ExpressFX Rules
Trading Forex for profit
How do you make money on Forex? Try selling or buying some
currency with a free ExpressFX demo account and see how you can
make or lose money as currency rates fluctuate.
Selecting the size of the
trade
The larger your trade size, the more profits you will make
if the price goes in your favor and the more you will lose if it
goes against you. The Demo account is a great way to practice
making trades of different sizes because you are not putting money
at risk.
The minimum trade size is $1,000. But thanks to the
leverage of up to 100:1 you can trade $1,000 when you have just $10
in your trading account. It is easy to calculate the maximum trade
size. All you need to do is take the amount that is in your
account and multiply it by 100.
Opening and closing a position
When you buy a currency you open a position. When you sell
the same amount of the same currency, you close the position.
During when your position is open you will be making or losing
money depending on how currency rates change. If you bought a USD
for EUR (USD/EUR) and its rate goes up, you are making money.
If it goes down, you are losing money.
Take Profit and Stop Loss
Market prices move almost every moment, but this does not
mean that you have to keep an eye on your positions every second.
You can set a Take Profit order, which is a command to the dealing
desk to automatically close your position when your profits reach a
certain level. You can also set a Stop Loss order, which is a
command to the dealing desk to close your position when your losses
reach a certain level except for extraordinary market conditions.
It is a good idea to set both of these orders simultaneously to
establish a price range of how much you are willing to make and how
much you are ready to risk.
Take Profit and Stop Loss
II
The minimum stop-loss and take-profit limits are is $1.20 for every
1000 units of the base currency. For example, if your position size
is $3000, the minimum limit for stop-loss and take-profit is 3 x
$1.20 = $3.60. The Company retains the right to reject any trade
with limit orders that violate this rule.
When you are changing your take-profit order on an open position
that is currently making a profit, the new take-profit level should
be set at not less than $1.20 for every 1000 units of the base
currency from the current P/L.
When you are changing your stop-loss order on an open position that
is currently making a loss, the new stop-loss level should be set
at not less than $1.20 for every 1000 units of the base currency
from the current P/L.
Commissions
Commission is a one time charge for opening a position.
Forex Club charges just 60 cents for every $1,000 traded (or 1,000
pounds; or 1,000 Euro). Forex Club returns commission charges to
you automatically and instantaneously on non-profitable
trades.
Calculating Profit and Loss
You don't need to worry about doing any math because
expressFX will do all calculations for you. However, if you would
like to know how profits and losses are calculated there is one
simple formula.
For the currency pairs where dollar is the
base currency (USD/***):
Where dollar is not the base currency
(***/USD):
Carrying positions over to the next day
Even though Forex market works around the clock,
technically, each trading day ends at 21:00 GMT and the next
trading day starts just a few moments after. 21:00 GMT is
equivalent to 4 pm New York time in the winter and 5 pm New York
time in the summer. All opened positions are
automatically closed at the end of each trading day.
However, you don't have to close your positions each day
as we offer an option of carrying positions over to the next day
for a small fee of 15 cents for every 1,000. Please note, fees for
carrying positions over are non-refundable.
Adjusting your positions
In addition to closing your position, you can
also downsize, upsize or reverse it. To downsize a position you
just need to sell some part of the currency that you have
purchased. For example, if you have purchased 1000 Euro for dollars
(BUY 1,000 EUR/USD) you can downsize your position by selling 500
Euro. You can upsize your position the same way by
buying additional 500 Euros for dollars. You can also reverse a
position altogether by selling 2000 Euro for dollars. This way your
position will become SELL 2,000 EUR/USD. Please note downsizing or
upsizing a position is not necessarily beneficial. It is merely a
trading strategy.
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