FXSol has its main office in New York. Member of the National Association of futures markets (NFA), FXSol is regulated by the governing body of the futures markets in the USA (CFTC).
FXSol is registered as a Futures Commission Merchant (FCM) with the Regulatory Commission in operations on the futures market (Commodity Futures Trading Commission (CFTC)). FXSol is also a member of the National Association of futures market (National Futures Association (NFA)). As a company registered in FCM FXSol must follow very strict rules in financial terms. These rules require FXSol have blocked funds and require FXSol to submit to regular audits by the U.S. authorities. FXSol a USD 30 million blocked completely released while the NFA would require 5 million USD. If you want access to the financial statements of companies listed on the CFTC, FXSol included, you can visit the website of the CFTC to http://www.cftc.gov/tm/tmfcm.htm

Working with a company registered as qu’FCM is not just a security at the financial level, but also an advantage in terms of transparency of operations. The NFA archive all the complaints against all FCM and any investor can check that any listed company has never had a serious problem with the judicial institutions which control the industry market. This information can be found on the Internet at: http://www.nfa.futures.org/basicnet/ (Registration number of FXSol: 0312620).

FXSol policy is to give a perfect performance, ease of access to market-close and protection of your funds over the legal minimum required. FXSol customer service is also considered as the most powerful in the industry changes. Customer service is a reachable 24 hours on 24, 7 jours sur 7.

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The first modern organized futures exchange began in 1710 at the Dojima Rice Exchange in Osaka, Japan.

The United States followed in the early 1800s. Chicago is located at the base of the Great Lakes, close to the farmlands and cattle country of the U.S. Midwest, making it a natural center for transportation, distribution and trading of agricultural produce. Gluts and shortages of these products caused chaotic fluctuations in price, and this led to the development of a market enabling grain merchants, processors, and agriculture companies to trade in “to arrive” or “cash forward” contracts to insulate them from the risk of adverse price change and enable them to hedge.
Forward contracts were standard at the time. However, most forward contracts weren’t honored by both the buyer and the seller. For instance, if the buyer of a corn forward contract made an agreement to buy corn, and at the time of delivery the price of corn differed dramatically from the original contract price, either the buyer or the seller would back out. Additionally, the forward contracts market was very illiquid and an exchange was needed that would bring together a market to find potential buyers and sellers of a commodity instead of making people bear the burden of finding a buyer or seller.

In 1848, the Chicago Board of Trade (CBOT – the world’s first modern futures exchange) was formed. Trading was originally in forward contracts; the first contract (on corn) was written on March 13, 1851. In 1865, standardized futures contracts were introduced.
The Chicago Produce Exchange was established in 1874, renamed the Chicago Butter and Egg Board in 1898 and then reorganised into the Chicago Mercantile Exchange (CME) in 1919. In 1972 the International Monetary Market (IMM), a division of the CME, was formed to offer futures contracts in foreign currencies: British pound, Canadian dollar, German mark, Japanese yen, Mexican peso, and Swiss franc.

In 1881, a regional market was founded in Minneapolis, Minnesota and in 1883 introduced futures for the first time. Trading continuously since then, today the Minneapolis Grain Exchange (MGEX) is the only exchange for hard red spring wheat futures and options.
Later in the 1970s saw the development of the financial futures contracts, which allowed trading in the future value of interest rates. These (in particular the 90-day Eurodollar contract introduced in 1981) had an enormous impact on the development of the interest rate swap market.

Today, the futures markets have far outgrown their agricultural origins. With the addition of the New York Mercantile Exchange (NYMEX) the trading and hedging of financial products using futures dwarfs the traditional commodity markets, and plays a major role in the global financial system, trading over 1.5 trillion U.S. dollars per day in 2005.
The recent history of these exchanges (Aug 2006) finds the Chicago Mercantile Exchange trading more than 70% of its Futures contracts on its “Globex” trading platform and this trend is rising daily. It counts for over 45.5 Billion dollars of nominal trade (over 1 million contracts) every single day in “electronic trading” as opposed to open outcry trading of Futures, Options and Derivatives.

In June 2001, ICE (IntercontinentalExchange) acquired the International Petroleum Exchange (IPE), now ICE Futures, which operated Europe’s leading open-outcry energy futures exchange. Since 2003, ICE has partnered with the Chicago Climate Exchange (CCX) to host its electronic marketplace. In April 2005, the entire ICE portfolio of energy futures became fully electronic.

