What is Forex trading?

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FX trading allows you to speculate on the changes in currency strengths over time, trading currencies and buying or selling one against the other. Forex traders seek to profit from fluctuations in the exchange rates between currencies, speculating on whether one currency value, like the pound sterling, will go up or down in relation to another, such as the US dollar. With over 5 trillion dollars worth of currencies traded globally every day, the foreign exchange market is the most traded in the world, making it a highly liquid and dynamic market. This high market liquidity means that prices can change rapidly in response to news and short-term events, creating multiple trading opportunities for retail FX traders.

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MetaTrader 4 is a platform for trading Forex, analyzing financial markets and using Expert Advisors. Mobile trading, Trading Signals and the Market are the integral parts of MetaTrader 4 that enhance your Forex trading experience. Why is leveraged Forex trading popular with investors?

Trade on rising and falling markets trade on falling markets (going short) as well as rising markets (going long) Leveraged product use a small amount of money to control a much larger position Volatility currency prices are constantly fluctuating with each other offering frequent trading opportunities 24 hour trading an OTC product, not restricted to physical exchange hours Liquidity spreads tend to remain tight meaning your dealing costs remain low

How does Forex trading work?

Forex is always quoted in pairs, in terms of one currency versus another. Take for example GBP/USD (sterling vs US dollar) - the fluctuations in the exchange rate between these two is where a trader looks to make their profit. The first currency also known as the base is the one that you think will go up or down against the second currency, which is known as the quote. When trading currencies, you can speculate on the future direction of the market, taking either a long (buy) or short (sell) position depending on whether you think the currencys value will go up or down. Forex price movements are triggered by currencies either appreciating in value (strengthening) or depreciating in value (weakening).

Forex is a margined product

Also known as leveraged trading, this means you can put up a small amount of money to control a much larger amount. This means you can leverage your money further but it also means that losses will be magnified as well, so you should manage your risk accordingly please ensure that you fully understand the risks of leveraged trading. Which currency pairs? Commonly traded currency pairs are traditionally divided into three groups related to popularity and liquidity: majors, minors and exotics. At City Index, you can trade over 65 currency pairs including majors, minors and exotics. Majors These are the most liquid currencies (most actively traded) constituting about 85% of total trading volume in the FX markets. The spreads for these are usually tighter compared to the less traded minor currency pairs. Top forex broker HotForex, FreshForex, GKFX Financial Services Ltd, Exness Forex, Alfa-Forex,

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