Faqs

What is a standard lot in forex trading?

A standard lot in forex is equal to 100,000 currency units. It's the standard unit size for traders, whether they're independent or institutional. Example: If the EURUSD exchange rate was $1.3000, one standard lot of the base currency (EUR) would be 130,000 units.

What is ask price in forex trading?

The BID represents the price at which the forex broker is willing to buy (from you) the base currency in exchange for the counter currency. The ASK price is the price at which the forex broker is willing to sell (to you) the base currency in exchange for the counter currency.

What is leverage in forex trading?

Leverage in forex is a way for traders to borrow capital to gain a larger exposure to the FX market. With a limited amount of capital, they can control a larger trade size. This could lead to bigger profits and losses as they are based on the full value of the position.

What are swaps in forex trading?

A currency swap, or swap, is a foreign exchange transaction in which two parties agree to exchange one currency for another at a future date. The currencies are then exchanged immediately at an exchange rate adjusted to reflect the expected rate of the future date, known as a forward exchange rate.

What is margin call in forex trading?

Margin call is the term for when the equity on your account – the total capital you have deposited plus or minus any profits or losses – drops below your margin requirement.

What is margin in forex trading?

Margin is essentially the amount of money that a trader needs to put forward in order to place a trade and maintain the position. Margin is not a transaction cost, but rather a security deposit that the broker holds while a forex trade is open.

What is a pip in forex trading?

In foreign exchange markets, a percentage in point is a unit of change in an exchange rate of a currency pair. The major currencies are traditionally priced to four decimal places, and a pip is one unit of the fourth decimal place: for dollar currencies this is to 1/100 of a cent. 

Reading resources & videos.

The internet is packed full of forex-related blogs, articles, guides, e-books, and more. Read as many as you can to widen your scope of knowledge of the mechanics of trading. Jump onto YouTube and watch some videos to get some tips from the experts and your peers. Sign up for webinars as well. Just make sure to do your research to ensure you’re following reputable traders and not someone promising that you’ll be making millions in 7 days.

Some fun facts about Forex trading.

• There are said to be roughly 10 million forex traders globally.
• Approximately 90% of all forex trades are speculative.
• Less than 10% of all forex trades are executed by retail traders. The other 90% is said to be by financial institutions, hedge funds, etc.
• USD/EUR is the most popular traded currency pair across the globe. It makes up almost 20% of all forex transactions.
• After the USD, the three most traded currencies included the EUR, GBP, and Japanese Yen.
• In 2021, the global forex market size was estimated at $2.09 quadrillion.

What are the working hours of Forex market?

Forex market is open from 22:00 GMT Sunday (opening of the Australian trading session) till 22:00 GMT Friday (closing of the US trading session).

Can I lose more than I invest in Forex?

Yes, it's possible to lose more than the initial amount invested in Forex trading, especially when using certain trading strategies or tools that involve leverage. Leveraged trading allows traders to control a larger position size in the market with a relatively smaller amount of capital. While leverage can amplify potential profits, it also magnifies potential losses.

For instance, if a trader uses leverage and the market moves against their position, the losses could exceed the initial investment. In some cases, traders might face margin calls, where they're required to deposit additional funds to maintain their positions or risk having their trades automatically closed by the broker.

To manage risk, it's crucial for traders to use risk management strategies, such as setting stop-loss orders, using proper position sizing, diversifying their trades, and not overleveraging. Understanding the risks involved and having a well-thought-out trading plan can help mitigate the possibility of substantial losses in Forex trading.

What is the forex market?

The forex market is the largest financial market in the world. It is open 24/5 and as of April 2022, was said to have seen a daily trading volume that reached $7.5 trillion. This volume of trade makes the forex market the most liquid market in the world. The forex market is decentralized and occurs electronically.

How is investing different from trading?

The difference between investing and trading is all about the timeframe that you keep your positions open. When trading – either day trading or swing trading – your goal is to open and close positions within a day (day trading) or several days or weeks (swing trading).

Investing, on the other hand, involves buying an instrument today with the intention to sell it for a profit in a few years from now. As you can imagine, investing is not as time-consuming as you can leave the investment for as long as you want to. The benefit of trading is that you can make regular profits from several positions.

In the end, the strategies used to invest and trade are similar and you use the same analytic methods for both.

Can trading replace my day job?

Technically, day trading can replace your day job. In fact, there are tens of thousands of day traders that make a lot of money from trading, often more than they would have at a regular job.

With that being said, there are really no guarantees that you will ever make enough from trading that you can abandon your regular job. We would never recommend anyone quitting their job before they are confident that their trading efforts are worth it.

Now, if your goal is to stop working and start day trading, we’re not going to stop you. Just be aware that it will take years of practice and studying to get all the skills needed to trade at this level. Even then, there are still no guarantees that you will succeed.

Note! Upwards of 70 percent of all retail traders lose money when trading!

Types of Financial Instruments You Can Trade with at Multi-Stock Trading LLC.

