PaxForex: Delivering Outstanding $ 100 Free Forex Bonus Gift!
Do you Care for some trading cash to get you started? Register with PaxForex and you will automatically receive a $ 100 Forex Bonus Gift instantly as your first bonus without making deposit!
Best Forex Bonus
PaxForex created Best Forex Bonus condition for the new in Forex. With our Best Forex Bonus program and unique designed forex money management you will be concentrating only on your successful forex trading strategy.
Free Forex Bonus
To receive Free Forex Bonus with no deposit you don't have to make transfer any funds. It's enough to register for a Standard Forex Bonus account. No Deposit Forex Bonus can be used for forex trading purposes and earning profit. You can withdrawal Best Forex Bonus amount after a certain amount of trades. The profit earned from forex trading with this Free Forex Bonus on the standard account is available for withdrawal without limitations. This type of Free Forex Bonus is good for the beginning Forex traders which would like to practice with the real money on forex market without having too much risk.
Signal Forex Pips
Welcome to Signal forex Pips, here the signal will be post daily from monday to friday in 08.00 (GMT +7), remember to use stoploss to protecct your capital. see also forex bonus and promotion offer. Selamat datang di Signal Forex Pips disini sinyal akan dipost setiap hari senin sampai jumat pada pukul 08.00 WIB (GMT +7), ingatlah untuk selalu pergunakan stoploss untuk melindungi modal anda. use at your own risk
Sabtu, 09 Juli 2011
No Deposit Bonus Forex Broker: FBS
Try out FBS advantages
Free bouns $5 USD FBS offers its customers a free opportunity to try out our real account trading! Open your real account and get a free 5 USD welcome bonus!
1. Open a “Micro” account
2. Download and install FBS Trader 4 trading terminal
3. Download and install «Bonus Charger» software (view video tutorial)
4. Run your FBS Trader 4 and login to your account
5. Please check the settings of your terminal. Go to the Tools tab. Then choose Options -> Expert Advisers. Check the following boxes: Enable expert advisers, Allow live trading, Allow DLL imports, Allow external expert imports. All other checks must be removed
6. Run mql-script "_GET 5$ Bonus" (view video tutorial)
7. You bonus will be deposited automatically
The promotion is active for “Micro” accounts only
Promotion rules
* Bonus value is 5 USD
* To prevent incorrect trading on bonus accounts only one bonus can be received from one computer
* No IB commission is added for bonus trading
* Bonus is not withdrawable
* Every client can have the ONLY ONE bonus account of each type. In case several accounts of one type are found belonging to one person (or if such suspicions arise, including IP address match, contact info match, etc), all the bonuses will be cancelled, your profit will be cancelled, and your account will be blocked.
* Profit from trading on a bonus account can be withdrawn anytime
* The cost of the 1st withdrawal from a bonus account is 7 USD. These funds will be deducted from the 1st withdrawal only. All the next withdrawals are free.
* FBS reserves a right to decline client’s bonus application without explaining the reason and prior notification. FBS is not liable for any consequences of the bonus cancelation included but not limited to order(s) closure by Stop Out.
* FBS reserves a right to cancel client’s bonus without explaining the reason and prior notification. FBS is not liable for any consequences of the bonus cancelation included but not limited to order(s) closure by Stop Out.
Notes:
* FBS reserves a right to change or modify the promotion rules, stop the promotion or any of its parts anytime without prior notification. We will post such changes in our “Company news” section
* Any arguable situation not listed in these rules will be the subject to the decision of FBS. Any decision taken by FBS will be considered final and mandatory for all the parties.
* FBS reserves a right to decline client’s bonus application without explaining the reason
* FBS reserves a right to cancel client’s bonus without explaining the reason
* The English version of these rules should be considered prevailing over any other language versions.
* It is required to post a feedback about FBS service level during the first withdrawal from a bonus account. A link to the feedback must be attached to the withdrawal request.
Free bouns $5 USD FBS offers its customers a free opportunity to try out our real account trading! Open your real account and get a free 5 USD welcome bonus!
