The "philosophy" of the forex trading system, as with the rest of the QuantStart site, is to try and mimic real-life trading as much as possible in our backtesting. This means including the details that are often excluded from more "research oriented" backtesting situations. Latency, server outages, automation, monitoring, realistic transaction costs will all be included within the models to give us a good idea of how well a strategy is likely to perform.
Forex trading, also known as foreign exchange trading or currency trading, is where an investor tries to make money by buying and selling currencies on the foreign exchange market. Most investors will follow trends and use strategies to optimise their return. This is a very basic definition that does not reflect the full complexity of Forex trading; our free workshops are ideal for people who are unfamiliar with the concept and want to quickly achieve an in-depth insight into how this all works.
Interactive Brokers ®, IBSM, InteractiveBrokers.com ®, Interactive Analytics ®, IB Options AnalyticsSM, IB SmartRoutingSM, PortfolioAnalyst ®, IB Trader WorkstationSM and One World, One AccountSM are service marks and/or trademarks of Interactive Brokers LLC. Supporting documentation for any claims and statistical information will be provided upon request. Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.
(Note that the leverage shown in Trades 2 and 3 is available for Professional clients only. A Professional client is a client who possesses the experience, knowledge and expertise to make their own investment decisions and properly assess the risks that these incur. In order to be considered to be Professional client, the client must comply with MiFID ll 2014/65/EU Annex ll requirements.)

Forex trading, also known as foreign exchange trading or currency trading, is where an investor tries to make money by buying and selling currencies on the foreign exchange market. Most investors will follow trends and use strategies to optimise their return. This is a very basic definition that does not reflect the full complexity of Forex trading; our free workshops are ideal for people who are unfamiliar with the concept and want to quickly achieve an in-depth insight into how this all works.
The script is currently hardcoded to generate forex data for the entire month of January 2014. It uses the Python calendar library in order to ascertain business days (although I haven't excluded holidays yet) and then generates a set of files of the form BBBQQQ_YYYYMMDD.csv, where BBBQQQ will be the specified currency pair (e.g. GBPUSD) and YYYYMMDD is the specified date (e.g. 20140112).
These articles, on the other hand, discuss currency trading as buying and selling currency on the foreign exchange (or "Forex") market with the intent to make money, often called "speculative forex trading". XE does not offer speculative forex trading, nor do we recommend any firms that offer this service. These articles are provided for general information only.
Simply download the latest version from the Software page and after installation follow the initial wizard or click on the help/start trial menu. Please note that the software periodically communicates with the license servers to validate your trial. After the trial period you can use the software in read only mode which means you cannot modify your TradingDiary Pro database anymore.
Why should you use Learn to Trade to learn Forex trading? That’s simple: we are a credible, well-established organisation that exists to educate people on Forex trading strategies. Our Forex trading training is second to none and will give you the foundation you need to achieve success in the high-opportunity world of currency trading. Every course is supported by our knowledgeable team of experts, who guide and support you throughout your learning experience. Not only that – you’ll get to take advantage of our live trading floor to get some hands-on experience. Getting a feel for what it’s like, while you have experienced traders around to help you, is a valuable opportunity that will help you get the confidence you need. Register now for your Forex trading tutorial and workshop!
Free margin in Forex is the amount of money that is not involved in any trade. You can use it to take more positions, however, that isn't all - as the free margin is the difference between equity and margin. If your open positions make you money, the more they achieve profit, the greater the equity you will have, so you will have more free margin as a result. There may be a situation when you have some open positions and also some pending orders simultaneously.
Trading on margin refers to trading on money borrowed from your broker in order to substantially increase your market exposure. When opening a margin trade, your broker lends you a certain sum of money depending on the leverage ratio used, and allocates a small portion of your trading account as the collateral, or margin for that trade. The remaining funds in your trading account will act as your free margin, which can be used to withstand negative price fluctuations from your existing leveraged positions, or to open new leveraged trades. The relation between your free margin and other important elements of your trading account, such as your balance and equity, will be explained later. For now, it’s important to understand the meaning of margin in Forex.
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Once an investor has started buying a stock on margin, the NYSE and FINRA require that a minimum amount of equity be maintained in the investor's margin account. These rules require investors to have at least 25% of the total market value of the securities they own in their margin account. This is called the maintenance margin. For market participants identified as pattern day traders, the maintenance margin requirement is a minimum of $25,000 (or 25% of the total market value of the securities, whichever is higher).
A Portfolio Margin account can provide lower margin requirements than a Margin account. However, for a portfolio with concentrated risk, the requirements under Portfolio Margin may be greater than those under Margin, as the true economic risk behind the portfolio may not be adequately accounted for under the static Reg T calculations used for Margin accounts. Customers can compare their current Reg T margin requirements for their portfolio with those current projected under Portfolio Margin rules by clicking the Try PM button from the Account Window in Trader Workstation (demo or customer account).

