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Genel Sorular
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Terms and definitions used in the Forex Market
What are Pips?
Currency pairs are generally quoted in prices that include the fourth digit after the decimal point. (.0001) This 1/100 of one percent change is referred to as a Pip, and it is the smallest rate amount that is counted when valuating most currency pair prices. For example, if you were to travel to the United States with one Euro in your pocket and exchange that one Euro into US Dollars, you might be entitled to $1.3494. (Since small currency exchange centers usually deal with limited funds, currency conversions are often rounded to the nearest penny, or $1.35).
Currency pairs that include the Japanese Yen (JPY) as the base currency are quoted in prices that include the second digit after the decimal point. (.01) Changes are calculated in standard cents, and are also referred to as Pips. For example, if you were to travel to Japan with one US Dollar in your pocket and exchange that one US Dollar into Japanese Yen, you might receive ¥ 93.60.
What are Pip Spreads?
The “bid-offer spread”, also referred to as the “bid-ask spread”, is the difference between how much it costs to purchase a specific currency, and the amount traders receive when selling that same currency. For example, the EUR/USD currency pair might have a “Bid” quote of 1.3494 and an “Ask” quote of 1.3497. This specific currency pair has a Pip spread of three. If traders purchase the Euro with US Dollars at the current price, they would be obligated to pay the broker $1.3497 for each Euro. If traders sell the Euro in exchange for US Dollars, they would receive $1.3494 from the broker for each Euro.
Bid-offer spreads are determined by the broker or financial institution with direct access to the Foreign Exchange Market. As a rule of thumb, the narrower a pip spread, the better it is Forex traders. Typically, pip spreads tend to be wider for currency pairs that are less popular, and narrower for currencies that are traded more often with higher liquidity.
How Do I Profit with Pips?
When trading currencies, Pips can quickly add up to substantial financial returns. For example, let’s say you believe the Euro is about to appreciate in value against the US Dollar. In response, you decide to convert $50,000 into the equivalent Euro amount. In order to see how much the $50,000 Dollar amount translates into Euros, you would look at the current “Ask” price for the EUR/USD pair. If the “Ask” price is 1.3497 US Dollars for each Euro, you would receive nearly €37,045.27 Euros. (Simply divide 50,000 by 1.3497)
If the EUR/USD price were to rise by 60 pips, the “Ask” price would now be 1.3557. If you were satisfied with the increased Euro valuation, you would now convert the Euro back into US Dollars. Due to a pip spread of three, you would convert my €37,045.27 Euros back into US Dollars at the current “Bid” rate of 1.3554. This currency trade would leave you with a net gain of $211.16, or a total of $50,211.16. (Simply multiply 37,045.27 by 1.3554)
What is a Currency Pair?
HFX allows individuals and financial institutions to take advantage of today’s expanding Forex Exchange market by purchasing one currency in exchange of another currency of the same value. A Currency Pair consists of a base currency and counter currency, which can be demonstrated by EUR/USD. (Base Currency =EUR / USD = Counter Currency) This specific currency pair equation provides us with the value equivalent of the Euro when converted into United States Dollars. If you are “long” the Euro, believing that the currency is going to appreciate in relative value against the US Dollar, you would buy the Euro (EUR/USD). If you are “short” the Euro, believing that the currency is going to depreciate in relative value against the US Dollar, you would sell the Euro (EUR/USD)
As with all currency pairs, the exchange rate for the EUR/USD pair will:- Go up if the US Dollar depreciates in relative value, or if the Euro appreciates in relative value.
- Go down if the US Dollar appreciates in relative value, or if the Euro depreciates in relative value.
Constantly changing currency rates is the reason why the Forex Exchange is such an attractive and highly profitable financial market. Whether you believe a specific currency will increase or decrease in relative value to another currency, there always remains profit potential.
When can I trade on the Foreign Exchange Market?
Due to Forex’s unique decentralized market characteristics, investors from all over the world are able to make currency trades 24 hours a day throughout most of the week. The currency market is open from 22:00 GMT Sunday until 21:00 GMT Friday.
Where does Forex trading take place?
Unlike the Chicago Mercantile Exchange or the NASDAQ, which have trading activity in a specific location, currency trading takes place from multiple financial institutions all over the world. This unique feature has made the Foreign Exchange the most expansive and most traded market among global investors.
Can I make currency trades with leveraged accounts?
Account holders can make currency trades on margin, with leverage rates that are based on the HFX account type. Mini-account holders can trade with a maximum leverage amount of 1:100. Standard account holders can trade with a maximum leverage amount of 1:200. Premium account holders can trade with a maximum leverage amount of 1:400.
Deposit and Withdrawal information
How do I fund my trading account?
HFX provides you with convenient, simple, and secure payment methods to fund your trading account. These methods include major Credit Cards, Paypal, Western Union, and Wire Transfers. Our company complies with strict regulatory policies, including the Payment Card Industry Data Security Standard.
How much money do I need to start trading?
In order to begin trading, you are required to deposit a minimum of $300 US Dollars, or the equivalent currency amount into your HFX account.
How do I withdraw funds from my trading account?
To withdraw your account funds, fill out your account details on our withdrawal form, and promptly return the document to us.
For further information or assistance, please contact our
customer support representatives on +442031500432,
email: Support@hfx.com or via Live Chat
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