At Multi-Stock Trading LLC, you have the opportunity to trade over 300 financial instruments across diverse assets, including forex, metals, shares, futures, indices, and commodities.

Can I get rich trading forex?

There is no limit to how much a trader can make off trading. However, as we’ve reiterated throughout this article, forex trading comes with significant risk. There are many factors that can impact performance, e.g., central bank announcements, interest rates, geopolitical uncertainties, war, environmental disasters, rate of economic growth, etc. Being that the forex market is open 24/5, these factors can significantly impact trades, aggressively driving prices up or down. Remember as well that most currency trading is based on speculation or hedging. If not properly monitored, traders can lose large sums of money in a flash.

What is margin?

Margin in Forex refers to the collateral that traders need to deposit with their broker in order to open and maintain trading positions. It allows traders to control larger positions in the market with a smaller amount of capital. Margin is often expressed as a percentage of the full position size.

When traders open a position, they are required to deposit a portion of the total position value as collateral, which is known as the margin requirement. This collateral ensures that the trader can cover potential losses. The remaining funds needed to open the position are provided by the broker. The amount of margin required varies based on the leverage offered by the broker and the currency pair being traded.

Leverage allows traders to control positions larger than their deposited margin. For example, if a broker offers leverage of 50:1, a trader can control a position of $50,000 with a margin requirement of $1,000.

It's important to note that while leverage can amplify potential profits, it also increases the risk of significant losses. If the market moves against a trader's position, losses can exceed the initially deposited margin. Therefore, managing leverage and understanding the risks associated with trading on margin are crucial aspects of responsible Forex trading. Traders should be aware of their broker's margin requirements and use risk management tools like stop-loss orders to help control potential losses.

How much money do I need to start?

The amount needed to start trading Forex varies. Some brokers allow accounts with $50 to $100, while others require more. Starting small is possible, but having more capital is advisable for better risk management. Consider trading costs and have a clear plan before starting. It's recommended to practice with a demo account first.

How can I start trading Forex?

To start trading Forex:

1) Learn about the market and strategies.
2) Open an account and practice with a demo.
3) Develop a trading plan.
4) Start trading with caution and learn continuously.

What will happen to my open positions if I log out?

Your open positions won’t be closed until an existing stop-loss, take-profit, or another conditional order is fulfilled or if a margin stop-out level is reached. Existing pending stop or limit orders will still be filled if the entry rate is met. However, please note that, if you are using Expert Advisors, you would need to remain logged in and keep the platform open at all times.

Do I need to keep the platform constantly open to monitor quotes and react to market movements?

Not necessarily. You can circumvent this by taking advantage of pending orders, which will be executed when the price of the traded instrument reaches your predefined level.

Can I use custom indicators on MT5?

Yes, you can use any custom indicators that are MQL-compatible. Please note, however, that there may be times when a third-party indicator is not compatible with our trading platform due to coding issues or for some other reason. Because of the above, while we do not restrict the use of any custom indicators, please note that we do not provide support for or endorse any of your indicators or that of third parties.

Can I use trading robots on MT5?

Yes, you can run any Expert Advisors (EAs) either coded by yourself or available from third-party providers.

Which operating systems does the platform support?

Multi-Stock MetaTrader 5 can run on all modern operating systems: macOS, Windows and Linux.

How do I get started using Multi-Stock MetaTrader 5?

To start using the platform, simply download the installer from our Platforms page. You can also trade directly through the browser with Multi-Stock MT5 Web.

How do I see all currency pairs that you offer?

Within the Market Watch window, all of the currency pairs eligible to trade can be viewed by right-clicking within this section and selecting ‘Show All’. All currency pairs will appear thereafter.

How do I insert chart indicators on MT5?

On MetaTrader 5 select INSERT -> INDICATORS. You can also navigate to the Navigator section and insert additional chart indicators.

How do I change the time period on MT5?

To add time periods to the main menu bar, select VIEW > TOOLBARS > PERIODICITY. (If needed) Use the following legend for applying time periods to charts:

M1 = 1 minute chart

M5 = 5 minute chart

M15 = 15 minute chart

M30 = 30 minute chart

H1 = 1 hour chart

H4 = 4 hour chart

D1 = daily chart

W1 = weekly chart

MN = monthly chart

Does MT5 facilitate mini lot (10K) trading?

Can trade mini lots (10K) using the MetaTrader platform.
Here is the scale that we use for trading lot sizes on MetaTrader:

0.01 lots = 1,000 units of base currency (or dollars). Our “micro” lot size.
0.10 lots = 10,000 units of base currency (or dollars). Our “mini” lot size.
1.00 lots = 100,000 units of base currency (or dollars). Our “standard” lot size.

Please note that trading in lot sizes that are not showing the scale above is possible.
An example would be an open a lot position of 0.60 (60,000 units), an 8.00 lot position (800,000 units), and even a 3.20 lot position (320,000 units).

Also, note that other brokers may use a different scale to trade certain size lots. For instance, another broker may show 1.00 lots on a mini account is 10,000 units