Frequently Asked Questions

Forex is the financial market that allows you 24-hour trading opportunities. It is known as the OTC (over-the-counter) market, as opposed to the stock exchanges of the world that are based on physical trade rooms located at various locations like the New York or London Stock Exchange.

With Forex, parties holding currencies can trade directly without requiring exchange involvement.

Therefore, the Forex market has never faced any restriction on the business hours of any exchange.

The Global Forex market means that the business keeps running around the clock; when one part of the world sleeps, the other awake and keeps their currencies in movement. For instance, the US business hours are from 16:00 to 24:00 GMT; during these hours, the currency pairs that involve US dollars tend to experience the most movement.

Likewise, European business hours are from 8:00 to 16:00 GMT. During these hours, the currency pairs that involve Euro, Swiss Franc, Pounds, and other European currencies have the most "movement" experience.

While the Australian dollar, the Japanese yen, and the New Zealand dollar have an active business duration from 00:00 to 8:00 GMT, being a Forex trader, you can trade whenever you want.

Forex requires brilliant work that utilizes the right time to take the right step, resulting in money. It is what Forex millionaires do, which earns them their millions.

For someone who takes trading seriously, making it a business and picking the right broker can be a turning game for them, and they can make big money for themselves.

Many people take to the financial market for various reasons, but the primary goal is their desire to become rich, and that's natural. Wealth acts as a unique attraction for the masses. The Forex market experiences a flow of about 6 trillion dollars daily- a reason for people drifting towards it!

Of course, a trillion is a significant amount! And such daily money flowing through a market is a big deal. To clarify the issue more, NO single individual or a company in the world (except Apple) has ever reached a value of Trillion Dollars.

So, if you aim to be a billionaire, all you need is a thin slice from this big-value market and the enthusiasm to work hard for it, doing whatever it takes to reach your goal legally.

Like most new traders, ambitious people may think they are ready but lose their investment. You can use the platform cityfxbroker.com for your help on the road to becoming wealthy.

If you lack the guidance of a qualified trainer, then the Forex market can become very complicated to understand for you. It may get hard to understand the signals of the market.

Forex is a financial market affected by the ongoing economic situation and the traded currencies' indicators. Companies trade through stocks, i.e., by selling their shares to investors, and a country's currency serves as its stock, which, when trading, a nation sells to the other.

So technically, if a country's economy is in good condition, its money will also be in good condition in the Forex market and vice versa.

Most countries' central banks control the policymaking and money supply. The central banks' decisions are effective on the forex market prices and the conduction of trade. For example, the central banks control the interest rates to be followed.

The leading traded currencies of the world include:

• British Pound (GBP)
• US Dollar (USD)
• Japanese Yen (JPY)
• Euro (EUR)

Hence making the following the leading policymakers of the Forex market:

• Bank of England (England)
• Federal Reserve Bank (America)
• Bank of Japan (Japan)
• European Central Bank (Europe)

Forex trading can prove to be an intimidating job for a beginner who is inexperienced in the field. Like many newcomers, setting unrealistic goals when you get to Forex will result in added frustration.

Remember, trading on Forex will not make you a rich person quickly. Understanding trading and grasping the details of the industry is essential to excel in the market. Most importantly, the market is established on the combination of participants; therefore, understanding it is vital.

Forex ranks top in the list of the world's financial markets, where the trade of 5.09 trillion US Dollars occurs daily, even more than Japan's GDP. A deal of 254 billion US Dollars out of the total takes place through derivative instruments like CFDs.

Forex is the world's leading financial market and the world's most "liquid" market, making it easier for traders to enter or exit it. Most of the time, it is at a small cost (lesser than a pip!).

It makes the Forex market volatile, providing traders with several opportunities to make a profit on the currency movement (both positive and negative).

Simply NO!

The weekend is considered an off-day for most financial institutions and banks worldwide. However, some banks may allow small transactions- unrelated to Forex.

An exception to these the banks are not even allowed to process money transfers through Western Union over the weekend. In light of the Forex market, an estimated 4 trillion USD daily business is off for two days!

The FX brokers that allow trading through their platform have to face challenges, including:

1. No option to hedge. It is because the financial institutions are closed on weekends.
2. They cannot offer tight spreads because of a lack of liquidity.

Besides weekends, the foreign exchange market allows trading 24 hours through weekdays. We suggest you avoid trading through Forex on weekends since most banks and financial institutions are closed.

