FAQ – frequently asked questions about Forex.
On this page you can find answers to the most frequently asked questions regarding trading on the Forex currency exchange.
Reading this article will help you get a general idea of what Forex is and what you need to start trading currencies. 1. What is Forex? – This is a virtual foreign exchange market where transactions are concluded to exchange one currency for another.
2. Where is the foreign exchange exchange located? – Forex does not have a clearly defined location; trading takes place exclusively on virtual platforms, which shift simultaneously with changes in time zones.
3. What can you trade? – the main volume of transactions is carried out on currency pairs, but thanks to the functional features of trading terminals, it is also possible to make transactions with metals, shares and some groups of goods.
4. When does Forex work? – the exchange continues to operate around the clock, except weekends and holidays.
The time of day does not affect the technical features of the trading carried out, that is, you can trade at any time convenient for you. 5. What is leverage? – in order to significantly increase the volume of transactions, the broker provides its client with free so-called leverage, which allows you to increase the amount of transactions several times.
For example, a leverage of 1:100 will increase your deposit exactly 100 times. 6. Is it possible to lose the broker's money? – No, because there is a system of orders that closes the transaction as soon as losses reach a certain level.
7. How long does it take to learn to trade? – It usually takes no more than one week to study the technical aspects of working in a trader’s trading terminal, but in order to receive a stable profit, some need at least six months, while others do not have enough life.
8. What equipment do you need for trading? – the best option is a desktop computer or laptop, but you can also trade using a netbook, PDA, smartphone, mobile phone or tablet.
9. How much can you earn? – the amount of earnings directly depends on your capital and the trading strategy used and can range from 10% to 1000% per month.
Statistics show that on average a professional trader earns from 20 to 40 percent monthly. For example, having an amount of $5,000 in your account and an average profitability of 30%, you can earn about $1,500 in a month. 10. What do you need to start working on Forex? – Desire to work and study, equipment (computer and Internet).
The amount of initial capital at the moment is not decisive, since there are a lot of competitions on demo accounts that anyone can take part in and receive real money if they win. There is even a certain category of traders who specialize in participating in no-deposit competitions, because the prize amount is sometimes several thousand US dollars. You can find more detailed answers to these Forex questions on the pages of this site.