ForexYard offers forex currency market education
If you have ever considered investing in the Forex Currency Market, then ForexYard might just be the best choice for you. If you need education and understanding, ForexYard offers it at no additional charge. You can open a risk free practice account and invest up to $100,000.00 and learn as you go.
They offer:
- Competitive fixed spreads
- Start trading with just US$100
- Instant Credit Card deposits
- Wide choice of currency pairs
- Live quotes, No price-freezes
- Tailored conditions for frequent traders
- Negative Balance Protection, no debits
- Daily analysis reports & articles
FOREXYARD Maintains fixed spreads during normal market conditions.
Trade Size
On the FOREXYARD trading platform all trades are executed in standard sizes of 1,000 base currency per one lot. The maximum allowed trading volume, however, is $5,000,000.
Here are some examples of a one unit trade size::
- U.S. Dollar/Japanese Yen (1,000 U.S. Dollars)
- Euro/U.S. Dollar (1,000 Euros)
- Euro/Great Britain Pound (1,000 Euros)
- Euro/Japanese Yen (1,000 Euros)
Margin
FOREXYARD enables currency trading to be conducted on a highly leveraged basis. Every trader is able to select the degree of leverage or gearing that the trader wishes to employ in trading. Unless the trader specifies otherwise, FOREXYARD sets the leverage levels to the FOREXYARD's default margin levels for the deposited amount. The requirements for leverage vary with account size, and may be changed from time to time at the sole discretion of the dealing desk, based on volume traded and market conditions.
Level 1 - 200:1 Leverage
Clients must have approximately 1/2% of the value of the positions they hold in their account for each lot of currency being traded (approximately 200:1 leverage). This amount does not change after 5:00 pm New York time, which is the rollover cut off, but stays constant at approximately 1/2% per lot the entire day and overnight. The above apply to the first 100,000 total amount of units traded in the dealer's account.
Level 2 - 100:1 Leverage
Clients must have approximately 1% of the value of the positions they hold in their account for each lot of currency being traded (approximately 100:1 leverage). This amount does not change after 5:00 pm New York time, which is the rollover cut off, but stays constant at approximately 1% per lot the entire day and overnight. The above apply to the number of units traded over 100,000 units and under 1,000,000 units, of the total trades in the dealer's account.
Level 3 - 25:1 Leverage
Clients must have approximately 1% of the value of the positions they hold in their account for each lot of currency being traded (approximately 100:1 leverage). This amount does not change after 5:00 pm New York time, which is the rollover cut off, but stays constant at approximately 1% per lot the entire day and overnight. The above apply to the number of units traded over 100,000 units and under 1,000,000 units, of the total trades in the dealer's account.
Margin Watcher
There is also an important safety feature embedded in this system that prevents clients from losing more money than they have in the account. Should the account equity - meaning the total floating value of the account - fall below the margin requirement of approximately 20% of the used margin, the dealing desk will close all positions. This protects the trader from losing more than the funds deposited into the trading account.
Rollover / Interest Policy
At 5:00 pm New York time, funds are subtracted or added to accounts with open positions because of the automatic rollover.
Note: On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position tends to be around three times the usual amount. This "3-Day" rollover accounts for settlement of trades through the weekend period.
Why does Rollover take place?
In the spot forex market, trades must be settled in two business days. If a trader sells 100,000 Euros on Tuesday, the trader must deliver 100,000 Euros on Thursday, unless the position is rolled over. As a service to our traders, FOREXYARD automatically rolls over all open positions to the next settlement date at 5:00 pm New York time. Rollover involves exchanging the position being held for a position expiring the following settlement date. The positions being exchanged are usually not valued at the same price. The amount of the difference varies greatly based on the currency pair, the interest rate differential between the two currencies, and fluctuates day to day with the movement of prices.
Types of Orders
The trading platform provides sophisticated order entry and tracking of market orders, entry orders, stop/limit entry orders, stop-loss orders and trailing-stops orders. All of the above orders are Good Until Cancelled (GTC), which is valid until the order is executed or cancelled.
Margin: Managing your Risk in the FX Market
By trading on margin, traders have the ability control positions much larger than their deposit. The margin deposit for leverage is not a down payment on a purchase of equity, as many perceive margins to be in the stock markets. Rather, the margin is a performance bond, or good faith deposit, to ensure against trading losses. This is very useful to short-term day traders who need the enhancement in capital to generate quick returns. However, leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains. If the equity in your account drops below the margin required to maintain your open positions, the dealing desk will close all open positions. This guarantees limited risk. Once usable margin reaches zero, a margin call will ensue and all open positions will be closed by the dealing desk. To learn more about the margin watcher feature please contact the FOREXYARD staff, which is available 24-hours a day, 7 days a week to walk you through the trading station.
and about risk:
Market RiskRisk associated with the price movement of the currency pair traded resulting primarily from a change in economic and/or political conditions.
Liquidity RiskRisk resulting from decreased liquidity of a currency pair usually due to unanticipated changes in economic and/or political conditions. Decreases in liquidity can result in "Fast Market" conditions where the price of a currency pair moves sharply higher or lower or in a volatile up/down pattern without trading in an ordinary step-like fashion. Although there may be instances when the market enters a "Fast Market" situation, it is important to note that under all circumstances.
Excessive Leverage:FOREXYARD.COM gives the trader the ability to leverage the deposited funds by up to 200:1 ratio (this is under normal market conditions and can be reduced or increased at FOREXYARD.COM discretion). With this level of leverage, an investor has the potential to control a maximum margined position of up to $200,000 with an account balance of just $1,000.
Leverage works for the investor when the position is favorable, but can work against the investor in a losing position. As a result, it is possible that the amount of margin initially pledged against a trading position, can be completely depleted. In fact, in general it is possible for the margin to go negative.
Because excessive leverage has the potential to magnify losses, FOREXYARD.COM encourages its clients to only use an amount of leverage that the client feels comfortable with. Furthermore, trading discipline and sound money management principles should always be used when trading. Stop Loss Orders along with careful monitoring of positions and orders are essential ingredients to making sound trading decisions.
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