FAQs
Margin FX Markets Ltd offers online trading for a wide range of financial assets, including Shares, Indices, Commodities and Currencies, in the forms of CFDs and Forex. 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.
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 a shortened term used for 'Foreign Exchange'. It is the process of buying and selling currencies. The foreign exchange market is the biggest and most liquid financial market in the world. The market operates 24 hours around the
clock from Sunday night through Friday and comprises central banks, currency speculators, organizations, governments, retail investors and international investors. Over the years, the size of the Forex market has been constantly increasing.
According to the Bank for International Settlements' (BIS) 2013 Triennial Survey of global FX market volumes, the average daily volume in the global Forex markets was estimated at $5.345 trillion, 34% higher in than the $3.971 trillion
in April 2010 ($3.21 trillion daily in April 2007 and $1.7 trillion in 1998).
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.
Normally, during the European and North American winter time, weekly activity begins on Sunday at 22:05 GMT continuously until Friday 21:00 GMT. During the Day Light Saving times in these regions, the weekly market activity begins on Sunday
at 21:05 GMT and ends on Friday at 20:00. Market activity hours may vary due to public holidays or due to unusual liquidity conditions which may arise from exceptional global events. Opening or Closing times may also be altered by Alain
FX due to liquidity and risk management considerations. Please be advised that while most of the instruments are traded on a 24 hour basis without interruption, some instruments, mainly shares and indices, have special Trading Hours.
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, Alain FX 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.
The spread is the difference between the BUY price and the SELL price of two instruments. For example, if the EUR/USD is trading at 1.3100 (buy) and 1.3098 (sell), then the spread is 2 pips.
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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