Forex, also known as foreign exchange or currency trading, is the buying of one currency by simultaneously selling another. Forex traders attempt to profit by speculating on the direction the currency exchange rates will go in the future.
You can trade forex 24 hours a day, five days a week.
You’ll need to register a trading account with a Forex broker, such as Scope market. Then you can begin using their Forex client program to buy and sell currencies. This will take less than 5 minutes of your time!
Margin is money you need to have in your broker account to secure your open position. Different brokers require different amount of margin money to keep your positions open.
Long position is a “buy” position, meaning that this position will be in profit if price goes up. Short position is a “sell” position, meaning that this position will be in profit if price goes down.
With some Forex brokers you can start trading Forex with as little as $1. Usually, the minimum amount varies from $100 to $10,000
There is none. You should constantly develop your own strategies for every possible market situation, if you want to be in profit. Specific Forex strategies can only be good for a certain period of time and for certain currency pairs.
Normally, you cannot. The broker will not allow you to lose more than the available funds on your trading account. It will simply close your losing position when the resulting account balance becomes too close to zero. The loss that is bigger than the trader’s deposit is a direct loss of the Forex broker. It is in the brokers’ interest to prevent such losses. To secure themselves brokers implement a Stop-Out level (usually about 20%), which means that the most losing position will be closed once (equity / used margin) × 100% becomes equal to or less than this level.
In rare cases, a slippage or significant price gap may put the trader’s balance into negative territory. However, brokers rarely pursue traders to refund negative account balances.