in the following benefits:

Increase Ability To Trade, Buy And Sell A Token

The exchanges token listing will make your preferable token available for sale. That allows people to access your token for buying that increases the chances of more profit. With the listing, you can gain more options for your investment with the other investors. With the more potential option, you can increase the chance to succeed. When you list your exchange, you can attract the attention of various exchange investors and turn them to invest with you.

Expansion Into A New Market 

Each exchange investment has its community with various principles, including the geographical terms. You can make funds from your crypto investment when you enter into new markets. You can widen your community growth in your investment platform with a productive new market when you have a quality exchanges token listing. In the investment areas, several exchanges are operating worldwide with more traders, and entering into such platforms with traders around the world will increase your profit chances. With these benefits, it is suggested that listing on a new exchange is a great opportunity to boost your trade volume and liquidity.

Token Sales And Partnership

With an effective listing of tokens with sufficient liquidity, you can sell and buy tokens as a trader, which will greatly expand and develop your earning. Being a promising trader with is exchange token listing feature is easy when you approach the best place for listing. You can also gain more investment partners with new markets, and this will support you to increase your token value and earn effectively.

Bottom Line

Whenever sped a little amount a listing your token with the involvement of the best exchange service provider, you can bring the best out of your investment project.

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Finance

Explained In Detail: Calculation Of LTCG Tax While Selling Shares

The equity market is a focal point where innumerous companies list their shares amongst the bidders and thereby trade in exchange for receivables. The market runs through many transactions between the prospective groups of buyers and sellers. The potent return on investment from equity shares will decide the proportion of gains and losses incurred by you as an investor. These capital gains will interestingly be more than your personal investment and thereby will be subjected to tax on LTCG on shares.

Long-term Capital Gains implies the profit that is earned by the person on selling his investment holdings to purchase assets like:

  • Stocks
  • Goods
  • Real Estate
  • Corporate Bonds

To put it simply, LTCG is a profit incurred on capital investment.

While selling your shares, there are many ways suggested on the internet to calculate the total LTCG tax applied on every sale. This article brings you the easiest ways to calculate the add-on tax on LTCG on shares. Before arriving at the calculation part, you need to first have a clear glimpse of how the exchanges in the equity market work.

Decoding Equity Market Exchanges

If you try to decipher the equity market situation more meticulously then you must first understand how companies bid or list their brands in the market.

  • Firstly, the securities of the companies are listed on the market in order to get tapped by prospective investors. Then through an “Initial Public Offering (IPO)” the bidders bid for the company’s shares. This is further passed on to the residuary to be traded in the secondary equity market.
  • Thereby the trading is initiated on public or private exchanges in which you as an investor bid for the share and acquire it after the issuance conferred by the dealer.

Methods of calculating the tax on LTCG on shares

To calculate the tax on long-term capital gains on shares, you need to consider the following:

  1. The cost price of the asset purchased.
  2. Expenses induced or brokerages on selling the shares.

The formula to calculate tax on LTCG on shares is:

Tax on Long-term capital gains = Sale consideration – Cost of acquisition

To understand the calculation more deeply, it is important to learn about some terms associated with the tax applied on long-term capital gains. The elements involved are:

1.   Sales value

It is the amount received against the sale of an asset. To calculate the capital gains, you need to deduct the Securities Transaction Tax and additional brokerage charges from it.

2.   The price of purchase (acquisition of assets)

As the sub-head suggests, it is the price that you have to pay to purchase an asset. As of 31 March of every month, you need to multiply the total number of shares bought with their comparative higher rates to derive the net cost.

3.   Expenditure incurred on sale

These expenses comprise additional brokerage charges or registry against the sale of assets. In this case, the Securities Transaction Tax is not excluded.

4.   Indexation

Indexation is a method to tailor the income or capital payments as per the fixed price index. This will help you to upkeep a robust purchasing power despite the rising levels of inflation. Through indexation, you can beat the inflation rates on assets in the market and calculate the actual long-term gains on shares, with no add-ons.

5.   Holding Period

Holding period return or yield is the net return that you earn on every investment at the time you hold the asset. A holding period refers to the actual investment time of an investor. Precisely, it is the time gap between the acquisition and sales of an asset.

