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.
|Symbol||Digits||Contract Size||P&L Currency||Spread*|
*Spreads shown are for retail accounts.
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.
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.