What is OTC trading?

OTC trading is usually trading out of a stock market, i.e. after the closing of the main stock trading. OTC trading is meant as electronic system of trading directly with the participants by means of modern communications tools as telephone, Internet. OTC market is a term used to define all the deals effected out of the stock market. This is a type of the organization of trading by telephone or electronic system out of the stock market usually with the help of a dealer.

What is OTC deal?

OTC deal is a deal using a financial tool effected directly between the parts not counting the stock market. The majority of OTC deals is effected through trading organizers however unlike stock trading a trading organizer is not responsible for default of commitments of one of the parts. For effecting of OST deals it is not necessary to reserve the funds at the eve of trading as the parts settle accounts directly. As a rule OTC deal are effected with delayed settlement.

What is OTC financial tool?

OTC financial instrument -is a derivative of the stock exchange financial instruments with the difference that in transactions with these instruments there is no actual delivery of the goods on the day of conclusion of the contract, and the contract is concluded for the difference from the original price of buying and selling on the closing price of the transaction.

Simply put, the trader can buy or sell not actual goods (asset), but the right of transactions with it or  receiving the appropriate income from changes in the price of goods at the market: to buy cheap and  sell expensive later.

These transactions are temporal arbitrage. The aim of the trader with OTC financial instruments is to determine the most favorable purchase or sell levels of the asset and the opening of the transaction in the favorable direction of market movement.

For example, if the foreign exchange market tends to increase of the currency pair EURUSD, a trader can open the deal to buy the underlying asset, ie EUR and expecting it's growth. If the growth  takes place, the trader closes the deal. The difference between the original purchase price and the closing price of the transaction will be the trader's income from the transaction. In this case, the obligation to pay the profit is for counterparty (eg dealer), which provided the opportunity to commit this transaction on his own terms.

What is internet trading?

Internet trading is trading at the OTC market with OTC financial tools using the software provided by a broker (dealer) to execute operations in electronic system of trading. Because of available conditions provided by brokers (dealers) Internet trading is one of the most popular ways of earning money in Internet.

What is FOREX?

FOREX is the abbreviation of Foreign Exchange Currency Market. This market appeared as an element of international financial system of currency exchange between banks with floating rates (depending on currency demand and supply) as a response to Breton-Woods system of fixed rates. Today FOREX is the popular OTC market uniting billions of traders all over the world.

What is considered as “goods” at FOREX?

FOREX tools are the currencies, divided into pairs, where one is a basic asset (basic currency) and the other expresses the price of the basic. For example in the pair EUR/USD EUR is a basic currency and USD is a currency of quotation. If a trader sees the note EUR/USD = 1.2350, that means 1 EUR costs 1.2350 USD.

Why everything is measured in points at FOREX?

Point is a minimal value of changing price at FOREX. This is due to the fact that each second changes at the market are much smaller that common nominals and can be less 1 cent while they must be counted. That's why the nominals are divided till hundredth and these changes are measured in points. For example if the cost of EUR/USD was 1.2350 and then became 1.2351 so it is considered that the price has changed for 1 point, i.e. the changing was 0.0001. In standard trading conditions with the volume of 1 lot and credit leverage 1:100, when the price changes in the direction of open position from 1 point the trader's profit will be $10. If in pair EUR/USD the price changes for 1 cents (from 1.2350 to 1.2450) the alteration will be 100 points. This let traders get remarkable profit at FOREX, at the same time there is a high risk of loss, so if you decide to start trading at FOREX or with other instruments we recommend you to estimate the risks and get acquainted with the Risk disclosure statement here:  (http://bulltraders.com/media/pdfs/Risk_disclosure_statement.pdf)

How does the FOREX market work?

Historically FOREX is a inter-bank market that unites world banks in the common system of cooperation. That is why FOREX market functions 24/5 with the break on Saturday and Sunday. So that a trader can participate in OTC trading full-time. To simplify the time of the market is divided into sessions: Pacific, Asian, European, American. During the session the most active currency is the currency of the region where the working day takes place during the session. For example, Asian currencies such as Yen (JPY) will be active during the Asian session, Euro (EUR) – during the European session, US dollar (USD) – during the American session, New Zealand and Australian dollars (NZD, AUD) – during the Pacific.
Working hours of FOREX trading sessions:
Pacific19:00 — 06:00 UTC
Asian 23:00 – 09:00 UTC
European 06:00 – 16:00 UTC   
American 12:00 – 22:00 UTC
What is needed to start FOREX trading
For successful FOREX trading it is necessary to get acquainted with the basics of stock trading. You can do it with the help of Bulltraders.com specialists. You can register personal account at... and send a request for cooperation with analysts. In your personal account you can open your trading account, charge it with funds and start FOREX trading

What is a CFD-instrument?

