Each country has its own currency. Numerous financial events take place every day across the globe, affecting the rate at which any given currency type can be exchanged for another. When you trade on the Forex, you are predicting that a given currency’s value will rise or fall comparatively.

Currencies are traded in lots. Lots may be worth varying monetary amounts. Each eFOREX lot is worth $1 base currency. Before you can trade, you will have to deposit a percentage in a margin account (see definition below.)

By depositing a certain amount of money in your margin account, you are assuring other traders that you can pay them if you lose. As you profit or lose on a daily basis, more money is added to or transferred out of your account.

Due to the high degree of leverage in Forex trading, any market movement can have a disproportional and amplified effect on your deposited funds.This may work against you as well as for you. The possibility exists that you could sustain a loss of some or all of your initial margin funds. If you sustain a total loss of your initial margin funds and receive a margin call, as a standard industry practice all your open positions will automatically be closed in an effort to prevent any further losses. It is your responsibility to be aware of the margin requirements for your trades, and to keep your account fully margined at all times. Be advised that margins are subject to change without further notice.

The object of Forex trading is to capture Price Interest Points (pips). A pip represents the lowest denomination in which a currency is expressed on the Market. A pip’s actual value varies from country to country, thereby validating the exchange rate system; but for trading purposes, you will make or lose a constant amount of money per pip. As the market value of a given currency fluctuates, the amount of pips contained therein goes up or down. At first glance, it may look as if dramatic movement is necessary to generate much account activity; however, you do not profit or lose based on the actual difference in value that you see. This means small fluctuations in the actual value of each currency can lead to substantial profits or losses. As a hypothetical example, say that a pip is worth $1 USD at the initial opening of an EFOREX account. If you trade a lot and lose 40 pips, you just lost $40 USD. If you trade a lot and gain 40 pips, you just made $40 USD.*

The Forex market allows you to buy and sell currencies against each other.

Buy / Sell: You can start either way in order to make a profit. If you want to open a position, place an order to buy- to make a profit if the exchange rate goes up. If you think the market is going down Sell- to make a profit if the market rates fall.

EFOREX trading are available 24 hours daily from 5:00pm EST Sundays through 4:00pm EST on Fridays, including most U.S. Holidays.

"Futures currency trading" refers to the exchange of a given currency at a future price. "Forex trading" or "Spot Forex trading" refers to the trading of a given currency at its present rate.

No. Unlike with certain commodity investments such as gold coins, you will never receive any concrete currency.

Until recently, Forex trading was practiced only by major financial institutions and extremely wealthy investors. But thanks to advancements in internet technology, more and more people are learning about the Market and getting involved.

EFOREX does not charge commissions. Your only transaction cost is the dealing spread - the difference between the bid and the ask price.

The most common risk management tools in trading are the limit order and the stop loss order. A stop loss order is placed to close a position when a pre-determined price is reached. It is important to know that stop loss orders do not guarantee a particular closing price. A limit order places restriction on the maximum price to be paid or the minimum price to be received when entering a position. Stop loss orders attempt to limit potential losses should the market move against a trader’s position

We are here to help. For your convenience, we offer three methods of opening your account. Applications can be submitted online, via fax, and via email.