FAQ
1) What kind of services FXOpen provides?
FXOpen is an international business company dealing in over-the-counter Forex contracts. FXOpen gives the clients access to the Forex Markets covering major world currencies, Futures and other products.
2) Do you provide any recommendations or analysis at Forex?
FXOpen provides forex signals suitable for intoday as well as position traders.
3) What is FXOpen company?
FXOpen propose brokerage services at FOREX market since year 2005. FXOpen Propose high standards and security and of a lot of advantages for successful and good trader's work.
4) How can I open Real Money Account with FXOpen?
Opening account is simple. Go to www.fxopen.com and choose Open Real Money Account tab. Please read all documents before opening. Fill simple application form and submit it. Your real money account will be opened in 10-15 seconds. You will receive a message from FXOpen with your account details and the ways how to deposit money to start trading.
We need to receive your identification documents scan (ID, Passport or driving license) to manager@fxopen.com. You will not be able to make money withdrawals without this documents sending.
5) What is the leverage for my account?
Leverage available for FXOpen trading accounts is from 1:1 to 1:500 for accounts under 25,000 USD. From 1:1 to 1:200 for accounts under 100,000 USD. And from 1:1 to 1:100 for accounts under 1,000,000 (1 million) USD. You can choose any you like.
6) What is the minimum amount to open an account?
Minimum amount to start is 25 $ for Standard accounts and 1$ for Micro accounts. However we advice to start from 300-500 $.
7) How can I deposit money to my account?
At the moment you have 7 options:
- Wire transfer from your Bank account
- E-gold (About e-gold you can read at www.e-gold.com)
- WebMoney
- CashU
- E-Bullion
- Liberty Reserve
- Western Union*
- Local deposits*
8) How can I withdrawal my money?
Login to Traders' cabinet and make withdrawal by any method provided. Withdrawal takes up to 24 hours.
9) What is spread and how big it is in FXOpen?
FXOpen normal dealing spreads are 2 to 4 pips for the major currency pairs. The difference between the ask (offer) and bid price in a market quote. The spread is the reason why a newly opened position's mark to market, or valuation, will likely be negative. If a trader buys a particular currency will pay the ask (offer) price, but the current mark to market will be based upon what the marketplace is presently paying for this currency. That price would be found on the bid side of the market quote, Competitive lower than where just bought the currency. For more information go to page Contracts Specifications.
10) What is the minimum of trading order?
FXOpen minimum transaction size is 0.1 lot (10,000 USD) for Standard accounts and 0.1 micro lot (100 USD) for Micro accounts.
11) What is the fees, commissions for trading positions opening?
FXOpen offers direct dealing spreads of 2 to 4 pips on the major currency pairs. Trades will typically be executed in less than 1 second. No any commission or swap will be taken.
*No Swap trading available for the Muslim traders only
12) Price Quotes
FXOpen clients have the ability to execute trades directly from real time streaming quotes, provided by the largest banks in the FX market. Customers can either trade with the expert advisor and execute trades automatically or manually. Prices are updated automatically as market conditions dictate.
13) How to Trade over the Internet?
Executing a deal with FXOpen via the Internet is a simple two-step process. Simply enter the number of lots and then click on the bid (sell) or offer (buy) for the currency pair you wish to trade - your deal is automatically executed. The dealing software automatically calculates the initial margin requirement based upon the notional amount of the deal, and if sufficient funds are available in your account, will accept the transaction. Deals are confirmed online, normally within one second, and the system instantaneously updates both your open position and calculates your current P & L.
14) Can I use pending orders to trade in FXOpen trading platform?
Your order can be opened and closed automatically by using pending orders option and stop lose and take profit options.