CFD is the abbreviation which is decrypted as Contracts for Difference. Actually, it is another name for derived financial instruments uniting different OTC-instruments: futures fro stock indexes, raw markets, shares, currencies etc. Once opened an account on Bulltraders.com a trader gets the access to the most part of the popular CFD-instruments. Register to open an account https://secure.bulltraders.com.

How to trade contracts for difference for different financial instruments?

Trading of OTC financial instruments is possible with the help of special software which is provided to a trader by the broker. After the opening of account on Bulltraders.com a trader will get the access to the popular OTC financial instruments and the trading platform Bulltrader for PC, smartphone or touchpad and the possibility to trade in browser. The principle of trading is to find the most favorable moment to effect the deal of buy or sell of an instrument. Different types of analysis (graphical, computer and fundamental) give a traders the possibility to define the moment to enter at the market. If a traders thinks that the cost of an asset will grow in the nearest future, he opens a deal in the direction of asset's growth, if the price decreases, a trader opens a deal to sell the asset. If the forecast is right a trader gets the profit of the difference between the opening and closing prices of a deal.

What is trading terminal?

Trading terminal (trading platform) is a trader's working place. Trading platform reflects the charts of financial instruments, tools for market analysis, trading financial accounts many other tools. With the help of the trading platform a trader makes market expectations and conducts transactions. We propose to get acquainted with the Bulltrader trading terminal which comprises the most modern tools, user-friendly interface and agreeable design. Appreciate the terminal's capacities here: http://bulltraders.com/en/platforms.html.

What is the difference between PC and Web terminals?

Web terminal or Bulltrader browser terminal for trading on FOREX and other OTC markets is the best solution among our products, that allows to be mobile. You will be able to reach the market from any computer, even without the installation of the Bulltrader PC platform. Compatible with the most part of modern browsers Bulltrader Web will allow you to conduct a market analysis, view  personal trading reports, perform transactions. Appreciate the terminal's capacities here: http://bulltraders.com/en/platforms.html. However, for better work a trader needs to have a reliable terminal for PC. Download and install the best terminal for FOREX trading among our products and choose the best option for you.

What is spread?

Spread is the difference between the best sell price (ask) and the purchase (bid) price at the same  time for an asset (stock, commodity, currency futures, options). In stock trading spread is measured in points rather than money. For example, if the current quotation of the euro against the US dollar (EURUSD) is indicated as 1.2345 / 1.2350, the spread amount is 0.0005 dollars, or 5 points. Measuring in points makes the spreads on various trade objects more comparable. Usually the deal is opened counting the difference of the spread. I.e. if the spread was 5 points, the terminal will display the profit as -5 pts.Thus the trader must overcome the negative level of the spread before the deal becomes profitable.

What is swap?

In order to understand what is a swap on the Forex, you need to deal with such a concept as a spot or SPOT market. Spot market is the market of buying assets with the delivery of the goods within two working days. The second name of the spot market is the cash market. The Parties deal on it, guided by the market price of an asset, established at the time of the transaction, rather than the one that will prevail on the market at the time of delivery. This detail is particularly important for traders, especially foreign exchange traders, as almost all the spot markets work with it. Forex is certainly the largest currency spot market. The principle is simple: the trader makes the operation with the asset (buy or sell) on broker's terms (credit leverage, spreads, etc.). In this case, the actual delivery of the currency must occur within two business days. However, the trader does not need the actual delivery but the result of the price changes is important because that will be the result of his deal. The terms of trade on the Forex does not involve physical delivery of currency for traders, that is why the swap operation is carried out. In simple terms, the swap is a reopening operation of a trader's position, with charge or deduction (depending on the type of transaction and the Central Bank interest rates on these currencies), if he leaves it to the next trading date (holding more than one day). In fact, in each swap operations the actual delivery of currency each time will be delayed for 2 days. Thus a trader can hold the position indefinitely as the actual delivery does not happen under any circumstances. It is worth noting that the swap is not a commission, and is divided into a swap of long position (long swap) and swap of short positions (short swap) and can be either positive or negative, i.e. a trader can be accrued a certain amount of swap points, and deducted from the balance of his deposit.

What is take-profit?

This is the order (the order to the broker) to close the position at a profit when it reaches a predetermined value. For example, a trader buys a pair of EURUSD at 1.2350 in anticipation of a price increase to the level of 1.2400. Exposing Take Profit order the level of 1.2390, the trader gives the order to close a position when reaching this level in terms get 40 pips. Thus, it is not necessary to manually close the deal or monitor the market to achieve this mark. If the price reaches the level of placed order, the deal will be closed automatically and the profits will be fixed. It is worth noting that the nomination of a Take Profit order in the transaction BUY (buy) made purchases above borders and at the deal SELL (sell) – below the sale borders.

