FAQ
What is Forex? Forex is an acronym for Foreign Exchange and is the worldwide currency interbank or inter dealer market that uses a floating exchange rate system. Most people have little knowledge of Forex. Yet, it is the world's largest financial market with an estimated daily average of more than $1.5 to $2 TRILLION.
Why FOREX Trading? Forex trading is attractive because it offers unparalleled freedoms. A Forex trader can live almost anywhere as long as he/she is within reach of the internet. A Forex trader can work from home or office, and in some cases, even trade while traveling! A Forex trader can usually choose his/her own hours to work since the global foreign exchange market is open 24 hours a day. A Forex trader avoids many common headaches associated with running a business because there is NO inventory, NO shipping, NO billing, NO collections, NO employees, NO commuting and NO dress code. And finally, since Forex traders can potentially earn a very high income, they enjoy the possibility of never, ever working for someone else again!
When does Forex trading occur? The first session, which is the Tokyo Session, begins each week on Monday morning in the Asia-Pacific region which is Sunday evening in the Americas. Trading continues non-stop moving into the London Session and on to the New York Session until all markets close on Friday afternoon.
The Forex market trades 24 hours around the globe, there are no open and close like the stock market.
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What is a Pip? The smallest movement in a currency. Often referred to as "ticks" in the futures markets. For example, in EUR/USD, a move from 1.2980 to 1.2981 is one pip. In USD/JPY, a move from 118.71 to 118.72 is one pip. Trading full contracts (100k of currency) the EUR/USD and GBP/USD are worth approx. $10, for the other pairs approx. $8. If you trade mini contracts divide by ten, instead of $10 every pip worth $1.
What are "long" or "short" positions? A long position is one in which you buy a currency at one price, with the expectation of selling it later on at a higher price. Obviously, you anticipate that the market will rise. A short position is one in which you sell a currency with the expectation of buying it back at a lower price. Here, you expect the market to fall. Every FX position you take automatically entails going long in one currency, and short the other. If you buy one, by default you are shorting the other.
What is a Limit order? A limit order is an order with restrictions on the maximum price to be paid or the minimum price to be received.
What is a Stop Loss order? A stop loss order is an order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position.
What do the terms "bid/ask" and "spread" mean? Bid is the highest price that the seller is offering for a particular currency at the moment; ask is the lowest price acceptable to the buyer. Together, the two prices constitute a quotation; the difference between the two is called the spread.
What is the minimum start up trading capital? Short answer is $ 2,500.00
Forex dealers can set their own minimum account sizes, so you will have to ask the dealer how much money you must put up to begin trading. Most dealers will also require you to have a certain amount of money in your account for each transaction. This security deposit, sometimes called margin, is a percentage of the transaction value and may be different for different currencies.
For taking every trade our system announces you should consider that we may have one open position for each pair at the same time.
Is Forex trading expensive? No. Most online Forex brokers allow customers to execute margin trades at up to 100:1 leverage. This means that investors can execute trades of $100,000 with an initial margin requirement of $1000. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. A more pragmatic margin trade for someone new to the FX markets would be 20:1 but ultimately depends on the investor's appetite for risk.
What is Margin? Margin is essentially collateral for a position. It allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the equity markets, the usual margin allowed is 50% which means an investor has double the buying power.
In the Forex market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively.
How do I start trading your signals? 1. Subscribe to our signals
2. Open an account with one of our recommended brokers Oanda or IFX Markets
3. Download free trading platform
4. Start trading
How long are positions holding periods? Our Forex Easy system has holding period not longer than 48 hours. All open positions should be covered on a second trading day at 23:59 EST following our system rules.
For other systems all positions including orders should be covered by 4:59PM EST same trading day and at 4:29PM EST on Fridays.
We only go overnight for our Forex Easy Signals system.
When are FX Pro Trading signals sent and how often? FX Pro Trading signals are via email once a day between 23:00 and 1AM EST during business days. We only issue new signals at this time, no further intraday instructions are ever sent.
We send one email daily that contains complete and PRECISE set of instructions about entry levels, direction, stop loss, profit targets for each pair. That means one email per one system per day.
