Frequently Asked Questions
Forex seems like a confusing concept nowadays, but to be clear it is just a financial market based on practice. It is a double-sided and leveraged financial market. Forex which is an investment tool, provides its investors the gain by not only with the increasing of the countries’ currencies against each other but also in many products such as gold, silver and oil. In this market, you can trade 5/24 instantaneously, you have a chance to stop your profit and your loss at the level you decide.
Forex and financial markets have a lot of non-common points, but the main point of Forex is the possibility of two-way trading. For example, in order to take a profit on the stock market, firstly, you need to get “buy position” in that parity, but you can make a profit by performing both buying and selling positions with your asset at the same time in Forex.
It is the system which gives the investor opportunity to open a high volume transaction with low capital in financial markets. For example, if your leverage in the market is 1/100, you can make your operations with $100 investment like it is $10000 . Profit and loss are calculated over the volume of these operations. In Power Trade Finance you can trade with leverage up to 1/200.
The difference between the buying price and the selling price in the parity you will trade is called spread. Spreads have 2 different types as “Dynamic Spread ”and“ Fixed Spread ”. The firms that follow the policies to reduce the effect of the market work with fixed spread. However, this may not always be in favor of the investor.
The margin which means “collateral olarak as terminology characterizes the minimum amount we need to open positions in the Forex Market. In order for the investor to be successful in the market, the margin calculation and risk management must be good.
In Forex markets, swaps are referred to as overnight transport costs / overnight interest. When calculating Forex swap rates, the interest differences between the two countries’ currency i are taken into consideration. All currency pairs traded in Forex markets have swap costs.