Basic rules of forex trading.

This article will discuss the general rules every trader should know and must adhere to.

Forex trading rules govern the trading process and are established by dealing centers.

You'll encounter most of them when signing a contract with a dealing center, while others will arise in practice. Therefore, to reduce the number of unpleasant surprises, try to remember all the points below.

• Process - trading is carried out using special programs ( trader's terminal orders are used to conclude transactions .

• Trading is possible only from the age of 18, if fraud is detected, your account will be blocked.

• Risks - all exchange risks are assumed by the trader, no matter for what reason he opened a transaction that led to losses, losses are only his problem.

• Stops - all dealing centers in order to protect their funds use forced closure of transactions margin call and stop out , the first is usually 30-40%, the second 10-20%. Therefore, be prepared for the fact that if as a result of an unprofitable transaction the amount of funds in your account drops to one of these marks, a forced closure of the transaction will occur.

• Limitation of transactions - usually the trading conditions indicate that one transaction should not last shorter than 2-5 minutes, violation of the trading rules leads to the transaction not being counted or the account being blocked.

• Limitation of the use of advisors - not all brokers allow trading with programs for automatic trading.

a commission is charged for each open transaction; size depends on the trading instrument and the market situation. In addition, a volume commission and a fee for carrying positions over to the next day may be applied.

• Personalization - you cannot open multiple accounts with one broker under fictitious names; the penalty is deletion of the trader's account, and with it all accounts.

• Taxation - you yourself bear all obligations to the tax authorities; dealing centers do not submit information to the tax authorities. Therefore, if you are found to have undeclared income from forex trading, you will have to answer for it yourself.

These are, perhaps, all the basic rules of forex trading; failure to comply with them may result in punishment.