Forex Trading Questions

Your Frequently Asked Trading Questions

Forex4oney offers online trading for a wide range of financial assets, including Shares, Indices, Commodities and Currencies, in the forms of CFDs, Forex and Binary Options.

In CFDs and Forex, investors have the ability to profit from the fluctuations in the price of a financial asset, by buying it cheap and selling it at a higher price or vice-a-versa. Most investors take advantage of the optional Leverage feature, which allows them to obtain large exposure for a relatively small initial deposit.

The high degree of leverage that is obtainable in the trading of CFDs and Forex can work both against you as well as for you.
A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of a contract. CFDs are derivatives products that allow you to trade on live market price movements without actually owning the underlying instrument on which your contract is based. You can use CFDs to speculate on the future movement of market prices regardless of whether the underlying markets are rising or falling. You have the opportunity to sell and profit from falling prices, or buy and profit from rising prices. Moreover, with our vast variety of markets, you can gain exposure to markets you may not have had access to before. We offer CFDs on shares, indices, and commodities.
Forex is traded in currency pairs while CFD’s are commonly a financial instrument that is valued in a specific currency. Common currency pairs are the Euro/US Dollar (EUR/USD), US Dollar/Japanese Yen (USD/JPY), Great British Pound/US Dollar (GBP/USD), Euro/Japanese Yen (EUR/JPY) and Australian Dollar/US Dollar (AUD/USD). You can buy and sell each currency or financial instrument.
To be able to trade you only need a device with an internet connection and a funded trading account. In addition, we strongly recommend you to be equipped with Forex/CFD’s or other financial education and trading tools to help you minimize the risks in the market.
You must be over the age of 18 to trade.
Leverage is used to significantly increase your purchasing power. No other market gives you so much liquidity and leverage at the same time. On some instruments, DicnoFX provides a leverage of up to 400:1. This means that with a deposit of $100, you can trade with up to $40,000.
In financial markets, specifically in the Forex market, pip (percentage in point) is a unit of change in an exchange rate of a currency pair. Most major currency pairs are priced to four decimal places, and a pip is one unit of the fourth decimal point: for dollar currencies this is to 1/100th of a cent.
Going “long” is when a trader buys an asset expecting its value to rise. This is also called opening a long position. Going “short” or opening a short position, is when a trader sells an asset, expecting its price to decline so it can be bought back in the future at a lower price.

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