Understanding
ExpressFX
Trading Forex for
profit
How do
you make money on Forex? Try selling or buying some currency with a
free expressFX demo account and see how you can make or lose money
as currency rates fluctuate.
Selecting the size of the
trade
The larger your trade size, the more profits you will make
if price goes in your favor and the more you will lose if it goes
against you. Demo account is a great way to practice making trades
of different sizes because you are not putting money at
risk.
The minimum trade size is $1,000. But thanks to the
leverage of up to 100:1 you can trade
$1,000 when you have just $10 in your trading account. It is easy
to calculate the maximum trade size. All you need to do is take the
amount that is in your account and multiply it by 100.
(!!! The high degree of leverage can work against you as
well as for you)
Opening and closing a
position
When you buy a
currency you open a position. When you sell the same amount of the
same currency, you close the position. During when your position is
open you will be making or losing money depending on how currency
rates change. If you bought a USD for EUR (USD/EUR) and its
rate goes up, you are making money. If it goes down, you are losing
money.
Take Profit and Stop
Loss
Market prices
move almost every moment, but this does not mean that you have to
keep an eye on your positions every second. You can set a Take
Profit order, which is a command to the dealing desk to
automatically close your position when your profits reach a certain
level. You can also set a Stop Loss order, which is a command to
the dealing desk to close your position when your losses reach a
certain level (except for extraordinary market
conditions). It is a good idea to set both of these orders
simultaneously to establish a price range of how much you are
willing to make and how much you are ready to risk.
Take Profit and Stop Loss
II
The minimum stop-loss
and take-profit limits are is $1.20 for every 1000 units of the
base currency. For example, if your position size is $3000, the
minimum limit for stop-loss and take-profit is 3 x $1.20 = $3.60.
The Company retains the right to reject any trade with limit orders
that violate this rule.
When you are changing your take-profit order on an open position
that is currently making a profit, the new take-profit level should
be set at not less than $1.20 for every 1000 units of the base
currency from the current P/L.
When you are changing your stop-loss order on an open position that
is currently making a loss, the new stop-loss level should be set
at not less than $1.20 for every 1000 units of the base currency
from the current P/L.
Commissions
Commission is a
one time charge for opening a position. Forex Club charges just 60
cents for every $1,000 traded (or 1,000 pounds; or 1,000 Euro).
Forex Club returns commission charges to you automatically and
instantaneously on non-profitable trades.
Calculating Profit and
Loss
You don't need to worry about doing any math because
expressFX will do all calculations for you. However, if you would
like to know how profits and losses are calculated there is one
simple formula.
For the currency pairs where dollar is the
base currency (USD/***):
Where dollar is not the base currency
(***/USD):
Carrying positions over to the
next day
Even though Forex market works around the clock,
technically, each trading day ends at 21:00 GMT and the next
trading day starts just a few moments after. 21:00 GMT is
equivalent to 4 pm New York time in the winter and 5 pm New York
time in the summer.
All opened positions are automatically closed at the end
of each trading day. However, you don't have to close your
positions each day as we offer an option of carrying positions over
to the next day for a small fee of 15 cents for every 1,000. Please
note, fees for carrying positions over are
non-refundable.
Adjusting your
positions
In addition to closing your position, you can also
downsize, upsize or reverse it. To downsize a position you just
need to sell some part of the currency that you have purchased. For
example, if you have purchased 1000 Euro for dollars (BUY 1,000
EUR/USD) you can downsize your position by selling 500 Euro. You
can upsize your position the same way by buying
additional 500 Euros for dollars. You can also reverse a position
altogether by selling 2000 Euro for dollars. This way your position
will become SELL 2,000 EUR/USD.
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