In 2006, the New York Stock Exchange teamed up with the Amsterdam-Brussels-Lisbon-Paris Exchanges “Euronext” electronic exchange to form the first trans-continental Futures and Options Exchange. These two developments as well as the sharp growth of internet Futures trading platforms developed by a number of trading companies clearly points to a race to total internet trading of Futures and Options in the coming years.

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Base currency Quote currency Rate
This abbreviation specifies how much you have to pay in quote currency to obtain one unit of the base currency (in this example, 120.25 Japanese Yen for one US Dollar). The minimum rate fluctuation is called points or pips.

Most currencies except USD/JPY, EUR/JPY and GBP/JPY where pip is 0.01 has 4th decimal system as 0.0001.

The currency pairs on Forex are quoted as bid and ask (or offer) prices:
Bid Ask
USD / JPY = 120.25 / 120.30

Bid is the rate at which you can sell the base currency, in our case it’s dollar, and buy the quote currency, i.e. Japanese Yen.

Ask (or offer) is the rate at which you can buy the base currency, in our case dollars, and sell the quote currency, i.e. Japanese Yen.

Spread is the difference between the bid and the ask price.

Margin trading assumes that Forex dealing is based on the margin, the collateral, and the provided leverage.

This means that a client places minimal cash deposit, much smaller than the underlying value of the contract, but can operate with larger amounts sufficient to enter the real market. Such credits are provided by the brokerage companies besides their informational services and make it possible for a trader to enter into positions larger than his/her account balance. This collateral is typically referred to as margin.

Leverage is the term used to describe margin requirements: the ratio between the collateral and borrowed funds 1:20, 1:40, 1:50, 1:100. Leverage 1:100 means then when you wish to open a new position, then you must have 100 times less then the contract size.

Currency Rate is the ratio of one currency valued against another value of a currency of one country. It whether depends on the demand and supply on free market or restricted by a government or by central bank.

Lot is a fixed standard currency amount for trading provided on the collateral — margin. Sometimes it is called the contract size. The 1.0 lot contract size for each currency pair is listed in Contract Specification.

Storage is the charge to rollover the position overnight. It can be both positive (credited to your account balance!) or negative (debited from you account balance) depending on the interests rate in the countries which currencies you trade.

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The possibility of taking a short position. Contracts for Difference suit bassists investors who prefer to take short positions. Previously, only professional investors could exploit. Appearing Service Contracts for Difference, the process of taking any short position is more comfortable and efficient for an investor. Contracts for the implementation gap is easier, compared to the same transaction for shares.

There is no commission and there are low demands on the sidelines. You can conduct a transaction, if not the total value of the contract at his disposal. You only need to deposit a corresponding percentage, only a fraction of the value of the contract, known as margin, which is normally between 5 and 10%. This way you can invest in the portfolio of shares, without having to deposit funds or immobilize large.

Market prices. You get quotes from competitive market with the spread and do their transactions for the same price as the stock market professionals.
Implementation quickly. Your transactions will be executed immediately, without delay.

Markets. You can now negotiate with shares listed on the Dow Jones, renowned and future. The selection of instruments can be changed by the Company, at its discretion.
Size of the Contract. The minimum size is 0.1 lot = 10 shares. In this case the margin is equivalent to USD10-150 (depends on the share price). The minimum margin for a contract in U.S. Stock Exchange (Bolsa de Valores in the U.S.) was about $ 35-70 (depending on the prices valid from February 2003).

Hedging (hedging strategies). If you are a holder of securities and does not want to sell their shares, even if the price falls to them, you can open a short position on CFD on any action (or the entire portfolio). As a result your losses on the underlying asset will be offset by profits in CFD relevant.

A Contract for Difference is an agreement to change the difference between the opening and closing price of the position under contract for various financial instruments.

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In this section you will find articles on trading, written by our experts. For further details you can follow these links on Forex and Contracts for Difference. We have also developed a tutorial to help you better understand how to operate in finance.

Negotiate successfully in Forex markets is not easy. However, it is achievable if you know much about Forex moneychanger and technologies.

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Trick 1
OPEN OPEN buy and sell when the Open Market (change daily). BUY STOP about the difference of 10 pips above the previous price CLOSED SELL STOP and day difference with 10 pips below the price the previous day, also CLOSED. Place a Take Profit of 10 pips from the market price or sell SYOP stop. When a position was reached, CANCEL another location. Suppose that the position of the first STOP BUY achieved with the market position for the next SELL STOP CANCEL, and vice versa. Thus, in the hope of Take Profit of 10 pips is reached, then you will have the opportunity to take profit of 200 pips in 1 month (20 trading days).

Trick 2
Do the same at the time but the free market BUY STOP to make the difference between 10-15 pips above the price Tertinggi (HIGH) and STOP SELL difference to 10-15 pips below the price lower (LOW) the previous day.

