Frequently Asked Questions
How can I start trading in Forex Market?
You’ll need to register a trading account with our website, Then you can begin using our Meta Trader 4 Terminal software OR our Web Trader to buy and sell currencies.
Who is owner of Forex and where is it located?
It isn’t owned by anyone in particular. Forex is an interbank decentralized market running 24 hours, 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.
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). That means it is on 24 hours a day and 5 days in a week except Saturday and Sunday.
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.
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.
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.
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 & 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.
What are stock market indices?
There are thousands of companies listed on stock markets, making it almost impossible to monitor each company. This is why stock market indices are created. Market indices bring together a select group of company stocks and regularly measures them to show the performance of the overall market or a certain segment of the market.
Where do I find stock related information?
Some of the most accessible avenues to get stock information are the Internet, business news channels and print media. You could alternatively access our website and get all the information that you wanted within a matter of seconds.
Why do we need Indices?
Stock indices are required to know the mood and sentiment prevailing in the market. As an investor, you can identify the market’s pattern by looking at the indices, and use it to decide which stock can prove to be a winning bet.
What is a Futures Contract?
Futures Contract means a legally binding agreement to buy or sell the underlying security on a future date. Future contracts are the organized/standardized contracts in terms of quantity, quality (in case of commodities), delivery time and place for settlement on any date in future. The contract expires on a
pre-specified date which is called the expiry date of the contract. On expiry, futures can be settled by delivery of the underlying asset or cash. Cash settlement enables the settlement of obligations arising out of the future/option contract in cash.
What is an Option contract?
Options Contract is a type of Derivatives Contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period. The buyer / holder of the option purchases the right from the seller/writer for a consideration which is called the premium. The seller/writer of an option is obligated to settle the option as per the terms of the contract when the buyer/holder exercises his right. The underlying asset could include securities, an index of prices of securities etc.
What does CFD mean?
CFD is an acronym that stands for Contract For Difference.
This price is arrived at after the broker factors in a “fair value” component where the
price is weighted to cover any anomalies present in the underlying market.
Weighting is done by either imposing overnight financing charges on leveraged positions or, charging a commission on every trade.
How do I trade CFDs?
If you believe an asset’s price is going to rise, you open a buy position (known as ‘going long’). If you think the asset’s price is going to fall, you open a sell position (known as ‘going short’). The performance of the market governs not just whether you make a profit or loss, but also by how much. So let’s say you think a particular market will rise, and you buy a CFD – your profit will be greater the further the market rises, and your losses greater the further it declines. The same rule applies if you expect a market to fall; you’ll make more the further the market drops, and lose more the further the market rises.
Where can I trade CFDs?
You can trade on our WebTrader or any device (mobile, tablet & PC). Log into the trading account choose the market you want to trade from the ‘Market Explorer’. You can access all available markets on your MT4 account in the ‘Market Watch’.
Can I specify the leverage for my trades?
Like all products the leverage is flexible, although this may vary among different CFDs.
Are CFDs tax free?
Buying and selling CFDs doesn’t require that you pay taxes such as stamp duty. The reason for this is that you don’t own the underlying asset being traded. However, the profits you earn from trading might be subject to taxation provided they reach a specific minimum as provided by the law.
How are CFDs priced?
CFD prices are designed to mirror those of the underlying market for a particular index or asset. However, you’ll notice that the bid and ask price for a CFD will vary from broker to broker at a specific time.
This price is arrived at after the broker factors in a “fair value” component where the
price is weighted to cover any anomalies present in the underlying market.
Weighting is done by either imposing overnight financing charges on leveraged positions or, charging a commission on every trade.
What is commodity trading and why is it so important to traders?
Commodity is the oldest form of financial instruments. Commodities’ market is almost as old as human civilization itself. Historical evidence suggests that rice might have been the 1st commodity around 6,000 years ago. In times of Sumerian civilization (4,500 BC) people used clay tokens as a form of money to buy livestock.
Today, commodity trading forms the basis of the global trade ecosystem. With the advent of online commodity trading, private traders gained access to global commodities markets with relatively modest amount of capital.
What are the major commodities?
Generally, commodities can be divided into four main categories:
- Agricultural commodities, including food crops (cocoa, cotton, corn, coffee, etc.), livestock (hogs, cattle) and industrial crops (including wool and lumber).
- Energy commodities, including natural gas, crude oil and gasoline, coal and uranium, ethanol and electricity.
- Metal commodities, including base metals (i.e. iron ore, zinc, aluminum, nickel, steel, etc.) and precious metals (gold, silver, palladium and platinum).
