The Baron Forex
Advantage
The BFX management team consists of the industries leading professionals and because of that we are proud to offer the following:
- Personalized Service
- Competitive Pricing
- Superior Execution
- Up to 1:200 leverage
- Unparalleled Client Support
Forex FAQs
Why is the Spot Currency Market Attractive to Investors?
Professional investors for individual accounts have dramatically increased their level of participation in the cash Forex markets in recent years. Add to this the growing use of cash Forex by individual investors and you have a rapidly growing investment arena. The following summarizes the many reasons professional investors have flocked to this market.
Liquidity This market can absorb trading volumes and per trade sizes that dwarf the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggests the freedom to open or close a position at will. Access a substantial attraction for participants in the Forex market is the 24-hour nature of the market. In Forex, a participant need not wait to react to a news event, as is the case in most markets.
Flexible Settlement Many professional investment managers have a particular time horizon in mind when they establish a position. In the Forex market, a position can be established for a specific period of time which the investor desires.
How do I calculate profits and losses?
When you close out a trade, you can calculate your profits and losses using the following formula:
Price (exchange rate) when selling the base currency - price when buying the base currency X transaction size = profit or loss
Assume you buy Euros (EUR/USD) at 1.2178 and sell Euros at 1.2188. If the transaction size is 100,000 Euros, you will have a $100 profit.
($1.2188 - $1.2178) X 100,000 = $.001 X 100,000 = $100
Similarly, if you sell Euros (EUR/USD) at 1.2170 and buy Euros at 1.2180, you will have a $100 loss
($1.2170 - $1.2180) X 100,000 = - $.001 X 100,000 = - $100
You can also calculate your unrealized profits and losses on open positions. Just substitute the current bid or ask rate for the action you will take when closing out the position. For example, if you bought Euros at 1.2178 and the current bid rate is 1.2173, you have an unrealized loss of $50.
($1.2173 - $1.2178) X 100,000 = - $.0005 X 100,000 = - $50
Similarly, if you sold Euros at 1.2170 and the current ask rate is 1.2165, you have an unrealized profit of $50.
($1.2170 - $1.2165) X 100,000 = $.0005 X 100,000 = $50
When does BFX open and close?
The BFX client service desk is open 24 hours and 7 days a week to provide our clients with the best service possible which is truly around the clock.
What are BFX dealing hours?
The BFX dealing desk opens from Sunday 5:00 PM EST time (22:00 GMT) until Friday 4:30 PM EST time (22:00 GMT).
List 3 advantages clients have trading FX over Stocks:
Zero commission
Ability to trade 24 hours per day
Free demo account with Live Feed
Can a client fund via credit card? Checks? Web checks?
Yes, BFX accepts funding via credit cards, Checks and Web Checks for clients within the United States. For clients residing outside the United States, Wire transfers and Credit Card funding are accepted, but not Checks at this time.
Does BFX charge any commissions for trading FX?
No, BFX does not charge any commission for trading FX. BFX gets compensated only by the spread of the currency pair traded.
What is the standard margin requirement for a mini account with BFX?
The standard margin requirement for a mini account with BFX is 0.5%. This means a good faith deposit of 50 USD is held for each position worth 10,000 units of any currency traded.
Can a client place a market order via email?
No a client can not place a market order via email. First due to security issues we do not take orders from clients via email. The client either executes an order through our superior trading platform or via phone where one provides the dealing desk with security information about their accounts. Second due to the volatile nature of this market, by the time a client sends an email for a market order, the prices will have definitely changed before they reach the dealing desk.
What is our client service phone number?
+647-722-2358 option 2
What is the Dealing Room Direct phone number?
+647-722-2358 option 1
At what time does each trading zone start?
Japan, London, Australia, NY etc. Forex Market Hours
| Time Zone | New York Time | GMT |
|---|---|---|
| Tokyo Open | 07:00 PM | 00:00 |
| Tokyo Close | 04:00 AM | 09:00 |
| London Open | 03:00 AM | 08:00 |
| London Close | 12:00 PM | 17:00 |
| NY Open | 08:00 AM | 13:00 |
| NY Close | 05:00 PM | 22:00 |
What is FX? Name two factors that differentiate this market from equities or futures?
FX stands for Foreign Exchange, which is the act of Buying or Selling a certain currency with respect to another for many different reasons.
Two main factors that differentiate the FX market from Equities and Futures are that it is an OTC market and it opens truly 24 hours/ 5 days week while providing very high liquidity around the clock.
What is a spread?
Spread is the difference in PIPS between the Selling and Buying price.
In the pair GBP/USD, what is the counter currency? Which is the base currency?
GBP is the base currency and USD is the counter currency.
What is the BID and what is the Ask?
FX quotes include a "bid" and "ask". The "bid" is the price at which a market maker is willing to buy (and traders can sell) the base currency in exchange for the counter currency. The "ask" is the price at which a market maker is willing to sell (and traders can buy) the base currency in exchange for the counter currency. The difference between the bid and the ask price is referred to as the spread.