Frequently Asked Questions
What is Forex?
Forex, also known as foreign exchange, FX or currency trading is a global decentralised or Over The Counter (OTC) market where all the world’s currencies trade. This includes all aspects of buying, selling and exchanging currencies at current or determined prices.
How does Forex market works?
What are the trading hours?
Who trades Forex and Why?
Banks all over the world trade currency with each other. There is an interbank market and that is where overwhelming majority of Forex Trading takes place. These banks trade with each other through electronic networks. The larger banks account for a tremendous percentage of the total amount of currency trades in the world. Some of their trading is for their own behalf and some is on behalf of their customers.
b) Central Banks
Central banks are very influential in the Forex market. Central Banks act in the Forex market for the purpose to stabilizing or increasing the value of their own country’s currency. They adjust interest rates in their own countries and it has a significant effect on the world Forex market because that either raises or lowers the value of that country’s currency. Central banks can also act for the purpose to realigning exchange rates.
c) Investment managers and hedge funds
In addition to just buying and trading currency on behalf of many smaller traders, investment managers are buying and selling other investments like securities. When a large firm is buying foreign securities or futures, they will need foreign currency to do it. This makes investment firms one of the largest sectors in the Forex market. Hedge funds can trade currencies for speculatively as well.
When a large company needs to spend money in a country that is not the one they normally operate in, they might have to purchase large amounts of that country’s currency to do the business.
c) Retail traders
This means people like you and me; anyone who wants to trade in the forex market on their own. This makes up a small percentage of the world forex market.
How does Forex market differ from other market?
If you’re wondering how trading the Forex market is different than trading stocks, here are a few major benefits:
a) High Liquidity
The forex market has a turnover of over USD6 trillion a day. This results in a highly liquid market whereby there are always buyers and seller in any market condition. The high liquidity and trading volume of forex allow any speculator to open or close a position with ease anytime during trading without trading limit constraint
b) 24-hour market
Forex market operates 24 hours a day, five days a week. Trade whenever you want. You can enter or exit a trade whenever you want from Sunday around 5pm EST to Friday around 4pm EST
There are no clearing fees, exchange fees, government fees and brokerage fees in the forex market. Brokers are compensated for their services based on the bid-ask spread. The retails transaction cost is typically less than 0.1% (10 pip or points) under normal market conditions.
You can trade on leverage, but this can magnify potential gains and losses.
e) Profit in both Bull and Bear market
Volatility allows traders to profit in any market condition and provides for high probability trading opportunities. It is possible for you to profit no matter which way the market is trending.
f) Ease of access
You can start trading Forex as little as USD100. Straight through order execution allows you to trade at the click of a mouse.
What does going "LONG" and "SHORT" means?
Going “long” is when a trader buys an asset expecting its value to rise. This is also called opening a long position. Going “short” or opening a short position, is when a trader sells an asset, expecting its price to decline so it can be bought back in the future at a lower price.
How are prices determined?
There are various ways prices can change. Economic and political conditions usually affect the value of an asset, along with interest rates, inflation, and supply and demand.
JF Lennon’s Courses
Who can trade Forex?
I do not have any financial knowledge, can I learn?
JF Lennon’s proven system and strategies are SIMPLE, EASY and STRESS-FREE.
I want to learn Forex but do not know how to get started?
If you are determined to learn forex, find a credible and trusted school to start your forex journey right. We suggest that you make your way to JF Lennon and attend our FREE preview to witness the truth and authenticity of forex trading. Established since 2008, JF Lennon is one of the biggest and leading Forex school in Asia with more than 40,000 students internationally.
Does JF Lennon has any preview? Is it free?
Yes. It is FREE. Join now!
How much do I need to start a trading account?
You can start a trading account as little as USD100 for some brokers
How much time do I need to dedicate to trading each day? Do I need to watch the chart all day?
Depending on what kind of trader you are or want to be. There are traders who trade for just a few minutes per day due to their heavy work schedule, we also have traders who trade few hours per day. We advocate JF Lennon’s students to be lifestyle traders. You do not need to watch the chart all day with our proven system. At JF Lennon, we have a strong community of traders who support each other in the journey of forex trading.
How long does it take to master Forex Trading?
Forex trading is a journey of Mastery; “A Minute To Learn, A Lifetime To Master”. Like many other things in life, Forex trading is a continuous journey of learning. The Forex market is constantly evolving thus there is no one strategy that will last forever. Thus, it is important for our students to keep in close knit with JF Lennon to receive the support and updates.
What is the best strategy?
There is no single strategy or indicator that is better than other or that can guarantee profits. There is no holy grail, but each strategy serves a purpose and can yield profitable results when taught and used correctly. It all comes down to understanding the proven system and applying them to the right situations with the right money management. Without the correct money management, you will still fail even you have the world’s best strategy on hand. A right combination of psychology, money management and strategy is needed to be successful in Forex trading.
What is the best time frame to trade Forex?
Is this compulsory to use the school's broker?
*Introductory Broker means the school acts as a middleman between trader and broker. Whether the trader win or lose in a trade, IB will make money from your trades. Beware of unethical schools who charge low course fee but mandate you to open LIVE trading account with their broker(s).
Can I use the strategy(ies) taught by JF Lennon on other currency pairs or investment tools like stocks, options or futures?
What makes JF Lennon's courses different from others?
Dato Jimmy has traded LIVE in front of thousands with proven and recorded results and for a particular trading challenge, he traded with SGD 2,800 to over SGD 100,000 in 6 months as a challenge to his students – Notarized (certified) his trading results with an established Singaporean Law Firm and proceeded to donate the proceeds to charity.
If you make money from trading, why do you teach others?
Dato Jimmy has been trading successfully since 2005 and his turning point (aha! moment) to start a Forex Institute came when he saw one of his best friends getting his trading account facing the dreaded ‘margin call’ based on a poor trade call of a ‘reputable’ Forex company. He jumped into starting an Institute to fulfil his life mission and passion of coaching to educating members of the public into the proper ways of trading, risk management, emotional control and learning to survive in the Forex markets. To date – he has personally mentored over 40,000 students both locally and internationally on how to become profitable traders starting even with no prior knowledge.
How much returns can I make per month?
What are the risks?
All investments including Forex carry a high level of risk, and may not be suitable for everyone. Before deciding to trade forex, you should carefully consider your investment objectives, level of experience, and risk appetite. Remember, you could sustain a loss of some or all of your initial investment, which means that you should not invest money that you cannot afford to lose. If you have any doubts, we recommend that you seek advice from an independent financial advisor.
Is Forex Trading a scam?
How can I purchase Dato Jimmy Wong's Book "Stupid Trader, Play Safe"?
Please contact us at email@example.com
Why do traders fail?
When it comes to investing versus gambling, the distinction is very simple. As long as you steer away from your Forex system, you are gambling. If you are not investing, then you are gambling. There is no “in-between”.