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What is Forex?

Foreign Exchange, commonly know as Forex or FX, is the largest and most liquid market in the world with roughly $5 trillion traded on a daily basis. With no set exchange hours, you can trade currencies 24 hours a day, 5 days a week.

Foreign exchange prices move on various factors such as Geo-Political events, economic stimulus from central banks and speculation on future events. The Foreign Exchange market has a multitude of participants including central banks, hedge funds, multinational corporations and individual investors.

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Tips in Forex

  • Open 24 hours, 5 days a week
  • Worlds largest market
  • Deep liquidity
  • Tight spreads
  • No hidden charges
  • Fast execution

Spreads

Symbol
Digits
Contract Size
P&L Currency
Spread*
EURUSD
5
100,000
USD
1.0
GBPUSD
5
100,000
USD
1.3
USDJPY
5
100,000
JPY
1.0
EURGBP
5
100,000
GBR
1.0
AUDUSD
5
100,000
USD
1.2
NZDUSD
5
100,000
USD
1.3
USDCAD
5
100,000
CAD
1.2
EURCAD
5
100,000
CAD
1.4

*Spreads shown are for retail accounts.

Example 1

EURUSD

  • If you were to trade EURUSD and you bought, you're buying Euros and selling US Dollars.
  • If you bought 1 CFD lot of EURUSD at a price of 1.1800, you would be buying 100,000 Euros and selling 118,000 US Dollars.
  • If the price of EURUSD moved from 1.1800 to 1.1850, this means you have made 50 pips. After buying 1 CFD Lot, this would result in a profit of $500. However if the price fell to 1.1785, then you have lost 15 pips and made a loss of $150.
Example 2

EURGBP

  • If you were to trade EURGBP and you sold, you're selling Euros and buying Sterling.
  • If you sold 1 CFD Lot of EURGBP at price of 0.9000, you would be selling 100,000 Euros and buying 90,000 Sterling.
  • If the price of EURGBP moved to 0.9025, this is a change of 25 pips and a loss of £250. However if the price fell to 0.8940, then you would make a profit of £600.
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Tips in Forex

  • 1 CFD FX lot has a notional value of 100,000
  • Currencies are always traded in pairs
  • The first currency in a pair is known as the 'base currency'
  • The second currency in the pair is known as the 'quote currency'

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.