What is Forex?
Foreign exchange, also known as Forex or FX, is the
market in which currencies are traded. The Forex market is the largest, most
liquid financial market in the world, open 24 hours a day, five days a week. To
put it into perspective, the New York Stock Exchange handles approximately $169
billion worth of transactions a day, while the Forex Market sees over a
colossal $5 trillion worth of transactions a day.
How does Forex trading work?
Forex is traded in currency pairs. Common currency
pairs are the Euro/US Dollar, US Dollar/Japanese Yen, Great British Pound/US
Dollar, and Canadian Dollar/US Dollar. You buy one currency and automatically
sell another. The goal is to make a profit by buying and selling currencies as
their value increases and decreases. There are many economic factors that
contribute to currency movements which traders and dedicated analysts alike
attempt to decipher.
What are the trading hours for the Forex market?
The Forex market is open 24 hours a day, 5 days a week
and currencies are traded worldwide among major financial centres. It opens on
Sunday at 10:00 pm GMT, and closes on Friday at 10:00 pm GMT.
Is Forex trading expensive?
It depends on the leverage used and the amount of
capital invested. You could invest a starting capital of $50, or $50 000, the
sky is the limit. However, it is important to remember that increasing
leverage, increases risk; ultimately it depends on a trader's tolerance to and
management of risk. Skilled traders are able to minimise risk and maximise
profit thorough analysis, a trading strategy that suits their style and wise
Where is the central location of the Forex
Unlike the stock market, the Forex market is not tied
to a central exchange. Transactions are conducted between two counterparts over
the telephone or via an electronic network, therefore the Forex market is
considered an Over-the-Counter (OTC) or 'Interbank' market.
Who are the participants in the Forex market?
The primary participants in the Forex market - who
make the spreads - are the largest banks in the world; Such banks include
central Banks, commercial banks, and investment banks. Known as the interbank
market as they constantly deal with each other on behalf of themselves or their
customers. However, the percentage of other market participants is rapidly
growing and now the list includes large multinational corporations, global
money managers, registered dealers, international money brokers, futures and
options traders and individual investors.
How are currency prices determined?
There are many factors that can and do contribute to
currency prices. Such factors include economic and political events and announcements,
interest rates, inflation, natural disasters and the list goes on. There is
even debate over a mass psychology of how traders perceive the market at a
certain point in time, which could contribute to how many base their trading
decisions and thus influence the market. While there is absolutely no Holy
Grail and sure way to predict price movements, there are some very thorough
techniques implemented by analysts in an attempt to forecast potential price
What tools do I need to trade Forex?
You only need a computer with internet connection and
a free demo account or a funded live account with JRFX to start. However, you
should be equipped with proper Forex education and tools to minimize risks in
the Forex market.
Where can I learn more about Forex trading?
Reading through this Q&A is a great start! Be sure
to check out the other educational content we offer such as – training programs,
seminars, webinars and video tutorials. Creating a demo account is definitely
your first step toward successful trading, novice and expert traders alike make
use of demo accounts to get a feel for the platform, test and perfect trading
strategies and configure various add-ons, plugins, scripts and indicators. More
importantly, you will see the market as it exists in a live account and nothing
beats a hands-on approach while you do your research. Demo accounts are both
free of charge and risk. For more information simply contact your account
manager. If you do not yet have an account manager open a demo account and one
will be in touch soon.
How do I profit from trading Forex?
Essentially you will want the market to move in your
favour. You can move the odds in your favour by analysing the market in various
ways. Technical analysis involves trends, historical data and current market
movements. It takes a more statistical approach to trading by thoroughly
examining the charts and indicators. Alternatively you have fundamental
analysis which focuses more on important economic events and announcements
which are likely to influence the market. In either case you should attempt to
capitalise on potential market movements with a formulated trading strategy,
wise decision making and clever money management. The sum of your profit
depends on the efficiency of your trading strategy, on how well you learn to
predict the alteration in rates and their tendencies and on the amount of your
deposit which allows you to sustain unfavourable situations during market
movements as well as capitalise on good trading opportunities.
What are the advantages of trading with JRFX?
JRFX provides you with low spreads starting from 0.0
pips and ultra-fast execution speed of 0.2 second on average. Bitwallet,
PerfectMoney, FasaPay and credit card deposits are processed instantly while
withdrawals are processed within one working day. We are proud that we have no
restrictions on trading and no requotes. We also allow scalping, hedging,
arbitrage, EAs and algorithms.
Where is JRFX regulated?
JRFX is a trading name of Up Way Global Markets, JRFX
is regulated and inspected by British Virgin Islands’ financial authority
named Financial Services Commission (BVIFSC). Formed in 2002, the independent
authority examines and supervises the financial activities including trade,
insurance and banking to provide a safe and transparent environment for clients
and the market. You can see a copy of JRFX’s license on BVIFSC’s website, following
the link here under company number 2047780.