I am new to trading and I want to generate a least ten pips a day, is that possible or does it take longer. What time should i expect the trade to execute, so that i can put in more trades?

Answer
If you trade EURUSD, it can be as soon as few seconds. Trade on US market where there's rapid movement.

About www.forex.com?

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