Forex WebTrader, Powered by ForexWebTrader Global Investments.
A. Trading the foreign currency market, or the Forex Market, as it is commonly known, is the most developed financial market in the world. The Forex Market is not concentrated in any one exchange, rather the vast majority of forex trades are private deals between two parties in what is known as an ‘Over the Counter’ or OTC market. The currencies are traded and quoted in pairs such as Euro/U.S. Dollar or U.S. Dollar/Japanese Yen, where a deal is the combination of selling one currency while buying another currency at the same time. Click here for more information.
A. From the ForexWebTrader Platform, you can buy and sell currencies instantly according to your desire. Our platform allows you to leverage your funds 100:1. Currently, the ForexWebTrader platform allows you to trade more than 45 different Currency pairs.
A. Margin is a performance bond, or good faith deposit, to ensure against trading losses. The margin requirement allows traders to hold a position much larger than their actual account value. In the event that funds in the account fall below margin requirements, some or all open positions will close. This prevents clients’ accounts from falling into a negative balance, even in a highly volatile, fast moving market.
For example, let’s say you have an account with $10,000. That means you have $10,000 of usable margin. If you use $7,000 to Buy 7 lots of USD/JPY, you now have $3,000 of usable margin left, meaning that you are allowed to lose $3,000 before you are under the margin requirement. The account equity remains at $10,000 until you begin to make or lose money on the position. Now, if the USD/JPY decreases to the point that you end up losing the $3,000 which is left in your account, then the your positions will be closed to ensure that you do not lose more than you have in your account.
A. Leverage allows traders to borrow money and use that money to invest in the foreign exchange market. Because of leverage, clients without a huge amount of capital are able to make large investments, whereas in other markets such as the equities market, clients would have to pay 50% of the full amount for each share of stock they were investing in.
Most market makers allow positions to be leveraged up to 100:1. This means that if a trader wanted to Ask a “lot” worth $100,000, with 100:1 leverage the trader only has to put up $1,000.
Leverage is about risk. Increasing your leverage increases both your opportunity to take bigger profits AND rack up bigger losses.
A. Leverage and margin are related in the way mentioned above – the amount of leverage a market maker gives to a client defines the amount of margin that the client will have to commit in order to take a position in the market.
For example, when leverage is 100:1, the “1” in the leverage ratio signifies the amount of capital the customer has invested of his own money, which is also known as the margin.
A. A currency pair represents the exchange rate between the two currencies. For example, the rate at which the EUR/USD is trading that represents the number of US Dollars one Euro can purchase. The first currency is called the base currency and the second currency is called the counter currency.
An example of how currency pairs trade is if a trader believes the Bank of Japan will intervene to cause a decrease in the Yen against the US Dollar, then the trader would Ask USD/JPY (Ask the US Dollar/Bid the Yen). However, if the trader believes that Japanese investors are losing faith in the United States’ economy and are pulling money out of the US into Japan, then the trader would Bid USD/JPY (Bid the US Dollar/Ask the Yen).
A. Traders do not take positions on a currency pair at the exact rate at which the currencies are trading. Instead, there are two rates for the currency pair: the bid rate and the ask rate. The difference between the Bid price and Ask price is the spread.
A. The spread is an automatic cost that the trader incurs when making the trade. Because of this spread, traders will take a position they started with a small loss and will need to gain some profit in order to break even
For example, if a trader Asks into a position at the ask rate, and then immediately closes the position at the bid rate, the trader will incur a cost equal to the spread.
These spreads are seen in every kind of market. However, because of the broker-based system in the equities and futures market, it can sometimes be difficult to identify where and how much the spread cost is.
A. The spread for the EUR/USD is 3 pips on the ForexWebTrader Platform.
A. $25 is the current minimum deposit (via Mastercard, Visa, E-Gold&E-Bullion).
A. Currently, the maximum deposit via Credit Card / Debit Card is $5000. Deposits via Bank Wire Transfer, E-Gold& E-Bullionhave a maximum deposit of: $50,000
A. Currently, VISA and MASTERCARD are acceptable methods of deposit. AMEX, DINERS.
A. No. There are no fees to deposit funds into your ForexWebTrader Account.
A. Yes, there is a 2.5% Processing fee regarding E-Gold Deposits, and a 1% Processing fee for E-Bullion.
A. Simply contact our Dealing Room via the LIVE CHAT option, or via Email: Accounts@www.forexwebtrader.com and we will assist you as soon as possible.
A. Withdrawals will be transfered via the same manner in which you deposited.
If you deposited via VISA or MASTERCARD, we will send funds to your VISA and MASTERCARD account, upon request. Similarly, if you deposited via E-Gold, E-Bullion – we will withdrawal your funds into your E-Gold, E-Bullion or account, upon request.
A. Simply Click Here, and follow the instructions.
A. Usually, withdrawals are transfered within 48hrs. However, we have a policy of a 7 day Withdrawal Process if there is a significant amount of processing needed.
A. For Withdrawals via Credit/Debit Card: 2.5%. For Withdrawals via Bank Wire Transfer: $10.00 (minimum according to banking fees). For Withdrawals via E-Gold: 2.5%. Withdrawals via E-Bullion: 1%.
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