Q. I am not a US citizen nor do I live in US, can I trade in Forex ?

A. Yes, you can trade in Forex Shares Commodities etc

Q. What is Foreign Exchange ?

A. The Foreign Exchange market, also referred to as the "Forex" or "FX" market is the largest financial market in the world, with a daily average turnover of approximately US$1.9 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.

Q. Where is the central location of the Forex Market ?

A. 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.

Q. Who Controls the Forex Market ?

A. The Forex market has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short lived, at the stock market; trade prices can be manipulated by stockbrokers and market makers.

Q. What affects the prices of currencies ?

A. Currency prices (exchange rates) are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.

Q. When is the Forex market open for trading ?

A. A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

Q. Do you need a lot of money to trade currencies ?

A. No. The minimum deposit required is $3,500.

Q. Beside money what else I need ?

A. A personal computer or laptop with internet access.

Q. Can I make money in rising and falling markets ?

A. Yes you can make money in rising and falling markets. There are no restrictions to sell currencies short, unlike stocks which have to be sold short on an up tick rule. This means that as a forex trader you can make money just as easily in rising and falling markets.

Q. What does it mean have a 'long' or 'short' position ?

A. A long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. In this scenario, the investor benefits from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate. In this scenario, the investor benefits from a declining market. However, it is important to remember that every Forex position requires an investor to go long in one currency and short the other.

Q. What is Margin ?

A. Margin is essentially collateral for a position. If the market moves against a customer's position, additional funds will be requested through a "margin call." If there are insufficient available funds, immediately the customer's open positions will be closed out.