Frequently Asked Questions
What is automated forex trading?
Automated trading is a method of participating in financial markets by using a software/expert advisors that executes pre-set rules for entering and exiting trades.
What Is Forex?
Forex, also known as foreign exchange or currency trading, is the buying of one currency by simultaneously selling another. Forex traders attempt to profit by speculating on the direction the currency exchange rates will go in the future.
What drives Forex Market?
Some key drivers of the Forex markets include economic news releases, central bank interest rates, central bank interventions, fear, greed, and the futures market.
What are the working hours of Forex Market?
The Forex market is open from 22:00 GMT Sunday (opening of the Australian trading session) till 22:00 GMT Friday (closing of the US trading session).
What is margin?
Margin is money you need to have in your broker account to secure your open position. A Different brokers require a different amount of margin money to keep your positions open.
What are the long and short positions?
A long position is a buy position, meaning that this position will be in profit if the currency rate goes up. A short position is a sell position, meaning that this position will be in profit if the currency rate goes down.
Why does any trade that I open starts in a loss?
When you open a trade, you do it at the Ask price for Buy trades or the Bid price for Sell trades. If you were to close the trade, the opposite price is used — the Bid price to close a Buy trade and the Ask price to close a Sell trade. The same applies to calculating the trade’s floating profit or loss. Hence, when opening a new trade, it always starts in the red due to the Bid/Ask spread. This is why every trader must first beat the spread for their positions to become profitable.
What are the main 8 major currencies of the world?
The 8 major currencies include the US Dollar (USD), the Great Britain Pound (GBP), the Euro (EUR), the Japanese Yen (JPY), the Swiss Franc (CHF), the Canadian Dollar (CAD), the Australian Dollar (AUD), and the New Zealand Dollar (NZD).
What are the major currency pairs?
These are the major currencies cooped with the US Dollar (USD). These include EUR/USD, GBP/USD, USD/CAD, USD/JPY, USD/CHF, AUD/USD, and NZD/USD.
What are the minor currency pairs?
These are the major currencies paired with one another, that don’t include the US dollar (USD). These are also called cross pairs, and they include EUR/CAD, GBP/JPY, AUD/NZD, CHF/JPY, etc.
What is the value of a "PIP"?
If your account is in US Dollars, and you are trading a pair with USD as the base currency (ex. EUR/USD), then the following is true:
- 1 pip trading with a 0.01 (Micro Lot) is equivalent to $0.10
- 1 pip trading with a 0.10 (Mini Lot) is equivalent to $1.00
- 1 pip trading with a 1.00 (Standard Lot) is equivalent to $10.00
What are LOTS/LOT sizes?
Lots refer to the specific units traded with currency pairs, which essentially means the number of currency units you wish to buy or sell. There are 3 types of lots:
- Micro Lot size = 0.01 = Controls 1,000 units of currency
- Mini lot size = 0.10 = Controls 10,000 units of currency
- Standard Lot size = 1.00 lot = Controls 100,000 units of currency
What does Bullish mean?
Going long or buying, is a bullish action for a trader to take. Put simply, being a bull or having a bullish sentiment means that you believe a currency pair will increase in value, or go up. To say “he’s bullish on USD/JPY,” for example, means that he believes the price of the US Dollar will rise against the Japanese Yen.
What does Bearish mean?
Going short (shorting), or selling, is a bearish action for a trader to take. Put simply, being a bear or having a bearish sentiment means that you believe a currency pair will decrease in value, or go down. To say “he’s bearish on EUR/USD,” for example, means that he believes the price of the Euro will fall against the US Dollar.
What is Swing Trading?
Swing trading is for those who have the patience to wait for a trade. Swing traders have lots of patience and are willing to hold a trade for days or even weeks. Swing trading requires a larger stop loss than day trading to allow the trade to breathe. Swing traders can handle high drawdowns and keep a calm mind when the trade is floating in drawdowns.
What is Scalping Trading?
Scalping is a very fast style of trading. These types of traders are called scalpers, and they like to get in and out of the markets quickly. Scalping is best suited for traders who can make quick decisions and act without hesitation. These are often traders who don’t have the patience to hold trades for long periods. Instead, they expect their trades to become profitable immediately, and they will usually exit trades promptly if a trade goes against them.
What Broker Provider You Recommend?
Our Recommendation is: PEPPERSTONE Broker
ACCOUNTS
● Standard spread account and Razor commission-
based alternative
● Selection of 10 various account currencies*
● 4 Trading Platforms on PC & Mobile
● TradingView / cTrader / MT4 / MT5
● Multiregulated firm: FCA, ASIC, BaFin, DFSA, SCB,
CMA, CYSEC
● Tier 1 Bank liquidity for razor-sharp pricing
● Fast : Reliable: ~30ms speed backed by excellent
support
● Expert analysis by a Global research team
● Award-winning educational tools, videos and
industry-leading webinars
● Multiple deposit/withdrawal methods
● NO inactivity fees
● Multilingual customer support 24/5 with extended
weekend hours
What VPS Provider You Recommend?
Our Recommendation is: ForexVPS.net
- High Performance Forex VPS – VPS Server that is Always ON
- Near-instant execution as fast as 1 millisecond
- VPS Servers with a 100% uptime guarantee
- Simple setup only takes 5 minutes
- Technical support available 24/7
- Lightning-fast SSD
- Supporting all Expert Advisors
Disclaimer: Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
ACCOUNTS
● Standard spread account and Razor commission-
based alternative
● Selection of 10 various account currencies*
● 4 Trading Platforms on PC & Mobile
● TradingView / cTrader / MT4 / MT5
● Multiregulated firm: FCA, ASIC, BaFin, DFSA, SCB,
CMA, CYSEC
● Tier 1 Bank liquidity for razor-sharp pricing
● Fast : Reliable: ~30ms speed backed by excellent
support
● Expert analysis by a Global research team
● Award-winning educational tools, videos and
industry-leading webinars
● Multiple deposit/withdrawal methods
● NO inactivity fees
● Multilingual customer support 24/5 with extended
weekend hours
- High Performance Forex VPS – VPS Server that is Always ON
- Near-instant execution as fast as 1 millisecond
- VPS Servers with a 100% uptime guarantee
- Simple setup only takes 5 minutes
- Technical support available 24/7
- Lightning-fast SSD
- Supporting all Expert Advisors
MustForex Expert Advisors has been built to become the Safest Expert Advisor in the Forex industry that helps to automate your trading with an approach that every trade is protected with stop loss to protect your invested capital.
Disclaimer: Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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