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FAQ

Here you can find the questions most frequently asked by the site users

How to start making money on Forex?

To get started, you first of all need to choose the most appropriate broker and open a trading account on its website. After completing this procedure, you will be able to use various currency pairs and other financial instruments in trading.

Where is the Forex market located, and who is its owner?

 

Forex is an interbank market. The transactions between the seller on the one hand and a buyer on the other side are made directly on it. In addition, the transactions are made through brokers who are intermediaries between the above parties. The Forex market is not owned by a particular entity. Thanks to this, the market does not depend on the government of any country and will operate effectively as long as a global banking system operates.

There are many various strategies; which is the most profitable?

There is no perfect trading strategy that is guaranteed to bring you profit. Any trader, if he or she really wants to earn money, should constantly develop and adapt their strategies depending on the prevailing market situation. Standard policies can succeed only at a certain time interval when trading specific financial instruments.

When can transactions be made on the Forex market?

You are able to operate from 10pm GMT Sunday to 10pm GMT Friday.

Margin. What is it?

This term describes the amount of money that you should have on your trading account to open the selected position. In most cases, brokers have different policies on establishing the required minimum margin.

"Long" and "short" positions. What is it?

Long position allows you to profit if price grows, short position brings profit when it falls.

What budget is required to start working on Forex?

Some brokers allow to start trading after topping the account with just one dollar. However, more often the minimum deposit varies in the range from 50 to 1,000 dollars. If you want direct access to the interbank market, you need to have at least 50 thousand dollars on your account.

Can my losses exceed the initial investment?

No, they can’t. A brokerage company will close unprofitable positions in case of a lack of funds on your deposit. Therefore, you cannot lose more money than you deposited on your trading account. Otherwise, the broker would have suffered direct loss. To insure such risks, brokerage companies use the concept of the stop-out, which provides for the automatic closing of positions when their loss ratio exceeds a certain threshold (usually 20%).


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