FREQUENTLY ASKED QUESTIONS?
We have the answer!
Forex is a shortened term used for ‘Foreign Exchange’. It is the process of buying and selling currencies. The foreign exchange market is the biggest and most liquid financial market in the world. The market operates 24 hours around the clock from Sunday night through Friday and comprises central banks, currency speculators, organizations, governments, retail investors and international investors. Over the years, the size of the Forex market has been constantly increasing. According to the Bank for International Settlements’ (BIS) 2013 Triennial Survey of global FX market volumes, the average daily volume in the global Forex markets was estimated at $5.345 trillion, 34% higher in than the $3.971 trillion in April 2010 ($3.21 trillion daily in April 2007 and $1.7 trillion in 1998). On our site, you can trade forex in the form of CFDs.
A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of a contract. CFDs are derivatives products that allow you to trade on live market price movements without actually owning the underlying instrument on which your contract is based. You can use CFDs to speculate on the future movement of market prices regardless of whether the underlying markets are rising or falling. You have the opportunity to sell and profit from falling prices, or buy and profit from rising prices. Moreover, with our vast variety of markets, you can gain exposure to markets you may not have had access to before. We offer CFDs on shares, indices, commodities, ETFs, currency pairs and cryptocurrencies.
Cryptos and Forex CFDs are traded in currency pairs while other CFDs are commonly financial instruments that are valued in a specific currency. Common currency pairs are the Euro/US Dollar (EUR/USD), US Dollar/Japanese Yen (USD/JPY), Great British Pound/US Dollar (GBP/USD), Euro/Japanese Yen (EUR/JPY) and Australian Dollar/US Dollar (AUD/USD). You can buy and sell each currency or financial instrument, in the form of CFDs.
Normally, during the European and North American winter time, weekly activity begins on Sunday at 22:05 GMT continuously until Friday 21:00 GMT. During the Day Light Saving times in these regions, the weekly market activity begins on Sunday at 21:05 GMT and ends on Friday at 20:00. Market activity hours may vary due to public holidays or due to unusual liquidity conditions which may arise from exceptional global events. Opening or Closing times may also be altered by iFOREX due to liquidity and risk management considerations. Please be advised that while some of the instruments are traded on a 24 hour basis without interruption, some instruments, mainly shares and indices, have special Trading Hours.
To be able to trade you only need a device with an internet connection and a funded trading account. In addition, you should be equipped with some knowledge regarding CFD trading or financial education and that you use trading tools to help you minimize the risks in the market.
You must be over the age of 18 to trade.
Leverage is used to significantly increase your purchasing power. No other market gives you so much liquidity and leverage at the same time. On some CFD instruments, iFOREX provides a leverage of up to 30:1. This means that with a deposit of $500, you can trade with up to $15,000.
In financial markets, specifically in the Forex market, pip (percentage in point) is a unit of change in an exchange rate of a currency pair. Most major currency pairs are priced to four decimal places, and a pip is one unit of the fourth decimal point: for dollar currencies this is to 1/100th of a cent.
The spread is the difference between the BUY price and the SELL price of two instruments. For example, if the EUR/USD is trading at 1.3100 (buy) and 1.3098 (sell), then the spread is 2 pips.
Going “long” is when a trader buys an asset expecting its value to rise. This is also called opening a long position. Going “short” or opening a short position, is when a trader sells an asset, expecting its price to decline so it can be bought back in the future at a lower price.
At the close of each trading day, CFDs become subject to the Overnight Financing process, whereby an interest adjustment is applied for keeping deals open ‘overnight’, or more specifically, during the applicable market’s closure period. The adjustment can be positive or negative, depending on the direction of the deal and the underlying interest rates. The calculated value and percentage of an instrument’s Overnight Financing applies for 1 day. CFDs that are traded 5 days a week will be credited or debited with a value 3 times the displayed value during the last day of its underlying asset trading week, as it covers the entire weekend period.
When you hold a deal open overnight it is subject to a credit or debit adjustment. This adjustment depends on the type of deal you hold (either Bought or Sold) and on the relevant Inter-Bank interest rates (plus a mark-up).
All open CFD deals on future contracts, which are not closed before reaching their value date, are automatically rolled over by the Broker to the next contract’s value date, so that the deal remains open. Upon effectuating such rollover, the deal’s open P/L (Profit / Loss) will express the price difference between the expired contract and the new one, and will also include a mark-up spread. In addition, all associated Limit Orders shall be adjusted to the new future contract. The Balance adjustment may also include a mark-up spread. During such rollover, the Broker may utilize higher margin requirements.
Unlike the equities market, the Forex market does not have a central location. Transactions take place over the internet or phone which is why the market is available 24 hours a day.
There are various ways prices can change. Economic and political conditions usually affect the value of an asset, along with interest rates, inflation, and supply and demand.
No. Broker do not execute orders during off-hours.
Yes, during market conditions that are characterized by high volatility or communication latency, and due to the time it takes for an order to be executed, market orders may sometimes be executed at a different rate than requested.
Yes. Even when the market is closed, it is possible to add, change and remove Limit Orders on all instruments.