Frequently Asked Questions

Questions?


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TradersColo VPS FAQ

 
1What is latency?
Latency refers to network latency, which is the time it takes for a request to be transmitted from the sender to the receiver and for the receiver to process it. It is the round-trip time (RTT) from the browser to the server. Lower the latency is better because it indicates less delay between when you take an action and when you see the result.
2What is interconnection?
Interconnection is the private data exchange between enterprises. Interconnection is defined as the deployment of IT traffic exchange points, which integrate direct dedicated connections between counterparties. In this era of information explosion, interconnection provides power for digital businesses.
3What is ping or pinging?
Ping is a network administration software that sends a signal to the host in response to a request. It is used to check whether the host is available and measure the time required for response. On your computer, you can use the ping command to execute ping requests followed by entering the IP address or domain name. Most ping programs send multiple pings and provide an average ping at the end.

Good Ping response time:

<30ms- Excellent ping operation; ideal for online gaming and Forex trading.
30ms to 50ms - Average ping; online gaming and Forex trading are still available.
50ms to 100 ms - A bit slow; It does not affect web browsing, but may affect the game and Forex trading.
100 ms to 500 ms - Slow ping; minimal impact on web browsing, but will cause serious lag in online gaming and slippage during trading.
> 500 ms - all requests are delayed by half a second or more; usually occurs when the source and destination are in different countries.
4What is VPS?
Virtual Private Server (VPS) is a powerful virtual computer that stores all of the data and processes computer programming. VPS runs its own copy of the operating system (OS), and customers who have access to that operating system can install almost any software running on that OS.

Different from a dedicated physical server, VPS share the underlying physical hardware with other VPS. Therefore, their performance may be lower compared to a dedicated physical sever, depending on the workload of any other virtual machines being executed. However, even VPS uses virtualization technology to split one powerful server into multiple virtual servers, VPS users won’t share RAM, CPU cores, disk space or any data with other users.

In Forex trading, VPS is a useful tool because it allows traders to trade 24/7, without any interruptions, utilize a high-speed internet, and completely automate clients' trades by designing an algorithm. Also, its flexibility allows traders to check and monitor trades from any region in the world.
5Is VPS secure?
Security is the most concern for many people when they look at server options because VPS involves sharing the same hardware with multiple users. VPS uses hypervisor software to manage the individual VPS, which controls how each VPS communicates with the hardware on the hypervisor server. This includes arranging how various VPSes use CPU resources, allocating memory for them, and managing their virtual hard disk images.

A hard disk image is made when creating a VPS, storing all of the data for that VPS. The configuration of each VPS designates only the relevant VPS is allowed to use its virtual hard disk image, which means the data for each individual VPS on the memory and disk remains independent and safe.
1What is uptime?
Uptime is the percentage of time a computer has been working and available, which is used to assess the reliability and stability of the operating system. Its number indicates the time a computer can be left unattended without crashing, or requiring to restart the computer for management or maintenance purposes.
2Why do professional traders use VPS?
VPS is a cloud-based distant desktop PC that shares the same hardware with others but operates independently. It provides a guaranteed disk space, RAM, and CPU. It is a useful and popular tool for Forex Traders.

What are the advantages of using VPS for Forex Trading?

1. You can trade anywhere in the world. VPS only requires an internet connection, no matter where you are, you can connect to the platform through a desktop, laptop, iPad or even a mobile phone.
2. Powerful security. VPS systems offered also come with the best security. VPS servers are regularly check hosted to ensure they are up and running, with a guaranteed 99.9% uptime. Anti-virus software and other tools are installed to ensure that your system is not compromised by vulnerabilities.
3. Trading during a power outage. For traders who use EA to trade automatically, they can continue to trade even if the power goes out. VPS allows to operate 24/7 without traders' monitoring or getting online.
4. Reduce slippage and faster trading execution. VPS can transmit orders faster because its location is near the trading server so that it can execute transactions more quickly than your local computer. Less delay you experience, less slippage you receive.
3Why is latency important to traders?
Latency is the time delay between a request and a response. In Forex Trading, it directly affects the time it takes traders to react to the changes in the market, including the ability to receive relevant market information in a timely manner and trading action taken based on the received information. With the development of trading technology, the latency issue has intensified and brought more and more advantages and disadvantages among traders' competition. Active and professional traders need to quantify and manage latency effectively to maximize the likelihood of success. To traders, slippage is a common phenomenon they encounter. An order that is late to the market is likely to be executed at an unfavorable price, thereby increasing the potential loss due to slippage.