1. Open a “Micro” account
2. Download and install FBS Trader 4 trading terminal
3. Download and install «Bonus Charger» software (view video tutorial)
4. Run your FBS Trader 4 and login to your account
5. Please check the settings of your terminal. Go to the Tools tab. Then choose Options -> Expert Advisers. Check the following boxes: Enable expert advisers, Allow live trading, Allow DLL imports, Allow external expert imports. All other checks must be removed
6. Run mql-script "_GET 5$ Bonus" (view video tutorial)
7. You bonus will be deposited automatically
The promotion is active for “Micro” accounts only
Promotion rules
* Bonus value is 5 USD
* To prevent incorrect trading on bonus accounts only one bonus can be received from one computer
* No IB commission is added for bonus trading
* Bonus is not withdrawable
* Every client can have the ONLY ONE bonus account of each type. In case several accounts of one type are found belonging to one person (or if such suspicions arise, including IP address match, contact info match, etc), all the bonuses will be cancelled, your profit will be cancelled, and your account will be blocked.
* Profit from trading on a bonus account can be withdrawn anytime
* The cost of the 1st withdrawal from a bonus account is 7 USD. These funds will be deducted from the 1st withdrawal only. All the next withdrawals are free.
* FBS reserves a right to decline client’s bonus application without explaining the reason and prior notification. FBS is not liable for any consequences of the bonus cancelation included but not limited to order(s) closure by Stop Out.
* FBS reserves a right to cancel client’s bonus without explaining the reason and prior notification. FBS is not liable for any consequences of the bonus cancelation included but not limited to order(s) closure by Stop Out.
Notes:
* FBS reserves a right to change or modify the promotion rules, stop the promotion or any of its parts anytime without prior notification. We will post such changes in our “Company news” section
* Any arguable situation not listed in these rules will be the subject to the decision of FBS. Any decision taken by FBS will be considered final and mandatory for all the parties.
* FBS reserves a right to decline client’s bonus application without explaining the reason
* FBS reserves a right to cancel client’s bonus without explaining the reason
* The English version of these rules should be considered prevailing over any other language versions.
* It is required to post a feedback about FBS service level during the first withdrawal from a bonus account. A link to the feedback must be attached to the withdrawal request.
No Deposit Bonus Forex Broker: RoboForex
Here is $15 no deposit welcome bonus from RoboForex
No Deposit Bonus - Welcome Bonus
«Welcome bonus 2.0» - no deposit bonus service for new and registered clients!
30190 Clients of RoboForex have already got "Welcome bonus".
Previous "Welcome bonus" was received 1 min. 25 sec. before, by client from country Indonesia
The RoboForex is glad to present «Welcome bonus», a new no deposit bonus service which can be of a great help to beginner traders, and a good opportunity to try trading using real forex accounts at RoboForex!
View instructions how to get «Welcome bonus».
We’d like to pay your attention to the fact that our Technical Support Service gives no answers to the questions on No Deposit Bonus, as the system operates automatically. If you have any question, please, visit «Welcome bonus» FAQ.
Conditions of no deposit bonus «Welcome bonus 2.0» service are the following
1. «Welcome bonus 2.0» is $15 (1500 cents transferred to your account). It’s available for verified clients using Fix-Cent & Pro-Cent usd cent accounts only.
Please note that «Welcome bonus 2.0» service is available for new clients only!
2. There are some trading restrictions for accounts with «Welcome bonus»:
- an order is 0.1 lot;
- maximum number of open orders is 10;
- only metals and currency pairs are available for trading.
These restrictions will be removed as soon as the equity on the bonus account exceeds $100 (10000 cents) due to profit earned or client’s depositing the account with his/her own funds. After the equity exceeds $100, the account will become a real one and all restrictions will be removed in the following order:
- automatically within an hour, if there are no open orders;
- automatically within a day, if there are open orders.
3. A client can withdraw bonus from the account, if the total amount of the lots on his/her account is:
- 300 microlots (3 standard lots) for Fix-Cent accounts;
- 500 microlots (5 standard lots) for Pro-Cent accounts.
4. One is allowed to withdraw profit from the bonus accounts taking into consideration onetime commission of $15 during the first withdrawal. HOWEVER, after the bonus account becomes a real one (art. 2), no onetime commission will be charged.
5. You must use the same account details for payments each time you withdraw profit from your bonus account. In case these very account details for payments are used to withdraw profit from other bonus accounts, the company reserves the right to write the bonus off the accounts, as well as the profit gained when trading using these bonus accounts.
6. Partners DO NOT receive commission for transactions on bonus accounts. HOWEVER, after the bonus account becomes a real one (art. 2), partners will receive commission for orders according to the normal procedure.