What is stop-loss?

This is the order (the order to the broker) to close the position at a loss when it reaches a predetermined value. For example, a trader buys a pair of EURUSD at 1.2350 in anticipation of the price increase to the level of 1.2400. Exposing Take Profit order to the level of 1.2390, the trader gives the order to close the position when reaching this level in terms get 40 pips. At the same time exposing the Stop Loss order following the border of purchase, for example in the area of ​​1.2335, the trader admits a negative scenario for the deal and insures deposit from the movement against the market be making Stop Loss orders. If we can reach a predetermined value, the transaction will close automatically at a loss, which the trader previously built into in the transaction under the rules of money management. It is worth noting that the nomination of the Stop Loss order in a transaction BUY (buy) performed below the purchase limits and under the deal SELL (sell) - higher sales limits.

What is stop-level?

Stop Level defines the minimum acceptable level for placing pending orders, stop orders Take Profit and Stop Loss. For example, if the stop-Level for an Instrument is 10 points, it is impossible to establish order in the range of less than 10 points. You can get acquainted with the stop-level values following link: http://bulltraders.com/en/fx-cfd-metals/specifications.html.

What is gap-level?

Gap Level is a breaking level. The value of the difference in points between the level of a pending order and the opening of the market at gap. Suppose the trader has set a pending order for the instrument to the level of 1.2350. Gap-Level of the instrument, for example, is 50 points. The execution of a pending order for this instrument will take place in the range of 1.2300-1.2400 (50 points above and below the level of the setting of a pending order). When using pending orders you should take into account the value of gap-level for trading instruments. You can get acquainted with the values of gap following the link: http://bulltraders.com/en/fx-cfd-metals/specifications.html.

What is margin call?

Margin is the collateral value that is needed to carry out speculative trading with money and / or goods provided to a trader to the loan secured by a specified amount. Unlike simple credit margin is characterized by the resulting amount of money (or the value of goods produced) that is usually several times the size of the collateral (margin). If the loss exceeds the critical value (for example, half of the margin), the broker may apply to the merchant with the proposal to pledge additional funds. This appeal is called margin call or literally a broker's claim for a trader to increase the account balance (available margin). If the funds are received, and the loss will continue to grow, the broker on their behalf forcibly close the position. This operation is called stop out, literally to stop and exit. After the second operation (closing position) financial result is formed by the amount of the difference between the purchase price and the selling price, as well as collateral margin is released, which is completed with the result of the operation. If the result is positive, the dealer will get back more funds by the amount of profits than was given in pledge. In case of a negative result, the loss will be deducted from the deposit and only the remainder will be returned. In the worst case, there is nothing left on the mortgage. Many brokers do not have warnings about the occurrence of the situation margin call, if a trader  misses the moment, all the transactions will be closed by the order of stop out.

What is stop-out?

Stop out is an order for the forced closing of positions by a broker is a trader's account does not have enough margin level.

What is credit leverage (margin lever)?

Credit leverage is the ratio between the collateral amount and the granted amount. Instead of specifying the size of the margin the size of the leverage is indicated  in the form of coefficient, that indicates the ratio of the amount of bail to the amount of available credit. For example, the margin requirement of 20% corresponds to the leverage of 1: 5 (one to five), and 1% of margin requirement correspond to the leverage of 1: 100 (one to one hundred). In this case we say that the merchant receives the funds for trading 5 (or 100) times more than the amount of his security deposit. Example of calculating the leverage 1: 100. Let us assume that a trader wants to open a deal for the pair EURUSD at the price of 1.2350. Since the minimum value of the contract on Forex is 100 000 units of base currency for this pair, it means that a trader buys 100 000 EUR for the price of 1.2350, and then he has to pay for the contract 123 500 USD. It is clear that not every trader can find this amount, but in the value of the collateral, the broker is ready to grant leverage (or lever) of 1: 100 (standard value of Forex leverage). This means that a trader needs to have a desired value of the collateral up to 100 times less than the value of the contract, i.e. 1235 USD only. If this amount is on account of the client, the broker will provide the opportunity to make a purchase transaction EURUSD at the price of 1.2350.

What credit leverage to choose?

The standard value of Forex credit leverage provided by the majority of brokers is 1:100. However a trader can choose a credit leverage himself. Once opened an account on Bulltraders.com a trader can choose a leverage between 1:50 and 1:200.

What is Instant Execution?