An exchange rate price quote for trading currencies of two countries in the Forex market is known as a currency pair. For an order of currency pairs, the first listed currency is recognized as the "base currency." This currency is bought, while on the other hand, the currency that appears second is accepted as the "quote-currency," traders sell this currency.

These currency pairs in the forex market represent one currency's value against another. For instance, a currency-pair USD/EUR means US Dollars versus Euros.

Foreign exchange means that you can buy one currency and sell the other currency as a trade. Your trading account can be in any currency you wish to choose, and later on, you can trade the currency value and fluctuations in the market.

For instance, if you intend to buy a currency pair of USD/EUR, you will spend euros to buy dollars. Whenever the US dollar gains strength against the euro, you can sell the euro to buy the dollar. It is how the currency pairs work on Forex.

The USD is considered the primary currency in the forex market, while all the currency pairs are directly or indirectly dependent on USD.

The currency pairs are classified as follows:

• Majors
• Minors
• Exotic

The Forex leverage works to trade $100,000 currency; you will be required to deposit $1000 in the trading account if the margin is 1%. It makes the leverage on trade equal to 100:1.

Retail brokers and independent traders use this leverage concept. Leverage helps traders increase their returns on investments. The traders leverage their assets using various instruments comprising options, margin accounts, and futures.

On the other hand, leverage helps countries in financing their assets. It means that the companies can utilize debt financing for investing in business operations to increase shareholder value instead of raising capital through stock.

In the Foreign Exchange Market, leverage is used by the investors to gain profit out of the fluctuating exchange rates of currencies. The forex market gives investors opportunities to achieve the highest leverage.

The broker that manages the forex account of a trader provides them a loan used to activate the leverage.

Where the leverage ratio of 100:1 involves a more significant risk factor, the risk is relatively low regarding the currency fluctuation during intraday trading (less than 1%). The leverage would have been much less if the currency fluctuations were equal to equities.

The forex market is complicated to understand, especially for newcomers. So we strongly recommend practicing with Forex demo accounts. We have mentioned a few simple steps that you need to complete to get started:

Choose the currency pair of your choice.

The first step to starting at the Forex market is the selection of the currency pair in which you want to trade. For example, USD/JPY

Pick your type of Forex Trade (CFD, Spread Betting, or Forex Trading)

You can pick a method of trading out of the three methods available:

1. In CFDs trading, you trade the CFDs in the base currency units.
2. In spread betting, you trade pounds per point movement.
3. In forex trading, you buy lots in the base currency units.

Then finally, decide whether to BUY or SELL!

If you have made it so far in the Forex market working, it is essential to see the current pricing at which the market of your choice is trading. Forex is quoted as one currency vs. the other, where the base currency appears on the left side of the currency pair while the quote currency is the other.

The simple answer is "NO." Nevertheless, you must acquire adequate knowledge about PDT while participating in forex trading.

The Forex has few restrictions; however, the market's volatility is relatively high. You can become a part of this market whenever you want.

The competition in the market is high, with several brokers fluent in AI (Artificial Intelligence technology ready to use any opportunity that comes their way.

As a US resident, you must confirm if you are a PDT (Pattern Day Trader). The criteria for being a PDT is making a trade on more than three days out of the five business working days, where the total number of deals you make is more than 6% of the trades in your trading account.

However, these rules apply to stock traders, not forex traders.

For a stock trader who wishes to switch to Forex, the FINRA rule requires you to have an investment of a minimum of $25000 on the day of trading. This rule doesn't exist in Forex.

A PDT (Pattern Day Trader) trades for four or more days in the five business days of the week using one account.

A broker automatically identifies a PDT, and the trader is further scrutinized and subjected to limitations. If you want to do the pattern day trading, you must have a balance of $25000 in your margin account. Otherwise, you will no longer be allowed to conduct day trade until your account balance is back to $25,000.

The Forex robot is a computerized program that helps you determine whether a currency pair should be bought or sold at a particular time. This robot is programmed based on the forex trading signals set, and it removes the element of psychology from trading, which can help traders in the long run.

The robotic program removes two human-emotional elements that can cloud a person's judgment, resulting in poor trading. These two elements are the greed of money and the fear of loss.

The robot surveys the traders' conduct and concludes the exchange conditions occurring because of emotional influence. The collected data is then analyzed, and the robot executes the trade without emotional involvement. Therefore, the traders taking the help of Forex robots end up making more profit than those who trade without robots.

Automated bot technologies power the foreign exchange market.

The more prominent Forex trading firms are seen to be using HFT- High-Frequency Trading that keeps them one leap ahead of others. As a result, the response time of these companies to the market moving trades is faster than the others. It is due to the analysis of technical indicators across different exchanges.