How to get no deposit «Welcome bonus»
1. «Welcome bonus» is credited only once for each client when (s)he opens a new trading account.
2. In order to avoid any type of fraud involving no deposit bonus, the system that checks and transfers bonuses to our clients’ accounts is operating automatically.
3. RoboForex reserves the right to cancel «Welcome bonus» without any explanation.
Conditions of operating no deposit bonus accounts:
1. Bonus can be withdrawn if the requirements of the bonus program are fulfilled.
2. Up to the moment the requirements of the bonus program are fulfilled, only profit can be withdrawn, taking into consideration onetime commission during the first withdrawal.
Example: You got 1500 cents as a bonus. If your profit after trading is 2500 cents, then, according to our conditions, you can withdraw 1000 cents, i.e. minus onetime commission of 1500 cents during the first withdrawal (next time you withdraw your profit no commission will be charged).
3. A client can deposit bonus account with his/her own funds (in order to meet the requirements more quickly). In case of negative balance on the account, our policy is that a client loses his/her own funds in the first place.
Example: You got 1500 cents as a bonus and deposited your account with your own 1000 cents. If your profit after trading is -500 cents, then, according to our conditions, you can withdraw 500 cents, i.e. your own funds minus profit.
4. Only closed deals on the following currency pairs are taken into account for fulfillment of the requirements on transactions:
List of currency pairs for fulfillment of the requirements on transactions:
AUDCAD
AUDCHF
AUDJPY
AUDNZD
AUDUSD
CADCHF
CADJPY
CHFJPY
EURAUD
EURCAD EURCHF
EURDKK
EURGBP
EURJPY
EURNOK
EURNZD
EURPLN
EURSEK
EURUSD
GBPAUD GBPCAD
GBPCHF
GBPJPY
GBPNZD
GBPUSD
NZDCAD
NZDCHF
NZDJPY
NZDUSD
USDCAD USDCHF
USDDKK
USDHKD
USDJPY
USDMXN
USDNOK
USDPLN
USDSEK
USDSGD
USDZAR
5. RoboForex reserves the right to cancel bonuses from the accounts without giving any reasons and/or advance notice.
How «Welcome bonus» is deposited to your account
1. When registering a new account you need to choose USD currency, Pro-Cent or Fix-Cent account, select “Get Welcome Bonus 2.0?”, and agree to terms and conditions of the bonus program by selecting “I agree to terms and conditions of the Bonus Program”.
Please, note, the automatic system, which checks the recurrent bonus transfer and transfers bonuses to our clients’ accounts, may deny Your attempt to register a new bonus account. In this case, You won’t be able to receive bonus from RoboForex.
2. After registering a new account you need to pass the verification in your Live Account.
3. After the account is registered, you need to download MetaTrader 4 the trading terminal of the RoboForex and login entering the information sent to your email.
4. After a successful authorization in the RoboForex MetaTrader4 client terminal, you need to customize it. Make sure that Your terminal allows You to use Expert Advisors (EA) as shown on the figure below:
MetaTrader4 terminal menu: "Tools -> Options -> Expert Advisors"
MetaTrader4 RoboForex settings EA for verify_client
5. After installation options for Expert Advisers (EA), you need to double-click on «verify_client» to start the script (“Navigator -> Scripts” section of the trading terminal).
How welcome bonus is deposited - step 3
6. After the «verify_client» script is started, you will be notified that «Welcome bonus» has been successfully credited to your account.
How welcome bonus is deposited - step 4
Please, note, if the «verify_client» script doesn’t start, it means that You don’t have access rights to the folder where the RoboForex MetaTrader4 client terminal has been installed to, "C:Program FilesMetaTrader4 - RoboForex". You need to the gain access rights or run Your personal computer as an Administrator to start the «verify_client» script.
No Deposit Bonus - Welcome Bonus
«Welcome bonus 2.0» - no deposit bonus service for new and registered clients!
30190 Clients of RoboForex have already got "Welcome bonus".
Previous "Welcome bonus" was received 1 min. 25 sec. before, by client from country Indonesia
The RoboForex is glad to present «Welcome bonus», a new no deposit bonus service which can be of a great help to beginner traders, and a good opportunity to try trading using real forex accounts at RoboForex!
View instructions how to get «Welcome bonus».
We’d like to pay your attention to the fact that our Technical Support Service gives no answers to the questions on No Deposit Bonus, as the system operates automatically. If you have any question, please, visit «Welcome bonus» FAQ.