To avoid this issue and get less latency, traders tend to use VPS to execute automated trading strategies.
4Why is interconnection important to traders?
Interconnection offers many-to-many connectivity when companies create value by connecting to partners, clients and employees globally to collaborate or exchange data. It creates digital ecosystem density.

Through direct 1-to-1 or 1-to-many connectivity between the parties involved, low-latency and security can be achieved. In Forex Trading, VPS hosting with Interconnect Direct includes all our standard benefits such as 24/7 customer support, high-quality VPS servers hosted in Forex trading data center, no minimum term contracts, and much more.
5Why do traders ping servers?
Traders use the ping command on the computer to measure the latency of the trading server, in a unit of millisecond (ms). One millisecond equals to a thousandth of a second. A ping is a signal sent to the trading server that requests a response. The lower the ping number, the faster the connection is.
 

Trading FAQ

 
1What is forex trading?
Forex stands for foreign exchange. Forex (FX) is the exchanging or trading of different nations currencies. With trillions of units of currency exchange hands every day the Forex market it is the largest and most liquid market globally.
2What is leverage in forex?
Leverage is the borrowing power an account has for trading in relative to its own funds. Many people are attracted to trading forex (FX) because higher leverage is typically given for currency trading transactions.
3What does buy and sell mean in trading?
In a market, traders will either buy or sell assets. When traders buy an instrument (also known as asset) they increase, add to or make their asset holdings longer (going "long"). Traders do this when they believe the asset's value will increase. When traders sell an instrument or asset, they decrease, subtract from or make their asset holdings shorter (going "short"). Traders do this when they believe an asset's value will decrease.
4What is a long and short position in trading?
When a trader purchases (buys) an instrument they add to or make their holdings longer. A trader goes long on an instrument when they believe its value will rise. On the other hand, when a trader sells an instrument, they subtract from or make their asset holdings shorter. A trader goes short on an instrument when they believe an instrument's value will lower.
5When does the stock market open?
There are many stock markets across the globe. Each stock exchange typically operates during that country's banking business hours. The largest stock exchange globally is the The New York Stock Exchange (NYSE) and opens Monday through Friday from 9:30 a.m. to 4:00 p.m. EST (Eastern Standard Time).

Stock Exchange    Open Hours    Time Zone

Tokyo Stock Exchange (TSE)    09:00-11:30 and 12:30-15:00  UTC+9

London Stock Exchange (LSE)    08:00-16:30 UTC (+1)

Hong Kong Stock Exchange (HKE)    09:30-16:00 UTC+8

National Stock Exchange of India (NSE)    09:00-15:30 UTC+5:30

Bolsa de Valores, Mercadorias & Futuros de Sao Paulo (BM&F Bovespa)    10:00-17:00 UTC-3 (-2)

Australian Securities Exchange (ASX)    10:00-16:00 UTC+10 (+11)

Frankfurt Stock Exchange - Deutsche Borse (FWB)    08:00-20:00 UTC+1 (+2)

Russian Trading System (RTS)    09:30-19:00 UTC+3

Johannesburg Stock Exchange (JSE)    09:00-17:00 UTC+2

Dubai International Financial Exchange - now NASDAQ Dubai (DIFX)   10:00-14:00 UTC+4

