1. What is Forex?
Forex, also known as foreign exchange or FX, is the simultaneous buying of one currency while selling another. The forex market is available 24 hours a day, five days a week and it’s one of the largest, most liquid financial markets in the world. Just to compare, the United Kindom Stock Exchange makes about $169 billion a day in volume and the Forex Market makes over $5 trillion a day in volume.
4. Is Forex trading expensive?
It depends on the leverage and capital invested. You can have a starting capital of as low as $250, or as high you want. However, it is important to remember that increasing leverage increases risk; but ultimately depends on the investor’s appetite for risk.
7. How are currency prices determined?
There are various ways currency prices can change. Economic and political conditions usually affect the value of a currency, along with interest rates and inflation.
10. What tools do I need to trade Forex?
You only need a computer with internet connection and a free demo account or a funded live account with MTrading to start. However, you should be equipped with proper Forex education and tools to minimize risks in the Forex market.
2. How does Forex trading work?
Forex is traded in currency pairs. Common currency pairs are the Euro/US Dollar, US Dollar/Japanese Yen, Great British Pound/US Dollar, and US Dollar/Canadian Dollar. You buy one currency and automatically sell another.
5. Where is the central location of the Forex market?
Forex trading is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered an Over-the-Counter (OTC) or ‘Interbank’ market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
8. Where can I learn more about Forex trading?
We offer a range of educational tools which include free trainings & seminars, webinars and video tutorials to enhance your Forex knowledge. Please visit our education section
3. What are the trading hours for the Forex market?
The Forex market is open 24 hours a day. It opens on Sunday at 10:00 pm GMT, and closes on Friday at 10:00 pm GMT:Sydney opens at 10:00 pm to 7:00 am GMTTokyo opens at 12:00 am to 9:00 am GMTLondon opens at 8:00 am to 5:00 pm GMTNew York opens at 1:00 pm to 10:00 pm GMT
6. Who are the participants in the Forex market?
The Forex market is called an ‘Interbank’ market due to the fact that historically it has been dominated by banks, including Central Banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing and now the list includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and individual investors.
9. How do I profit from trading Forex?
The sum of your profit depends on the efficiency of your trading strategy, on how well you will learn to predict the alteration in rates tendency and a little on the amount of your deposit which allows you to sustain unfavorable situations during market movements.