What is Forex and Forex Trading?
Forex, colloquially known as Foreign Exchange , refers to the trading of currency volatility, which is a type of digital commodity transaction that takes currency fluctuation as its underlying asset. The foreign exchange market is the largest financial market in the world today, characterized by the continuous buying and selling of various countries' currencies, making it the most liquid market globally. The objective of forex trading is to earn profits from the analysis of currency price trends. Gold and crude oil are traditional derivatives associated with forex trading. When people commonly speak of trading forex, it encompasses the trading of currencies, gold, crude oil, indices, and cryptocurrencies such as Bitcoin.
Is Forex Trading Legal?
Forex trading is completely legal in Hong Kong and many other regions with open foreign exchange markets. In mainland China, forex trading through legitimate channels is also legal.
Can Forex Be Traded 24 Hours a Day?
Yes. You can trade forex and precious metals continuously 24 hours a day from 17:05 PM Eastern Time on Sunday to 16:59 PM on Friday. For CFD products, trading hours vary by product, but most products are tradable from 18:00 PM Eastern Time on Sunday to 16:59 PM on Friday. Please refer to "Trading Information" under "Financial Products" for the specific trading hours and detailed information for each product. If you encounter any issues when logging in or using the platform, you can contact us through our Chinese free service hotline.
What Platforms Are Commonly Used for Forex Trading?
The Metatrader 4 and 5 platforms are typically used, with the MT5 platform being the current mainstream choice. However, the MT4 platform is still beloved by users, and some MT4 software is still in use. Our partner liquidity providers offer us the MT4 platform.
What is a Demo Account?
Typically, on MetaTrader 4/5 platforms, you can use an operational password to manage the account and a demo password to observe the account.
What is the Base Currency?
The base currency refers to the currency that is placed first in a currency pair, such as in EUR/USD, where the EUR, or Euro, is the base currency.
What is the 'Ask/Bid Price'? What is the 'Spread'?
The bid price refers to the lowest price at which a trader is willing to buy. The ask price refers to the highest price at which a trader is willing to sell. These two prices form the quote pair, and the difference between them is the spread.
What is Leverage?
In financial trading, leverage is, in simple terms, a multiplier (*). Utilizing this tool can amplify the outcomes of investments, with both profits and losses increasing by a fixed ratio. Therefore, before employing this tool, investors must carefully analyze the expected returns and potential risks associated with their investment projects.
Can I Use the Lock Position Feature?
Yes. moonsisterfx clients can use the lock position feature.
Can I Set Stop-Loss/Take-Profit Orders?
Yes. You can not only set stop-loss/take-profit orders, but also use pending orders for trading, and other types of risk management orders such as trailing stops and One-Cancels-the-Other (OCO) orders.
What are Balance/Net Value/Used Margin/Free Margin?
Net Value = Balance +/- Profit/Loss;
Used Margin = The margin amount occupied by open positions, also known as occupied margin;
Free Margin = Net Value - Used Margin, also known as available margin.
When is Overnight Interest Added?
In most cases, overnight interest in forex is added to customer accounts at 17:05 PM Eastern Time daily. For more information on overnight interest, please refer to the forex trading terms and conditions. The quotes you see on Reuters or HSBC are for informational purposes only and not for trading. Quotes you see from other banks or market makers do not necessarily represent MoonSister FX's quotes. The quotes you receive on our company platform are the real-time, tradable quotes.
Why Does Slippage Occur?
During periods of significant market volatility, orders may not be executed at the requested price, resulting in slippage. This typically occurs under extreme market conditions or when liquidity is very low. When slippage happens, clients will be given the opportunity to re-询价 again within a few seconds.
Is There a Difference Between a Demo Account and a Live Account?
No difference, both are exactly the same, except that in a live account you trade with real money, and you need to understand the risks involved.
Risk Warning：All foreign exchange, precious metals, and CFD (Contract for Difference) margin trading products involve significant risks and are not suitable for all investors. Please ensure that you fully understand the risks and invest only within your capacity to bear the losses. For more detailed information on the risks, please refer to Moon Sister FX's risk disclosure statement and margin policy.
