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Knowledgebase : English > About Forex > Frequently Asked Questions
  Forex market welcomes traders 24 hours a day. Forex market opens on Sunday 5 pm EST (10:00 pm GMT), closes on Friday 5 pm EST (10:00 pm GMT). TRADING SESSIONS ACCORDING TO GMT (GREENWICH MEAN TIME): REGION CITY OPEN (GMT) CLOSE (GMT) ...
Currencies, just like any other commodity that can be bought or sold, are subject to the laws of supply and demand. When more people want a particular currency, the cost of the currency in terms of other currencies will go up. When demand decreases or peo...
       OBVIOUSLY, BUY LOW AND SELL HIGH! Forex market is a place where profits can be made as well as losses. Profits are made in the Forex market by anyone who trades currency and all you need for this is a computer, internet connection and some capital....
The difference may appear to be great between the Forex market and other markets, say equity market. But this is not to suggest that they are similar. Not many of the experienced traders have dared to crossover the boundaries of their trusted market doma...
There are some factors that cause a delay in getting a margin call. But you still need to manage your unprofitable trades before any more losses. * Make sure you have enough funds in your account to keep your trades open and don't open more positions ...
Here is an example for calculation of your profit or loss: * _Let's trade 1 lot on EUR/ USD, it means that you are buying EUR and selling USD._ * _The rate you are quoted is 1.1278/ 1.1280 so you buy 1 standard lot (100000 units). You are working o...
STEP 1: RESEARCH THE BEST WAYS TO INVEST. Forex is the biggest financial market in the world. It's bigger than the US stock market, because the daily turnover has now exceeded 4 trillion US dollars. First understand that you, the retail investor, are not ...
INSTANT EXECUTION  Instant execution means that when you click the button to place your trade, your online Forex broker will immediately fill your trade at the current market price. If it cannot be filled, then a 'requote' will be issued with the new pri...
The Forex market is stable. The average daily fluctuation of EUR/USD is approximately 100 pips (0.5% - 1.5%) through a day. In turbulent periods it can rise to 2%. There is no risk that you will trade in currency and lose 10% -15% in a day as it is in the...
Although Forex trading can lead to very profitable results, there are risks involved. Profits are unlimited but you can never lose more than what you initially risked. However, risk only what you can afford. New currency traders can minimize the risks by ...
These are orders which will be open when the price reaches the mentioned price. You must place "BUY LIMIT" below the market price, while "SELL LIMIT" is placed above the market price. You must place "BUY STOP" above the market price, while "SELL STOP" bel...
As a currency trader, there are numerous kinds of financial instruments that you can use. Forex Instruments are the products or ways of trading in foreign exchange. Some of the common financial instruments used in Forex are spot transactions, forwards, f...
The forex market is unique in that traders can access a 24-hour market very conveniently, without having to wait for the markets to open. At any time, there is always a major financial center open where banks, hedge funds, corporations, and individual sp...
_BALANCE _shows the amount of deposited money in your trading account. The profit/loss of your orders will be added or deducted to/from your trading account balance when you close your orders. _BALANCE _and_ EQUITY _show the same values as long as there...
THE TYPES OF FOREX BROKERS: ECN - STP - NDD - DD DD - DEALING DESK:A dealing desk broker is a Market maker, typically offers fixed spreads and may elect to quote above or below actual market prices at any time.Market makers are always the counterparty ...
In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For example, due to the size and strength of the United States economy, the American dollar is the world's most actively traded...
Before you undertake currency investment, it is important that you understand the forces that drive exchange rates. Many of these factors are intangible and/or psychological so are impossible to characterize. However, those factors which are generally re...
A broker is an individual or party who has a license to buy and sell securities on a client's behalf. In general, a broker is an independent agent used extensively in some industries. The prime responsibility of a broker is to bring sellers and buyers to...
In Forex trading, all currencies are quotes in pairs. For example, in comparing the Euro (EUR) to the US Dollar (USD), you would quote the currency pair EUR/USD. A currency pair is a set of currencies that are being quoted against each other. In a curren...
It is a calendar which traders use in order to track the significant events and care about them. Traders will seek the date and time of a specific event and pay attention to the announcement because of the high probability that it will affect the direct...
Fractional pips are a new pricing feature which allows you to see more price action detail and will help you to make more informed trading decisions. A fractional pip is a tenth of a pip and the addition of this feature to your account allows you to take ...
_A Swap-free account is an account that allows you to open a trade and does not charge fees for carrying over open positions to the next day. This type of account is for the customers who are not allowed to receive swaps owing to their religious beliefs. ...
The Forex expert advisor is a program capable of performing in the terminal any action following the instructions of a trader, without his direct involvement. All tasks are performed automatically or mechanically, which is why the advisors are called expe...
Carry trading is one of the most simple strategies for currency trading that exists. A carry trade is when you buy a high interest currency against a low interest currency. For each day that you hold that trade, your broker will pay you the interest diffe...
The depth of market displays the current market for a trading symbol. This tool provides the ability of quick and easy order management. To open the Depth of Market window of a financial instrument, click " Depth of Market" in the context menu of the Ma...
Event risk refers to the risk of the market moving due to an upcoming news release. Many traders prefer not to take positions ahead of important news releases due to the risk of not knowing the outcome.
Foreign exchange trading, which is commonly called Forex trading, is the swapping of currencies from different countries. For example, you could trade US Dollars for Euros. In the modern age of computers and digital trading, Forex trading has become les...
          WHAT IS FOREX INDICATOR? Indicators are used for identifying, or creating patterns from the irregularity of the currency market. In all cases, they receive the raw market data as the basic input and manipulate it in different ways to create acti...
Forex trading is usually done through a broker. As a Forex trader you can choose a currency pair that you want to change in value and place a trade accordingly. Forex trades can be placed through a broker. Orders can be placed with just a few clicks and...
  HISTORY OF THE FOREX MARKET   Prior to 1971, speculation was not permitted in the currency markets due to an agreement called the Bretton Woods Agreement. This agreement was set up in 1945 with with the purpose of stabilizing international curren...
Hedged Margin is funds which are necessary to open and support an open locked (hedged) position. In other words, it is the guarantee which is required to maintain an open locked position. Here we point to an example: If hedge margin is indicated 50% f...
LEVERAGE is a Forex advantage. The ratio of investment to actual value is called Leverage. Depositing $1000 in order to buy a Forex contract with the value of $100000 a client needs Leverage at 1:100 ratio. $1000 is all you invest and all you risk, but th...
Over-the-counter trading is the trading of financial instruments such as stocks directly between parties and not through an exchange. _ _
You can make money trading when the market moves up, and you can even make money when the market moves down.BUT you will have a very difficult time trying to make money when the market doesn't move at all. SOBefore looking at the best times to trade, we m...
There is no central location of the Forex market. Transactions in the FX market take place in many different forms, 24 hours a day, through different channels all over the globe; existing wherever one currency is exchanged for another. The Forex market i...
A Forex trader is someone who trades on the foreign exchange market. Forex traders trade currencies with the intent of buying currencies when they are undervalued and selling them when they are overvalued and making money in the process.
 When it comes down to who trades Forex, the answer used to be largely confined to well-capitalized financial institutions and corporations. While such large players still dominate the Forex market in terms of overall Forex transaction volumes, the recent...
The foreign exchange market (Forex, FX, or currency market) is a global decentralized market for the trading of currencies. The main participants in this market are the larger international banks. Financial centers around the world function as anchors of ...