Conditions of no deposit bonus «Welcome bonus 2.0» service are the following
1. «Welcome bonus 2.0» is $15 (1500 cents transferred to your account). It’s available for verified clients using Fix-Cent & Pro-Cent usd cent accounts only.
Please note that «Welcome bonus 2.0» service is available for new clients only!
2. There are some trading restrictions for accounts with «Welcome bonus»:
- an order is 0.1 lot;
- maximum number of open orders is 10;
- only metals and currency pairs are available for trading.
These restrictions will be removed as soon as the equity on the bonus account exceeds $100 (10000 cents) due to profit earned or client’s depositing the account with his/her own funds. After the equity exceeds $100, the account will become a real one and all restrictions will be removed in the following order:
- automatically within an hour, if there are no open orders;
- automatically within a day, if there are open orders.
3. A client can withdraw bonus from the account, if the total amount of the lots on his/her account is:
- 300 microlots (3 standard lots) for Fix-Cent accounts;
- 500 microlots (5 standard lots) for Pro-Cent accounts.
4. One is allowed to withdraw profit from the bonus accounts taking into consideration onetime commission of $15 during the first withdrawal. HOWEVER, after the bonus account becomes a real one (art. 2), no onetime commission will be charged.
5. You must use the same account details for payments each time you withdraw profit from your bonus account. In case these very account details for payments are used to withdraw profit from other bonus accounts, the company reserves the right to write the bonus off the accounts, as well as the profit gained when trading using these bonus accounts.
6. Partners DO NOT receive commission for transactions on bonus accounts. HOWEVER, after the bonus account becomes a real one (art. 2), partners will receive commission for orders according to the normal procedure.
How to get no deposit «Welcome bonus»
1. «Welcome bonus» is credited only once for each client when (s)he opens a new trading account.
2. In order to avoid any type of fraud involving no deposit bonus, the system that checks and transfers bonuses to our clients’ accounts is operating automatically.
3. RoboForex reserves the right to cancel «Welcome bonus» without any explanation.
Conditions of operating no deposit bonus accounts:
1. Bonus can be withdrawn if the requirements of the bonus program are fulfilled.
2. Up to the moment the requirements of the bonus program are fulfilled, only profit can be withdrawn, taking into consideration onetime commission during the first withdrawal.
Example: You got 1500 cents as a bonus. If your profit after trading is 2500 cents, then, according to our conditions, you can withdraw 1000 cents, i.e. minus onetime commission of 1500 cents during the first withdrawal (next time you withdraw your profit no commission will be charged).
3. A client can deposit bonus account with his/her own funds (in order to meet the requirements more quickly). In case of negative balance on the account, our policy is that a client loses his/her own funds in the first place.
Example: You got 1500 cents as a bonus and deposited your account with your own 1000 cents. If your profit after trading is -500 cents, then, according to our conditions, you can withdraw 500 cents, i.e. your own funds minus profit.
4. Only closed deals on the following currency pairs are taken into account for fulfillment of the requirements on transactions:
List of currency pairs for fulfillment of the requirements on transactions:
AUDCAD
AUDCHF
AUDJPY
AUDNZD
AUDUSD
CADCHF
CADJPY
CHFJPY
EURAUD
EURCAD EURCHF
EURDKK
EURGBP
EURJPY
EURNOK
EURNZD
EURPLN
EURSEK
EURUSD
GBPAUD GBPCAD
GBPCHF
GBPJPY
GBPNZD
GBPUSD
NZDCAD
NZDCHF
NZDJPY
NZDUSD
USDCAD USDCHF
USDDKK
USDHKD
USDJPY
USDMXN
USDNOK
USDPLN
USDSEK
USDSGD
USDZAR
5. RoboForex reserves the right to cancel bonuses from the accounts without giving any reasons and/or advance notice.
How «Welcome bonus» is deposited to your account
1. When registering a new account you need to choose USD currency, Pro-Cent or Fix-Cent account, select “Get Welcome Bonus 2.0?”, and agree to terms and conditions of the bonus program by selecting “I agree to terms and conditions of the Bonus Program”.
Please, note, the automatic system, which checks the recurrent bonus transfer and transfers bonuses to our clients’ accounts, may deny Your attempt to register a new bonus account. In this case, You won’t be able to receive bonus from RoboForex.