Do I need to wake up or stay awake during night hours for placing orders/manage trades?No definitely not. No need to wake up during night hours for receiving emails and managing trades. All our system entries and trade management is done once a day only, no further instructions are ever sent. Alternatively you can choose our Managed Funds option so we can do all the work and you can spend more time with your family and friends.
How many pairs do you follow? We trade the all eight (8) major pairs, the EUR/USD, GBP/USD, USD/CHF, USD/JPY, EUR/JPY, AUD/USD, EUR/GBP and USD/CAD.
What is the difference between your systems? Our systems have different entry, exit and profit prices to each other.
Typically - Stop: =>30 pips, Limit: =>45 pips
How much time does it take to follow your system? After you have traded for a few days and got used to the trading system it really will take you only 15 minutes per one system each day to set up your trades.
Is the price you sent in signals (buy /sell) Bid or Ask price? In Forex Bid/Ask are SELL and BUY prices, and SPREAD is the difference in PIPS, which for major currencies is 2-5 pips depending on different brokers. When you BUY you can only do at ASK price, and when you SELL, you can only do at BID price. It depends, when our signal is a BUY, then it's the ASK price, and when it's a SELL, it's the BID price.
Regularly spreads on some of the best Forex brokers are:
- EUR/USD 2 pips
- USD/CHF 3 pips
- GBP/USD 3 pips
- USD/JPY 3 pips
- EUR/GBP 5 pips
- EUR/JPY 4 pips
- AUD/USD 4 pips
- USD/CAD 4 pips
What is the time difference between issuing signals and actual execution? We only send Limit or Stop order signals which mean you will have approximately 10 minutes to 3 hours time to setup your signals depending on market volatility.
Do you offer a free trial? Our service does not offer free trial. We feel we are offering a very reliable Trading System that has proven to have a very nice reward. Our system makes the price you pay an interesting investment other than an expense.
Risk Capital No matter how good a system looks, how good a system performs or how much money it makes. Only "Risk Capital" or "Risk Funds" should be used in trading. A person who does not have "Risk Capital" or "Risk Funds" (funds they can afford to lose) should not trade in the market.
How long does it take to get access to the signals? Once credit card purchase is cleared, it will take only a few minutes to setup your account and start issuing signals. Emails will be sent on the same day of joining only if payment is cleared before 21:00 EST Mon - Fri.
Does my subscription renews automatically? Yes, all 1 and 3 months subscriptions renew automatically until you cancel them. Subscriptions for 6 and 12 months charged once off fees and do not get renewed automatically.
How do I cancel my membership? Simply logon to your PayPal account, Click on 'All Activity', and then find FX Pro Trading Subscription, click 'Cancel'. Your subscription will be cancelled immediately. Alternatively, send email to operations@fxprotrading.com with your email address, First and Last name and we will cancel it as per your request.
What is the maximum amount of capital that I can lose in Managed Account? Example: $20,000 account has a 4% loss per trade maximum which means that you can lose a maximum of $400 per trade before it is closed.
We also have a 20% 'client referral limit' - This means that if we have a loss of 20% of the equity, we stop all trades and refer to individual clients for instructions.
It is therefore possible for a client to consider whether they are prepared to lose (in a worst case scenario) 20% of their initial equity as a maximum.
Although it is unlikely, clients should carefully consider whether they are prepared to accept this level of risk for the expected gains and decide whether to proceed with a Forex managed account accordingly.
Are my funds secured?We have made every effort to choose a financially secure broker, but clients should consider their own due diligence to satisfy themselves on this point.
Can FX Pro Trading get access to my funds? Absolutely not. The account is opened in the client's name and only the client can withdraw funds or add to the account.
FX Pro Trading has a limited power of attorney to trade the account, but there are absolutely no circumstances under which we could get access to the funds in the account.
Can I revoke the power of attorney? A client can withdraw the power of attorney at any time by filling Revocation of Power of Attorney form.
The client would then have the trading responsibility for the account and can open / close trades etc.
How is the performance fee paid?Because we are only paid if we grow the account, fees are withdrawn from the client trading account by IFX on behalf of FX Pro Trading (once they have verified that they are due and payable).
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