FXOpen dealing platform provides sophisticated order entry and tracking. Orders may be entered at any rate - inside or outside the existing spread - using the following orders types: orders types:
- Limit orders
An order to buy or sell Foreign Currency, or pairs of Currencies, at a specified price or exchange rate. A Limit Order to buy generally will be executed when the ask price equals or falls below the price or exchange rate specified in the Limit Order. A Limit Order to sell generally will be executed when the bid price equals or exceeds the price or exchange rate specified in the Limit Order. Customers should note, however, that market conditions may often prevent execution of an individual Customer's Limit Order despite other dealing activity at that price level. If a trader is long USD/CHF is 1.4627, a limit order would be entered to sell dollars above that price, for example, at 1.4800.
- Stop Loss orders
An order to buy or sell at a specified Foreign Exchange Rate away from the current market for the purpose of liquidating an Open Position during market conditions in which the Open Position has declined in value. Execution of such an order can occur at rates below (or above) the specified Foreign Exchange Rate.
If the trader above is long USD at 1.4627, a Stop Loss order could be left at 1.4549, in case the dollar depreciates below 1.4549.
As a rule, sell stops are filled on our bid, and buy stops are filled on our offer. This allows FXOpen to fill client s orders at the rate they requested in almost every case. In the rare instance that the market gaps over a requested rate, the s is filled at the best available price. This is an important point for traders who are accustomed to being filled on sell stops when the offer reaches the requested order rate. For example, if a s order is placed to sell USD/CHF at 1.4549, the trader will be filled when the bid reaches 1.4549 (i.e. the bid / offer is 1.4549 / 53).
- Trailing Stop Loss
A complex stop-loss order in which the Stop Loss price is set at some fixed number of pips below the market price. If the market price rises, the s loss price rises proportionately, but if the currency price falls, the Stop Loss price does not change. This technique allows an investor to set a limit on the maximum possible loss without setting a limit on the maximum possible gain, and without requiring paying attention to the investment on an ongoing basis.
* For the trailing stop continue to modify the Stop Loss, the trading platform must be running and connected to the internet.
- Take Profit
The level at which you wish to close a position in order to realize profits.
15) Order Execution
- Stop Loss Orders - Execution Rules
As a rule, sell stops are filled on our bid, and buy stops are filled on our offer. This allows FXOpen to fill client s orders at the rate they requested in almost every case. In the rare instance that the market gaps over a requested rate, the s is filled at the best available price. This is an important point for traders who are accustomed to being filled on sell stops when the offer reaches the requested order rate. For example, if a stop order is placed to sell USD/CHF at 1.4549, the trader will be filled when the bid reaches 1.4549 (i.e. the bid / offer is 1.4549 / 53). - Good Till Cancelled (GTC) Orders - Execution Rules
A trade Order placed for a specific amount of time to buy or sell a foreign currency.
The amount of cash or other Eligible Collateral that FXOpen requires a customer to deposit or maintain in the Customer's Account in connection with the Customer's trading activity. The system performs an automatic pre-deal check for margin availability, and will only execute the deal if the client has sufficient margin funds in his or her account.
17) Can I get Margin call if I will have no free margin?
No. You will not get any margin call even if your free margin will be in the minus. Positions will stay opened until available equilty will be not less than 10% from required margin.
18) Confirmations
Deals are confirmed on screen, typically within one second. Full transaction details may be accessed on screen as well, including date, time, rate, notional amount bought and sold, USD value, and reference number.
19) How can I see account reports?
FXOpen dealing software tracks all trading activity in real time, allowing clients to view current open positions, real-time profit and loss, margin availability, account balances, and all historical transaction details directly on-screen.
20) How can I see account statements?
Account statements are emailed to trading clients at the end of each trading day and month, listing all deposits/withdrawals during the statement period, realized P&L, and current account balance as calculated at the close of business on the last business day of the month.
21) How do I get profit on Forex?
Example 1. GBP/USD
Let your deposit equal 3,000 USD. Leverage 1:500 on Forex Market allows to operate the sum equal 1,500,000 units of base currency.
You expect increasing of US currency cost against general world currencies on Forex Market. And decide to sell GBP against USD on September 22nd, 2005. At the same time you realize the risk of trading the maximum sum, and sell only 30,000 GBP against USD at 1.8000
12 days later, on October 3rd, 2005 you decide to close your short position and buy GBP at 1.7540.