Shanghai Stock Exchange (SSE)    09:15-11:30 and 13:00-15:00 UTC+8

New Zealand Stock Exchange (NZSX)    10:00-17:00 UTC+12 (+13)

Toronto Stock Exchange (TSX)    09:30-16:00 UTC-5 (-4)

Singapore Stock Exchange (SGX)    09:00-12:00 13:00-17:00 UTC+8
6What time does the stock market close?
There are many stock markets across the globe. Each stock exchange typically operates during thier region's banking business hours. The largest stock exchange globally is the The New York Stock Exchange (NYSE) and opens Monday through Friday from 9:30 a.m. to 4:00 p.m. EST (Eastern Standard Time).

Stock Exchange    Open Hours    Time Zone

Tokyo Stock Exchange (TSE)    09:00-11:30 and 12:30-15:00  UTC+9

London Stock Exchange (LSE)    08:00-16:30 UTC (+1)

Hong Kong Stock Exchange (HKE)    09:30-16:00 UTC+8

National Stock Exchange of India (NSE)    09:00-15:30 UTC+5:30

Bolsa de Valores, Mercadorias & Futuros de Sao Paulo (BM&F Bovespa)    10:00-17:00 UTC-3 (-2)

Australian Securities Exchange (ASX)    10:00-16:00 UTC+10 (+11)

Frankfurt Stock Exchange - Deutsche Borse (FWB)    08:00-20:00 UTC+1 (+2)

Russian Trading System (RTS)    09:30-19:00 UTC+3

Johannesburg Stock Exchange (JSE)    09:00-17:00 UTC+2

Dubai International Financial Exchange - now NASDAQ Dubai (DIFX)   10:00-14:00 UTC+4

Shanghai Stock Exchange (SSE)    09:15-11:30 and 13:00-15:00 UTC+8

New Zealand Stock Exchange (NZSX)    10:00-17:00 UTC+12 (+13)

Toronto Stock Exchange (TSX)    09:30-16:00 UTC-5 (-4)

Singapore Stock Exchange (SGX)    09:00-12:00 13:00-17:00 UTC+8
7What is a pip?
A pip is the fundamental unit of measuring currencies' value changes. A pip is short for percentage of a point and is equal to one basis point (1/100th of 1%). It is commonly quoted for expressing currency to currency exchange values.
8What is a pivot point in forex?
A pivot point or pivot for short, is the calulated level where an asset's support or resistance value may lie. At that level the market sentiment will likely alter from "bullish" to "bearish" or vise versa.

Forex Pivot Point= High+Low+Close/3
1What is a Dealing Desk?
A dealing desk is a liquidity provider, bank or financial institution that places trades in a market on behalf of the firm for its benefit.
2What is margin in forex?
Margin is the amount of funds required to open and maintain a position. The margin required depends on the trade volume a trader chooses to open.

Required Margin  = ([{BASE Currency} / {Account Currency}] x Units) / Leverage
Margin level  =  (equity / used margin) x 100
3What is a pending order?
A Pending Order is an order request sent by a trader to a broker, specifying the price level a position should be opened or closed. Once the market price hits the specific price level you set, the order will be executed.
4What is a limit order to buy?
A limit order is an order that allows traders to buy or sell an instrument at a specified price or better. A buy limit order is executed only at the limit price or lower.
5What is a sell limit order?
A limit order is an order that allows traders to buy or sell an instrument at a specified price or better. A sell limit order is executed only at the limit price or higher.
6What is volatility?
Volatility measures the fluctuation an asset price is over a given period of time. It is normally evaluated by the standard deviation of historical daily price changes. Usually, higher the volatility, the riskier the asset.
7What is liquidity?
Liquidity measures how easily an asset or security convert into readily available cash without affecting its market price.