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One: when operating in a demo account is very easy to win.
Two: when operating in a real account is more difficult.

In principle, operate with real money is a most difficult task to operate in a test platform.

And why the difference?

Neither more nor less because the operator, without doubt, has not been detached from the emotions.

In a test account operator does not give importance to what they earn. No such gains associated with their wallet. With the real account is different: losses and gains will permanently remember how hard it was to get those funds.

The goal, the challenge for operators is to treat forex as a business: emotion out.
An operator that passes from a demo account to a real account, because they feel safe in itself, has felt comfortable with its operations and is able to successfully repeat, must be able to control their emotions to stick to your plan.

The operator must incorporate into their professional discipline essential to enable it to continue its pre-determined, regardless of the emotions that appear when you are in the market or trying to open a position or handling a transaction done.

If you are able to understand this business like a business in itself and manages to control his emotions, the operator will get the same results as a test account.

So … how do we make the transition from one account to a real test?

First things first.
The demo account, the test will give you many opportunities to develop your plan, know the market and yourself. You can “do that …” without risking your capital.

The road follows step by step, gradually.
Then, when 1) you have taken your time sharpening the pencil on the demo account 2) have accumulated some gain 3)’ve prepared your plan 4) you feel safe and comfortable you can move to the next step: the real account. 1) 2) 3) and 4) are conditions sine qua non. All.

Obviously, step by step means that beginning with small operations, this is a mini-batch, or 10,000 units. No more for now.

This has the advantage of helping you control your emotions: the potential losses are not important. Gaining or losing just lets you act as you did in the demo account … that’s the idea.

When you are able to earn profits through winning a series of operations, increases the size of the transaction, such as 2 mini lots.

Repeat the steps until you believe it is easy to do and that you are able to generate profits.

At this level you must understand you are not operating Forex to make money but to accumulate knowledge. Is the price of market entry. This is key.

What we’re doing is to develop an emotional comfort from increased volumes and the sequencing results. And here is an error of most traders: very often people work too much money to risk it can endanger your account. As a result the nerves appear and the lack of control leads to disaster. In this case they “want,” “beg” to analyze and operate.

If you are in this situation, close the open position, operations and do not reconsider. Maybe you should start the process again.

Following the steps above, surely you will notice that your focus is more on the business, analysis and operations in the money. And that is the truth and the key to the business.
Take care to make the Forex “your business”, treat as such and then the money will come as something natural.

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Probability of earning on Forex is based on the fact that every national currency is a good, as well as wheat or sugar, and a medium of exchange, as gold or silver. As the world is changing so fast, economic conditions of every country (production, inflation, unemployment etc) are getting more and more dependant on each other, as a result, the rate of a currency changes against other currencies. This is the main reason of the process of rate fluctuations.

All currencies are traded in pairs and each is assigned with an abbreviation.
Table 1. Currency Abbreviations
Abbreviation Interpretation
EUR Euro
USD US Dollar
GBP British Pound
JPY Japanese Yen
CHF Swiss Franc
AUD Australian Dollar
CAD Canadian Dollar
NZD New Zealand Dollar
SEK Swedish Krona
DKK Danish Krone
NOK Norwegian Krone
SGD Singapore Dollar
ZAR South African Rand

Currency exchange rate is the rate at which currencies are exchanged one for another. For example, «EUR/USD exchange rate is 1.2505» means that one Euro is exchanged for 1.2505 US Dollars.

The exchange rate of any currency is usually given as the Bid price (left) and the Ask price (right). The Bid price represents what will be obtained in the quote currency (US Dollar in our example) when selling one unit of the base currency (Euro in our example). The Ask price represents what has to be paid in the quote currency (US Dollar in our example) to obtain one unit of the base currency (Euro in our example). The difference between the Bid and the Ask price is referred to as the spread.
Table 2. 1.0 lot size for different currency pairs
Currency pair↓ 1.0 lot size Necessary margin for 1 lot 1 pip size

