FOREX

International currency market (Forex) is the global epicenter where the currency of each country is listed at a set price each other. It was created in the 70's when international trade shifted from a fixed rate to a variable rate, and now and due its sheer volume is considered the largest financial market in the world.

Introduction to Forex

The base currency is the first currency in the pair. The currency listed is the second in the pair.

This abbreviation specifies how much you have to pay in the currency traded for a unit of the base currency. For example: (In 109.92 Japanese Yen get 1 U.S. dollar). The minimum fluctuation is called a point or pip.

Many of the currencies except USD / JPY, EUR / JPY, CHF / JPY and GBP / JPY where pip is 0.01, have 4 digits after the period (a pip is 0.0001), and are sometimes abbreviated by the last two digits. For example, if EUR / USD are trading at 1.4758/1.4760 the abbreviation would be 58/60.

Bid is the rate or price which sell the base currency, in our case the U.S. dollar and buying the currency listed in this case the Japanese Yen.

Ask is the fee or purchase pricing which the base currency, in our case the U.S. dollar, and sell the currency listed in this case the Japanese Yen

Spread is the difference between the bid and ask. Spread office serves as the transaction currency.
Pip is the smallest movement a currency can make. It’s known also as a point. For example: 1 pip = 0.0001 in EUR / USD, and 0.01 in USD / JPY.

Interest Rate is the value of the currency expressed in terms of another. The interest rate depends on supply and demand factors such as constraints and decisions made by the central bank.

Suizatraders's mission is to provide our customers a way to innovate in the currency market combined with excellent quality in execution, spread and purchase competitive margins.

A margin is the collateral required to open and maintain a position:

• 1% of transaction size for account balances under $ 100,000
• 2% of transaction size for account balances up to $ 250,000
• 4% of transaction size for account balances over $ 250,000

Balance is the total balance of all transactions made and complete including deposits and withdrawals from the account.

Float profit / loss is the current balance of gains and losses in open positions to the current interest rate.

Capital is calculated as follows balance + floating profit - floating loss.
Usable Margin means the funds in the account which can be used to open a position. Margin is calculated as follows: Capital - Margin.

Calculation of Losses / Gains
For example, the exchange rate of EUR / USD is 1.4758 / 1.4760 and sponsorship is 1:100. If you think EUR / USD will go and buy a lot 0.1 (minimum contract volume) of EUR / USD at 1.4760 (Ask price) (find the size of the contract in Table 2). As shown in Table 2, 1.00 lot of EUR / USD equals € 100000; therefore a lot 0.10 (our example of transaction volume) amounts to € 10000.

Therefore, if you buy € 10,000 and you sell 10,000 * 1.4760 = $ 14760 USD. In fact, to fund this position does not need $ 14,760 USD, but only $ 147.60 USD. The remaining money ($ 12,383.91 USD in our example) is sponsored SuizaTraders.

The sponsorship mechanism lets you open and maintain a much higher value than their. A sponsorship of 1:100 means that if you want to open a new position, you would need a deposit 100 times less than the value of the contract.

For example, as you believe that EUR / USD will go up, buy € 10,000 and sell $ 14,760. Suppose you are right and EUR / USD rises to 1.4850 / 1.4852 and you decide to close the position: when you close a position, sell the base currency (€ 10,000, in our example) and buying the quote currency (10,000 * 1.4850 = $ 14850 USD):
Transaction EUR USD

You open a position: Shopping EUR and sell USD + 10.000-14.760
You close the position: You sell EUR and buy USD - 10.000 + 14.850
Total: 0 + 90

Refinancing POLICY AND INTEREST

In the foreign exchange market operations are conducted only in cash. Therefore, as is customary in the market, all transactions are settled two working days of its launch. The settlement date is called maturity. Because the market is not concerned with the physical delivery of currencies, all positions that remain open between 22:59:45 and 22:59:59 (server time) will be subject to a refinancing of the date value.

Refinancing starts the closing and immediately reopening of the position at slightly different to the closing price. The difference between the closing price and opening depends on the interest rate prevailing in countries of origin of each currency. Suppose, for example, that the interest rate in the European Union and the U.S. are 4.25% annually and 3.5% per annum respectively. Each transaction involving currencies involves obtaining a loan to buy one another, in other words if you have a position in the EUR / USD, 4.25% when did you earn in Euros USD loans to 3.5%.
That is:

• If you have a long position (if you have bought) and the interest rate of the first currency is higher than the interest rate of the second would generate a profit.
• If you have a short position (if you have sold) and the interest rate of the first currency is higher than the interest rate on the second, you lose the difference.
• If you have a long position (if you have bought) and the interest rate of the first currency is lower than the interest rate on the second, you lose the difference
• If you have a short position (if you have sold) and the interest rate of the first currency is less than the interest rate of the second would generate a profit.
  Note that if you open and close a position before 22:59:45 (server time), you will not be subject to a refinancing.

The refinancing of a currency is known as tom.next, which means tomorrow and the next day. When a position is subject to refinancing from Wednesday to Thursday, the value date will be Monday of next week, not Saturday, so the charge for refinancing on a Wednesday night is three times the indicated value. For more information about refinancing charges, please visit our "Policy refinancing and interests."

WHY FOREX

Forex is unlike other financial markets by the physical location with the stock market, for example, operates through the electronic network of banks, computer terminals or via telephone. The lack of physical location enables it to operate 24 hours a day, from an hour to another for each center, (Sydney, Tokyo, Hong Kong, Frankfurt, London, New York, etc.)... All financial institutions are intermediaries or Dealers who buy and sell currencies 24 hours a day throughout the workweek. Begin operations in the Far East, New Zealand (Wellington), then in Sydney, Tokyo, Hong Kong, Singapore, Moscow, Frankfurt and London Minor, ending in New York and Los Angeles. The following are approximate working hours of regional markets (New York time):

Forex offers some advantages highly valued by investors:

• Liquidity. Forex is the largest financial market in the world, because there are more than 3-4 trillion exchanged daily, while the volume of the stock markets only reach 500,000 billion.

• Flexibility. At work 24 hours a day Forex offers a major advantage compared to other markets, such as bags that are only open during business hours can not react immediately to a breaking news story. That's why the market flexibility to customize your schedule facilitates buying and selling.

• Transaction at low cost. Forex has always functioned without any commissions or fees, except for the spread.

• Margin. Our sponsorship of 1:100 (for deposits under $ 100,000) is a powerful tool. You need to hold a deposit of $ 1,000 for a transaction of $ 100.000. Our sponsorship combined with daily fluctuations makes the FOREX market is most desired. Remember that all investors, the risk exposure by investing in Forex. For more information about the risks that are may generate an investment in Forex, you can visit our website at Risk Warning.