·      Forex which stands for Foreign Exchange Trading, which is a global market for trading currencies. As there is no central marketplace, currencies can be bought and sold internationally. The Forex market is the largest and most liquid sector of the financial market currently yielding USD 4 trillion per day.

The Forex consists of over 5000 trading bodies including reserve banks, large international banking institutions, commercial companies and brokers.

As there is no central market location, Forex trading operates on a 24 hour basis. Trading takes place electronically between two parties via a dedicated internet platform or by telephone.

·      The opportunity for profit is based on the constant fluctuations that occur between currencies. Even minimal changes can produce a substantial gain because of the high amounts of money invested in each trade. Individual investors can trade using ‘leverage’ capital. For example, a leverage ratio of 1:100 allows a trader to control USD100, 000. Please note that the same stands for losses.  There are substantial risks involved, however, to protect both the dealer and the trader there are built in risk management tools available to help minimize losses.

The Forex trade starts at financial centers in Sydney and moves on to Tokyo, London, and then New York. Trading is available at any time.

·       Major currencies that participate in the Forex market represent countries with low inflation, stable governments, and responsible central banks. These currencies include the Australian and Canadian Dollars, Euro, GBP, Japanese Yen, Swiss Franc and US Dollar.

         ACFX requires a minimal deposit to open an Individual account. You can choose to transact highly leveraged trades (as high as 500:1 leverage ratio).
You set up the degree of leverage that you wish to use. Generally, your leverage level is set at the most moderate level required by your account size.

Note: This degree of leverage helps you to maximize your potential profit however this is matched by an equal risk for potential loss.

·      Leverage is buying or selling power. The higher the leverage the more quantities a trader can trade. As an example, a leverage of 1:50, allows a trader to trade up to 50 times, his equity value.

·       Margin is the amount of funds required to allow a trader to open and maintain a position. As an example, on an account with a leverage of 1:50, the required margin to open and maintain a FOREX position is 1/50 of the value of the position.

·      A pip is the smallest price fluctuation in a certain instrument or currency pair. This terms applies with a 4 decimal places currency pairs.

·       Traders take short positions to sell currency which they anticipate will drop in price. In this way, the investor may profit if the price declined.

·          Long positions are taken when a trader buys a currency at a low price with the intention of selling it later for a higher price.

·          These moves allow the investor to gain from changing market prices. As currencies are traded in pairs, every Forex position requires the investor to go short in one currency and long in the other.

·      The most frequently used risk management tools in Forex trading are stop-loss and limit orders. The stop-loss order automatically liquidates a position at a chosen price.
This prevents any possible movements against the position beyond the chosen level. Please note that in case of irregular or adverse market movements, a trade maybe stopped beyond the stop loss level.

·      In CFDs and in Forex such interest is called Swap or roll-over fees. Depending on the currency pair your are trading and on the direction of the trade, normal trading accounts may pay or earn swaps. Please check your market watch for more details.

·      Intraday positions refer to all positions opened at anytime during the 24 hour period before the close of our business trading hours at 22.00 GMT.
Overnight positions are positions that are still on after our usual trading hours. These are automatically rolled over by us.

·       Traders should consider the prevailing economic conditions and take into account the various financial reports and analysis available. Technical traders rely on trends, support and resistance levels in conjunction with analytical data to identify trading opportunities.
Significant unexpected events can drive price movements such as a sudden change in interest rates or a major political crisis. Often it is the expectation of an event rather than the event itself that influences price movement.