2. After registering a new account you need to pass the verification in your Live Account.
3. After the account is registered, you need to download MetaTrader 4 the trading terminal of the RoboForex and login entering the information sent to your email.
4. After a successful authorization in the RoboForex MetaTrader4 client terminal, you need to customize it. Make sure that Your terminal allows You to use Expert Advisors (EA) as shown on the figure below:
MetaTrader4 terminal menu: "Tools -> Options -> Expert Advisors"
MetaTrader4 RoboForex settings EA for verify_client
5. After installation options for Expert Advisers (EA), you need to double-click on «verify_client» to start the script (“Navigator -> Scripts” section of the trading terminal).
How welcome bonus is deposited - step 3
6. After the «verify_client» script is started, you will be notified that «Welcome bonus» has been successfully credited to your account.
How welcome bonus is deposited - step 4
Please, note, if the «verify_client» script doesn’t start, it means that You don’t have access rights to the folder where the RoboForex MetaTrader4 client terminal has been installed to, "C:Program FilesMetaTrader4 - RoboForex". You need to the gain access rights or run Your personal computer as an Administrator to start the «verify_client» script.
Minggu, 15 Agustus 2010
Buy Strength – Sell Weakness
If the signals came all at once, we always bought the strongest markets and sold short
the weakest markets in a group.
We would also only enter one unit in a single market at the same time. For instance,
instead of buying February, March and April Heating Oil at the same time, we would
pick the one contract month that was the strongest, and that had sufficient volume and
liquidity.
This is very important! Within a correlated group, the best long positions are the
strongest markets (which almost always outperform the weaker markets in the same
group). Conversely, the biggest winning trades to the short side come from the weakest
markets within a correlated group.
As Turtles, we used various measures to determine strength and weakness. The
simplest and most common way was to simply look at the charts and figure out which
one “looked” stronger (or weaker) by visual examination.
Some would determine how many N the price had advanced since the breakout, and
buy the market that had moved the most (in terms of N).
Others would subtract the price 3 months ago from the current price and then divide
by the current N to normalize across markets. The strongest markets had the highest
values; the weakest markets the lowest.
Any of these approaches work well. The important thing is to have long positions in
the strongest markets and short positions in the weakest markets.
the weakest markets in a group.
We would also only enter one unit in a single market at the same time. For instance,
instead of buying February, March and April Heating Oil at the same time, we would
pick the one contract month that was the strongest, and that had sufficient volume and
liquidity.
This is very important! Within a correlated group, the best long positions are the
strongest markets (which almost always outperform the weaker markets in the same
group). Conversely, the biggest winning trades to the short side come from the weakest
markets within a correlated group.
As Turtles, we used various measures to determine strength and weakness. The
simplest and most common way was to simply look at the charts and figure out which
one “looked” stronger (or weaker) by visual examination.
Some would determine how many N the price had advanced since the breakout, and
buy the market that had moved the most (in terms of N).
Others would subtract the price 3 months ago from the current price and then divide
by the current N to normalize across markets. The strongest markets had the highest
values; the weakest markets the lowest.
Any of these approaches work well. The important thing is to have long positions in
the strongest markets and short positions in the weakest markets.
Fast Markets
At times, the market moves very quickly through the order prices, and if you place a
limit order it simply won’t get filled. During fast market conditions, a market can move
thousands of dollars per contract in just a few minutes.
During these times, the Turtles were advised not to panic, and to wait for the market
to trade and stabilize before placing their orders.
Most beginning traders find this hard to do. They panic and place market orders.
Invariably they do this at the worst possible time, and frequently end up trading on the
high or low of the day, at the worst possible price.
In a fast market, liquidity temporarily dries up. In the case of a rising fast market, sellers
stop selling and hold out for a higher price, and they will not re-commence selling until
after the price stops moving up. In this scenario, the asks rise considerably, and the
spread between bid and ask widens.
Buyers are now forced to pay much higher prices as sellers continue raising their asks,
and the price eventually moves so far and so fast that new sellers come into the market,
causing the price to stabilize, and often to quickly reverse and collapse partway back.
Market orders placed into a fast market usually end up getting filled at the highest price
of the run-up, right at the point where the market begins to stabilize as new sellers
come in.
As Turtles, we waited until some indication of at least a temporary price reversal before
placing our orders, and this often resulted in much better fills than would have been
achieved with a market order. If the market stabilized at a point which was past our
stop price, then we would get out of the market, but we would do so without
panicking
limit order it simply won’t get filled. During fast market conditions, a market can move
thousands of dollars per contract in just a few minutes.
