FAQ

What is the Forex?

The word Forex comes from the English words Foreign Exchange Market and it means international market exchange rates. In this market you can exhange currencies of various countries at rates favorable to you.

Why is Forex so popular?

Forex has the biggest cash turnover worldwide, and transactions in this market can be made at any time of day.

Does Forex have a specific location, and who founded it?

The market Forex does not belong to anyone in particular. Forex is an interbank market. All transactions are directly (or through brokers) between buyers and sellers. The Forex market does not belong to a government of any country and will exist as a worldwide bank system.

How will I profit using Forex?

The amount of your income depends on how effective your strategy is in trading, how well you learn to predict the trend in rates, and of course on the size of your deposit.

How much time will I need to spend on training?

Everything is simple here: You will be constantly learning, if you want to become a professional trader. Experience and knowledge in this business are essential.

Do I need to know foreign languages

It will be enough to know the basics of the English language. If you know only Russian or Ukrainian, you will need a couple months to learn the basic terms.

Will I be able to work without financial education?

Anyone who has the desire, aspiration, as well as diligence can work in the financial market. However, special education will greatly benefit you.

What is the tax on the profits obtained during work?

In Ukraine, this income tax is 15% for individuals. Every individual pays his own tax, filling it at the end of the year.

What is the difference beween working with a real account or a virtual (educational) account?

One of the differences is - all operations on the virtual account are conducted without participation of funds therefore without the risk of material losses. This is why the virtual account is called an educational account.

What is "Rollover"?

Everyday the clients account recieves either a deposit or withdrawal, reflecting the interest rate differential between the currencies in pairs, on which the position was open.

What is the risk in trading with Forex?

Transactions in Forex, as well as transactions in any other financial market, are defined by two criteria: risk and return, meaning, the higher the risk, (in this case the amount of leverage), the greater return the investor can expect. You can reduce potential risk by regulating the size of leverage and also through installation of protective stop order

Is it possible to trade during the weekend?

The market does not work during the weekend.

Why did they close my position?

The broker is entitled to close the current price of all or part of positions when your equity (balance + profits on the open positions - losses from open positions) falls below the required margin.

At what time can transactions be made on the foreign exchange market Forex?

The international currency market (Forex) is open from 22:00 GMT Sunday (opening of Australia's trading session) till 22:00 GMT Friday (closing of the trading session in the U.S.).

What are long and short positions?

Long position- position purchase (buy), this is the position that is profitable at higher prices
Short position- sales position (sell), this is the position that makes a profit at lower prices.

Could there be a situation where the damages will exeed the initial investment?

No. The broker will not allow you to lose more then what is in your trading account. The broker will close your trading position if the account balance approaches zero. If you lose more than invested, it would be a direct loss to the broker. It is in the interest of the broker to prevent such losses. To protect themselves, brokers introduce the concept of the level of stop-out. This means that the most unprofitable position will be closed as soon as (the free margin / used margin) * 100% will be equal to or less than this level.

What time is being used in MetaTrader 4?

MetaTrader 4 uses time +2 GMT.

Why is there no connection between the terminal and server?

There may be multiple reasons:
1. Poor connection from the client;
2. The client has not opened port 443 (blocked by firewall).

What computer configuration is recommended for work with the terminal?

Recommended requirements: 64 MB RAM, 600 MHz, any processor (Celeron, Pentium III), modem 56k. Monitor resolution, at least 800 х 600, desirable - 1024 х 768. Browser Microsoft Internet Explorer 6.0 or higher. Systems with the poor configuration may have problems when working with terminal.

What is the cost of one point and how it is calculated?

Suppose you buy USD / JPY - 1.0 lot at the price of 110.50. Then the closed position at 110.70. What is the profit?

When you open an order, if you bought 100,000 USD and sold: 110.50 * 100,000 = 11,050,000 JPY. Closing the deal, you have sold and bought 100,000 USD: 110.70 * 100,000 = 11,070,000 JPY. Thus, (11070000-11050000) = + 20000 JPY, which is (in U.S. dollars) at the rate of closing of the order: 20000 / 110.70 = 180.66 USD. This is your profit.

Accordingly, 1 point (1 pips) equals: 180.66 / (110.70-110.50) = 9.033 USD

Similarily, other currency pairs can be calculated.

The message "Trade is disabled" in MT4 when trying to create or modify orders.

The reasons may include:
1) This message is typical for a situation where the trading session on the currency pair had either ceased or has not yet started.
2) The message is also displayed in violation of restrictions on the amount of open positions or exposed pending orders.
3) You may have used the password of the investor, which does not involve working directly on the account.

The message "Invalid account" in MT4.

The message "Invalid account" may have the following reasons:

1. Incorrect username.The username is your account number with the Company, which contains only digits
Real account number consists of 4 to 8 numbers.
Demo account number consists of 4-8 numbers.

2. Incorrect Password. The password is created by the client, when opening the account. The password should consist of no less then 5 symbols and should also consist of numbers and letters in different cases.
The password to the terminal can be restored through Technical Support service.

What is the investor password needed for?

When connected to a trading account with an investors password, you can not carry out trading operations. Password investor provides an opportunity to use the terminal only for viewing your trading account. Therefore, using this password, you can safely monitor your account and give access for the public to view your account. You, as the owner of a trading account can be sure that the password does not allow the investor to make any commercial transactions or make changes to your account.

Only trade (main) password allows changes in the parameters of the trading account: the opening and changes in trading positions.

What is Trailing Stop? Does Trailing Stop work when my computer is disconnected from the internet?

When you place a Trailing Stop (for example, X pips), the following happens:
The trading platform does not take any action until the position becomes profitable by X pips (trailing stop). After that , the terminal will put a stop order at a distance of Х pips from the current price (in this case - at break-even).When the quote received, if the distance between current price and stop-order exceed x pips, then the terminal will send the command to change stop-order on x pips from the current price. So that your stop-order will trail for x pips to the current price.

This way the Trailing Stop is an algorithm / rule to the stop order.

Naturally, the trailing stop can only work if your terminal is running on an active Internet connection. After all, to send commands to the algorithm described above, the terminal must be "online" (in connection).

What happened to the history from the account?

In the window, "Terminal", right click on "Account History." Then, in the context menu, select "All history" to display the entire account history since its registration or click the "Select period" to select a specific period for which you want to see the history of the account.

What is an ECN account and what are its advantages?

This is a professional trading account. It provides an opportunity to trade directly on the market. The definition of ECN (Electronic Communication Network)- an organization trading in financial instruments in a single electronic system, due to this all bidders interact directly with each other.

What is a PAMM account and what are its benefits?

This is a professional trading account. PAMM (Percentage Allocation Management Module)- trading account, which in addition to an account manager includes an unlimited number of accounts of investors, making it a unified capital and trade structure. Account is managed by the manager.

What is an Expert Strategy (ES) account?

This is a professional trading account with one difference, it is operated by a special program (trade expert, robot).