Questions about Forex

What is Forex?

Forex or the “Foreign Exchange market", is the largest financial market in the world, with a daily average turnover of approximately US$5.5 trillion. Forex trading is the simultaneous buying of one currency and selling of another. The price of currencies is  floating and dependent on supply and demand. Foreign Exchange is always traded in pairs, for example EUR/USD.

How fair is the Forex market?

Forex is said to be “the fairest market on earth" by some because of its sheer size, and number of participants. No one player, not even the central bank of a particular country can completely control the market direction of a currency.

Where is the Forex Market located?

There is no one central location of the Forex Market, unlike the stock and futures markets Forex is not traded on an exchange but it is traded on an Over-the-Counter (OTC) basis with no central exchange between Banks, Governments, hedge funds and private investors. The forex market is open 24 hours a day 5 day per week.

Who are the main participants in the Forex Market?

The main participants in the Forex Market are Central Banks, Commercial Banks and Investment Banks, however in recent years since the advent of the internet accessibility to the Forex Markets has increased which has resulted in an increase in the number of participants. These day’s participants also include large multinational corporations, money managers, registered dealers, money brokers and private investors.

When does the Forex Market open and close?

The Forex Market is a 24 hour market, Forex trading commences in Wellington, New Zealand and moves around the globe as business days begin in each financial centre. The major global financial centers where most forex trading takes place are Tokyo, London and New York. The forex market opens on Sunday at 10:00pm (GMT) and closes on Friday at 10:00pm (GMT).

What are the most popular Forex pairs?

The most liquid currency pairs are those from countries with politically stable governments and well respected central banks. The most popular currency pairs those that are paired with the US Dollar these are nicknamed the ‘majors’ and account for around 85% of transactions. The most commonly traded pairs are the EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and USD/CAD.

What makes exchange rates move?

There are a variety of fundamental and technical aspects that can cause an exchange rate to move. The most notable influences include interest rates, inflation and political stability. Sometimes governments will buy or sell a currency in an effort to influence its value with the view of having a broader effect on the country’s economy. This is known as Central Bank intervention and can have a significant impact on the value of a currency. Given the size and diversity of participants there is not one single factor that can influence the forex market for any significant length of time.

How do I manage risk when trading Forex?

There are a variety of risk management strategies that forex traders can use. The most common form of risk management is the use of stop loss and limit orders. Stop loss orders can be set within the MetaTrader 4 platform and are often used force the closure of a position at a predetermined price in order to limit any potential loss. Limit order work in much the same way as Stop loss orders however they allow a restriction to be placed on the maximum price paid.

What is the best trading strategy to use when trading Forex?

Forex Traders use a variety of trading strategies based on technical and fundamental analysis. These days technical trading is becoming increasingly popular and traders are using a variety of technical indicators such as trend lines, support and resistance levels and numerous other methods to identify short to medium term trading opportunities. Some traders choose to use fundamental analysis which revolves around interpreting economic information including news, government reports and sometimes even rumor. Often it is however elements outside of technical and fundamental analysis that have the most dramatic effect on currency prices, this includes events such as Central Bank intervention, interest rate changes, political change or even war.

Is trading the Forex market expensive?

No, trading forex has never been cheaper and more accessible. Traders can now trade on institutional grade pricing with a deposit as little as $500 and leverage up to 400:1. It is however important to remember that although trading on leverage can maximise profits it can also amplify losses.

Questions about Capstone

Who is Capstone?

Capstone was founded by specialists in the FX industry and investment bankers to provide FX, derivatives trading and related services to institutional and retail clients.Capstone aims to create a pure trading environment by 100% DMA, lower trading costs and better order execution. For further information on Capstone please refer to the About Us page.

Is Capstone a regulated broker?

Yes, Capstone is a fully regulated broker. For more details please refer to our Regulation and licensing page.

Where are my funds held?

Capstone holds client funds in Segregated Client Accounts with ANZ and HSBC. Both banks are AA credit ratings top tier-1 banks.

Who is your liquidity providers?

Capstone aggregates liquidity from 20+ top tier-1 banks and ECN venues to provide the best quotes and order execution from the interbank market for you to trade on.

Questions about Trading with Capstone

What is the minimum amount required to open a live account with Capstone?

Capstone allows clients to open a Standard account with as little as US$500 or currency equivalent.

or by sending your request to us at accounts@capstoneglobal.com.

or by sending your request to us at accounts@capstoneglobal.com.

What time does Capstone open and close its prices?

Opening time:
21:00 MetaTrader 4 Server Time(Sunday Summer Time)
22:00 MetaTrader 4 Server Time(Sunday Winter Time)

Closing time:
21:00 MetaTrader 4 Server Time( Friday Summer Time)
22:00 MetaTrader 4 Server Time( Friday Winter Time)

What time does Capstone Rollover occur?

Capstone rollover occurs at 00:00 MetaTrader4 Server Time.

What are Capstone’s trading hours of Gold and Silver?

The trading hours for Gold and Silver (XAUUSD and XAGUSD) are:

Opening time:
22:00 MetaTrader 4 Server Time(Sunday,Summer Time)
23:00 MetaTrader 4 Server Time(Sunday,Winter Time)

Closing time:
21:00 MetaTrader 4 Server Time(Friday,Summer Time)
22:00 MetaTrader 4 Server Time(Sunday,Winter Time)

Daily break:
21:00-22:00 MetaTrader 4 Server Time(Summer Time)
22:00-23:00 MetaTrader 4 Server Time(Winter Time)

How many currency pairs does Capstone offer?

Capstone offers 36 currency pairs.

How many CFDs does Capstone offer?

Capstone offers 16 index CFDs,2 oils including WTI and Brent and copper.

How can I deposit funds with Capstone?

Capstone offers clients three funding methods:

• Bank / Wire Transfer
• Credit Card
• China Union Pay

More details please visit Deposits and withdrawals page to look through.

How long does it take for funds to be credited in my account?

• Wire transfer: 1-2 working days
• Credit card: instant
• China Union Pay: 0.5-1 hour

, login to it and fill in an online account application.Once completed and approved by our Accounts Dept, your MT4 login details will be sent to your registered email address with Capstone.

What documents do I have to provide Capstone to open a live account?

• Photo ID is a must
• Proof of address may be required by our Accounts Dept. to further verify you.

Does Capstone accept US Clients?

No. US CTFC regulation prevents US clients from trading with NON-US brokers.

Are Scalping and Hedging allowed?

Yes, Capstone accepts all trading styles based on our exceptional trading conditions.

If I stop trading will I be charged an inactivity fee?

No, you will not be charged any account inactivity fees.

Are Demo Accounts the same as Live Accounts?

Both Demo and Live accounts have the same price feed, however it is not possible to replicate a real trading environment on a Demo account due to technical limitations. Trades placed on demo accounts are not passed into the real market and therefore their execution will not directly comparable to trades placed on a Live account. Demo accounts are designed to allow traders to become familiar with the trading platform itself and will never be able to provide an identical trading experience to a Live account.