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FREQUENTLY ASKED QUESTIONS
Many of the
questions which may arise are answered in the
detailed descriptions of each trading system so
we advise reading those sections carefully.
Below is a selection of questions not answered
in those sections. If you do not find the answer
to your specific question here please do not
hesitate to
contact us and
we will endeavour to provide a response.
What is FOREX?
Forex is a term used for FOReign EXchange
trading. It is the world's largest financial
market with an estimated daily average of over
$2 Trillion.
Why Trade FOREX?
The Forex market has very high liquidity and
trades 24 hrs a day 5 days per week, offering a
true worldwide market that can be accesses very
easily.
When does Forex trading occur?
The Forex market trades 24 hours around the
globe, there is no daily open and close like the
individual stock markets around the world. Each
week trading occurs from the Asian Session,
on Monday morning in the Asia-Pacific region
(which is Sunday evening in Europe). Trading
continues into the European/London Session and
on to the US Session. This cycle continues for 5
days until all markets close on Friday
afternoon.
How high are the risks in FOREX
trading?
The risks are high but can be managed with
strict risk control and disciplined account
management. Forex traders around the world
compete against each other, banks, and
institutional traders for the same possible
profits. Obviously there are net winners
and losers and it therefore requires strict
discipline, talent, and a lack of emotion to
succeed. FOREX Trading is speculative and any
capital used should be risk capital. In fact, we
always recommend that you trade on a demo
account risk free until you understand the risks
and are familiar with the necessary trading
techniques before trading real money.
What is a Pip?
The smallest movement in a currency. Often
referred to as "ticks" in the futures markets.
For example, in EUR/USD, a move from 1.2000 to
1.2001 is one pip. In USD/JPY, a move from
120.00 to 120.02 is two pips.
What are "Long" or "Short"
positions?
A long position is one in which you Buy a
currency, with the intention of selling it at a
higher price. A short position is one in which
you Sell a currency, with the intention of
buying back at a higher price.
What do the terms "bid/ask" and
"spread" mean?
Bid is the highest price that the seller is
offering for a particular currency at the
moment; ask is the lowest price acceptable to
the buyer. Together, the two prices constitute a
quotation; the difference between the two is
called the spread.
What is the minimum start up
trading capital?
The absolute minimum is in the region of £500,
however it is difficult managing risk
effectively on such small accounts as 4% of a
£500 account would be just £20. Meaning that a
trade risk of 100 pips would support a maximum
trade of just 20p per point. A more realistic
minimum would be £10,000
What is Leverage?
Most Forex brokers allow customers to execute
trades at up to 100:1 leverage. This means that
investors can execute trades of £100,000 with an
initial deposit/margin of just £1000. However,
it is important to remember that while this type
of leverage allows investors to maximize their
profit potential, the potential for loss is
equally great.
What is Margin?
Margin is essentially collateral for a position.
It allows traders to take on leveraged positions
with a fraction of the equity necessary to fund
the trade.
In the Forex market leverage ranges from 1% to
2%, giving investors the high leverage needed to
trade actively.
Do you offer a free trial?
We do not offer free trial. We feel we are
offering an excellent service with a good track
record. We do however offer a reduced price
trial membership.
What is Risk Capital?
No matter how good a system looks, how good a
system performs or how much money it makes. Only
"Risk Capital" or "Risk Funds" should be used in
trading. A person who does not have "Risk
Capital" or "Risk Funds" (funds they can afford
to lose) should not trade in the market.
Does my subscription renews
automatically?
This depends upon the membership type and
duration. Please see
memberships
for full details.
How do I cancel my membership?
Simply logon to your PayPal account, Click on
'All Activity', and then find the FX Protrade
Subscription, click 'Cancel'. Your subscription
will be cancelled immediately. Alternatively,
send email to
members@fxprotrade.com
with your email address, First and Last name and
we will cancel it as per your request.
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