For example, whenever a big Ripple buy order appears on one exchange, the high-frequency trading system will instantly pick up the order signal, capitalize on the spike and immediately deliver a request/order to a different exchange.

This procedure is done briefly before a human trader can gather to send the request. Hence robots are making human traders better in their trading game.

To answer in a word, YES, it is profitable. However, adding a little more detail, forex trading is advantageous, but there might be chances that you don't make any money.

In the forex market, everyone has to walk a different ground to make it profitable for themselves; however, the formula to grasp is the same for everyone.

If we compare the case of traders, some might make millions of dollars through a single transaction, while others may have to wait for several transactions before they hit the millions target.

Effective risk management is all it takes to excel in the forex trading market. You can make big money from forex trades if you are good at it.

One most significant problems with inexperienced traders is that they set their goal to make big money in a shorter period. In the race to do so, they ignore the stopping signs, ultimately resulting in their trade crashing, losing all the investment, and returning to point zero.

Becoming a pro in risk management is a key to trading, even with the best trading plan; if you don't know where to risk and where not, you cannot make it in the market. You must focus on learning the skills of trading and risk management rather than gathering money unthinkingly.

To make forex trading profitable, focus on your risk management abilities.

As opposed to the perception of some people, forex trading is not regarded as gambling or betting. Professional forex trading is based on the analysis of the real market; therefore, there is no chance factor. Trading should be taken seriously, and the business should be conducted after getting expert training and guidance.

The point to ponder here is that some traders are seen making big profits in the Forex market while others are seen losing their investments; what is the reason that differentiates the two?

The answer is simple- the level of expertise in understanding market movement and price behavior.

The professionals insist that the newcomers understand the market's price behavior and the factors influencing the market movement. These factors are independent of the prevailing economic conditions. The orders of market makers result in the price progression in the main trends.

As a forex trading professional, I look for opportunities to trade in the market with the most substantial price ranges. I prefer my reference points to the market's Supply and Demand levels to make it easy. However, this is not an ideal trading case; therefore, you must understand supply and demand levels.

Your goal is to make big money via forex trading; you might also want to know how difficult it can be to learn forex trading and how to turn a loss into a profit.

You can get profit through 3 sources:

1. You can generate profit from your fellow inexperienced traders, who are slow on the draw and lack knowledge. Those amateur traders are more likely to lose money, and you can earn a profit instead of them.
2. You can avail of an opportunity out of the public offerings and the companies that issue additional stock to cash in on the differences between the IPO stock price and the settling price of the stock. Although it involves risk, your earnings will make up for the risk taken. However, the risk level you rely on can be reduced through technical analysis.
3. Developed companies, big financial organizations, and mutual funds make big moves in the market. These institutions act as portfolio builders for traders and investors. The profit of traders can compensate for the risks in this scenario.

The forex market is completely decentralized. The transactions and the business in the forex market are conducted in various forms around the clock, through multiple channels worldwide, whenever currencies are exchanged.

Unlike other financial markets, Forex allows trading at all hours at all places around the globe. The business conducted in the Forex market is beyond the physical restrictions of exchange rooms.

It is beyond the timing restrictions of business hours since business is conducted in different parts of the world alternatively, and the OTC (over-the-counter) forex market remains open for them for 24 hours. In the forex market, a party holding the currency doesn't require an exchange to make a deal with another party.

Moreover, the forex market is technically advanced and utilizes the latest software to make it easier for users than other financial markets using old-fashioned trading methods.

As long as you have access to the internet, you can trade on Forex from any part of the world whenever you want.

Countries allowing Forex trading:

United Kingdom	Australia	Bulgaria	Canada
USA	Cyprus	Switzerland	Romania
Indonesia	Italy	Germany	Malta
Japan	Most countries in Central and Eastern Europe

However, Forex is prohibited and is considered illegal in countries that practice the Sharia Law. These include Iran and Indonesia, countries where religious elements are effective in the laws. For traders living in those countries, making an account with a legal broker on Forex can be challenging.

If you want to trade from such religious countries, you will require an exclusive account known as a Swap-Free or Islamic Account. These accounts in Islamic countries are specifically created to distinguish the trade without interest. Middle Eastern Islamic countries and Malaysia prefer trading that doesn't involve interest in credit or debit.

Except for these countries, Forex is available legally in the majority of the countries in the world. However, it would be best to be cautious of unregulated retail brokers everywhere.