Strategy FAQ

 
1What is fundamental analysis?
Fundamental analysis is the process of determining a security's intrinsic value by evaluating both financial and economic factors that could influence its future price. This analysis closely examines the key ratios that can affect the security's price so that an investor can compare the current price to see if its overvalued or undervalued.
2What is technical analysis?
Technical analysis is the method of evaluating investments and determine trade opportunities by focusing on statistical trends from past trading activity, mostly from price changes and volume. Essentially this analysis helps traders identify what is most likely going to happen based on historical trading data.
3What is an EA in forex?
In forex trading, an expert advisor (EA) is a robot that alerts traders when to place trades depending on how the EA is programmed. Some EAs can even automatically execute trades based on preprogrammed trade parameters. EAs are written with a programming language named Metaquotes Language or MQL, and most oftened used on the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) forex trading platforms.
4What is a bull market?
A bull market describes a financial market that is rising upward and the economy is in sound condition. Since the prices of securities move up and down continuously, this term is typically used to describe an extended period of time in which the majority of security prices are increasing.
5What is a bear market?
A bear market describes a financial market that has continual price declines. During this time, the economy is receding and the majority of security prices are decreasing in value.
6What is moving average (MA)?
A moving average (MA) is a common indicator used in technical analysis which filters out "noise" from sporadic short term price movement, thus smoothing out price action for a cleaner analysis.
7What is exponential moving average (EMA) in technical analysis?
Exponential moving average (EMA) is a type of moving average (MA). This indicator responds rapidly to recent price trends, placing more weight and meaning to recent price data.
8What is stochastic oscillator?
Stochastic oscillator is categorized as a momentum indicator that compares a specific closing price of a security to a range of its prices over a specified period of time. This indicator is popular for technical analysis to produce oversold and overbought signals.
1What are bollinger bands?
Bollinger Bands are a type of statistical chart tools for technical analysis, using a formulaic method propounded by John Bollinger in the 1980s. It is a set of lines plotted two standard deviations, can be either positive or negative, away from a simple moving average (SMA) of the price, and can be adjusted according to the user's preferences.
2What is a money manager?
A money manager is an individual or financial firm that performs money management, or investment management. Money management is a series of processes of tracking, investing, budgeting, and spending. In the financial market, money managers are professionals who develop an appropriate investment strategy and make investment decisions for their clients and meet goals.
3What is moving average convergence divergence (MACD)?
Moving average convergence divergence (MACD) is a momentum indicator that shows a connection between two moving averages of a security's price. This can be helpful in identifying a new trend, which may be either bullish or bearish. This indicator is calculated by using the following formula:

MACD = 12 Period EMA - 26 Period EMA
4What is relative strength index (RSI)?
Relative intensity index (RSI) is a momentum indicator used in technical analysis. It is the measure of fluctuations in price intensity, indicating overbought and oversold conditions in the price of assets. It is displayed as a price oscillator with readings from 0 to 100.

A value of 70 or higher means the asset is overbought or overvalued and therefore selling, while a value of 30 or lower means the asset is oversold or undervalued and therefore buying.
5What are fibonacci retracement levels?
Fibonacci retracement levels are horizontal lines that show the level of support and resistance based on Fibonacci numbers. Each level is associated with a percentage, which measures how much the price has retraced from the previous move. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%.
6What is the ichimoku cloud?
The Ichimoku Cloud is a series of technical indicators. It shows the level of support and resistance, momentum, and trend directions by taking several averages and plotting them on the chart, and calculating "cloud" based on this data. It was developed by Japanese journalist Goichi Hosoda and released in the late 1960s.
7What does hawkish mean?
Hawkish is a tone of language when describing the stances taken by a central bank, usually refers to the Fed is guarding against excessive inflation. People might expect the Fed to take a stronger action through its hawkish language. It is the opposite of Dovish.
8What does dovish mean?
Dovish is a tone of language when describing the stances taken by a central bank. It indicates that the desired action should be non-aggressive. It is the opposite of hawkish.

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