The answers to the frequently asked questions about Forex market are presented in these FAQs:
What is Forex?
You can read the detailed answer in the separate section of the site — “What is Forex?“.
How can I start trading Forex?
You’ll need to register a trading account with a Forex broker, such as Fxglory. Then you can begin using their Forex client program to buy and sell currencies. This will take less than 5 minutes of your time!
Who owns Forex and where is it located?
It’s not owned by anyone in particular. Forex is an interbank market, 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’s not 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 Australia trading session) till 22:00 GMT Friday (closing of USA trading session).
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?
Long position is a “buy” position, meaning that this position will be in profit if price goes up. Short position is a “sell” position, meaning that this position will be in profit if price goes down.
How much money do I need to start trading Forex?
With some Forex brokers you can start trading Forex with as little as $1. Usually, the minimum amount varies from $100 to $10,000 ($100,000 and more for Interbank trading).
I can’t (or don’t want to) install any Forex trading software on my computer. Can I still trade Forex?
If you don’t want (or it is not possible) to install new software to start trading Forex then a good option for you would be using web based trading platform. You can browse our Forex brokers to find those which support such platform.
A news (macroeconomic report) came out that should have pushed a currency pair up/down, but it did not react or moved in the opposite direction. Why?
Forex market often ignores fundamental reports. There are thousands factors affecting the currency rates. Their sum can move a currency pair without any regard to some macroeconomic data report.
I’ve downloaded the expert advisor for MetaTrader platform but I don’t know how to install it. What should I do?
You can read the MetaTrader Expert Advisors User’s Tutorial to find out how to install those expert advisors.
I’ve downloaded a custom indicator for MetaTrader platform but I don’t know how to install it. What should I do?
You can read the MetaTrader Indicators User’s Tutorial to find out how to install those indicators.
Can I lose more than I invest in Forex?
Normally, you cannot. The broker will not allow you to lose more than the available funds on 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 of the Forex broker. It is in the brokers’ interest to prevent such losses. To secure themselves brokers implement a Stop-Out level (usually about 20%), which means that the most 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.
Can I open a buy trade in EUR/USD and withdraw the bought euros?
No. There is no delivery in 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.