basically i have been looking at binary options and 60 second trading. I have worked out a system that seems to work nearly all of the time. I downloaded a trading platform that comes with a demo account so you can try it out without investing real money (its a simulation) tonight from that i made £400 without investing more than £112. obiously simulation as i said not real. I have done this for about 3 nights consecutively so i dont think it can be a fluke. I turn 18 next week so i can buy stocks is it worth investing real money into binary trading? im not sure what i should do any advice thanks :D and at 18 years old £400 a day is pretty decent i know you stock brokers obviously make more than that.

Answer
Binary options are a scam. The odds are so stacked against you that you cannot possibly win long term.

It is just unregulated gambling at terrible odds. Here's how the math works for 70% payout.

Win: 70%
Lose: 100%
Expected value of each trade: (70 - 100 ) / 2 = -15%

You would have to predict over 60% just to break even.

A legit options broker would be registered on appropriate government sites. None of the widely promoted sites are regulated. Many are in obscure countries with no customer protection, with at least 2 widely advertised firms in Cyprus.

US: Check CFTC and SEC sites
UK: See FCA site (No longer FSA)

The CFTC link below about investing risks applies to both forex and binary options.

One widely advertised binary options site (Banc de Binary) was just charged with securities violations by the SEC. 2nd link below.

Is Forex and binary option trading universally HYIP and scam?

Answer
You have that correct. Forex at best is a zero sum game and binary options are definitely a loosing proposition. They are not as bad as HYIP which are truly scams based on lies only, but none-the-less the typical investor will lose a substantial amount of his capital over time. Been there, done that.

I am looking for an online forex trader that will let me trade the chinese yuan (CNY), but I've found that they don't seem to list what currencies you can trade through them. Does anybody know how I can find out (via the web) what currencies a forex broker trades? Ideally, I want to find one that trades the major currencies in addition to at least the chinese yuan, and has high leverage (200:1 or 400:1).

Answer
Oanda allows you to trade a number of what they call "exotic" currencies including the USD/CNY. The last time I checked though the spread was fairly high.

Good luck.

Paul Upp

explain this FOREX to me in street words please !!?

This paragraph from a website and i want to understand it in street words , please tell me what is saying here in simple words :

"Because you're not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy.

In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies. "

Answer
Find a better website. They couldn't explain a circle without confusing someone.

When trading in Forex, you are buying and selling currencies, one against another. You buy yen using dollars. Later on, you have to sell yen and get dollars back to finish the trade. You can do this with any currency pair, and you can buy either one first.

Buy yen with euros.
Buy sterling with chinese yuan.
Whatever.
You just have to do the other half later on to close the trade.

Is that more clear?

I saw the same EU/USD graphs from differen brokers by same program called metatrader, but the candles look all different???? aren't they suppose to look the same since I see the same market but only by different brokers??? why is it different?

Answer
You were probably just looking at different timeframes.

Timeframes indicate the time period a candlestick takes to fully form. If you're looking at a 15 minutes timeframe chart, you'll see 1 candlestick forming every 15 minutes. Whereas if you switch to the 1 minute timeframe you'll see 15 candlesticks per every one formed on the 15 minute chart. So, assuming you're making sure to look within the same hour(s)/time period, different timeframes of the same currency pair will always look completely different from one another.

Besides, even though the possibility exists that an extremely unregulated or scammy broker may try to pull something like that, the reality is that it's highly unlikely. Not only way too many traders would notice such discrepancies, but gathering evidence of it would be very easy. One reason is that it's common practice for traders to refer to different data feeds, but even more of an obvious deterrent is that all such past market data remains recorded on the charts.

Risk in Forex Investment?

Q. Risk in Forex Investment?

Answer
Forex is a highly volatile market and predicting its movements can be impossible at times. No one can predict entirely how the market will move? That is the main reason why it has a high speculation rate to it.
Definitely if you go buy studying the past trends and patterns of the market, you can still make out roughly about the market movements, but certainty is not possible. Fluctuations in the currency exchange prices or rates can affect your trade or deals. The market can move in favor or against you any time, resulting in possible profit or loss.

