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Foreign exchange, also known as Forex or FX, is the market in which currencies are traded. The Forex market is the largest, most liquid financial market in the world, open 24 hours a day, five days a week. To put it into perspective, the New York Stock Exchange handles approximately $169 billion worth of transactions a day, while the Forex Market sees over a colossal $5 trillion worth of transactions a day.
Forex is traded in currency pairs. Common currency pairs are the Euro/US Dollar, US Dollar/Japanese Yen, Great British Pound/US Dollar, and Canadian Dollar/US Dollar. You buy one currency and automatically sell another. The goal is to make a profit by buying and selling currencies as their value increases and decreases. There are many economic factors that contribute to currency movements which traders and dedicated analysts alike attempt to decipher.
The Forex market is open 24 hours a day, 5 days a week and currencies are traded worldwide among major financial centres. It opens on Sunday at 10:00 pm GMT, and closes on Friday at 10:00 pm GMT:
Sydney is open from 10:00 pm to 7:00 am GMT
Tokyo is open from 12:00 am to 9:00 am GMT
London is open from 8:00 am to 5:00 pm GMT
New York is open from 1:00 pm to 10:00 pm GMT
It depends on the leverage used and the amount of capital invested. You could invest a starting capital of $50, or $50 000, the sky is the limit. However, it is important to remember that increasing leverage, increases risk; ultimately it depends on a trader's tolerance to and management of risk. Skilled traders are able to minimise risk and maximise profit thorough analysis, a trading strategy that suits their style and wise money management.
Unlike the stock market, the Forex market is not tied to a central exchange. Transactions are conducted between two counterparts over the telephone or via an electronic network, therefore the Forex market is considered an Over-the-Counter (OTC) or 'Interbank' market.
The primary participants in the Forex market - who make the spreads - are the largest banks in the world; Such banks include central Banks, commercial banks, and investment banks. Known as the interbank market as they constantly deal with each other on behalf of themselves or their customers. 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.
There are many factors that can and do contribute to currency prices. Such factors include economic and political events and announcements, interest rates, inflation, natural disasters and the list goes on. There is even debate over a mass psychology of how traders perceive the market at a certain point in time, which could contribute to how many base their trading decisions and thus influence the market. While there is absolutely no Holy Grail and sure way to predict price movements, there are some very thorough techniques implemented by analysts in an attempt to forecast potential price movements.
You only need a computer with internet connection and a free demo account or a funded live account with VipTrade to start. However, you should be equipped with proper Forex education and tools to minimize risks in the Forex market.
Reading through this FAQ is a great start! Be sure to check out the other educational content we offer such as – training programs, seminars, webinars and video tutorials. Creating a demo account is definitely your first step toward successful trading, novice and expert traders alike make use of demo accounts to get a feel for the platform, test and perfect trading strategies and configure various add-ons, plugins, scripts and indicators. More importantly, you will see the market as it exists in a live account and nothing beats a hands-on approach while you do your research. Demo accounts are both free of charge and risk. For more information simply contact your account manager. If you do not yet have an account manager open a demo account and one will be in touch soon.
Essentially you will want the market to move in your favour. You can move the odds in your favour by analysing the market in various ways. Technical analysis involves trends, historical data and current market movements. It takes a more statistical approach to trading by thoroughly examining the charts and indicators. Alternatively you have fundamental analysis which focuses more on important economic events and announcements which are likely to influence the market. In either case you should attempt to capitalise on potential market movements with a formulated trading strategy, wise decision making and clever money management. The sum of your profit depends on the efficiency of your trading strategy, on how well you learn to predict the alteration in rates and their tendencies and on the amount of your deposit which allows you to sustain unfavourable situations during market movements as well as capitalise on good trading opportunities.
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.
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.
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.
Spot markets refer to the markets that deal with the current price of financial instruments. Prices are settled on the spot at current market prices as appose to forward prices.
Essentially it's just trader's lingo for a buy or a sell order. If you are buying a currency pair, you are opening a 'long' position, and vice versa, a 'short' position while selling. 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. If you sell 1 lot of EUR/USD that means you open a short position for 100,000 units of EUR vs USD. Think of it like this, when buying you want the value of the euro to increase (long) against the dollar and when selling you want the value to decrease (short) against the dollar.
