WHAT IS FOREX

Forex trading is the means through which one currency is changed into another. When trading forex, you are always trading a currency pair – selling one currency while simultaneously buying another.

Most forex transactions are carried out by banks or individuals by seeking to buy a currency that will increase in value against the currency they sell.

However, if you have ever converted one currency into another, for example, when traveling, you have made a forex transaction.

Transactions are spread across four major forex trading centers in different time zones: London, New York, Sydney, and Tokyo. Since there is no centralized location, you can trade forex 24 hours a day.

Traders make exchange rate predictions to take advantage of price movements in the market. The extent to which your prediction is correct determines your profit or loss.

Example, GBP(British pond) is the base currency and USD(US dollars) is the quote currency. If GBP/USD is trading at 1.35361, then one pound is worth 1.35361 dollars.

If the pound rises against the dollar, then a single pound will be worth more dollars and the pair’s price will increase. If it drops, the pair’s price will decrease. So, if you think that the base currency in a pair is likely to strengthen against the quote currency, you can buy the pair. If you think it will weaken, you can sell the pair.

WITHDRAWAL FEE

There’s a withdrawal fee charge for all investors account depending on the type of account you operate, you’re charged before withdrawal is approved.

RISK MANAGEMENT

There’s what is known as stop loss In the market,this stop loss is a point you set that when you’re losing and it gets to that point your trade automatically closes so you don’t lose more than you can risk in the market at that particular time even if the market is still losing you won’t lose more because the trade have automatically stop due to stop loss.

We advice our traders to risk 2% of investment on every trade.

ACCOUNT MAINTENANCE

Maintenance refers to the minimum margin or leverage ratio that establishes a level that account balances must satisfy while margin or leverage is in use. It is a precautionary measure to mitigate the broker’s and forex trader’s risk. If account balances fall below this level, the trader will receive a margin call asking for more funds on deposit or instructions to liquidate securities in order to return the account to an acceptable status.

You’re charged for account maintenance on your account depending on the account you operate on.

WHAT IS LEVERAGE

Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, money is usually borrowed from a broker.

Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up—and control—a huge amount of money.

WHAT IS SIGNAL

A forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time. The signal is generated either by a human analyst or an automated Forex robot supplied to a subscriber of the forex signal service.