Countries like Israel don't regulate Forex; the broker's reliability is all that matters when trading through these countries. Other than these, there are countries where the government is responsible for currency control, like China.

We recommend you perform in-depth research before opening an account on any platform; analyze at least 5 top platforms for forex trading. While looking up these platforms, you should focus on the spread, platform, commission, payment, customer support, and online reviews. One good platform is cityfxbroker.com which has positive reviews from customers.

This platform utilizes updated trading software that is automated to increase the profit of the traders. Cityfxbroker.com excels in executing trade, educational resources, and access to charts and prices.

Most brokers are seen to be having various platforms dedicated to automatic trading or algorithm-based trading. While on cityfxbroker.com, you can have everything under one roof.

Your experience and trading style matters a lot when choosing a platform for trading. The well-rounded forex platforms provide a flexible trade and risk management environment and are multiple device-friendly.

Cityfxbroker.com provides the advantage of the best price, zero manual error, and lower transaction costs, with automatic monitoring of market conditions. With cityfxbroker.com, you will inevitably make around 80% profit.

The six currency pairs that are considered the most profitable and popular include:

USD (US Dollars) /CHF(Swiss Francs)	AUD (Australian Dollar) /USD	USD/CAD (Canadian Dollar)
GBP (British Pound) /USD	EUR (Euro) /USD	USD/JPY (Japanese Yen)

When they learn about forex trading, these major currency pairs remain the focus of many newcomers. The reason for this focus is its tight spreads and daily volatility.

However, the opportunities are not limited to these; they range from exotic forex pairs to CFD trade opportunities, energy futures, commodities, to indices. You can use indices that track indices' groups and then trade them.

The trading of currencies is conducted in pairs, and the movement of these pairs recognizes the value of one currency against the other. Like in the currency pair of EUR/USD, the value of euros is measured against the value of US dollars.

The currency pairs with the most supply and demand are regarded as the most liquid in the forex market. Banks, traders, importers, exporters, and businesses generate this supply and demand. Likewise, the major currency pairs are the most liquid; on average, the EUR/USD pair moves by 90-120 pips.

While on the other hand, a currency pair of AUD/NZD has a movement of 50-60 pips per day. In another scenario, the USD/HKD pair has a change of just 32 pips daily. The liquid currency pairs offer maximum trade opportunities based on short terms.

As observed, big money controls the forex market indirectly. The foreign exchange rate movement and direction are determined by the financial institutions that own the most significant slack in the forex market.

If you wish to be consistent in your profits, you must understand the know-how of the forex market. Where all the parties, including traders, banks, and brokers, make up the market, the relative weight of each party in the market depends on the money the party manages.

The market control is transferred to the party with the most money. For instance, if a hedge fund decides to buy a higher some of a particular currency, it will generate a trend in the market.

This trend will encourage other brokers and traders to purchase the same currency. In addition to the big financial institutions controlling the forex market, the experts' opinions affect the market to a lower degree.

Forex trading can be profitable if done right. Forex trading can be less fortunate for an average trader, especially if the trader doesn't get any support from some professionals in the field. However, the forex market has grown to be robot automated, where the influence of AI has reduced 90% of the failure rates.

The reasons for forex trading to be profitable include:

1. There is no commission involved. You only have to make bids or ask spread to compensate your broker. No additional fee like an exchange, government, clearing, or brokerage is included.
2. Lower transaction cost. In standard market conditions, retail trade costs under 0.1%.
3. You can trade for 24 hours during the business days. The forex market has no time limitations; trade whenever you want.
4. You can enjoy the leverage. Leverage helps to keep the risk factor low and a higher margin for profit since a smaller amount of deposit can control a higher contract value.
5. The forex market is trader-friendly because it allows easier entry to traders with minimum trading funds. So, choosing the appropriate platform is a must.

Yes, most Forex robots work; however, some might cause trouble with working online. We suggest you look into this matter carefully before you select a robot for your use.

The trading robots gained fame from traders and investors when they were first introduced. It was mainly due to the profit increase these robots helped the traders make. With the quick fame of these robots, the market got flooded with not-so-good trading robots that did not perform as they should be.

An auto-trade robot aims to help traders make more profits, and a good robot should serve this purpose. A robot must perform better than humans in trading, analyzing the market, information processing, and trade placing.

Big organizations like Hedge funds have used automated robots, further extending their technology-based capabilities. It proves that if designed well, these robots work for trade purposes. The question remains if your robot works or not. To know about your robot and to find one that works refer to the cityfxbroker.com robots.