Forex is the foreign exchange market or currency market. Forex is the market where one currency is traded for another. It is one of the largest markets in the world.
You can read the detailed answer about this faq for Forex in a separate section of the site — What is Forex?
The sky’s the limit! These markets offer highly liquid instruments that trade in large volumes. This makes it possible for traders to execute massive trade positions with little or no slippage. This is an amazing benefit that allows the average retail trader to build a highly scalable online business that will probably never run out of buyers and sellers.
Of course, to make money in the forex, commodity, and other markets requires determination and proper trading education if you’re going to do all the trading yourself (copy trading and following Benstrides’ trading signals is much less intensive). If you’re looking for top-class trading education, a good place to start is Benstride Academy.
You’ll need to register a trading account with a Forex broker, such as XM. Then you can begin using their Forex client program to buy and sell currencies. This will take less than 5 minutes of your time!
It isn’t owned by anyone in particular. Forex is an interbank market, meaning that its transactions are conducted only between two participants — the seller and the buyer. So as long as the current banking system exists, Forex will be here. It isn’t connected to any specific country or government organization.
The 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).
With some Forex brokers, you can start trading Forex with as little as $5. Usually, the minimum amount varies from $100 to $10,000 ($100,000 and more for interbank trading).
The forex market often ignores fundamental reports. There are thousands of factors affecting currency rates. Their sum can move a currency pair without any regard to some macroeconomic data report.
Benstrides’ team of professional traders and analysts combine their market expertise to bring you the following benefits:
Live market updates covering the global trading sessions around the clock.
Top free- and premium forex, commodity, stock index, and cryptocurrency trading signals. Numerous forex trading strategies. A powerful learning center with a variety of trading concepts and info covering different financial instruments, trading platforms, investment options, forex brokers, forex trading tips, etc.
The Benstride forex trading course.
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 for 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.
No, you cannot. There is no delivery in the 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.
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 to 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 trader must first beat the spread for their positions to become profitable.
Simply put, using leverage with forex trading means that a large trade position can be controlled with a small amount of money. For example, with some forex brokers who offer 1:500 leverage, you can buy or sell 1000 units of the USD/JPY currency pair with a ‘deposit’ of $2. The notional trade size of a 1K USD/JPY position is 1000 dollars. This means that with 1:500 leverage, you only need $2 to open a position worth $1000. The remaining $998 is borrowed from the forex broker. Of course, a trader will need more than $2 to maintain this position once it is opened. Using leverage to trade forex has the potential to magnify both gains and losses. The use of excessive leverage is a major reason why beginning traders lose money in the FX market.
It is indeed! Many successful forex traders do end-of-day trading, or long-term trading, which doesn’t require much time at all. Even with an 8-5 job, you can still achieve considerable results trading FX in this way.
Of course, there are other ways to trade forex if your time is really limited. One of these ways is to use our premium forex signals. Another way is to engage in social trading with a social broker like eToro and ZuluTrade. With social trading, the trades of experienced traders are automatically copied to your trading account. This saves you a lot of time because you don’t need to look at charts or do market analysis at all!
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 limited period and for specific currency pairs.
Your question was not answered here? You can try to find an answer on the Forex forum or you can contact me if the question isn’t answered anywhere.
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