Currency prices are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time. The impact of economic and geopolitical events is already factored into market prices.

The most common risk management tools in FX trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the Forex market ensures that limit order and stop loss orders can be easily executed, but remember that market conditions may make it impossible to execute such orders.

Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor.

The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.

As a reference, the average small to medium trader might trade as often as everyday. The frequency of trading will vary from trader to trader. Transaction costs are limited to the bid/ask spread, without additional exchange or clearing costs.

As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and you need these funds.

In Demo accounts, you are not trading any real capital. Additionally, in demo trading, you may find that most of the trades skip the "Pending Orders" window and immediately appear in the "Open Position" window. In live trading, all orders first appear in the "Pending Orders" window. After confirmation from the dealer that this price exists, the trader's order will appear in the "Open Positions" window. If the price changes, the trader will see a popup window with the new price. To confirm or to cancel this order, the trader should right-click on the price in the "Pending Orders" window for a menu and then choose the appropriate selection to accept or to reject the price and cancel that order. Live accounts are also connected to dedicated and stronger servers, separate from the ones used by Demo accounts.

BrewerFX charges no commission on your trades; we are compensated through the Bid and Ask prices or spread of a given currency pair. We may charge a fee for fund withdrawals. Be aware that the bank you deal with may be charging fees on your deposits or withdrawals. BrewerFX has no control over any applicable bank fees.

Your funds will be posted within 1-2 business days if sent by wire transfer, 8-10 business days if sent by check (once we receive it), or 3-4 business days if sent by PayPal.