Forex Forum

Please what is the difference between points & pips in forex

When you see 10 points it simply means 1.0 pips. When you see 11 points it means 1.1 pips, when you see 12 points it means 1.2 pips and so forth. Points is just a way of not having to include decimals.

what is the difference between stock cfd and stock?

Stock CFDs do not give you ownership of the stock; they are only a over-the-counter contract between you and the CFD broker that allow you bet on whether the price of the stock will rise or fall. if your bet is correct the CFD broker pays you money and vice versa. Holding a stock CFD overnight will attract a fee because it is not yours. However, when you buy ordinary stocks, they are delivered to your demat account and you take ownership of them. You also get voting rights on the company whose stocks you bought. Holding a stock overnight will not attract any fee because it is yours. Stock CFDs are mostly used by traders while stocks are bought by investors who hope to hold it for a long time. When you buy a real stock you get paid dividend whenever the company is doing so but for Stock CFDs you only get paid a dividend if you opened a buy trade for a Stock CFD. When it comes to cost, it is cheaper to trade Stock CFDs than to buy real stock because buying real stocks entails pying fees to the stock exchange, custodians etc.

when does the forex market open in Canada?

The Asian forex session starts at around 4pm Canadian time and ends around 2am in the morning. The London forex session starts from 2am and ends at 12 pm Canadian time The New York forex session starts from 1pm till 5pm Canadian time Note that the forex market closes on weekends and major publich holidays that affect banks (such as christmas & new year)

what is minimum trading days in prop firm

The minimum trading days is simply the least amount of days within which you can complete the challenge. So, if your prop firms minimum trading days is 4 and you complete the challenge in 3 days, you have breached the rules. You must complete the challenge in 4 days or more. Minimum trading days was put in place by most prop firms to prevent you from completing the challenge in one day. They want to be able to eliminate the chances that you just got lucky on one day and they also want to be able to study how you manage risk on different days.

what is consistency rule in prop firm?

By checking how consistent your profits/losses are the prop firm aims to see if you have a strategy you are following or if you keep trying new things every day. When you follow a fixed strategy and risk management plan it shows in your profits/losses because they will always be within the same range. But when you do not have a risk management plan in place today you will make 20% profit/loss and tomorrow you will make 1% profit/loss so there will be no consistency and this will lead you to have a low consistency score. usually, a consistency score of above 80% is considered good by prop firms.

When does the forex market open & close in South Africa?

Great morning Josiah, Let me contribute to this thread. The forex market stays open 24/5 and only closes on weekends. So all through the week (Monday to Friday) trading takes place nonstop. for someone in South Africa, the forex market will open on Sunday in the night at about 10:00 pm and when it opens you will be witnessing the Asian session which is not a very good time to trade. After opening, the forex market will remain open during all work days (except major public/bank holidays) and close by 11:00 pm in the night on Friday in South Africa. The forex market has to close on Friday because the main actors are big banks and thy don't work on weekends. if you want to trade during weekends, consider trading cryptocurrency or derived indices.

Is CFD Trading in Malaysia Forbidden?

Herse my take: CFD trading in Malaysia may be legal but it is only legal for so called sophisticated traders (meaning professional/institutional traders) and it is not meant for retail traders.

Apa itu CFD?

CFD adalah perjanjian antara anda dan broker CFD supaya broker membenarkan anda berdagang instrumen asas seperti forex, saham, indeks, walaupun anda tidak mempunyai wang yang mencukupi. Instrumen yang akan anda dagangkan, adalah milik broker CFD jadi dia hanya membenarkan anda mengambil posisi sama ada harga akan naik atau turun dan yang perlu anda lakukan hanyalah mendepositkan sedikit wang yang tidak sampai pun kepada kos instrumen yang anda dagangkan. Jika anda meramalkan dengan betul, broker CFD akan membayar anda jumlah di mana harga telah meningkat tetapi jika anda salah, broker CFD akan meminta anda membayar kerugian tersebut.

Forex Session Times UK

London opens at 8AM London time. Frankfurt opens at 7AM London time. If you are a trader based in the UK or similar time zones, then trading the London session opening from 7AM to 9AM UK time is the best time for you. It is because it is most convenient time (start of the day) if you are a full time trader. But in order to trade it, you will have to be up by 6AM or 6:30 AM, to get yourself prepared. Don't just jump in by waking up at 7AM, then you will likely not be ready to take a loss mentally & you would mess up some day. After the Frankfurt & first 2 hours of London, the volatility on most days fades away, meaning around 10AM London time to 1PM, the price mostly (not always), consolidates on EURUSD & GBPUSD currency pairs.

Can I start forex trading with R100?

You can star forex trading with r100 using brokers like RCG Markets, and Space Markets

how does leverage affect CFD trading?

