Faq’s

Forex is a shortened term used for ‘Foreign Exchange’. It is the process of buying and selling currencies. The foreign exchange market is the biggest and most liquid financial market in the world. The market operates 24 hours around the clock from Sunday night through Friday and comprises central banks, currency speculators, organizations, governments, retail investors and international investors. Over the years, the size of the Forex market has been constantly increasing. According to the Bank for International Settlements’ (BIS) 2013 Triennial Survey of global FX market volumes, the average daily volume in the global Forex markets was estimated at $5.345 trillion, 34% higher in than the $3.971 trillion in April 2010 ($3.21 trillion daily in April 2007 and $1.7 trillion in 1998).

Forex is traded in currency pairs while CFD’s are commonly a financial instrument that is valued in a specific currency. Common currency pairs are the Euro/US Dollar (EUR/USD), US Dollar/Japanese Yen (USD/JPY), Great British Pound/US Dollar (GBP/USD), Euro/Japanese Yen (EUR/JPY) and Australian Dollar/US Dollar (AUD/USD). You can buy and sell each currency or financial instrument.

Normally, during the European and North American winter time, weekly activity begins on Sunday at 22:00 GMT continuously until Friday 21:00 GMT. During the Day Light Saving times in these regions, the weekly market activity begins on Sunday at 21:00 GMT and ends on Friday at 20:00. Market activity hours may vary due to public holidays or due to unusual liquidity conditions which may arise from exceptional global events. Opening or Closing times may also be altered by ForexJourney due to liquidity and risk management considerations. Please be advised that while most of the instruments are traded on a 24 hour basis without interruption, some instruments, mainly shares and indices, have special Trading Hours.

You must be over the age of 18 to trade…

In financial markets, specifically in the Forex market, pip (percentage in point) is a unit of change in an exchange rate of a currency pair. Most major currency pairs are priced to four decimal places, and a pip is one unit of the fourth decimal point: for dollar currencies this is to 1/100th of a cent.

The spread is the difference between the BUY price and the SELL price of two instruments. For example, if the EUR/USD is trading at 1.3100 (buy) and 1.3098 (sell), then the spread is 2 pips.

Going “long” is when a trader buys an asset expecting its value to rise. This is also called opening a long position. Going “short” or opening a short position, is when a trader sells an asset, expecting its price to decline so it can be bought back in the future at a lower price

Unlike the equities market, the Forex market does not have a central location. Transactions take place over the internet or phone which is why the market is available 24 hours a day.

There are various ways prices can change. Economic and political conditions usually affect the value of an asset, along with interest rates, inflation, and supply and demand.

No. ForexJourney does not execute orders during off-hours.

No. During certain market conditions that are characterized by high volatility or due to internet and communication latency, market orders cannot always be executed at the exact price that was requested. To avoid a situation where a position is opened with a market price that is different than requested, the order is rejected. This is a precaution we take to avoid a situation of unwanted market orders, allowing the trader thereafter to execute a trade at the exact price he/she sees. When Limit orders (e.g. Stop Loss) cannot be executed at the exact price requested, they are executed at the nearest possible rate (“at the best market” rate). For more information you can check our Trading Conditions

ForexJourney does not charge any fee and/or any direct commission based fee for trading Commodity and Index based CFDs. The clients’ costs are derived solely from the spread - this is the difference between the buy price and the sell price, which is always displayed on your trading screen.

In the Forex and Precious Metals Spot markets, rollover is the process of extending the settlement date of an open position when it reaches its value date. In most currencies and other financial Spot trades, a position is open with validation for two business days after its execution date. By rolling over the position - the position’s settlement period is extended by two additional business days. In similarity to the Forward mechanism, the rollover process involves a price adjustment due to interest rate differences between the 2 financial products, plus or minus a mark-up (interest spread), depending on the type of position you hold (Long\Short). Such adjustments may go both ways, meaning that you can be either credited or debited for such adjustments.

CFD products such as Future based Indices and/or Commodities are open until the expiration date of its underlying asset, and are closed upon expiration. CFDs based on these products are not rolled over and ForexJourney doesn’t charge any rollover premiums or other overnight fees for these products. Unlike the Index/Commodity based CFDs, CFDs of Shares (Stocks) are exposed to overnight financing. When you hold a Stock CFD position overnight your CFD position may consequently be subject to a credit or debit, calculated on the basis of the relevant Inter-Bank Offer Rate for the currency in which the underlying share is traded, plus or minus a mark-up, depending on the type of position you hold (Long/Short). For more information you can check our Trading Conditions

Binary Options are a simple and exciting method of trading the financial markets, based on the determination of whether the price of an asset (such as a currency pair, commodity or stock index) will close ABOVE or BELOW the current price within a set time period. Binary options are easy to execute, fun to trade and highly profitable.

You want to buy a CALL option if you think the price of an asset will close ABOVE the current price upon expiration.

You want to buy a PUT option if you think the price of an asset will close BELOW the current price upon expiration.

You are ‘in-the-money’ if your speculation of an asset’s price is correct at the time of expiry.

You are ‘out-of-the-money’ if the market moves in the opposite direction from your prediction of an asset’s price at the time of the expiry.

You cannot lose more than the amount you chose to invest. In addition, some options pay you back 10% of your investment even if you were wrong.

If the expiration rate of your option is exactly the same as your option rate, you are considered “At-the-money”. In this specific situation you will be refunded 50% of your initial investment.

You can trade any amount between $10 and $1000 depending on your confidence level and risk tolerance.

If your prediction is correct (‘in-the-money’) you will receive the payout established for that particular asset and time period—generally 70%-92% of the value of the trade.

ForexJourney offers over 25 assets that you can open binary option trades on. This includes: EUR/USD, GBP/USD, USD/CHF, GBP/JPY, AUD/USD, EUR/JPY, Gold, Oil, S&P500 and many more.

The underlying asset is the financial instrument (e.g., index, commodity or Forex pair) on which an option's price is based.

The expiry time is the time and date at which an option expires. Your payout or loss is calculated at the expiry time and your account is updated automatically.

The time zone of the expiry time is set at GMT.