Foreign exchange problem

What is the spread?

The spread is the difference between the bid price and the bid price on the market quotation. The 
bid price is the price corresponding to the next bid, and the selling price is the price corresponding to the next sell order. BIRTH offers the lowest spread in the industry, with normal spreads between 1 and 3 points in the main currency pair.

What is the minimum and maximum number of trades?

Minimum 0.01 lots, up to 100 lots

What is the commission fee for BIRTH ?

We do not charge any fees or commissions.

What is the price of BIRTH ?

BIRTH allows customers to place orders directly on real-time quotes from the largest liquidity providers in the foreign exchange market. The quotation of the order is updated in real time as the market changes.

How to trade on the Internet?

BIRTH makes it easy to make your internet transactions. Simply download and install the MT4 software and log in to your account. Then start the position-opening — click on the “New Order” button of the platform, enter the required volume in the order window, and then click Buy or Sell, so trading orders via the Internet can be done in two simple steps. Simply enter the lot size and click the Buy or Sell button to create a market order. Your transaction will be automatically executed by the trading software, and the software will automatically calculate the margin requirement. If there is enough margin available on the account, the transaction will be closed immediately. Orders for new positions will be displayed on your platform and the current price will be displayed based on market conditions.

Can I place a pending order on the trading platform of BIRTH ?

BIRTH 's MT4 software accepts any pending orders.

What is a margin and how can I calculate how much margin I need?

Margin is the amount of money you need to mortgage when you place an order. Margin is a simple calculation based on the exchange rate of the base currency against the US dollar at the time, the volume of trading you want to open, and your leverage. If you don't have enough margin available, the trading software won't let you open a position. Your available margin will be displayed on the MT4 trading terminal. To calculate how much margin is required to open a position, use the following formula: (Market Price* Quantity) / Leverage Margin = $Margin required. E.g. You have to open 1 lot EUR / USD (base currency of 100,000 units), the current market price in Europe and America is 1.4177, and your leverage is 1:200. Then the margin you need is (1.4177 * 100000) / 200 = 708.9 USD. From this example, you need a margin of at least $708.9 for a leverage of 1:200 to open a one-hand European and American order. This shows that the leverage provided by the Australian LT has played a very important role. If you choose a 1:1 leverage, the amount of margin you need to trade the same order is $14,177 instead of $708.9!

Confirmation of the transaction

Orders will be confirmed on the screen, usually within one second. Complete transaction details will also be displayed on the screen, including transaction date, time, exchange rate, nominal trading volume, dollar value, and reference number.

Am I seeing an up-to-date account report on the screen?

The MT4 software updates all trading information in real time, allowing customers to view current open positions, open floating margins and losses, available margin, account balances, and all historical transaction details directly on the screen. Just select the "History" option and you can view it in the trading terminal.

How can I generate an account report?

You can generate your own account report by selecting the “History” option from the trading terminal. Then, right-click and select a time range to view the account report for that period of time. You can also save the account report to your computer by right-clicking and the report format is HTML, so you can view it in the browser.

How do I earn a profit in the foreign exchange market?

Example 1. GBP / USD 
Let's say your deposit is $3,000 and leverage is 1:500. Through this leverage, the purchasing power in the market is actually $1.5 million. Through your analysis, you expect the dollar to rise against major currencies. So you decide to sell 0.10 lots of GBP / USD at a market price of 1.8000 (GBP / USD worth 1 USD per point), since you only want to take 10% risk, so you set a stop loss order at 1.8300 (300) Point or $300 risk). After 12 days, the GBP / USD quote is 1.7540, so you decide to close your sell position. Then, your profit point is 1.8000 - 1.7450 = 550 points, your trading volume is 0.1 lots, and the value of each point is 1 dollar, so you get a profit of 550 dollars in this transaction. 
Example 2. USD / JPY 
Let's say your deposit is $2,000 and your leverage is 1:200. Through this leverage, the purchasing power in the market is actually $400,000. Through your analysis, you expect the dollar to fall against major currencies. You decide to sell 0.20 lots of USD / JPY (USD / JPY value of $ 2 per point) at a market price of 111.10. You only want to take 10% risk, so you set the loss at 112.10 (100 or $200 risk. After one week, the USD/JPY quote is 109.15, you decide to close the position. Your profit point is 111.10-109.15=195 Point, your trading volume is 0.1 lots, and the value of each point is 2 yuan, then the profit in this transaction is $390.

Is there a limit on the minimum or maximum number of trades per month?

no.

