Questions frequently asked by clients & partners and answered by out team of expert brokers & professional economists.

Foreign exchange, also known as forex, is a decentralized market for the trading of foreign currencies. In the forex market, investors trade currency pairs such as USDJPY, where the value of the pair is determined by the exchange rate between the US Dollar and Japanese Yen.

Market sessions are split in accordance with the geographical areas that are active at the time on the forex market. In order to avoid gaps in forex trading, the schedule is based on GMT (Greenwich Mean Time), so world markets open and close at the same time. As a result, volatility fluctuates as well. When US and European markets are open, EUR and USD are most active.

Trades in CFDs, or Contracts for Differences, are centered on the movement of stocks, commodities, and currencies. It is a contract for the payment of the difference between opening and closing prices over a specific period of time, not for the exchange of goods themselves.
In this situation, there is a trader who speculates on the price of livestock, and he believes prices will rise when New Zealand sheep are stricken with a disease epidemic. One month from now, the trader opens a purchase agreement at the current price. Assuming he is right, the contract is worth the difference between the opening price and the higher price multiplied by its size.

Contracts, such as those between buyers and sellers of wheat, livestock, and gold, are used to trade commodities. Commodities can be bought and sold in futures contracts without a direct exchange of goods. Profits are determined by the commodity’s price fluctuations.

During the live session of any market, day traders open and close small positions. The direction of the many assets that day traders believe are going to be influenced can be forecast using news, economic reports, and political events. According to this evidence, day traders are making a high volume of short-lived trades. All positions are closed at the end of the day by these traders, in hopes of ending the day with a profit.

By sending traders short messages, market analysts notify traders of currency trading opportunities, usually via SMS, email, or another form of communication. There are several short and precise instructions in the analyst’s message regarding assets to trade, when positions should be opened and closed, and other necessary information.

Margin trading is a method to open larger positions than you normally would have been able to open by using money that your broker lends to you. Keeping the position open also requires money. Larger exposure might be beneficial for profitable positions, but if the trade becomes worthless, the broker may close the position (margin call) and you may lose the interest paid on margin.

Technical analysis refers to the study of past trends in price activity based on past values and volumes of an asset. Unlike fundamental analysis, which focuses on data generated by market activity when trying to determine the value of an asset, this approach uses inside information, such as corporate debt, instead of data generated by the market.
Techniques used in technical analysis include analysis of graphs of prices and identifying patterns (such as head and shoulders patterns). Forecasting future price movements is the main objective in this section.

When a client closes their positions, the broker buys assets from them, and when a client buys them, the broker sells them. This is the spread between the two prices.
Spreads are measured in pips, with a smaller spread typically being beneficial. Spreads come in three forms: fixed, variable, and a combination of the two.

Forex traders measure their transactions in pip, or points. For all currencies apart from the Yen, one pip has the size of 1/100 of a point. A pips is a unit of measurement for price, spreads, lot size, among other things.
Typically, to purchase a CFD, you must purchase a lot of the asset. In terms of currency, a lot equals 100,000. When coupled with leverage, the effects of a pip are significant, though small.

Traders decide whether to take long or short positions based on their expectations of how an asset’s price will move.
Prices that decrease favor short positions. It is possible to establish a short position by borrowing, selling, and buying back an asset after a price drop.
In simple terms, long positions mean buying an asset in anticipation of its price increasing, and selling when that happens.

It is supply and demand for any currency which determines the foreign exchange rate between them. Supply and demand may be affected by a number of factors, including interest rates and inflation.

Without considering other factors, the USDJPY pair will increase if demand for the USD from Japanese traders increases, for example. A currency can be pegged to a particular value by a government whose reserves of it exceed its nominal value.

You specify the stop loss level in your trade to ensure that the asset is sold at a certain point. An otherwise occupied trader can avoid significant losses, if a downward trend persists, as the position will automatically be closed at the level designated.

An option is a contract that gives the contract holder the right, but not the obligation, to exercise his or her position at any time. When you buy a call option, you will be able to buy stock before the option expires, while when you sell a put, you will be able to sell the stock at a predetermined price. In a derivative, though the holder does not have actual stock, the movement of an underlying asset is valuable in itself. It is possible for traders to buy and sell both puts and calls.

Traders who are comfortable with their trading platforms are more likely to invest with confidence. Traders need tools to understand trends, good opportunities, and ways to analyze them. An excellent platform will provide them with all of this information.
The most efficient way to trade is through a streamlined experience, like using a mobile trader, where you only see the most valuable information, without the unnecessary details that can distract you.