General FAQ

About Forex

1. What is Forex?
Forex, also known as foreign exchange or FX, is the simultaneous buying of one currency while selling another. The forex market is available 24 hours a day, five days a week and it’s one of the largest, most liquid financial markets in the world. Just to compare, the New York Stock Exchange makes about $169 billion a day in volume and the Forex Market makes over $5 trillion a day in volume.
2. 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 US Dollar/Canadian Dollar. You buy one currency and automatically sell another.
3. What are the trading hours for the Forex market?
The Forex market is open 24 hours a day. It opens on Sunday at 10:00 pm GMT, and closes on Friday at 10:00 pm GMT:Sydney opens at 10:00 pm to 7:00 am GMTTokyo opens at 12:00 am to 9:00 am GMTLondon opens at 8:00 am to 5:00 pm GMTNew York opens at 1:00 pm to 10:00 pm GMT
4. Is Forex trading expensive?
It depends on the leverage and capital invested. You can have a starting capital of as low as $50, or as high you want. However, it is important to remember that increasing leverage increases risk; but ultimately depends on the investor's appetite for risk.
5. Where is the central location of the Forex market?
Forex trading is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
6. Who are the participants in the Forex market?
The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including Central Banks, commercial banks, and investment banks. 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.
7. How are currency prices determined?
There are various ways currency prices can change. Economic and political conditions usually affect the value of a currency, along with interest rates and inflation.
8. Where can I learn more about Forex trading?
We offer a range of educational tools which include free trainings & seminars, webinars and video tutorials to enhance your Forex knowledge. Please visit our education section
9. How do I profit from trading Forex?
The sum of your profit depends on the efficiency of your trading strategy, on how well you will learn to predict the alteration in rates tendency and a little on the amount of your deposit which allows you to sustain unfavorable situations during market movements.
10. 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 MTrading to start. However, you should be equipped with proper Forex education and tools to minimize risks in the Forex market.

Forex Terms

11. What is the spread?
The spread is the difference between the bid and the ask price. The bid price is the rate at which you can sell a currency pair, and the ask price is the rate at which you can buy a currency pair. With us, you can trade a large range of instruments with flexible spreads. That gives you a greater degree of price transparency on your trades.
12. What is a rollover?
The rollover rate, also referred to as “swap” or “interest” rate, is simply the cost-of-carry that is applied to your account on a day-to-day basis. It is the difference between the interest rates of the two currencies which a trader either earns or pays when a position is kept open overnight.
13. What is “order volume” in a Forex trade?
The term “order volume” refers to the number of standard lots you want to trade.1.00 refers to 1 standard lot or 100,000 units of the base currency.0.10 refers to 1 mini lot or 10,000 units of the base currency.0.01 refers to 1 micro lot or 1,000 units of the base currency.
14. What is a spot market?
Spot markets refer to the markets that deal with the current price of financial instruments.
15. What does it mean to have a 'long' or 'short' position?
If you are buying a currency pair, you are opening a 'long' position, if selling - 'short'. For example, if you buy 1 lot of EUR/USD, it means you open a long position for 100,000 units of EUR against USD. And if you sell 10 lots of AUD/USD that means you open a short position for 1,000,000 units of USD vs CAD.
16. What is slippage and why does it happen?
Slippage occurs when the market gaps over prices or because available liquidity at a given price has been exhausted. Market gaps normally occur during fast-moving markets when a price can jump several pips without trading at prices in between. Similarly, each price has a certain amount of available liquidity. For instance, if the price is 50 and there is 1 million available at 50, then a 3 million order will get slipped, since 3 million is more than the 1 million available at the price of 50.
17. What is margin?
Margin is a percentage amount of the total trade size which a broker requires as a good faith deposit in order to allow a trader to open that position. This amount is not a fee or transaction cost; however, it is simply a portion of your account equity set aside within your account as a deposit towards the trade. Margin requirements are determined by taking a percentage of the notional trade size and are determined by the broker in advance in the trading conditions.
18. What is margin call?
Margin Call is an alert to trader when the account equity falls below 100% Margin Level. This means, the account is left with only the supplied margin and should be funded with more money in order to prevent it from facing Stop Out or force closure.

Trading with Us

19. What does ECN mean?
ECN means “Electronic Communication Network”. An ECN account gives you direct market access so that you can deal with other market counterparties.
20. Do you offer ECN/STP accounts?
Yes we do. We can offer you ECN on your trading account through our M.Pro and ECN+ accounts.
21. What currency can I trade with MTrading?
MTrading offers all major currency pairs, exotic pairs, precious metals and CFDs for trading.
22. What is a Forex broker?
A Forex broker is an intermediary between you and the interbank desk, networks of banks that trade with each other. Typically, a Forex broker will offer you a price from the banks that act as their liquidity provider. MTrading uses multiple banks for pricing and we offer you the best price quotes with fast execution.
23. What other services does MTrading offer?
MTrading also offers exceptional Forex trading education, as well as tools to equip traders to make intelligent trading decisions. Including webinars, live-trading sessions, daily Forex analysis and trade alert, and one-on-one consultation with our resident experts.
24. Do you conduct trainings?
Yes, we conduct regular trainings and seminars for free. Our sales team also does one-to-one consultation with clients for their specific trading needs.