Conclusion

The tax applied on long-term gains on shares is to make sure that there is less possibility of a shortage in the collection of the goods and service tax. In hindsight, regardless of the profits and losses that you incur in a financial year, the imposition of tax is mandated by the Government of India. Therefore, it is suggested to know the means of calculating the LTCG tax while you exchange your shareholdings. To gain more insight on what is tax on ltcg on shares, give this blog https://www.tickertape.in/blog/long-term-capital-gain-on-share/ a read.

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Finance

Inceptial review – how does it manage to differentiate itself from competition?

Inceptial Company Vision

Inceptial is a growing Forex company, committed to empowering traders in their quest across the financial industry. For the company, there is no one-size-fits-all and because of that, a comprehensive trading offer is now on the table. All of this is possible as the brand’s vision is to provide proper guidance and efficient trading tools, suited for both professionals and beginners.

Those who want to learn more about Inceptial may find this review informative, as it highlights some of the top features currently available with this Forex company. Apart from some restricted jurisdictions (such as the US, Canada, EU, Australia, and Israel), anyone from anywhere on the planet can open an account and benefit from what Inceptial has to offer.

Inceptial Asset Coverage

Financial markets are literally in the palm of retail traders’ hands when working with Inceptial since there are currently more than 160 tradable assets available. With this brand, customers use CFDs to take advantage of price movements and instruments that come with tight trading costs, while enjoying no commissions and high liquidity.

trade CFDs with Inceptial

Source: inceptial.com

The list of assets includes currency pairs, stocks, indices, commodities, and cryptocurrency futures which are some of the most heavily-traded assets that are now becoming very attractive. For Inceptial, optionality should be granted without any roadblocks and its traders can access the full assets list, regardless of the account type chosen.

Inceptial Account Features

In terms of the account opening procedures, users should not have any issues since the process is simple and convenient. They need to choose between Classic, Silver, Gold, and VIP accounts, as these are the options currently available with Inceptial.

Inceptial trading accounts

Source: https://inceptial.com/en/account-types.php

Regardless of whether traders use a credit card or a wire transfer to complete their financial transactions, the minimum deposit required at Inceptial is 250 units (in EUR or USD). For each method, there might be daily or monthly limits, and the policies are all clearly stated on the brand’s website.

Inceptial logo

 

Source: inceptial.com

Inceptial and MetaTrader 4

There is already a common practice among reputable brands to rely solely on effective trading software. Inceptial is part of the crowd, given it currently covers the popular MetaTrader 4, a solution developed by MetaQuotes, appreciated by millions of CFD traders around the world.

With MT4, traders have access to the markets from anywhere using any type of device. The platform facilitates technical and fundamental analysis using a broad range of tools that are convenient for any user.

Inceptial Bottom Line

Inceptial is constantly working on upgrading its services, which means traders who are currently working with it benefit from competitive conditions. The brand is authorized and regulated by the National Bank of Belarus and has multiple policies setting up clear guidelines on how operations are conducted on a day-to-day basis. This shows transparency and confirms Inceptial is a trusted brand.

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Finance

Why is starting with a good credit score important?

Many have this misconception that taking a loan at a young age should be avoided as much as possible because it will impact the spending habits of youths. However, as much as it is imperative to spend money responsibly, it is equally important to have high creditworthiness to make financial decisions freely in the future. The youth start earning at the age of 22-25, where they are hesitant to take credit during their early professional lives. However, this is the time to start building your credit score so that you can get more loans at lower interest rates later. Youth are notorious for their risky, whimsical behaviour, making it difficult for banks to trust them. Thus, banks depend upon the credit score to determine the creditworthiness of people, especially young professionals. Some of the advantages of maintaining a high credit score are:

  • Secure low-interest- This interest rate is significantly less when you have a high credit score, so it is better to start small credits at a young age and maintain the credit score as much as possible. You can also apply for a virtual credit card to get started with your journey.
  • Get a loan comfortably- The credit market segment of people between 22-25 is about 60 million. Banks are trying to leverage it and encourage more young people to apply for credit cards. It can help you avail of loans very conveniently in the future. Your credit card utilization or the relationship between your credit limit and your spending is analyzed by the bank. You may be considered a high-risk borrower if you have credit card debt and high credit utilization.
  • Avail best credit to fulfil your dreams – There is a tremendous rush of energy in the fresh minds. The young generation likes to try different fields to discover their passion and explore new opportunities. A high credit score will allow you to support your endeavours financially with better loan options and lower interest rates.
  • Get equipped to take risks and explore more opportunities- The young generation wants to explore new opportunities by treading on risky fields. You can avail of a stable financial source with better loan opportunities at high credit scores.
  • Financial discipline- Your loan may qualify you for a low-interest rate personal loan allowing you to save money. Hence, you will develop the habit to track expenses to improve credit score It will improve your overall financial discipline, in general. Taking long-term and informed decisions can help you achieve your goals.

