 |
|
|
|
 |
|
 |
|
|
|
|
| Please visit our tutorial page: |
|
|
|
|
|
 |
|
|
Online Forex Currency Exchange Trading FAQs |
|
What Is Foreign Exchange?
The Foreign Exchange trading market, also referred to as the "Forex" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.3 trillion. Forex is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example EURO/USD or USD/CHF.
Who Are The Participants In The FX Market?
The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.
What Is Margin?
Margin is required collateral for taking a forex trading position. It allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the forex market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively whereas equity market only provides leverage of 50% (double the buying power).
What Are Commissions And Fees charged By MoneyForex?
Unlike many other forex brokers, MoneyForex does not charge any commission in executing a forex trading order. We are a market maker and our major revenue is generated from the spread from currency traded; usually 3 to 5 pips. There is a small cost of holding positions overnight. Please see interest page.
What Does It Mean Have A 'Long' Or 'Short' Position?
A long position is one in which a forex trader buys a currency at one price and aims to sell it later at a higher price; the investor is benefiting from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate; the investor is benefiting from a declining market. The risk of having either long or short position will be the same.
How Do I Manage Risk?
The most common risk management tools in forex online 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. Please see Risk Statement.
Open Account FAQ
If I fund the account with Multiple Sources (Credit Card or Bank Wire) can I withdraw to any sources as well?
For multiple deposits from different sources, it depends on the deposit amount as there are investors who abuse the system where they treat MoneyForex as digital currency exchanger. Traders are not allow to deposit using one source and withdrawal using different sources other than bank wire transfer. Our system is very efficient where we can track all incoming deposits. For example, if a trader deposits $5000 via e-bullion and $1000 via credit card, he/she can only withdraw $5000 plus the profit via e-bullion and $1000 plus the profit via credit card or bank wire for both. Bank wire is the default method for withdrawing. MoneyForex reserved the right to fund withdrawal via Bank wire other than using money processors. For bank wire transfer, MoneyForex do not charge any fee. The Bank will charge a minimum wire transfer fee of $40 and up depending on the destination and wire amount.
Does this mean I can withdraw fund via wire transfer if my deposit is via money processors such as credit card, e-bullion?
Yes except for Credit Card depositors. Account holders who deposit via Credit Card can withdraw fund by only funding it back to the Credit Card account unless the deposit is made for more than 180 days. The reason for 180 days is because of the security rules with Credit Card company. Any deposit that is less than 180 days has to withdraw via funding back to credit card unless management approval. The 180 days period does not apply to e-bullion depositors.
Is MoneyForex Trading system adhering to Islamic Shariah Law?
Yes. MoneyForex offers Islamic Forex and CFDs trading account upon request. The account will be set up as interest free and Forex & CFDs trading account. Please notify us during submitting of your application so that we will place your account under the Islamic Shariah Law account. Please click here for Islamic Forex Trading complete information.
For standard cost of carry or premium charges, please click here.
For more open account FAQ, please click here.
TRADING FAQ
What Is Limit Order?
A limit order is an order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 112.00/05, then a limit order to buy USD would be at a price below 112.05. (ie 111.50).
What Is A Stop Loss Order?
A stop loss order is an order type whereby an open online forex trading position is automatically liquidated at a specific price. As an example, if an investor is long USD/YEN at 112.35, they might wish to put in a stop loss order for 111.75, which would limit losses should the dollar depreciate, possibly below 111.75.
What Is A Position Order?
Position orders are directly related to individual positions. These forex currency trading orders are only active for as long as the position remains open and can be a stop loss or limit order.
Can I Place A Trade Via E-Mail?
No. We do not accept trades via email. You may place a trade online or by calling our 24-hour dealing desk.
What Is Margin?
Margin is essentially collateral for a position. It allows forex traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the equity markets, the usual margin allowed is 50%, which means an investor has double the buying power. In the forex market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively.
What Does It Mean Have A 'Long' Or 'Short' Position?
In trading parlance, a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. In this scenario, the investor benefits from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate. In this scenario, the investor benefits from a declining market. However, it is important to remember that every FX position requires an investor to go long in one currency and short the other.
What About Terms Like "Bid/Ask", "Spread", And "Rollover"?
MONEYFOREX.com has an extensive Glossary that provides detailed definitions of all Forex related terms.
|
|
|
|
| |