How long does my account remain inactive?

At BIRTH , we do not disable accounts.

How fair is the foreign exchange market?

Foreign exchange is considered by some to be "the fairest market on the planet" because the foreign exchange market is very large and has a large number of participants. No one can manipulate, even a central bank of a country cannot fully control the market direction of a currency.

Where is the central position of the foreign exchange market?

Foreign exchange does not have a central exchange like stocks and futures markets. The Forex market is an over-the-counter (OTC) market that trades 24 hours a day, 5 days a week, via the Internet from many different countries.

What are the participants in the foreign exchange market?

The foreign exchange market is also known as the “interbank lending market”, which is due to the fact that banks have dominated this market in history, including central banks, commercial banks, and investment banks. However, due to the popularity and availability of online transactions, the percentage of other market participants has grown rapidly, and now includes large multinational companies, global fund managers, registered traders, international currency brokers, futures and options traders, and private speculators.

When is the foreign exchange market open for trading?

The foreign exchange market is a true 24-hour market. First, foreign exchange trading begins in Sydney every day, followed by the opening of various financial centers around the world, first in Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at any time, day or night. Because the foreign exchange market is open 24 hours a day, 5 days a week.

What is the most commonly traded currency in the foreign exchange market?

The most frequently traded currencies, or the most liquid currencies, are those in which the government is stable, the central bank is respected, and the countries with low inflation rates. Today, more than 85% of daily trading volume consists of major currencies, including US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Australian Dollar and Canadian Dollar.

What is a deposit?

Margin is the collateral required to open an order. If the market changes are unfavorable to the customer and the customer continues to lose money, then the customer will be required to increase the margin by the “additional margin notice”. If there is not enough margin available, the client's contract will be forcibly closed.

Is there a margin call and a standard for forced liquidation?

Yes, the standard for forced liquidation is to force a liquidation when the equity falls to only 50% of the used margin (STP). That is, if your equity (equity = balance + floating profit or - floating loss) is less than 50% (STP) of the margin required for a position order, then the system will automatically perform a forced liquidation. The formula is as follows:  
equity / used margin = < 50% (STP) 

What does it mean to hold a "long" or "short" position?

If you buy a certain currency, you will see more, that is, long. If you sell it, you are short-selling, that is, short. For example, if you buy 1 lot EUR / USD, this means that you hold a long position of 100,000 euros against the dollar. If you sell 10 lots of dollars/Canadian, this means that you hold a short position of $100 million against the Canadian dollar.

What factors affect the price of money?

Currency prices (exchange rates) are affected by various economic and political conditions, the most important of which are the effects of interest rates, inflation and political stability. In addition, the government sometimes participates in the foreign exchange market to influence the value of the national currency, whether it is selling domestic currency, in an attempt to lower the currency price, or vice versa, buying the national currency to increase the currency price. This is known as the intervention of the central bank. All of these factors, as well as huge market orders, can cause large fluctuations in currency prices. However, due to the large capacity in the foreign exchange market and the high total transaction volume, it is impossible for any entity to manipulate this market, no matter how long.

How do I manage risk when I trade?

The most common risk management tools in Forex trading are limit orders and stop orders. The limit order limits the maximum price paid or limits the minimum price charged. The stop loss order sets a specific position and can be automatically cleared at a predetermined price, so that if the market fluctuates in an unfavorable direction to the investor, then the potential loss can be limited.

What trading strategy should I use?

Forex traders make decisions by using technical analysis and economic fundamental analysis. Technical analysis uses charts, trend lines, support and resistance levels, as well as numerous models and mathematical analysis to determine trading opportunities, while fundamental analysts interpret various economic information, including news, government-issued indicators, and The report even rumors rumors to predict price movements. However, the most significant price changes occur at the time of the emergency, including the central bank raising domestic interest rates, political elections, and even the moment when war acts. Nonetheless, more often the price change is due to how people's expectations of an event affect the market, rather than the expectations of an event itself.

How long does the position last?

As a general rule, the order will remain until one of the following actions occurs: 1) the transaction has achieved sufficient profit; 2) the specified stop loss is triggered; 3) there are better other potential profit opportunities, and you need Use these funds to make an order.

I am interested in Forex trading, but I want to get some extra information. Any suggestions?

In order to gain a practical understanding of Forex trading, opening a Forex Demo account is the best way. By simulating trading, you can experience the feeling of trading without worrying about any capital loss, and the simulated trading is also a good forex education course.

*         Comparison of various investment channels