ONLINE FOREX CURRENCY EXCHANGE TRADING FAQS
What Is Foreign Exchange?
The Foreign Exchange trading market (or Forex), is considered to be the largest financial market in the world, with a daily average turnover of approximately US$1.3 trillion. It comprises the simultaneous buying of one currency and selling of another. The world’s currencies are on a floating exchange rate and are always traded in pairs, for example EURO/USD or USD/CHF.
Who Are The Participants In The FX Market?
The Forex market is referred to as an ‘Interbank’ market as it was historically dominated by central banks, commercial banks, and investment banks. However in recent times, the percentage of other market participants has been rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.
What Is Margin?
Margin is required collateral for taking a forex trading position. It is essentially borrowed money that allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the forex market, leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively whereas the equity market only provides a leverage of 50% (double the buying power).
What Does It Mean Have A ‘Long’ Or ‘Short’ Position?
A long position is where a forex trader buys a currency at a price and aims to sell it later at a higher price and gains are made in a bullish market. A short position is one in which the trader sells a currency in anticipation that it will depreciate and gains are made in a bearish market. The risk of either positions are the same.
How Do I Manage Risk?
The most common risk management tools for forex trading are the limit order and the stop loss order. A limit order places a restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor’s position. The liquidity of the Forex market ensures that limit order and stop loss orders can be easily executed. Please see Risk Statement.
OPEN ACCOUNT FAQS
If I fund the account with Multiple Sources (Credit Card or Bank Wire) can I withdraw to any sources as well?
For multiple deposits from different sources, it largely depends on the deposit amounts as this system is open to abuse as a online currency exchanger. Traders are not allowed to deposit using one source and withdraw using different sources other than bank wire transfer. Our system is able to track all incoming deposits. For example, if a trader deposits $1000 via credit card, he/she can only withdraw $1000 plus the profit via credit card or bank wire for both. Bank wire is the default method for withdrawing. Inti Makmur reserved the right to fund withdrawal via Bank wire other than using money processors. For bank wire transfer, Inti Makmur does not charge any fee. The Bank will charge a minimum wire transfer fee of $40 and up depending on the destination and wire amount.
Does this mean I can withdraw fund via wire transfer if my deposit is via money processors such as credit card?
Yes, except for Credit Card depositors. Account holders who deposit via Credit Card can withdraw funds by only funding it back to the Credit Card account unless the deposit is made for more than 180 days. For security reasons, Credit Card companies have implemented the timeframe of a 180 days. Any deposit made in less than 180 days has to withdraw via funding back to credit card unless management has given its approval.
Is Inti Makmur Trading system adhering to Islamic Shariah Law?
Yes. Into Makmur offers Swap Free Forex and CFDs trading account upon request. The account will be set up as interest free and Forex & CFDs trading account. Please notify us during submitting of your application so that we will place your account under the Islamic Shariah Law account.
TRADING FAQS
What Is Limit Order?
A limit order is an order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 112.00/05, then a limit order to buy USD would be at a price below 112.05. (ie 111.50).
What Is A Stop Loss Order?
A stop loss order is an order type whereby an open online forex trading position is automatically liquidated at a specific price. As an example, if an investor is long USD/YEN at 112.35, they might wish to put in a stop loss order for 111.75, which would limit losses should the dollar depreciate, possibly below 111.75. Stop Loss will be hit on the next price during volatile or hectic market. Stop loss during big impact news can only be set 50 pips from running price.
What is a Buy Stop Order
An order to buy a security which is entered at a price above the current offering price. It is triggered when the market price touches or goes through the buy stop price. Buy stop is only allowed if you have a sell position.
What is a Sell Stop Order
An order to sell a security which is entered at a price sell the current offering price. It is triggered when the market price touches or goes through the sell stop price. Sell stop is only allowed if you have a buy position.
What Is A Position Order?
Position orders are directly related to individual positions. These forex currency trading orders are only active for as long as the position remains open and can be a stop loss or limit order.
Can I Place A Trade Via E-Mail?
No, we do not accept trades via email. You may place a trade online or by calling our 24-hour dealing desk.
What Is Margin?
Margin is required collateral for taking a forex trading position. It is essentially borrowed money that allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the forex market, leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively whereas the equity market only provides a leverage of 50% (double the buying power).
What Does It Mean Have A ‘Long’ Or ‘Short’ Position?
A long position is where a forex trader buys a currency at a price and aims to sell it later at a higher price and gains are made in a bullish market. A short position is one in which the trader sells a currency in anticipation that it will depreciate and gains are made in a bearish market. The risk of either positions are the same.
What About Terms Like “Bid/Ask”, “Spread”, And “Rollover”?
Please refer to our Glossary which provides detailed definitions of all Forex related terms.
