Frequently Asked Questions (FAQ)

The foreign exchange market, also referred to as the "foreign currency," "forex" or "fx" market, is the largest financial market in the world with daily average transactions of approximately U.S. $2 trillion.  The world's currencies are on a floating exchange rate and are always traded in pairs; for example, Euro/U.S. Dollar or U.S. Dollar/Yen.  Foreign Exchange is simply the simultaneous purchase of one currency and selling of another.  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 directly between two counterparties over an online trading platform, electronic network or via the telephone.

How is risk managed?

 

The most common risk management tools in forex trading are the limit order and the stop-loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received.  A stop-loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position.  The liquidity of the forex market ensures that limit order and stop-loss orders can be easily executed during normal market conditions.  Forex options are also commonly used to help manage and/or hedge risk exposure.
Placing Contingent Orders may not limit your losses to the intended amounts.

 

When is the forex market open for trading?

 

 A true 24-hour market, forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York.  The forex market is typically open 24 hours a day from Sunday 5:00pm ET until Friday 4:00pm ET, except on scheduled holidays.  However, exact times may vary by clearinghouse or dealer.  Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the exact time they occur - day or night.

 

Do you offer a free trial?

 

Unfortunately we do not offer free trials. This is because of the dishonesty of re trialists who keep asking for free trials using different emails.

How long have you been online providing trade signals?

 

Since January 2010 we have been online providing our forex signals services for both new and experienced investors.

What is pending orders?

 

A Pending order is an instruction to open a position when the current price reaches the order level.
There are four types of pending orders:

  • Buy Stop - an order to open a Buy position at a price higher than the price at the moment of placing the order.
  • Sell Stop - an order to open a Sell position at a price lower than the price at the moment of placing the order.
  • Buy Limit - an order to open a Buy position at a lower price than the price at the moment of placing the order.
  • Sell Limit - an order to open a Sell position at a price higher than the price at the moment of placing the order.

What is market orders?

 

A market order is an order to buy or sell immediately, at the current market price. For example, USD/CHF is currently trading at Bid:1.2140 / Ask:1.2143. If you wanted to buy at this exact price, you would click buy in your trading platform and that would instantly place a buy order at the Ask price.

It's like online shopping - you like the item, you like the price, you click and it's yours! The only difference is you are buying or selling one currency against another currency.