Q. Just one question, I read this on their web page:

If you want to purchase $100,000 of USD/JPY at 100:1 leverage, the money required is 1%, or $1000. The other $99,000 is collateralized with your remaining account balance. You pay no interest.

What does that mean? That in that case I would owe them $99000?

Thank You.
Only people who have actually traded there. Thank You

Answer
If you are talking about the Forex spot market it works like this (Forex futures is a different animal).

Let's say that you open an account for $10,000. You could take 10% of that (this is called your margin) or $1000 and enter a position that allows you to control $100,000 of the USD/JPY currency pair (this is called 1 "lot") using the leverage that you mentioned of 100-1.

(Now let me point out right away that the USD/JPY is an extremely risky and volatile currency pair and I would personally consider 10% to be too high of a margin.)

The only money that you have at risk in your account is the $10,000 in your account. If the price of the currency were to move far enough against you the broker would initiate a margin call and close out your account and you would lose your entire $10,000.

Here is how the profit and loss works. The current price of the USD/JPY that you bought is 112.82. If the price increases to 112.83 it is said to have moved 1 "pip" and your account balance would increase by $8.91. If the price had moved to 112.81 you would have lost 1 "pip" and your account balance decreases by $8.91.

As I mentioned the USD/JPY is very volatile. It would not be unusual for it to move by 20 or 30 pips, or more, in a matter of minutes. (And don't forget...it's moving while you are sleeping.) I don't think I could sleep very well with a position like this.

Now the other interesting feature with the USD/JPY is that for one "lot" you would receive a daily interest payment of $11.91. This occurs regardless of the price of the currency pair and you receive it 7 days a week. (triple interest on Wednesday to make up for the weekend).

In closing the Forex market is very risky. It is very important to study the market and know exactly what you are doing before getting involved. And never, never, never trade with money that you cannot afford to lose.

I suggest spending some time at www.babypips.com for the absolute best training on the Forex market.

Good luck and be careful.

Paul

forex trade?

Is forex trade profitable? How does one get started and what is the best broker to use?

Answer
Hi,

Of course forex is profitable and it is very exciting business. You may trade 5,5 days per wheek; 24 hours a day from Sunday night to Friday night.
Main rules to win:
Always have trading plan,
Be patient - market always be there
Don't be greedy,
Don't set too big goals,
Never risk more than 1%-2% of your trading capital,
Always use reasonable stop loss orders.

And note markets are not places - markets are people.

If you are interesting I could introduce you to one of forex broker leaders that is located in SWITZERLAND and Regulated by the Swiss Federal Department of Finance; audited by KPMG.
They have very tight spreads. Total 25 currency pairs Gold and Silver.
SPREADS:
2 pips for EURUSD, USDJPY, AUDUSD, EURGBP, EURCHF;
3 pips for GBPUSD, USDCHF, USDCAD, EURJPY;
4 pips for CADJPY, CHFJPY;
5 pips for NZDUSD, AUDJPY;
6 pips for EURAUD, GBPCHF, NZDJPY;
7 pips for EURCAD, GBPJPY;
8 pips for GBPCAD, GBPAUD, AUDCHF, CADCHF, NZDCHF;
10 pips for AUDCAD, AUDNZD.

LEVERAGE 1:200 default but client could chose the leverage from 1:1 to 1:200 at the account opening procedure.

MARGINS. The margin or leverage a client can have depends on the client's account equity. The table below shows margin requirements for the different equity levels:
Less than 25,000 - 0.5%
25,000 to 1,000,000 - 1%
1,000,000 to 5,000,000 - 2%
5,000,000 to 10,000,000 - 3%
Above 10,000,000 - 5%
Please note that on weekends and holidays margin requirements remains the same.

SWAPS are counted as negative as positive. Also is available swap-free accounts.

STOP and LIMIT orders may be placed as close as 5 pips from market price

TRADING TERMINAL Meta Trader 4.

Clients can choose to have their accounts denominated in either USD, EUR, GBP, JPY, CHF, AUD or CAD.

Initial account opening deposit from US$2000. From first view it probably looks high comparing with other brokers who allow mini accounts and minimum initial deposit from USD250 but it is more useful and safer because clients are more protected from quick stop out and total loss of the initial deposit in the case if unfortunately it would be several unlucky trades in rage.
This is regular forex trading account however it is allowed trading in mini lots (from 0.1 lot).

If you are interesting I could introduce you to them please e-mail or PM me (press on my name) and I provide you with further information. Furthermore I could provide you for FREE with more than 50 trading e-books and trading systems that worth more than several thousand dollars and are very useful as for beginners as for experienced traders.

If you have any questions, please don't hesitate and contact me (press on my name).

Good luck!