FAQ’s

FAQ’s 2018-04-10T02:46:37+00:00

The simple meaning of the currencies (Forex, FX) is simultaneous purchase and sale of currencies or currency of Exchange in the country, one by one from another country. Currencies of the world does not have a fixed exchange rate and are always volatile, since both are traded in pairs, for example EUR/USD, USD/JPY and other. Daily offers of 80 percent by exchanging currencies. During the past three decades in the foreign exchange market has become the largest financial market in the world, the character over 5 trillion dollars a day, combining more than three times the total amount of the United States us stock market and the Treasury. Currency market Forex is part of the Bank, known as the interbank market 24 hours a day.

Forex trading means trading foreign exchange is also known as Forex trading. Forex is the largest financial market in the world. Is he return more than $5 trillion each working day? In the trading of currency and materials first in the world.

You’ll need to register a trading account with one of the Forex brokers. Then you can begin using their Forex client program to buy and sell currencies. This will take less than 5 minutes of your time!

Forex market is open from 22:00 GMT Sunday (opening of Australia trading session) till 22:00 GMT Friday (closing of USA trading session).

“PIP” stands for Point In Percentage. More simply though, a pip is what we in the FX would consider a “point” for calculating profits and losses.

When trading a mini lot (10k units of currency), each pip is worth roughly one unit of the currency in which your account is denominated. If your account is denominated in USD, for example, each pip (depending on the currency pair) is worth about $1.

In all pairs involving the Japanese Yen (JPY), a pip is the 1/100th place — 2 places to the right of the decimal. In all other currency pairs, a pip is the 1/10,000 the place — 4 places to the right of the decimal.

Margin is money you need to have in your broker account to secure your open position. Different brokers require different amount of margin money to keep your positions open.

Long position is a “buy” position, meaning that this position will be in profit if price goes up. Short position is a “sell” position, meaning that this position will be in profit if price goes down.

There is none. You should constantly develop your own strategies for every possible market situation, if you want to be in profit. Specific Forex strategies can only be good for a certain period of time and for certain currency pairs.

With some Forex brokers you can start trading Forex with as little as $1. Usually, the minimum amount varies from $100 to $10,000 ($100,000 and more for Interbank trading).

Normally, you cannot. The broker will not allow you to lose more than the available funds on your trading account. It will simply close your losing position when the resulting account balance becomes too close to zero. The loss that is bigger than the trader’s deposit is a direct loss of the Forex broker. It is in the brokers’ interest to prevent such losses. To secure themselves brokers implement a Stop-Out level (usually about 20%), which means that the most losing position will be closed once (equity / used margin) × 100% becomes equal to or less than this level.

In rare cases, a slippage or significant price gap may put the trader’s balance into negative territory. However, brokers rarely pursue traders to refund negative account balances.

No. There is no delivery in spot Forex market. Such trade is a contract, not an actual act of exchange. At the same time, some brokers allow exchanging currencies at favorable rates inside one multi-currency account.