- Environmental commodities, including renewable energy certificates, carbon emissions and white certificates.
What Drives Commodity Prices?
Each individual commodity has unique factors that affect its price. Huge price swings in the commodity market can occur when the scarcity or abundance of a commodity is threatened. Overall the biggest influence across all commodities boils down to changes in supply and demand, however, other elements like the US dollar, substitution and weather can also have an impact.
Why Should I Trade in Commodities?
While there are a range of reasons to start trading commodities, there are three main reasons that make commodities an interesting investment for today’s traders. These are the growing global population, inflation hedging and portfolio diversification.
How Did the Commodity Markets Develop?
While the precise birthdate of commodities trading is hard to pinpoint, many believe that commodity trading is as old as human civilisation itself.
One example of commodity trading is the trading of rice as the first commodity in China, 6,000 years ago. Another is when the Sumerians began using clay tokens to purchase livestock between 4,000 and 4,500 BCE.
It was the Greeks and Romans, though, who chose gold and silver as their preferred currencies, which meant that these became the first widely traded commodities of the ancient world.
What is blockchain technology?
he Bitcoin Network is the first successful implementation of blockchain technology.
The term “blockchain technology” typically refers to the transparent, trustless, publicly accessible ledger that allows us to securely transfer the ownership of units of value using public key encryption and proof of work methods.
The technology uses decentralized consensus to maintain the network, which means it is not centrally controlled by a bank, corporation, or government. In fact, the larger the network grows and becomes increasingly decentralized, the more secure it becomes.
What is Bitcoin?
Bitcoin can often refer to two things. First, the Bitcoin network that keeps track of our transactions and balances, and second, the currency that we use as the unit of value when we transact.
Why hasn't my transaction confirmed yet?
Every bitcoin transaction that’s sent flows into what’s called the mempool (short for memory pool) before it can be confirmed by miners. When there’s a dramatic spike in transaction activity, the mempool can become congested because so many transactions are waiting to be included in the next block.
Why use cryptocurrency?
Basically, cryptocurrencies are known for its extreme security and anonymity to the highest level. Transactions made by this system cannot be reversed nor faked and compared to what your local bank are doing in its client charging high transaction fees. In cryptocurrency the fees are to the lowest level, making it reliable than the conventional currency in the marketplace. Its decentralized nature means they can be available to everyone, in which banks can only be available to those they permitted to open accounts.
Cryptocurrency is a new generation cash, the cryptocurrency marketplace known this that currency that could take off high value even overnight. But same works the other way around. People who invest on cryptocurrencies must be aware on its volatility in the market and the possible risk when buying it.
The high level of anonymity of cryptocurrencies make experts think that they are associated with the illegal activities on the digital marketplace, this is more to say specifically on dark web. Users should take extra careful when choosing currencies to keep.
What are the most common cryptocurrencies?
- Bitcoin: This cryptocurrency was the first in the ecosystem and the most commonly traded cryptocurrency until today. In 2009 Satoshi Nakamoto developed Bitcoin, a mysterious digit who developed blockchain. For the record it has a market capitalization of $45 billion dated 2017 of July.
- Ethereum: 2015 is the year Ethereum was born, a token based currency used in Ethereum blockchain, it is placed in the second in rank on the most valuable and popular cryptocurrency in the marketplace. Ethereum has market capitalization of $18 Billion as of 2017 of July. Ethereum had a very turbulent journey. After a major hole causing it to be hacked in 2016, as result it split into two currencies, the value of Ethereum in recent months has reached high as $400 but crashed to as low as 10 cents.
- Ripple: a cryptocurrency uses a distributed ledger and it was created in 2012. Ripple has a feature to track the type of transaction made, not just cryptocurrency. Ripple has been used by UBS and Sandander, it has more than $6.3 billion market capitalization.
- Litecoin: Litecoin is a cryptocurrency that is similarity with bitcoin, but move quickly on its developments, this includes more faster payments and processes more transaction at a time. The estimated overall value of Litecoin is more than $2.1 billion.
What is cryptocurrency exchange and market?
A cryptocurrency market and exchange are both service in web, allowing cryptoccurrency token holder to trade to other currency or conventional monetary to their system. According to record, there are more than 2000 cryptocurrency exchangers in the ecosystem, among the largest are Bitstamp, Cryptsy, and Coinbase.
How is the cryptocurrency value determined?
The value of cryptocurrencies are ranked in a value or unit times and the cost of exchange to buy equals the capitalization in the market. For instance 1 Steem coin is worth $1.50 on Poloniex this rate was in the previous month. But the price can move at any moment, the market capitalization is only an estimate of the overall value of the digital currency.