CFD/FX Trading Involves Risk. Losses May Exceed Deposits.

Advantages of Forex Trading

  • 60+ currency pairs
  • 24/5 trading
  • Leverage up to 400 : 1
  • Spreads as low as 1 pip
  • No hidden charges
Forex is the world's largest market, with over $5 trillion in daily trading. Due to the fact that forex currency trading has no centralised marketplace, currencies can be traded in whatever market is open at any given time, creating a great opportunity for traders to buy and sell currencies around the clock 24 hours a day, more than 5 days a week.
Display Items
Forex-Spreads/Conditions
Currency Pair Minimum Spread Value of 1 lot Minimum Price Fluctuation Minimum Lots Maximum Lots Limit and Stop Levels
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Instrument
EURUSD
Opening Price
€30,000 x 1.23626 = $370.878
Closing Price
€30,000 x 1.25623 = $376.867
Profit
$600
Instrument
EURUSD
Opening Price
€30,000 x 1.23626 = $370.878
Closing Price
€30,000 x 1.25623 = $376.867
Loss
-$600

Example of Trading on Forex

Trade EUR/USD pair

SCENARIO 1

Entering Order

The current EUR/USD exchange rate is 1.23623/1.23612 and you decide to buy 1 standard lot at the price of 1.23623. Supposing your leverage is 30:1 then the margin should be €30,000*1.23623/100 = $370.87.

Close Position

A week later when the EUR/USD exchange rate has risen up to 1.25634/1.25623 you decide to close the position. And so you close your order when the selling price is 1.25623.

SCENARIO 2

Entering Order

The current EUR/USD exchange rate is 1.23623/1.23612 and you decide to sell 1 standard lot at the price of 1.23623. Supposing your leverage is 30:1 then the margin should be €30,000*1.23623/100 = $370.87.

Closing Position

The next week when the EUR/USD exchange rate has risen up to 1.25634/1.25623 you decide to close the position. And so you decide to close your order when the price is 1.25623.

What is actually Forex trading about?

Most of the investors tend to trade the “major” currencies - “major” meaning currencies of the strongest economies.

The object of the Forex transactions are currency pairs with each currency coming with an internationally recognized unified symbol, for example: EUR/USD or USD/JPY. Forex trading means buying one currency and selling another currency. If you predict EUR/USD will be on the rise you buy EUR/USD, which means that you buy the Euro and sell your US Dollars.

What Influences Currency Prices in Forex?

There is an endless number of factors that all contribute and influence the prices in forex trading every day, but there are 6 major factors which contribute the most:

1. Differentials in inflation 2. Differentials in interest rates 3. Budget deficits 4. Public debt 5. Terms of international trade 6. Political and economical stability

In order to best comprehend the above 6 factors, you will have to keep in mind that currencies are traded against one another. So when one falls, another one rises as the price denomination of any currency is always stated against another currency.

Tips:

1. Forex trading hours:Sunday 22:05 – Friday 21:55 GMT; Suspends trading and quotation at 21:59:-22:05 GMT everyday. Server time is GMT + 2 (GMT + 3 applies during summer time).

2. Margin = (Lot * Contracted volume * Current exchange rate) / Leverage