FAQ – frequently asked questions about forex.
On this page, you can find answers to the most frequently asked questions about Forex trading. This article will help you gain a basic understanding of Forex and what you need to start trading.
1. What is Forex? – It is a virtual currency market where transactions involving the exchange of one currency for another occur.
2. Where is the Forex exchange located? – Forex does not have a clearly defined location; trading takes place exclusively on virtual platforms, which shift with time zones.
3. What can I trade? – The majority of transactions are conducted in currency pairs, but thanks to the functionality of trading terminals, it is also possible to trade metals, stocks, and certain commodity groups.
4. When is Forex open? – The exchange operates 24 hours a day, except weekends and holidays. The time of day does not affect the technical features of trading, meaning you can trade at any time convenient for you.
5. What is leverage? To significantly increase the volume of transactions, brokers provide their clients with so-called leverage free of charge, which allows them to increase the transaction amount several times. For example, leverage of 1:100 will increase your deposit exactly 100 times.
6. Is it possible to lose the broker's money? No, since there is an order system that closes the transaction as soon as losses reach a certain level.
7. How long does it take to learn trading? Learning the technical aspects of working in a trader's trading terminal usually takes no more than a week, but to make a stable profit, some need at least six months, while others need a lifetime.
8. What equipment is needed for trading? A desktop computer or laptop is the best option, 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 the average professional trader earns between 20 and 40% monthly. For example, with $5,000 in an account and an average profitability of 30%, you can earn around $1,500 per month.
10. What do you need to get started in Forex? – A desire to work and learn, equipment (computer and internet access). The amount of initial capital is currently not crucial, as there are numerous demo account contests available for anyone to participate in and win real money. There is even a certain category of traders who specialize in no-deposit contests, as the prize amount can sometimes be several thousand US dollars.
You can find more detailed answers to these Forex questions on this website.
