FOREX FAQs

What is an interest rate differential?What is an interest rate differential?
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What is an Expert Advisor?What is an Expert Advisor
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What is MetaTraderWhat is MetaTrader?
What is a take profit order?A description of take profit orders
What is a stop loss?
A description of stop loss orders

What is a mini lot?
What does the term mini lot mean?

What does it mean to "go long"?
What does the term "go long" mean?

What does it mean to go short?
What does the term "go short" mean?

What is a forex spread?
What is a forex spread?

What is scalping?
What is scalping and why do you do it?

What is backtesting?
What is backtesting and why should you do it?

What is the US Dollar Index
The US Dollar index was created to measure the value of the United States Dollar against a basket of foreign currencies.

What does buy the rumor sell the news mean?

Buy the rumor, sell the news is something that happens in most markets, particularly financial. Sometimes traders trade based on what they believe will happen in a given economic report, or event. Once the event passes or the report is released, they dump their positions and the market moves.

What is market noise?

Market noise is the seemingly mindless back and forth movement on the smaller timeframes. A trader’s definition of market noise is usually relative to the time frames that they are trading. A trader that trades a 1 hour time frame might think that the 15 min chart contains market noise while a trader that trades 15 minute charts might think that a 5 minute chart contains market noise.

5 Things to Look for in a Forex Broker

Looking for a forex broker can be time consuming and confusing. Here is a list of 5 things to look for when trying to choose a forex broker.

When does the forex market open?
The forex market is open almost all of the time! It opens on Sunday night around 21:00 GMT and closes on Friday afternoon around 21:00 GMT. Forex traders can initiate trades at anytime between Sunday and Friday.

What are the best forex trading hours?
The best time to trade the forex markets is between 8:00 GMT and 16:00 GMT. These are basically the hours of the London market with the last 5 hours being in overlap with the US market.

What is a Margin Call?
A margin call happens when a trading account no longer has enough money to support the open trades. This happens when there are too many floating losses.



What is an interest rate differential?What is an interest rate differential?
zSB(3,3)
What is an Expert Advisor?What is an Expert Advisor
See more links below...
Sponsored Links
Forex TradingNew to Forex? Start Here. $50,000 Practice Account. GFT www.GFTuk.com
dbFX - Forex TradingTrade forex directly from charts Try our trading platform - Free www.dbfx.com
Forex TradingTrade with zero commissions, Free charts and Practice Account. www.gcitrading.com
What is MetaTraderWhat is MetaTrader?
What is a take profit order?A description of take profit orders
What is a stop loss?A description of stop loss orders
What is a mini lot?What does the term mini lot mean?
What does it mean to "go long"?What does the term "go long" mean?
What does it mean to go short?What does the term "go short" mean?
What is a forex spread?What is a forex spread?
What is scalping?What is scalping and why do you do it?
What is backtesting?What is backtesting and why should you do it?
What is the US Dollar IndexThe US Dollar index was created to measure the value of the United States Dollar against a basket of foreign currencies.
What does buy the rumor sell the news mean?Buy the rumor, sell the news is something that happens in most markets, particularly financial. Sometimes traders trade based on what they believe will happen in a given economic report, or event. Once the event passes or the report is released, they dump their positions and the market moves.
What is market noise?Market noise is the seemingly mindless back and forth movement on the smaller timeframes. A trader’s definition of market noise is usually relative to the time frames that they are trading. A trader that trades a 1 hour time frame might think that the 15 min chart contains market noise while a trader that trades 15 minute charts might think that a 5 minute chart contains market noise.
5 Things to Look for in a Forex BrokerLooking for a forex broker can be time consuming and confusing. Here is a list of 5 things to look for when trying to choose a forex broker.
When does the forex market open?The forex market is open almost all of the time! It opens on Sunday night around 21:00 GMT and closes on Friday afternoon around 21:00 GMT. Forex traders can initiate trades at anytime between Sunday and Friday.
What are the best forex trading hours?The best time to trade the forex markets is between 8:00 GMT and 16:00 GMT. These are basically the hours of the London market with the last 5 hours being in overlap with the US market.
What is a Margin Call?A margin call happens when a trading account no longer has enough money to support the open trades. This happens when there are too many floating losses.
What is a Pip?PIP stands for Percentage In Point. It is equal to 1/100 of 1%. In forex, currency prices are typically quoted to the fourth decimal.
How much money do I need to get started?The amount of money that you will need to open an account depends on the broker. Brokers such as Oanda will allow you to open an account with as little as $1 while brokers like FXCM require at least $300. If you aren’t ready to commit real money yet, you can always start with a demo account.
Mistakes That Forex Traders MakeWhen beginning in forex trading, there are common mistakes to be avoided. This is a list of common forex trading mistakes.
Why Do Brokers Give You So Much Leverage?Brokers make their money on the spread. They are happy to provide leverage to forex traders because the bigger the trade, the more the pips in the spread are worth.
Do I need good credit to trade on margin?Brokers are more than happy to give you margin to trade on because it is part of how they make their money. Brokers make their money by collecting the spread and the larger your trade is on the market, the more the spread is worth.
Is forex trading risky?Forex trading can be very risky if you don't use proper risk management. Forex is considered to be one of the most risky forms of investing because of the availability of leverage.
What is the Interbank?The Interbank is not really a center exchange where everything is traded. Interbank actually means "between one or more banks".
What is Carry Trading?Carry trading is when you take advantage of the interest rate differential between two currencies. For example, if the interest rate on the British Pound(GBP) is 5.75% and the interest rate on the US Dollar(USD) is 4.25% and you place a buy trade on GBP/USD, you will collect the difference between the two interest rates or 1.50% As long as you hold that trade open, you will be paid that interest differential every day.
PIP stands for Percentage In Point. It is equal to 1/100 of 1%. In forex, currency prices are typically quoted to the fourth decimal.

How much money do I need to get started?

The amount of money that you will need to open an account depends on the broker. Brokers such as Oanda will allow you to open an account with as little as $1 while brokers like FXCM require at least $300. If you aren’t ready to commit real money yet, you can always start with a demo account.

Mistakes That Forex Traders Make...

When beginning in forex trading, there are common mistakes to be avoided. This is a list of common forex trading mistakes.
Why Do Brokers Give You So Much Leverage?Brokers make their money on the spread. They are happy to provide leverage to forex traders because the bigger the trade, the more the pips in the spread are worth.

Do I need good credit to trade on margin?

Brokers are more than happy to give you margin to trade on because it is part of how they make their money. Brokers make their money by collecting the spread and the larger your trade is on the market, the more the spread is worth.
Is forex trading risky?Forex trading can be very risky if you don't use proper risk management. Forex is considered to be one of the most risky forms of investing because of the availability of leverage.

What is the Interbank?

The Interbank is not really a center exchange where everything is traded. Interbank actually means "between one or more banks".
What is Carry Trading?

Carry trading is when you take advantage of the interest rate differential between two currencies. For example, if the interest rate on the British Pound(GBP) is 5.75% and the interest rate on the US Dollar(USD) is 4.25% and you place a buy trade on GBP/USD, you will collect the difference between the two interest rates or 1.50% As long as you hold that trade open, you will be paid that interest differential every day.