The following are some ways to boost your credit score:

  • Apply for a low-limit VISA credit card or loan
  • Track your credit score & set up automatic balance alerts
  • Raise your credit limit gradually
  • Spend less, avoid late payments
  • Pay multiple times instead of one big payment

By taking these conscious and deliberate steps at an early age, you will set the foundation for future financial freedom. Maintaining a good credit profile will give you a sense of security in the later years.

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Finance

Securing strategic profits in option trading profession

Every kind of trading business is a systematic process. No matter which marketplace you are participating in, you will need the best risk management. With risk management, a trader can predefine the best trade setups. However, the trading system does not end with that. A trader needs to secure the position sizing. And for that, everyone should implement the best techniques in market analysis. It might take some time to find the most profitable trading signal. A trader cannot bore himself while waiting for it, though. Without being sure of position size, no one can arrange pips. As a result, there will be no profits rather than loss potential. A trader should realize the consequence like that and start preparing his business strategy. While doing so, he should create the best systematic plan to secure the trades.

After securing the trades, everyone can deal with any market sentiments. A trader can implement stop-loss for any loss potential. Or he can use the take-profit for securing the potential earnings. In this way, every trader can experience the most impressive trading career in Forex. If you want a successful career like that, your trading approach should be systematic.

Simple risk exposure for Forex

A systematic trading approach starts with risk management. Every trader needs this fundamental to secure risk exposure. If someone does not have enough money to invest in trading, he will benefit from managing risk exposures. Due to the high volatility of the marketplace, a trader needs to refine the investment in each trade. Considering multiple aspects of risk management, a trader should spend some time developing the strategy. Every purchase must have the least potential loss that is fair for a trader. Even the experts use this strategy to keep their risk exposure intact.

For reference to rookie trading, risk management should not bother a trader. A trader can choose between a 1% to a 10% investment policy related to the total capital. After that, everyone should consider fitting leverage to the investment. Think about a 1:10 ratio to leverage the size of your lots. If someone uses a simple strategy for managing risk exposure, he will benefit from the options trading business. To learn some simple trading technique, you may consider the free resources at Saxo. Visit now and enhance your confidence by learning simple but efficient trading strategies.

An extensive market analysis

When risk management takes care of the investment policy, market analysis is crucial for position sizing. A trader needs it to find the best trading signals. Not only that, it helps to secure the position sizing with the best possible entry and exit points. Using the reference from a decent risk-to-profit ratio, a trader can select the perfect spots. Those spots will be crucial for stop-loss and take-profit. However, a trader needs an extensive amount of market analysis to understand the sentiments. Without being sure of the price movements, you cannot predefine the position sizing. So, you will lack efficient stop-loss and take-profit for the trades. As a result, you will fail to secure your business.

A trader cannot avoid market analysis to prepare a systematic trading approach. Since it helps to understand market behavior, a trader can have confidence in a profitable trade. Or everyone can be sure of loss potential and stop trading. Ultimately, it benefits a trader to experience a successful career.

Securing the trade potentials

Every trader should invest the most amount of effort into profit potentials. But without efficient trading psychology, a trader cannot win profits. And most importantly, traders cannot secure the profit potential of a purchase. That is why they should learn about using necessary precautions in trading. If a trader thinks efficiently of his approaches, he will implement the best procedures for risk management. Then, the risk-to-profit ratio will be set, which is beneficial for a trader. Ultimately, with an efficient market analysis, any trader can predefine the position size. Therefore, everyone can use take-profit to secure the profit potential. Where the stop-loss is there to close your trade before it’s too late, take-profit is to keep your earning intact. Hence, it is crucial for a systematic trading approach.

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