The word Forex originates from English “Foreign Exchange Market” and means international market of currency exchange. At this market you can make an exchange of different currencies of the world at the profitable for you rate of exchange.
The Forex market is not owned by anyone in particular. Forex market – is the interbank market, all trades on it are made directly (or through the brokers) between the seller and the buyer. Forex market is not directly depended on the any country government and will exist, till the current banking world system exists.
The sum of your profit depends of the efficiency of your trading strategy, on how well you will learn to predict the alternation in rates tendency and naturally from the amount of your deposit.
It is simple: you will have to study continuously, if you want to become a professional trader. Experience and knowledge in this business has the essential importance.
The basic knowledge of English will be enough for you, and even just knowing your native language you will need couple of months to master all the terms.
To work at the financial markets can any person that has the wish and aspiration and also diligence. But the specialized education will help you a lot.
Physical person pays tax independently, by providing of tax declaration at the end of the year.
One of the differences is the fact that – on the virtual accounts all transactions are made without the participation of cash resources, which means without the risk to suffer material losses, that is why virtual account is also called training one.
Each day to the customer account is debited or credited with the sum, which reflects the differential of the interest rates between the currencies pairs, on which the position is opened.
Operations at the Forex currency market as operations at any other financial market, determine two criteria – risk and profitableness, i.e., the higher the risk (in this case the volume of leverage), the greater the profitableness investor expects to obtain. It is possible to decrease the potential risk not only with help of regulating the volume of leverage, but also by the setting of protective stop-orders.
The market does not operate on weekends.
Broker has a right to close at the current price all or a part of the unprofitable positions in case, when your equity (balance + profit on the opened positions – losses on the opened positions) comes down below the obligatory margin.
International currency market (Forex) is opened from 22:00 GMT on Sunday (opening of the Australian trading session) till 22:00 GMT on Friday (closing of the trading session in the USA).
Long position – is purchase position (buy), i.e., the position that brings profit at the price increasing. Short position – is sale position (sell), i.e., the position, which brings profit with the price reduction.
No. Broker will not allow you to lose more than there is at your trading account. He will simply shut your unprofitable position, if balance on the account will approach to zero. If you lost more than you invested, this would be the direct loss to the broker. It is in the interests of broker, not to allow such losses. In order to protect themselves, brokers introduce the concept of the stop-out level. This means that the most unprofitable position will be closed, as soon as (free margin/used margin) * 100% will become equal or less than this level.