Thus, your operation profit on Forex Market equal:
(1.8000 - 1.7540) * 30,000 $ = 1,380.00 $
Accordingly, the trading yield equal:
(1,380 $ / 3,000 $) * 100 = 46 % of the initial deposit.
Example 2. USD/JPY
Let your deposit equal 2,000 USD. Leverage 1:200 on Forex Market allows to operate the sum equal 400 000 units of base currency.
You expect decreasing of US currency cost against general world currencies on Forex Market. And decide to sell 50,000 USD against JPY at 111.10 on August 31st, 2005.
A week later you decide to close your short position USD/JPY and buy USD against JPY at 109.15.
Thus, the financial result of this trade on Forex Market equal:
(111.10 - 109.15) * 50,000 JPY = 97,500 JPY (or 97,500 JPY / 109.15 = 893.26 $)
Accordingly, the trading yield equal:
(893.26 $ / 2,000 $) * 100 % = 44.7 %
22) How can I open Free Demo account?
Opening free demo account is simple. Go to www.fxopen.com and choose Open Demo Account tab. Fill simple application form and submit it. Your demo money account will be opened in 10-15 seconds.
* The account will be deleted only if won't be used for 30 days, otherwise it is unlimited
23) Are there limited number of transaction that I need to make per month?
You can have 100 trades opened same time. There is no other limits. Follow your trading strategy.
24) How long I can keep my account innactive?
You can keep your account innactive as long as you like. No fees will be taken.
25) Do you have bonuses?
Yes, we have some promotions, please check:
Our Promotions
26) How can I get 100 $ bonus from FXOpen?
Make accumulative trades for 10 standart lots and receive 100 $ bonus to your trading account.
Example: you open BUY EUR/USD 0.5 lot, than SELL GBP/USD 1.5 lot, than BUY USD/CAD 0.8 lot... 0.5 lots + 1.5 lots + 0.8 lots = 2.8 lots and so on until you will collect 10 lots.
* This is a 1 time offer
27) How fair is the Forex market?
is said to be the "fairest market on earth? because it is so large and there are so many participants that no one player, not even a large government, can completely control the direction of the market.
28) Where is the central location of the Forex Market?
Forex Trading is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered an Over the Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
29) Who are the participants in the Forex Market?
Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.
30) When is the Forex market open for trading?
A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
31) What are the most commonly traded currencies in the Forex markets?
The most often traded or 'liquid' currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar.
32) What is Margin?
Margin is essentially collateral for a position. If the market moves against a customer's position, additional funds will be requested through a "margin call." If there are insufficient available funds, immediately the customer's open positions will be closed out.
33) What does it mean have a 'long' or 'short' position?
Currency prices (exchange rates) are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.
34) What affects the prices of currencies?
Currency prices (exchange rates) are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.
35) How do I manage risk when I trade currencies?
The most common risk management tools in Forex trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order sets a particular position to be automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the Forex market ensures that limit order and stop loss orders can be easily executed.*
36) What kind of trading strategy should I use?
Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.
37) How long are positions maintained?
As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and you need these funds.
38) How much profit can actually be made?
Naturally results can and do vary among individuals and no guarantees can be made as to profitability. Some markets for instance the Japanese Yen have been known to move 400 pips in one day. If you calculate that 1 pip is equal to approximately $7.8 per lot and you entered the market favouring that move, even if you only got in halfway through that move, you would have made quite a substantial profit. But, and this is a big “but”- You need to be aware that the risks of Forex trading can be substantial, that results do vary from person to person, and that the knowledge and experience that each one has is different.
39) I am interested in Forex trading, but would like some additional information. Any suggestions?
In order to gain a practical understanding of foreign exchange trading, there is no better way than to open a forex demo account, where you can experience what it's like to trade the forex market without risking any capital + take a good Forex educational course.
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