EURUSD EUR 100,000 1000 EUR 0.0001
USDCHF USD 100,000 1000 USD 0.0001
GBPUSD GBP 100,000 1000 GBP 0.0001
USDJPY USD 100,000 1000 USD 0.01
AUDUSD AUD 100,000 1000 AUD 0.0001
USDCAD USD 100,000 1000 USD 0.0001
EURCHF EUR 100,000 1000 EUR 0.0001
EURJPY EUR 100,000 1000 EUR 0.01
EURGBP EUR 100,000 1000 EUR 0.0001
GBPJPY GBP 100,000 1000 GBP 0.01
GBPCHF GBP 100,000 1000 GBP 0.0001
EURCAD EUR 100,000 1000 EUR 0.0001
NZDUSD NZD 100,000 1000 NZD 0.0001
USDSEK USD 100,000 1000 USD 0.0001
USDDKK USD 100,000 1000 USD 0.0001
USDNOK USD 100,000 1000 USD 0.0001
USDSGD USD 100,000 1000 USD 0.0001
USDZAR USD 100,000 1000 USD 0.0001
CHFJPY CHF 100,000 1000 CHF 0.01

Let’s assume that exchange rate for EUR/USD is 1.2505/1.2509. You may have made market analysis and decide the EUR/USD rate is moving higher (at least to 1.2600). You buy 0.1 lot (minimum contract size) of EUR/USD at the 1.2509 (ask price). Table 1 will help you to define what the contract size is: i.e. 1.0 lot for EUR/USD is 100 000 EUR, then 0.1 lot (our contract size) is 10 000 EUR.

This means that you bought 10 000 EUR and sold 10 000×1.2509=12,509 USD. So, in order to make a deal you don’t have to sell total amount of 12.509 USD but 100 times less just $125.09. The rest sum of the money (in our example $12,383.91) is leveraged to you by a broker (a company you entered the contract with to enter the market).

Leverage is the term used to describe margin requirements: the ratio between the collateral and borrowed funds: 1:20, 1:40, 1:50, 1:100. Leverage 1:100 means then when you wish to open a new position, then you must have deposit 100 times less then the contract size.

So, you forecast that EUR/USD is moving higher and you buy 10.000 EUR and sell 12.509 USD. Assume you are right and EUR/USD reaches 1.2599/1.2603. You close the open position by the opposite one, in our example, you close short position (sell position) by long position (buy position), i.e. you sell 10.000 EUR (0.1 lot* 1.0 lot size for EUR/USD) and buy 12.599 USD:
Transaction EUR USD
Open a position — buy EUR and sell USD + 10,000 – 12,509
Close a position — sell EUR and buy USD – 10,000 + 12,599
Total: 0 + 90

You get a profit of 90 dollars. And you didn’t operate with 10.000 EUR ($12,509), but only $125. So, the profit is 90 pips. Pips or point is a minimal rate fluctuation. For EUR/USD 1 pips is 0.0001 of the price (see table 2). Our profit is 1.2599-1.2509=0.0090, i.e. 90 pips.

So, you invested $125 and take a profit of $90. The time period for this can take from 10 minutes to several days. But anyway to make profit of $90 for several hours isn’t a bad return at all. But be aware, that all this can work against you and magnify your losses. Only money management will help you to minimize the risks, moreover to reduce them to zero, and increase the return of your funds from 10% to 20-30% and higher per month.

One question is left: what is broker’s charge for the leverage he provides? If you open and close a position till 2:00 Moscow time, a broker provides the leverage for free. If you leave your position after 2:00 Moscow Time, he credits to your account or debits from you account a storage — charge for the overnight position. It can be both positive (credited to your account!) and negative (debited from your account). It depends on the interest rates in those counties which currencies you trade.

For example, ECB interest rate is 4.25%, FED interest rate is 3.5%. Assume, you have a short position on EUR/USD per 1.0 lot. You sell 100.000 EUR. This means you borrow them at 4,25% per annum. You sell euro and buy dollars, which can be deposited at 3.5% per annum. As a result, the costs are (4.25-3.5)% per annum or 937.5 dollars per year (if EUR/USD rate is 1.2500), or $2.57 per day. This means that your account will be debited on $2.57 everyday per one lot if you have a short position (selling position) on EUR/USD. And your account will be credited $2.57 everyday per one lot if you have a long position (buying position) on EUR/USD.

In practice the debited amount is a bit higher than 2.57%, and the credited amount is a bit lower than 2.57%. The difference goes to a broker as a payment for the rollover (see Contract Specification).

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First advice: practice. Our free demo account is designed to provide interest in the possibility to get acquainted with the dynamics of this market. In the process of demo trading, you should learn at least as a place (1) market orders to enter the market, (2) stop and limit orders to lock the profit, or protect your position, 3) CCA and “If Done” order to perform more advanced trading strategies.

Second advice: learn the theory. Traders on the Forex using fundamental and technical analysis, and their combination for decision-making trading. Fundamental analysis involves the use of financial and economic news (such as announcements of Central Banks, or the decision on the accounting rate of interest). Technical analysis is the study of movements of foreign currencies with the aim of predicting the future direction of the movement of currencies based on their past movements. MG developed the site Forexnews.com, which provides market analysis and a large number of educational materials that will be useful to both beginner and experienced traders.

