FxPro – Best Online Forex Broker – through UltimaForex provides an online trading platform for individuals that want to speculate on the exchange rate between two currencies. In doing so, traders buy and sell currencies with the hope of making a profit when the value of the currencies changes in their favor, whether from market news or events that take place in the world. The forex market is the largest market in the world with daily reported volume of over 1.9 trillion making it one of the most exciting markets for trading.

Spread

Click here for complete list of spread.

Market Hours (Trading Hours)
The spot FX market is unique to any other market in the world, as trading is available 24-hours a day. Somewhere around the world, a financial center is open for business, and banks and other institutions exchange currencies, every hour of the day and night with generally only minor gaps on the weekend. Essentially foreign exchange markets follow the sun around the world, giving traders the flexibility of determining their trading day.

How Market Hours Work

Tokyo – Open » 7:00 PM New York Time (0:00 GMT)
Tokyo – Close » 4:00 AM New York Time (9:00 GMT)
London – Open » 3:00 AM New York Time (8:00 GMT)
London – Close » 12:00 PM New York Time (17:00 GMT)
New York – Open » 8:00 AM New York Time (13:00 GMT)
New York – Close » 5:00 PM New York Time (22:00 GMT)

Trading Hours
24 hours per day, starting at 23.00 Sunday and closing at 24.00 Friday (trading Server time).

Margin and Leverage

Additionally, Forex trading with us is done on a margin system, essentially using a free short-term credit allowance used to purchase an amount of currency that greatly exceeds the traders account value

Understanding the Margin System
Trading currencies on margin lets you increase your buying power. Here’s a simplified example: If you have $2,000 cash in a margin account that allows 1:100 leverage, you could purchase up to $200,000 worth of currency-because you only have to post 1% of the purchase price as collateral. Another way of saying this is that you have $200,000 in buying power.

You are probably wondering how a small investor can trade such large amounts of money. Think of your broker as a bank who basically fronts you $100,000 to buy currencies and all he asks from you is that you give him $1,000 as a good faith deposit, which he will hold you for but not necessarily keep. Sounds too good to be true? Well this is how forex trading using leverage works.

For example, for every $1,000 you have, you can trade 1 lot of $100,000. So if you have $5,000 you can trade up to $500,000 of Forex.

In the example above, it is used a one percent margin. This means that for every $100,000 traded, the broker wants $1,000 as a depost on the position.

What is a Margin Call?
In the event that money in your account falls below margin requirements (usable margin), your account will close some or all open positions. This prevents your account from falling into a negative balance, even in a highly volatile, fast moving market.

Example #1
Let’s say you open a regular Forex account with $2,000. You open 1 lot of the USD/JPY, with a margin requirement of $1000. Usable Margin is the money available to open new positions or sustain trading losses. Since you started with $2,000, your usable margin is $2,000. But when you opened 1 lot, which requires a margin requirement of $1,000, your usable margin is now $1,000.

If your losses exceed your usable margin of $1,000 you will get a margin call.

Example #2
Let’s say you open a regular Forex account with $10,000. You open 1 lot of the USD/JPY, with a margin requirement is $1000. Remember, usable margin is the money you have available to open new positions or sustain trading losses. So prior to opening 1 lot, you have a usable margin of $10,000. After you open the trade, you now have $9,000 usable margain and $1,000 of used margin.

If your losses exceed your usable margin of $9,000, you will get a margin call.

Make sure you know the difference between usable margin and used margin.

If the equity (the value of your account) falls below your usable margin due to trading losses, you will either have to deposit more money or the system will close your position to limit your risk. As a result, you can never lose more than you deposit.

Leverage Ratio and Margin Percentage
The simple relationship between the two terms are:

Leverage = 100 / Margin Percent
Margin Percent = 100 / Leverage

Leverage is conventionally displayed as a ratio, such 1:100

Trading time:24 hours per day, starting at 23.00 Sunday and closing at 24.00 Friday (trading Server time)* If You leave an open position for more than on one day, then upon the moving to the next calendar day, You pay or you obtain the certain sum, calculated on the basis of the difference of the interest rates of two currencies in the currency pair. This operation is called “swap”.

The sizes of “swap” operation in the points for each currency pair are specified above. In the trading terminal “Swap” is automatically converted into the US dollars. Operation is to be conducted at 00.00 – the server time and it can take several minutes.From Friday to Monday swaps are to be calculated for one day. From Wednesday to Thursday are to be calculated in the triple size.

The minimum level for placing SL, TP and Limit Orders from a market price on currency pairs is 10 points – for currency pairs with spread less than 10 points, and is equaled spread – for currency pairs with spread more than 10 points.To make your account SWAP FREE, please contact us.