During these times, the Turtles were advised not to panic, and to wait for the market
to trade and stabilize before placing their orders.
Most beginning traders find this hard to do. They panic and place market orders.
Invariably they do this at the worst possible time, and frequently end up trading on the
high or low of the day, at the worst possible price.
In a fast market, liquidity temporarily dries up. In the case of a rising fast market, sellers
stop selling and hold out for a higher price, and they will not re-commence selling until
after the price stops moving up. In this scenario, the asks rise considerably, and the
spread between bid and ask widens.
Buyers are now forced to pay much higher prices as sellers continue raising their asks,
and the price eventually moves so far and so fast that new sellers come into the market,
causing the price to stabilize, and often to quickly reverse and collapse partway back.
Market orders placed into a fast market usually end up getting filled at the highest price
of the run-up, right at the point where the market begins to stabilize as new sellers
come in.
As Turtles, we waited until some indication of at least a temporary price reversal before
placing our orders, and this often resulted in much better fills than would have been
achieved with a market order. If the market stabilized at a point which was past our
stop price, then we would get out of the market, but we would do so without
panicking
Adjusting Trading Size
There will be times when the market does not trend for many months. During these
times, it is possible to lose a significant percentage of the equity of the account.
After large winning trades close out, one might want to increase the size of the equity
used to compute position size.
The Turtles did not trade normal accounts with a running balance based on the initial
equity. We were given notional accounts with a starting equity of zero and a specific
account size. For example, many Turtles received a notional account size of $1,000,000
when we first started trading in February, 1983. This account size was then adjusted
each year at the beginning of the year. It was adjusted up or down depending on the
success of the trader as measured subjectively by Rich. The increase/decrease typically
represented something close to the addition of the gains or losses that were made in
the account during the preceding year.
The Turtles were instructed to decrease the size of the notional account by 20% each
time we went down 10% of the original account. So if a Turtle trading a $1,000,000
account was ever was down 10%, or $100,000, we would then begin trading as if we
had a $800,000 account until such time as we reached the yearly starting equity. If we
lost another 10% (10% of $800,000 or $80,000 for a total loss of $180,000) we were to
reduce the account size by another 20% for a notional account size of $640,000.
There are other, perhaps better strategies for reducing or increasing equity as the
account goes up or down. These are simply the rules that the Turtles used.
times, it is possible to lose a significant percentage of the equity of the account.
After large winning trades close out, one might want to increase the size of the equity
used to compute position size.
The Turtles did not trade normal accounts with a running balance based on the initial
equity. We were given notional accounts with a starting equity of zero and a specific
account size. For example, many Turtles received a notional account size of $1,000,000
when we first started trading in February, 1983. This account size was then adjusted
each year at the beginning of the year. It was adjusted up or down depending on the
success of the trader as measured subjectively by Rich. The increase/decrease typically
represented something close to the addition of the gains or losses that were made in
the account during the preceding year.
The Turtles were instructed to decrease the size of the notional account by 20% each
time we went down 10% of the original account. So if a Turtle trading a $1,000,000
account was ever was down 10%, or $100,000, we would then begin trading as if we
had a $800,000 account until such time as we reached the yearly starting equity. If we
lost another 10% (10% of $800,000 or $80,000 for a total loss of $180,000) we were to
reduce the account size by another 20% for a notional account size of $640,000.
There are other, perhaps better strategies for reducing or increasing equity as the
account goes up or down. These are simply the rules that the Turtles used.
THE RISKS OF TRADING IN THE FOREX MARKET
Although every investment involves some risk, the risk of loss in
trading off-exchange forex contracts can be substantial. Therefore,
if you are considering participating in this market, you should
understand some of the risks associated with this product so you
can make an informed decision before investing.
As stated in the introduction to this booklet, off-exchange foreign
currency trading carries a high level of risk and may not be suitable
for all customers. The only funds that should ever be used to spec-
ulate in foreign currency trading, or any type of highly speculative
investment, are funds that represent risk capital – i.e., funds you
can afford to lose without affecting your financial situation. There
are other reasons why forex trading may or may not be an appro-
priate investment for you, and they are highlighted below.
The market could move against you
No one can predict with certainty which way exchange rates will
go, and the forex market is volatile. Fluctuations in the foreign
exchange rate between the time you place the trade and the time
you close it out will affect the price of your forex contract and the
potential profit and losses relating to it.
