What is forex?
Forex stands for FOReign EXchange and is the worldwide currency inter bank or inter-dealer market that uses a floating exchange-rate system. Most people don`t know about forex. It is the world's largest financial market with an estimated daily average of $1.5 to $3 TRILLION.
Why forex trading?
As a forex trader you can live almost anywhere, as long as you are within reach of the internet. A forex trader can work from home or the office, and in some cases, even while traveling! A forex trader can usually choose their own hours of work since the global foreign-exchange market is open 24 hours a day. A forex trader avoids many common headaches associated with running a business because there is NO inventory, NO shipping, NO billing, NO collections, NO employees, NO commuting and NO dress code!
And finally, as forex traders can potentially earn a very high income, it`s imperative to know that you will also be exposing yourself to a risky business, in which traders also can potentially lose their income!
When does forex trading occur?
The first session is the Tokyo session which begins each week on Monday morning in the Asia-Pacific region - this is Sunday evening in the Americas. Trading continues non-stop moving into the London session and then on to the New York session until all markets close on Friday afternoon. The forex is open 24 hours around the globe, with no opening and closeing times like on the other markets.
What is a pip?
The smallest movement in a currency. For example, in EUR/USD, a move from 1.2080 to 1.2081 is one pip. In USD/JPY, a move from 110.51 to 110.52 is one pip. Trading full contracts (100k of currency) the EUR/USD and GBP/USD are worth approx. $10, for the other pairs approx. $8. If you trade mini contracts, divide by ten, instead of $10 every pip worth $1.
What are "long" and "short" positions?
A long position is one in which you buy a currency at one price, with the expectation of selling it later at a higher price. A short position is one in which you sell a currency with the expectation of buying it back at a lower price. Every forex position you take automatically entails going long in one currency, and short in the other. If you buy one, by default you are shorting the other.
What`s a limit order?
A limit order is an order with restrictions on the maximum price to be paid or the minimum price to be received.
And what is a stop loss order?
A stop loss order is an order type whereby an open position is automatically liquidated at a specific price.
What do "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 are the risks in forex trading?
The risks can be high, but also controllable. Forex traders around the world are competing against other forex traders, banks and institutional traders who are seeking the same potential rewards from their own trading activities. Money management, discipline, talent and a lack of emotion are traits you will want to develop in forex trading. But remember, forex Trading is speculative and any capital used should be risk capital. We recommend that you trade on a demo account until you have shown profit for at least three consecutive months before trading real money.
What is the minimum capital to start trading?
$2500 is the min. you should have to start. Forex dealers can set their own minimum account sizes, so you will have to ask the dealer how much money you must put up to begin trading. Most dealers will also require you to have a certain amount of money in your account for each transaction. This security deposit, sometimes called margin, is a percentage of the transaction value and may be different for different currencies.
Is forex trading expensive?
No. Most online forex brokers allow customers to execute margin trades at up to 100:1 leverage. This means that investors can execute trades of $100,000 with an initial margin requirement of $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 equity markets, the usual margin allowed is 50% which means an investor has double the buying power. In the forex market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.
How long are position-holding periods?
Holding periods are based on the timeframe you chose. Daily trades are most holds longer then one day. Often the stay for many days. If you would like to trade our 4h signals then the sometimes hold only a few hours.
When are ForexScout24.com signals sent and how often?
ForexScout24.com daily signals are sent in the morning, the 4h timeframe signals are send when our system give us one.
Do I need to wake up or stay awake during the night to place or close trades?
No definitely not. There`s no need to wake up during the night to receive e-mails and manage trades. All our system entries and trade management are done during day-time hours.
How many pairs do you follow?
We trade all the pairs which are available to us, but the client can their own trading decisions.
How many signals does ForexScout24.com send per day?
We send one daily signal for each one of the pair we trade and 3- 5 4h signals with a complete set of instructions about entry levels, direction and stop loss.
How much time does it take to follow your system?
In our opinion, after you have traded for a few days and got used to the trading system it will really take you only 15 minutes each day to execute your trades.
Is the price you send in signals (buy /sell) the bid or ask price?
In forex bid/ask are SELL and BUY prices, and SPREAD is the difference in PIPS, which for major currencies is 2-5 pips depending on the broker and market conditions. When you BUY you can only do so at the ASK price, and when you SELL you can only do so at the BID price. It depends when our signal is a BUY, then it's the ASK price, and when it's a SELL, it's the BID price. Some of the spreads you can expect to see, but these spreads can vary depending on market conditions:
- EUR/USD 2 pips
- USD/CHF 3 pips
- GBP/USD 3 pips
One reason is because of the fast-changing and volatile forex market. Another is because everyone is using a different platform, and we cannot always match the exact price of the currency pairs at the time of sending the signal. Therefore, sometimes there are one or a few pips, which could be to your advantage or disadvantage, which we know sometimes makes all the whole difference between profit and loss.
Do you offer a free trial?
Our service does not offer free trial. Our system makes the price you pay an interesting investment other than an expense.
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.
How long does it take to get access to the signals?
You have instant access to the signals. After subscribing (which only takes a few seconds) you are immediataly part of our club..
Does my subscription renews itself automatically?
No. This we don`t like to do. We think our way is one of the best ways because you can come and go when you want. Fair play is our way.
