General

How do fixed currency options differ from traditional options?

Fixed currency options have a defined risk and reward while traditional options are traded on margin and carry unlimited risk and reward.

Where does the data come from?

The charts displayed on our historical trading platform are not contrived. They are randomly generated from a historical database consisting of actual market data. The individual charts you see are, therefore, a pure reflection of pricing action that actually occurred during a defined period of time in the past.

Does the Y-axis represent actual rates?

The y-axis (vertical axis) does not represent the historical rate for obvious reasons. It does, however, maintain the integrity of the last two digits so that when the historical rate ends in 00, the displayed will also end in 00. Thus, the all important “round number” areas can be used as an additional reference in conducting your chart analysis.

Is fixed options trading easier than spot market trading?

Technical traders will find fixed options trading far less complicated than spot market trading for the following reasons:

• Charting skills are essentially the same when trading the spot market or options.
• The process is considerably less complicated and time consuming.
• There is no need to worry about the placement of stop losses or take profit orders.
• It is not necessary to spend extended periods of time monitoring the computer screen.
• Once an option has been purchased the results and hence profits are received in less than 10 seconds.
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When can I trade?

Unlike live fixed options that can only be purchased during normal market hours, historical options can be purchased 24/7.

Is there any difference between the Trade for Fun and Trade for Real Money platforms?

The mathematical model used to generate charts on both platforms is identical. The only difference is that the charts used to feed the Trade for Fun platform are limited in number.

Live Account Trading

How do I know the charts I see are not being manipulated?

The charts you see are randomly selected. They are small sections spliced from a real market historical database. Pricing is supported by a mathematical model that is based solely on each currency pair’s historical volatility. This being said, as a live trader, you are given the option to verify the integrity of the data used in conjunction with each trade. The process is called honesty proofing.

How does honesty proofing work?

Once the preliminary data set for a particular currency and time frame has been uploaded and is visible on your screen, simply opt in to receive a data verification download via the “H-Proof” button – one that provides password protected access to the high, low, and closing prices that will be displayed on the consol chart for that trade, prior to the trade itself.. Once the trade has run its course, a password will be provided in order to verify that the pricing fluctuations displayed on your screen were not in any way manipulated to gain an unfair advantage.

If this seems a bit confusing, consider this simple analogy. You take a stranger up on guessing a number between 1 and 10. Before you provide your guess, he writes his number on a piece of paper, places that piece of paper in an envelope, seals it, and hands it to you.

Envelope in hand, you guess the number to be 7 and immediately open the envelope. Win or lose, the envelope you have in your hand guarantees that the attempt to guess the number was a fair one. In comparison, this is what our honesty proofing program is all about.

What is a premium?

A premium is the amount of money you wish to pay to buy an option with a specified value.

What is the value and when is it paid?

The value is the amount you win when the parameters of the option you have purchased are met. For example, if you purchase a one touch option and the price of the currency “touches” the barrier you set any time during the option period, you win the specified value.

Can I change the option’s value?

Yes. You can specify the value of any option in any even dollar amount from $1 to $100. This value can be changed at any time prior to purchase provided you have not elected to purchase additional data. Naturally, since the cost of additional data is based on the existing value of any option, when additional candlesticks are purchased, you will not be able to change the option’s value after the fact.

Can I change the premium?

Premiums are a function of three factors: the value, the option period (expiration length), and the distance the barrier(s) are placed above and below the opening price. If you change the value from $1 to $10 or vice versa, the premium will increase or decrease respectively and proportionately. When the option period is changed (dragging the right end of the yellow barrier bar to the right) the premium will either increase or decrease depending on option. The factor having the greatest impact on the premium is the distance you set the barrier above or below from the chart’s opening price.

How does the “extra candlesticks” (more data) feature work?

This feature allows the user to purchase additional data for a fee. The cost is per candle and is based on a percentage of the value.

Do accounts earn interest?

Live accounts earn a competitive monthly interest rate. . Interest rates may vary from time to time however are almost always higher than comparative markets. Read more...

Trade for Real Money Account Setup

I live in the United States. Can I open a live account?

No. Unfortunately, current US law prohibits US citizens from buying historical fixed currency options. If that prohibition is lifted, we will notify all those who have registered to Trade for Fun who we have identified as having an IP address located in the US.

Are there any age restrictions?

Minors are prohibited from trading for real money. In most jurisdictions an individual must have reached the age of maturity to apply for credit or to open a banking account. This, however, does not guarantee that the individual wishing to open an account is of legal age. In an effort to prevent minors from gaining access to live trade, RetroForexrequires all live registrants to submit required documentation for proof of identity.

Can I have more than one real money account?

No. Only one account is allowed per user.

Can I convert the account used to Trade for Fun into a Trade for Real Money account?

No. Real Money accounts require separate registration.

How can I deposit funds?

Funds can be deposited via Bank Transfer, Credit Card, E-gold, Pecunix, Liberty Reserve, Phoenix Dollar as well as other digital currencies and cash deposits.

How are withdrawal requests processed?

Withdrawal requests are normally processed within 24 hours and are returned via the same method in which they were received.

When can I start trading for real money?

You can start purchasing options when we have confirmed that your account has been approved and funded.

Are there any restrictions on withdrawals?

Once your account has been verified by proof of identity you may begin to request withdrawals. Withdrawal limits and rules depend on method of funding and current withdrawal rules.

What is a bonus requirement?

If a bonus is offered, when you make your initial deposit, it will be immediately credited to your account. While the bonus may be used immediately to purchase options, the bonus is not eligible for withdrawal until the required bonus usage terms have been met.

Technical Requirements

What kind of Internet connection do I need?

It is not necessary to have broadband (DSL or cable) connection to trade. The application is a flash driven platform that can just as easily be traded using a telephone modem with a 28.8K baud rate. The only limitations are (1) the number of applications you have open at any given time, (2) your computer’s ability to handle flash, (3) and the size of your computer’s random access memory (RAM). The platform is not operating system dependent.

What happens if I lose my Internet connection immediately after I have purchased an option?

The performance of the platform will not be affected by your Internet connection. If you should lose your connection immediately after purchase, the option will run its course and winnings will be credited to your account.

Regulation

Are you regulated?

Yes. While traditional options are regulated by agencies set up to govern the financial services industry, historical fixed currency options fall under the auspices of government agencies set up to regulate on and off line trading. These regulations adhere to those present in the Republic of Costa Rica. Equally important is the enforcement of fair practices via self regulation by voluntarily using the honesty proofing method.