History of UpFX
We are traders too, and we knew we could do it better. Thats why we have spent over 4 years customizing the world’s most widely known forex trading software platform, the Metatrader 4 (MT4). The UpFX binary team has also included a variety of custom made tools in an effort to meet you or your client’s needs.
Advantages of UpFX Forex Trading
Factors such as the size, volatility and global structure of the foreign exchange market (foreign currency trading) have all contributed to its rapid success. Given the highly liquid nature of this market, investors are able to place extremely large trades without affecting any given exchange rate. These large positions are made available to forex traders because of the low margin requirements used by the majority of the industry's brokers. For example, it is possible for a trader to control a position of US$100,000 by putting down as little as US$1,000 up front and borrowing the remainder from his or her forex broker. This amount of leverage acts as a double-edged sword because investors can realize large gains when rates make a small favorable change, but they also run the risk of a massive loss when the rates move against them. Despite the foreign exchange risks, the amount of leverage available in the forex market is what makes it attractive for many speculators.The currency market is also the only market that is truly open 24 hours a day with decent liquidity throughout the day. For traders who may have a day job or just a busy schedule, it is an optimal market to trade in. As you can see from the chart below, the major trading hubs are spread throughout many different time zones, eliminating the need to wait for an opening or closing bell. As the U.S. trading closes, other markets in the East are opening, making it possible to trade at any time during the day
- 1Bid/Ask Spread Rates
- 2Trading Commissions
- 3Trading Margins Requirements
- 424 Hour UpFX Trading
- 5No Limit Up / Limit Down
- 6Sell Before You Buy
How it Works
Forex Trading, A Brief Explanation
Forex requires a trading account to be opened with a broker or dealer. Trading is done online using our MTA4 software which shows current prices for various currency pairs such as GBP/USD – the British Pound against the US Dollar.
If the GBP/USD is quoted at 1.5345, it means 1 pound is worth 1.5345 US dollars at a precise moment in time. This can change minutely within seconds.
For forex trading, there are two prices quoted: Bid (or Buy Price) and a higher Ask (Sell Price). The difference between the two prices is called 'spread' and is quoted in 'pips' (the final digit in a currency rate which always contains 5 digits).
Pips translate to a real money value, depending on the amount of currency traded. One pip is worth about $1 for a 'mini' account and $10 on 'standard'.
Buying GBP/USD means buying GBP at the Buy Price (by selling USD). Selling means selling GBP (by buying USD) at the Sell Price. The transaction is managed electronically by the broker on the trader's behalf, but no 'money' actually changes hands.
Taking different factors and indicators into consideration, a forex trader will decide whether to buy or sell the pair by entering a trade. This can be done at a future price (if it is reached), or at the current or spot price.
After opening the trade, the trader waits for the desired price movement in his favor, then closes the position (a reversing transaction is made).
Profit or loss on the trade will be the difference between the prices at entry and exit points, less the spread which is retained by the broker.
So after entering a trade, the trader is waiting for the prices to change by more than the value of the spread before starting to make a profit. At a chosen point the trader can close the trade and take the profit (difference in pips less the opening pip spread). Conversely, in a losing trade (the price moves in the 'wrong' direction), at some point the trader will 'pull the plug' and close the position in order to prevent further losses. The loss will be the difference in pips plus the opening pip spread too.
There are many terms accociated with FOREX trading. We thought we would give an area to study should you need some information..