You could lose your entire investment
You will be required to deposit an amount of money (often referred
to as a “security deposit” or “margin”) with your forex dealer in
order to buy or sell an off-exchange forex contract. As discussed
earlier, a relatively small amount of money can enable you to hold a
forex position worth many times the account value. This is referred
to as leverage or gearing. The smaller the deposit in relation to the
underlying value of the contract, the greater the leverage.
If the price moves in an unfavorable direction, high leverage can
produce large losses in relation to your initial deposit. In fact, even
a small move against your position may result in a large loss, includ-
ing the loss of your entire deposit. Depending on your agreement
with your dealer, you may also be required to pay additional losses.
You are relying on the dealer’s
creditworthiness and reputation
Retail off-exchange forex trades are not guaranteed by a clearing
organization. Furthermore, funds that you have deposited to
trade forex contracts are not insured and do not receive a priority
in bankruptcy. Even customer funds deposited by a dealer in
an FDIC-insured bank account are not protected if the dealer
goes bankrupt.
There is no central marketplace
Unlike regulated futures exchanges, in the retail off-exchange
forex market there is no central marketplace with many buyers
and sellers. The forex dealer determines the execution price, so
you are relying on the dealer’s integrity for a fair price.
The trading system could break down
If you are using an Internet-based or other electronic system to place
trades, some part of the system could fail. In the event of a system
failure, it is possible that, for a certain time period, you may not be
able to enter new orders, execute existing orders, or modify or
cancel orders that were previously entered. A system failure may also
result in loss of orders or order priority.
You could be a victim of fraud
As with any investment, you should protect yourself from fraud.
Beware of investment schemes that promise significant returns
with little risk. You should take a close and cautious look at the
investment offer itself and continue to monitor any investment
you do make
trading off-exchange forex contracts can be substantial. Therefore,
if you are considering participating in this market, you should
understand some of the risks associated with this product so you
can make an informed decision before investing.
As stated in the introduction to this booklet, off-exchange foreign
currency trading carries a high level of risk and may not be suitable
for all customers. The only funds that should ever be used to spec-
ulate in foreign currency trading, or any type of highly speculative
investment, are funds that represent risk capital – i.e., funds you
can afford to lose without affecting your financial situation. There
are other reasons why forex trading may or may not be an appro-
priate investment for you, and they are highlighted below.
The market could move against you
No one can predict with certainty which way exchange rates will
go, and the forex market is volatile. Fluctuations in the foreign
exchange rate between the time you place the trade and the time
you close it out will affect the price of your forex contract and the
potential profit and losses relating to it.
You could lose your entire investment
You will be required to deposit an amount of money (often referred
to as a “security deposit” or “margin”) with your forex dealer in
order to buy or sell an off-exchange forex contract. As discussed
earlier, a relatively small amount of money can enable you to hold a
forex position worth many times the account value. This is referred
to as leverage or gearing. The smaller the deposit in relation to the
underlying value of the contract, the greater the leverage.
If the price moves in an unfavorable direction, high leverage can
produce large losses in relation to your initial deposit. In fact, even
a small move against your position may result in a large loss, includ-
ing the loss of your entire deposit. Depending on your agreement
with your dealer, you may also be required to pay additional losses.
You are relying on the dealer’s
creditworthiness and reputation
Retail off-exchange forex trades are not guaranteed by a clearing
organization. Furthermore, funds that you have deposited to
trade forex contracts are not insured and do not receive a priority
in bankruptcy. Even customer funds deposited by a dealer in
an FDIC-insured bank account are not protected if the dealer
goes bankrupt.
There is no central marketplace
Unlike regulated futures exchanges, in the retail off-exchange
forex market there is no central marketplace with many buyers
and sellers. The forex dealer determines the execution price, so
you are relying on the dealer’s integrity for a fair price.
The trading system could break down
If you are using an Internet-based or other electronic system to place
trades, some part of the system could fail. In the event of a system
failure, it is possible that, for a certain time period, you may not be
able to enter new orders, execute existing orders, or modify or
cancel orders that were previously entered. A system failure may also
result in loss of orders or order priority.
You could be a victim of fraud
As with any investment, you should protect yourself from fraud.
Beware of investment schemes that promise significant returns
with little risk. You should take a close and cautious look at the
investment offer itself and continue to monitor any investment
you do make
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