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The top ten frequently asked questions about trading forex.

I wanted to create this page and address the top 10 forex trading related questions that I wish I would have known enough to ask when I first started trading. To some of you reading these now these questions and answers may seem like idiot questions or newb questions now depending on the level of your expertise but always remember that there was a time when you sought these same answers to these same questions.

I have spend a great deal of time addressing these questions throughout this website so I may direct those seeking advice or maybe just answers to more detailed answers and articles where appropriate. The answers in this article will be short and definitive by nature and will not go into great depth but as stated above, each answer will be directed to a more detailed source if available. Now for the top 10 FAQ concerning forex trading.

FAQ1. What is Forex? What is forex trading.

FAQ2. Where can I trade forex, where do I go to trade?

FAQ3. What is the best way to learn to trade, not only forex but other markets as well?

FAQ4. How much money do I need to get started?

FAQ5. Can I lose more than I invest in the forex market?

FAQ6. What are forex signals an are signals and indicators the same?

FAQ7. What is a forex robot and/or forex expert advisor?

FAQ8. What is a currency pair?

FAQ9. Can my forex robot (expert advisor) run if my computer is off?

FAQ10. What should I expect my forex trading software to be capable of and include?

Bonus Trading Frequently Asked Questions

FAQ11. What are “short” and “long” positions?

I am aware that there are many more questions that could be added to this list but these are the questions that I remember searching for answers for when I first stared trading. Many of them I knew the answers to I thought but found out the hard way (costly) that I in fact did not. So once again these questions may sound newbish but at a time in all of our trading careers they didn't.

A1. The term FOREX is a short form used for Foreign Exchange Market. Foreign Exchange Market a.k.a. currency market is considered as the place to convert one currency for another. More Detail

A2. FOREX is a worldwide currency speculation arena with no centralized place for trading and exchange. Forex trading is not managed through an exchange. Since transactions are conducted between two counterparts, the FX market is an inter-bank, or over the counter (OTC) market. There is no forex exchange as with wall street.

A3. There are training manuals where you can learn different techniques and systems that can be used in your Forex trading, Also from books and system sold online and off. More Detail

A4. The limit varies from place to place and broker to broker but $200 is the minimum 99% of the time to open an account.

A5. No. Your broker won't let you to lose more than the amount you have in your trading account. They will simply close your losing position when the resulting account balance becomes too close to zero. The account will stay closed until you add funds.

A6. Everyone who trades, online or off, should know by now that forex signals are simply buy and sell alerts that are sent to your email address, cellphone (using SMS texting) if you subscribe to the forex signal providers service. More Detail

A7. A forex robot is a software program (algorithm) designes to trade on the owners behalf automatically. These trading robots rely upon techniques of technical analysis in order to judge market conditions and make forex trades on your behalf. More Detail

A8. A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market

A9. Yes. If it is hosted on a VPS host That is the good thing about hosting your forex robot on a secure VPS server (about $50 a month) No more having to leave your computer on for hour upon hour. More info

A10. The best trading software/robots are engineered in such a fashion that the inbuilt system can perform all the stock market operations but also can send and receive money to and from bank accounts of the trader, so a better designed and programmed trading robot is recommended More Detail

*Bonus Trading Frequently Asked Questions Answers.

A11. Short positions are taken when a trader sells currency in anticipation of a downturn in price. Making this move allows the investor to benefit from a decline. Long positions are taken when a trader buys a currency at a low price in anticipation of selling it later for more.