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.
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 a position. This amount is not a fee or a transaction cost; it is simply a portion of your account equity set aside within your account as a deposit towards the trade. Margin requirements are calculated by taking a percentage of the notional trade size as determined by the broker in advance and specified in the trading conditions. For example, when you want to open 1 lot of USD/GBP (or 100,000 units of USD) using the leverage of 1:500, you will only need 200 USD as a margin (100,000/500). If you have less than 200 USD set aside you will be unable to meet the margin requirement, if you have 200 or more the order will attempt to execute.
A Margin Call is an alert when the account equity falls below the required Margin Level. This means, the account only has the supplied margin left and should be funded with more money in order to prevent it from facing a Stop Out or forced closure.
A Forex broker is an intermediary between you and the interbank market - 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. VipTrade uses multiple banks for pricing and we offer you the best price quotes with fast execution.
Trading on interbank is possible for private individuals, however it requires significant investment. So, unless a trader has at least $50,000.00 to $100,000.00 on hand, a financial leverage is also required. Forex brokers such as VipTrade provides that very leverage.
VipTrade also offers exceptional educational material regarding Forex trading, as well as tools to equip and assist traders in making wise trading decisions. We also offer webinars, live-trading sessions, daily Forex analysis, trade alerts, and one-on-one consultation with our resident experts.
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, however VipTrade is restricted from providing actual financial advice.
To withdraw funds from the Live Account service, there is 3-tier system of protection.
To change the leverage specified in your Personal Cabinet, you have to contact our [email protected]
To change the trade account password in your Personal Cabinet, you have to contact our [email protected]
Go to "Profile" section of your Personal Cabinet and click " https://cabinet.viptrade.eu/change-password".To change the password, you will have to enter a new password and confirm it.
Contact our https://cabinet.viptrade.eu/treatment if you haven’t received an email with the confirmation code or don’t have access to the specified e-mail address.
Yes. it is. To register a Personal Cabinet for a legal entity, you have to:
The list of the documents required from a legal entity:
Please note that:
In case Personal Cabinet is registered to a natural person and the account attached to this Live Account was earlier deposited by the natural person, this account can not acquire "Corporate account" status. Please, register a new Personal Cabinet to a legal entity and send a request from it.
In the case when the direct/immediate and principal shareholder is another legal entity, the Company need to verify the ownership structure and the identity of the natural persons, who are the beneficial owners and/or control the other legal entity on the basis of the above stated documents.
All documents, together with originals, must include translation into English signed and stamped by a notary.
To register a new Personal Cabinet, you have to go to the https://viptrade.eu/en/signup. Then enter your e-mail address, full name, mobile phone number, and click "Receive the confirmation code via E-mail". After receiving the code, enter it into the required field and login to your Personal Cabinet.
" Personal Cabinet " service is a convenient and safe way to manage your accounts. In your Personal Cabinet, you can open trading accounts, read detailed information about your operations, view or change the personal information specified during the registration, make internal transfer of funds between your accounts without any commission, find the information about promo offers, and watch our educational materials. More detailed information about the Area can be found on " https://viptrade.eu/en/login" page.
Viptrade guarantees the execution of Stop Loss orders. However, during fast markets or gaps, there is probability of a large slippage.
The 'Stop Loss Level' function provides traders with possibility to automatically close all positions beyond a certain drawdown level of equity. All open positions will be closed, all pending orders will be cancelled and trading blocked if the equity on the account becomes equal to or less than the 'Stop Loss Level' set by the client. Please beware that equity on the account after the closing of all open positions might be lower than the 'Stop Loss Level', depending on market conditions.
No, all trading orders are executed automatically, execution is STP (Straight-Through Processing). In case of an order placed by telephone, the order is entered manually into the trading system for automated execution.
Yes. An ECN trading environment is recognizable by the addition of the following attributes: existence of a marketplace where traders can trade against each other, displaying of the market depth including clients' place bid and place offer orders, variable spreads, STP execution with no dealing desk and competition between various bids and asks placed on the marketplace, same price feed for all participants.