Frauds or Scams

Forex is a highly potential market for frauds and scam artists. Although the market is significantly safer and cleaner to trade now, than it was a few years ago, care should still be taken while dealing with a broker. Always check the documents before signing any contract and read the terms and conditions fully. Being vigilant is the key to safe trading. Also, always prefer to deal with professional brokers who are attached to reputed financial firms and banks. Also, registered brokers such as those listed with the Commodities Futures Trading Commission or the National Futures Association should be preferred.

Also, beware of any brokers or financial firms offering too good schemes or deals, with very low or no risk trading guarantees. The brokers claiming to offer higher returns should also be thoroughly checked before signing up with them and starting to trade.

All the above mentioned risks can be avoided by keeping into consideration that any of this can happen to you while trading. Keeping this in mind will keep you prepared about the consequences that you can face and hence, help you make wiser and informed trading decisions.

Although we know by now that Forex is a risky business, there are a few measures, which have been created to limit, if not completely stop, a traderâs financial risks.

Firstly, every investor should try and develop his/her own trading strategy. Be it technical, fundamental, or both, every trader needs to follow a strategy which logically backs the trading decisions that he is making. All the market trading should be done using the money which you can afford to lose, not affecting your home finances, in case the market decides to go against you. Also clearly mark your entry and exit points with every deal you make.

Along with the entry and exit points, a trader also needs to posses thorough knowledge about the past trends of the market. How to make graphs, how to study the financial graphs and how to read, understand and aptly interpret the indicators and chart movements correctly is very important.

There is a huge amount of information available easily these days on this 24 hour market, but what needs to be taken into consideration is the information which is relevant, to our trade.

Explain with a numerical example.

Answer
Forex Margin is the amount of money required by a forex broker from a forex trader to open a trade or position in the foreign exchange market. Trading on margin is nothing but taking a short term loan from your forex broker. Before you can start trading on margin youâll have to set up a forex trading account with a forex broker, and deposit money in this account.

Generally, for margin trading of 1% the broker will ask you to deposit only $1000 in your account. Basically, you are providing just 1% of your trading capital, the remaining 99% is provided by your forex broker. You now have the possibility to buy up to $ 100,000 worth of currencies with only $ 1,000 or put technically you have leveraged your account by 100 times.

Numerical Example:

You must calculate the margin required as a percentage of the lot value.If your account is denominated in USD the margin required per transaction is calculated in USD. For example, retail forex brokers always quote currency pair such as EUR/USD (i.e. EUR in terms of USD). If the EUR/USD is trading at 1.2500, that is one Euro is worth 1.2500 US Dollars, and you want to buy 10,000 Euros or 10 K, you would sell 12,500 USD to get those 10,000 Euros. Basically your margin required will be 1% of $12,500 which equals $125.00.

FOR MORE INFO CHECK OUT THIS SITE: http://www.forex-margin.net

Forex profits on margin?

Hi guys, im 14 years old already trading on the forex market with the mt5 paltform using technical analysis. I would like to know what do you think of my results i started with $10k on demo account and in 3 days reached 14k not trading full day with a 1:100 leverage is that good ? I would like to compare myself to others am i average ? good ? very good ? thanks for your future answers
I'm not trying to show off just need some feedback

Answer
Demo trading of forex is a joke, nothing like real life.

You can't open a live money account until age 18, the legal age for signing a contract.

Retail forex is full of scams. Please read the warning link below from CFTC, the US regulator for forex.


Study stocks instead. Far greater chance of success. Two excellent books that should be in any library, both suitable for an ambitious 14 year old:

One Up On Wall Street - Peter Lynch
A Random Walk Down Wall Street - Burton Malkiel