This is a type of execution of the order to the broker to open a position. However, Instant Execution rather denotes the exact execution of the trade request. This point is understood that when you click on the "BUY" button at the market price of 1.2350, the deal will be concluded, if at the time of its performance the same price is at the market and or will be changed not in our favor. If after pressing the button until the position opening the price value will change in our favor, it will requote (i.e. request for new prices). Instant Execution technology has many advantages, such as precise execution of orders, fixed rather than floating magnitude spreads, i. e. a trader immediately knows the value of the spread, which can be important.

What is binary option?

Binary options (digital option, the option "all or nothing", the option with fixed return) is an option that, depending on the implementation of the agreed conditions at the agreed time either provides a fixed amount of income (premium) or does not bring anything. Since the option is bought in advance at a fixed price, the total result can be positive (in the amount of the difference between the premium and the option price) or negative (the value of the option value). Typically, the size (modulus) of the positive result is less than the negative one. Usually, it is about whether the exchange price for the underlying asset will be above (or below) a certain level. A fixed payment is made in the case of the option payoff, regardless the price (whether it is higher or lower) changes. Binary options allow you to know exactly the size of the payment and the possible risks before the conclusion of the contract that provides the ability to easily manage a large number of trades. Often, a broker assigns the premium for the effected the option. For example, if the value of the premium is 70%, while the price of the option is 10, the yield on the effected option is equal to 7, and the total income, taking into account the option price is 17. If the option is not executed, the trader receives nothing, but it loses the bet value. The convenience of options is that the trader knows in advance the value of the option and the percentage of profit.

What are the types of binary options?

Call \ Put-Options - the direction of price movement is predicted relatively to the price at the time of the purchase of option. If it is expected that the price rises Call-option is bought. If the price reduction is expected Put-option is purchased.

One Touch \ No Touch-options – the achievement of a certain level of price is predicted  (One Touch) or undershoot it (No Touch) until expiry. After reaching a predetermined level the future direction of the movement is not important.

In \ Out-options -  the corridor is forecasted, in which the price will move until expiration (In-call option) or will leave (Out-option).

Options also differ by the time (speed) of executions. These options are divided into two types: Classic and Express.

What is Classic option?

For trading options type Classic it is enough for a trader to forecast any increase or decrease in the price of the selected asset. In case of the win a fixed payment is accomplished regardless the level of price changes (how it is higher or lower).

For options type Classic the purchase of the option can be carried out no later than 5 minutes prior to option completion.

Often the amount of a possible profit is given by a broker at the level of 70-80% of the amount of the purchase of option.

If a trader does not guess the direction of price movement, he loses only the value of the option purchase.

What is Express option?

The working principle of an Express option is similar to the principle of the options type Classic. The only difference between them is the expiry date of the option. The purchase of the option type Express can be can be carried out not later than 30 seconds before the exercise while Classic - not later than 5 minutes.

Express options are specifically designed for traders who do not like to wait and long for speed and adrenaline. These options allow you to make quick transactions and within 30 seconds to learn the result.

Why do we need economic calendar?

Economic calendar or calendar of economic events is an indispensable tool for a trader, who is based in his previsions on the news background and the fundamental principles of market analysis. The economic calendar includes statistics from the sphere of economics and finance, corporate reporting in the countries whose currencies are traded on FOREX.

Where to find a good economic calendar?

How to choose a quality FOREX economic calendar? The main thing is a reliable source of data, and the data in the calendar must be displayed correctly and fast. It is better to choose not a broker’s calendar, but a calendar of an independent news agency. On the site Bulltraders.com you will find a calendar from agency FXSTREET. This is one of the market leaders in providing data for brokers and traders worldwide.

FOREX newsfeed. Where to find? 

High-quality FOREX newsfeed allows to get the latest information from the world financial markets. It is simple to find the best FOREX newsfeed. One of the options is the news ticker on FXSTREET, recognized information agency by traders community. A trader will find a FOREX newsfeed from FXSTREET on the site Bulltraders.com.

What is demo-account?

Demo account for trading is a great way to explore the market in real conditions. The actual flow of quotations, the actual execution of orders with virtual funds  is the best way to learn how to earn money on the stock exchange without risk and without investments. In order to open a demo account on the site Bulltraders.com download Bulltrader platform following the link: http://bulltraders.com/en/platforms.html or use the version of the platform for browser Bulltrader Web: http://webtrader.bulltraders.com.

How close is demo-trading to the real market?

In order to open a demo account on the site Bulltraders.com download Bulltrader platform following the link: http://bulltraders.com/en/platforms.html or use the version of the platform for browser Bulltrader Web: http://webtrader.bulltraders.com.

How to open demo-account?

Everything you see in the demo account is available in the real trade. The real market quotes in real time, the lack of market simulation - this is what the trader receives by trading virtual funds. Demo account for trading is a convenient way to hone your trading strategy and master the art of trading.

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