FAQ.

                                       

                             Frequently Asked Quest

1.What is Forex?

You can read the detailed answer in the separate section of the site — What is Forex?.

2.How can I start trading Forex?

You'll need to register a trading account with a Forex broker, such as Axitrader, Dukascopy Bank( Switzerland.), Purple trading, Octa FX, IG, CMC Markets, OANDA, London Capital Group (LCG), Forex.com, Pepperstone and many others.

Then you can begin using their Forex client program to buy and sell currencies. This will take less than 5 minutes of your time!

3.Who owns Forex and where is it located?

It isn't owned by anyone in particular. Forex is an interbank market, meaning that its transactions are conducted only between two participants — seller and the buyer. So as long as the current banking system will exist, Forex will be here. It isn't connected to any specific country or government organization.

4.What are the working hours of Forex market?

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

5.What is margin?

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.

6.What are the long and short positions?

A long position is a buy position, meaning that this position will be in profit if the currency rate goes up. A short position is a sell position, meaning that this position will be in profit if the currency rate goes down.

7.What is the best Forex trading strategy?

There is none. You should constantly develop your own strategies for every possible market situation just like i did if you want to be in profit. Specific Forex strategies can only be good for a limited period and for specific currency pairs.

8.How much money do I need to start trading Forex?

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).

9.I cannot (or don't want to) install any Forex trading software on my computer. Can I still trade Forex?

If you don't want (or it isn't possible) to install new software to start trading Forex, then a good option for you would be using a web-based trading platform. Here is a short list of brokers that offer web based trading options:

• RoboForex
• Exness
• Oanda
• Interactive Brokers

10.A news (macroeconomic report) came out that should have pushed a currency pair up/down, but it did not react or moved in the opposite direction. Why?

Forex market often ignores fundamental reports. There are thousands factors affecting the currency rates. Their sum can move a currency pair without any regard to some macroeconomic data report.

11.I've downloaded the expert advisor for MetaTrader platform but I don't know how to install it. What should I do?

You can read the MetaTrader Expert Advisors User's Tutorial to find out how to install those expert advisors.

12.I've downloaded a custom indicator for MetaTrader platform but I don't know how to install it. What should I do?

You can read the MetaTrader Indicators User's Tutorial to find out how to install those indicators.

13.Can I lose more than I invest in Forex?

Normally, you cannot. The broker will not allow you to lose more than you have in 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 broker's best interests to prevent such losses. To secure themselves, brokers implement a stop-out level (usually about 20%), which means that the biggest 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.

14.Can I open a buy trade in EUR/USD and withdraw the bought euros?

No, you cannot. 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.

15.Can you code an indicator/expert advisor/script for me?

Sorry, but we are not doing coding requests, but you can try asking at trader forums.

16.Why does any trade that I open starts in a loss?

When you open a trade, you do it at the Ask price for Buy trades or at the Bid price for Sell trades. If you were to close the trade, the opposite price is used &mmdash; the Bid price to close a Buy trade and the Ask price to close a Sell trade. The same applies for calculating the trade's floating profit or loss. Hence, when opening a new trade, it always starts in the red due to the Bid/Ask spread. This is why, every traders must first beat the spread for their positions to become profitable.

17.Your question was not answered here?

You can try to find an answer on the trader forex forum or you can contact me if the question isn't answered anywhere.