Third tip: manage your account wisely. When you open a position should always be taken into account balance. If you believe that the market is developing long-term trend, you want to use, you must first determine whether you have enough money in the account for the maintenance margin requirements, and possible short-term storage, the move against your position. We advise you before placing each item ask yourself the following questions:

1. What is the amount I want to risk?
2. What is my potential move up and down?
3. What is the state of the market? (Market mutable (volatile) or calm?)
4. What is my logic for re-entry into this position?
5. When I found out if my rationale for entering into the position?

Before placing orders makes sense to identify points of entry to and exit from positions. One of the most common mistakes that beginners often make especially traders, is letting emotions in the way of strategy trading.

Fourth tip: Always keep your finger on the pulse. Although the market is moving around the clock and seven days a week, to monitor market developments around the clock is impossible. When you do not have access to your computer and your account, you can use our mobile services and the system signals the market that can notify you of the key events in the market that may affect your position

Fifth tip: open a real account. If you feel ready for trading in this market, download the form and send it to us. The level of your emotions may be higher than in the demo trading, so it is very important to develop an effective strategy for the trial run, and pledge to adhere to it during the real trading.

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Finally, Forex represents a market of interbank transactions, and under currency and interest rates fluctuations we should consider interbank foreign exchange market.

Large international banks, daily operation volumes of which reach 1 bln dollars, have the most important impact on the world exchange markets. These are such banks as Deutsche Bank, Barclays Bank, Union Bank of Switzerland, Citibank, Chase Manhattan Bank, Standard Chartered Bank and others. Large transaction volumes that may cause significant changes in quotations or currency prize are the most evident distinction of these banks. Large players are usually divided into bulls and bears. Bulls are the market participants who play for the currency prize increasing; bears are the market participants who play for the currency prize decreasing. The market is usually in balance between bulls and bears, and the difference in currency quotations usually fluctuates in quite a narrow range. Although when bulls or bears overpower, currency rates quotations fluctuate quite sharply and significantly.

Firms that realize foreign trade operations
Companies that take part in the international trading have a great demand on the foreign currency (with regard to importers) and offer of the foreign currency (with regard to exporters), and also deposit and attract free currency remains. As a rule, these organizations have no direct access to Forex and make conversional and deposit transactions via commercial banks.

Companies that realize depositing of foreign assets (Investment Funds, Money Market Funds, International Corporations)
These companies represent different international investment funds. They realize policy of diversifying management of assets portfolio, depositing funds in securities of governments and corporations of different countries. They are called just funds in slang of dealers. The most popular funds are «Quantum» of George Soros and Dean Witter.
Large international corporations also refer to this kind of firms. They realize foreign industrial investments: affiliates and joint enterprises foundation, such as Xerox, Nestle, General Motors, British Petroleum, etc.

Central banks
Currency regulation on the foreign market is the main duty of the central banks, particularly, prevention from national currency sharp bounces in order to avoid economical crises, support balance between exports and imports etc. Central banks have a direct influence on Forex. Their influence may be both: direct – currency intervention, and indirect – money funds and interest rates regulating. They can’t be referred to bulls or bears, as they may play both for rising and falling depending on concrete tasks they have currently. Central banks may act alone on the market to influence on the national currency, or they may act together with the other central banks to conduct the collective currency policy on the international market or for collective interventions.

The following banks have the greatest influence on the world currency market: the US Central bank — US Federal Reserve (FED), German Central bank — Deutsche Bundesbank and GB Central bank — Bank of England (Old Lady).

Foreign exchanges
In some countries with transition economy currency markets operate. They realize currency exchange for entities and formation of the market currency rate. The State usually regulates the exchange rate, making use of currency markets compactness.

Currency brokerage firms
Their function is to bring together a buyer and a seller of the foreign currency and to accomplish conversional or loan-depositary operation between them. Broker firms take broker commission in the form of percent from the transaction charge.

Physical bodies
Physical bodies make a great deal of noncommercial transactions as related to traveling abroad, wages, pension and earned income transfer, foreign exchange cash buying and selling. In 1986 due to margin introduction physical bodies got an opportunity to invest free cash on Forex to take profit.

The main volume (90-95%) on Forex is earned by the largest world commercial banks by making conversional transactions both in clients interests and by their own expense. Nevertheless, advance in computer technologies let to find field of application for funds of private and retail investors. More and more brokerage firms and banks give access for private investors to Forex via Internet.

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