When leverage is high, the amount of money needed to open a trade is low and those trading with small accounts are gonna love this. But there is some bad news, when you go for high leverage you are going to be nervous all the time of the trade because drawdown can come very fast and losses are huge. Being nervous as a state of mind is bad for trading because it breeds fear which in turn breeds irrational thinking ultimately leading to loss after loss after loss.

I have an android smartphone, how do I begin trading forex on it?

If I were in the shoes of a beginner, I'd go to the google play store and download a forex trading app of a regulated broker. Here in Australia the ASIC regulates brokers such as Pepperstone, eToro, CMC Markets & Eightcap so I would download any of their apps. I would then proceed to open a demo account from inside the app which would allow me to experiment with forex trading on my phone using virtual or fake money. Now, right inside the forex app I would access the in-app educational resources and if need be I would chat with the forex broker agents to seek more knowledge; all these can be done without having to leave the app. After practicing for a few months, I would open a live account on the app and deposit real money (probably about 10 AUD depending on the broker). I would then begin to place very small trades (0.01 lot size) and I would focus on trading only one instrument so I become a master of it. I think I would choose EUR/USD because its got lower spread than most currency pairs on offer. I would also set my stop loss and have a mental picture of the maximum amount of money I can lose in a day. Once i lose or make that amount of money I would close trading for the day. Trading on a mobile phone can be intoxicating and even addictive because you could be tempted to over-trade due to the convenience.

What's the difference between Equity & Account Balance in forex?

Take a look at the screenshot from a demo account trade, while Account Balance is $49,993.70 the Equity has fallen to $49,989.70 because the trade is in a loss of $4. The margin level is also calculated by (Equity/Margin)x 100 So Margin Level is ($49,989.70/$270.13)x100 =18,506.14%

Is it Halal To Trade Forex If I Use An Islamic Account?

Hi brother, Forex trading is Halal provided you do not receive or pay any overnight interest from your broker. Islamic Accounts are designed not to receive or pay interest on overnight trades but you must check that your Islamic forex trading account is properly configured not to receive or pay overnight swaps. While opening your Islamic forex trading account, make it expressly clear to your broker that you are of Muslim faith and do not want a partial swap-free account but instead want a fully swap-free account. This is important because certain swap-free accounts are not designed for Muslims and they can suddenly start charging you overnight swap interest when they notice you are leaving too many trades open overnight.

How do I open a real forex account on MetaTrader 4?

To open a real MT4 forex account you must do so through your forex brokers portal (via their website or mobile app). MT4 is not equipped with account opening capability. After opening the account, your forex broker will send your login details to your email so do well to check your mail. Take the login details then use it to login on the MT4 platform; the login details will usually contain a server name so ensure to select the correct server as this is crucial. You asked why account opening feature wasn't integrated into MT4, well in my opinion MetaTrader is an open third-party platform used by different brokers so integrating account opening for each broker will require frequent modification of the MetaTrader app, which can affect its stability.

How to avoid forex trading tax in South Africa, how much tax do forex traders pay in South Africa?

I believe the question here is about tax 'avoidance' i.e. legal ways in order to reduce tax liability as a CFD trader. I don't think anyone should be advising on the methods that may not be legal, or could cause legal issues in future for any trader. Also, whenever you are depositing funds at any FSCA regulated broker (or any regulated broker in any region), they will ask you for proof of funding if they find anything shady. And you can only withdraw fund to your method that was source of deposit. You cannot deposit via South African bank & then withdraw via crypto, that's not how it works. My suggestion OP to you is to consult your tax advisor, he/she would be able to give you better advise. What you see on the internet may vary a lot from the actual tax liability, and what you can save on it legally.

Is Forex Trading in South Africa Legal

Yes, there are a lot of scam brokers operating illegally in South Africa without any license. ODP licensing does bring oversight on the derivatives at CFD brokers, but as far as I know there is still no investor protection fund in South Africa similar to FSCS in the UK. And if you get scammed by an unlicensed broker, I don't think there is any way to get your funds back, even if you go to the relevant authorities. It is the same in other countries, so I can't say this is a South Africa problem. With regulated brokers, even without investor protection fund, you atleast have the trust that the broker is compliant with checks & balance in place.

Top 10 Richest Forex Traders in South Africa

If you have to pose behind a luxury car to show you are successful trader, then chances are that you are not. Most of these so called richest forex traders in SA, are actually into the business of motivation. They just want to motivate you to buy their courses & keep trading but they are not in any way rich. I believe some forex brokers are paying these guys to market and attract more customers; its no wonder these guys will always recommend a certain broker to you. If at all they have any money, it is the money they get paid by brokers to do this marketing and show off online. That's my opinion though, I stand to be corrected

Friday tips

This is so true. It takes a lot of discipline to do this. Sometimes you see the market just surging forward and you are tempted to jump in on the first candle that breaks your resistance/support line.

Beginner FAQs

This was so helpful! Thank you 👍🏽