In our opinion, generally when a country’s banks and equity markets (stock, commodities, bond, etc.) are open. For instance, trading the Euro may be best from 1 a.m. Eastern Time through 9a.m. Eastern Time.
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WHAT IS THE FOREIGN EXCHANGE (FOREX) MARKET?
ByadminThe Foreign Exchange market, also referred to as the spot “FOREX” market, is the largest financial market in the world, with a daily average turnover of approximately $1.5 trillion USD. Foreign Exchange is the simultaneous buying of one currency and selling of another. Most FOREX trading consists of trades between the U.S. dollar and six…
WHAT IS THE MARGIN REQUIREMENT TO MAKE A TRADE?
ByadminThe FOREX allows spot currency positions to be leveraged at various amounts depending on the broker – up to 50:1 leverage is common. This means that a 2% margin deposit ($200) allows you to control $10,000 of currency in a 1 Mini lot position in the FOREX market. FOREX trading is conducted on “margin” which…
WHAT IS MARGIN?
ByadminThe amount of cash deposit required in a clients account in order to open a position or to maintain an open position. Margin is essentially collateral for a position. If the market moves against a customer’s position, the client will be requested to deposit additional funds through a “margin call.”
WHEN IS THE FOREX MARKET OPEN FOR TRADING?
ByadminIn a 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they…
WHAT DOES IT MEAN TO HAVE A “LONG” OR “SHORT” POSITION?
ByadminIn trading, 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 trader benefits from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate….
WHO ARE THE PARTICIPANTS IN THE FOREX MARKET?
ByadminThe 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…