All currency trading is done in pairs. Unlike the stock market, where you can buy or sell a single stock, you have to buy one currency and sell another currency in the forex market. Next, nearly all currencies are priced out to the fourth decimal point. A pip or percentage in point is the smallest increment of trade. One pip typically equals 1/100 of 1 percent.
Foreign exchange (forex) or FX trading involves trading the prices of global currencies, and at City Index it is possible to trade on the prices of a huge range of global currencies. Currency trading allows you to speculate on the movement of one currency against another, and is traded in pairs, for example the Euro against the US Dollar (EUR/USD).
For securities, the definition of margin includes three important concepts: the Margin Loan, the Margin Deposit and the Margin Requirement. The Margin Loan is the amount of money that an investor borrows from his broker to buy securities. The Margin Deposit is the amount of equity contributed by the investor toward the purchase of securities in a margin account. The Margin Requirement is the minimum amount that a customer must deposit and it is commonly expressed as a percent of the current market value. The Margin Deposit can be greater than or equal to the Margin Requirement. We can express this as an equation:
(Note that the leverage shown in Trades 2 and 3 is available for Professional clients only. A Professional client is a client who possesses the experience, knowledge and expertise to make their own investment decisions and properly assess the risks that these incur. In order to be considered to be Professional client, the client must comply with MiFID ll 2014/65/EU Annex ll requirements.)
One of the unique features of TradingDiary Pro which you cannot find in any trading journal software is the options strategy support. TradingDiary Pro is the perfect solution for an options trading journal and tracking your stock and futures options strategies. What is an options strategy? Options strategy is simultaneously buying or selling one or […]

It is essential that traders understand the margin close out rule specified by the broker in order to avoid the liquidation of current positions. When an account is placed on margin call, the account will need to be funded immediately to avoid the liquidation of current open positions. Brokers do this in order to bring the account equity back up to an acceptable level.
Often, closing one losing position will take the margin level Forex higher than 5%, as it will release the margin of that position, so the total used margin will decrease and consequently the margin level will increase. The system often takes the margin level higher than 5%, by closing the biggest position first. If your other losing positions continue losing and the margin level reaches 5% once more, the system will just close another losing position.
In particular we will need strategy level metrics, including common risk/reward ratios such as the Sharpe Ratio, Information Ratio and Sortino Ratio. We will also need drawdown statistics including the distribution of the drawdowns, as well as descriptive stats such as maximum drawdown. Other useful metrics include the Compound Annual Growth Rate (CAGR) and total return.
The market then wants to trigger one of your pending orders but you may not have enough Forex free margin in your account. That pending order will either not be triggered or will be cancelled automatically. This can cause some traders to think that their broker failed to carry out their orders. Of course in this instance, this just isn't true. It's simply because the trader didn't have enough free margin in their trading account.
All currency trading is done in pairs. Unlike the stock market, where you can buy or sell a single stock, you have to buy one currency and sell another currency in the forex market. Next, nearly all currencies are priced out to the fourth decimal point. A pip or percentage in point is the smallest increment of trade. One pip typically equals 1/100 of 1 percent.
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