A forex signal is a published trade suggestion. At minimum it names an instrument, a direction, an entry area, a stop-loss level and one or more take-profit levels. It is produced by a person or a system, distributed to subscribers or the public, and it carries no guarantee of any outcome.
What a signal contains
- Instrument, for example EUR/USD or XAU/USD.
- Direction: buy or sell.
- Entry area, sometimes a single price, sometimes a range.
- Stop-loss level, defining the loss if the idea fails.
- Take-profit level or levels.
- Optionally, a rationale and a time context.
What a signal does not contain
A signal does not contain your position size, because that depends on your account balance, your risk tolerance and your broker's contract specifications. It also does not account for your spread, commission or execution speed. Those costs are yours.
Signals are not advice
A signal published to a broad audience is not personal financial advice and is not tailored to your circumstances. Firms that provide personal recommendations are generally regulated activity in most jurisdictions; signal publishers usually position themselves outside that perimeter. Verify a firm's status with your national regulator rather than relying on its own description.
How to assess a signal source
- Ask whether outcomes are recorded against a specific account and date range.
- Ask what the stated calculation method is for any published figure.
- Check whether risk parameters are always included, or only sometimes.
- Check whether the publisher discloses commercial relationships.
- Check whether the publisher issues corrections.
Forex, CFDs and leveraged products involve substantial risk of loss. Nothing in this guide is financial, investment, legal or tax advice.
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