The trading platforms give the trader the option to limit or fully exclude slippage on all market orders. It is to be noted that decreasing tolerance to slippage increases probability of order rejects.
Yes, trading conditions may differ between the environments. This might relate to the list of tradable instruments available, trading settings etc. Although Viptrade strives to ensure that trading conditions on DEMO and LIVE are aligned as much as possible, differences still might appear. This is especially likely to happen when new trading instruments are being released and tested or when special trading conditions are applied to specific instruments.
Yes, all the accounts have direct access to the ECN Forex trading market via Swissquote,Exante,Lmax.
You can open an account using simplified online procedure by sending us scanned copies or readable pictures of uncertified documents. Please be informed, that accounts opened with scanned documents have net deposit limit of 15'000 USD. In order to increase that limit, please contact your Account Manager.
Depending on the services which Viptrade provides to the client, various commissions may apply. Please consult the complete fee schedule published on our website.
Stop Order A stop order is a pending order to buy or sell currency once the price of the currency pair reaches a specified price, known as the stop price. When the stop price is reached, the stop order becomes a market order. A buy stop order is always placed above the current market price, while a sell stop order is placed below. Stop orders can be triggered either by ask or bid price, thus giving traders more flexibility in execution control. For stop orders slippage value of 25 pips is applied by default. If any slippage value is indicated by user, the stop order becomes a stop limit order. That is, if the stop order will fail to execute within the specified slippage range, the order will be automatically transformed into a limit order. Limit Order A limit order is a pending order to buy or sell currency at a specified level or better. A buy limit order can only be executed at the limit price or lower and triggered by ask side, and a sell limit order can only be executed at the limit price or higher and triggered by bid side. Limit orders may fail to execute because the market price may quickly bounce back from the limit price before your order can be filled.
When entering a conditional order you should pay your attention to the current market price, the desired price and inequality sign that you set up in your order. If an order conditions correspond to the current market price the order will be executed immediately. Example: Current market price EUR/USD 1.4310, your conditional order is Buy if >=1.4305. The order will be executed immediately.
Market order is an order to buy or sell currency immediately at the available market price. Market orders are executed according to available bids and offers in the market depth, which indicates volumes available for each price level. When a trade is placed at the market and the order amount is greater than volume of the price offered on the platform, the execution of the remaining amount is split according to the next levels of the market depth. For market orders slippage value of 10 pips is applied by default unless the other value is selected. Should the market price slip more than the specified level, the market order will be automatically cancelled.
There is an mail. Viptrade is ready to help at any open market time. Viptrade emergency mail: [email protected]
Due to security reasons, orders can only be placed via the platform interface or by send email [email protected]
You Might be required to be regulated by your local financial services authority in order to be able to offer Money Manager services in your country. It is your responsibility to check this information before applying to take part in the Money Manager Program.
After you have signed up the counter in your account will show the earned commission which will be paid top your account every ( by you )chosen time interval.
After you have signed up the counter in your account will show the earned commission which will be paid top your account every ( by you )chosen time interval.
Yes, if you are a registered Money Manager with NSFX we will process the fees periodically and they are paid to your Agent account in accordance with the terms agreed between you and your client.
It depends on how quickly you can provide us with the required supporting documents. On average the process takes a couple of days. Once the documents have been submitted, we will aim to contact you within 24 hours. If you do not get a reply within three working days, please send an email to [email protected]
No. The LPOA (Limited Power of Attorney) agreement gives you the right to trade on a client's account but not to withdraw funds. However, if your client gives you his consent, you can submit the withdrawal form on behalf of the client and once processed the withdrawn funds will be sent to the client's bank account.
Your client is responsible for providing the required documents for opening their VIPTRADE Trader account. However, as their Money Manager you can choose to assist your clients by sending these documents on their behalf to us for processing.
Yes, your clients will have access to their trading account(s). Whenever required, VIPTRADE can provide an investor password which will enable your client to have full read-only access to the account.
No, any account that is designated as a "sub" account cannot trade on that account. If a client wishes to self-trade he/she can open up a separate account.
Yes, you can receive commission on your own trading activity for your clients.
Please e-mail [email protected] with your detailed question.