What is Forex Trading
Forex trading is the buying or selling of one country’s currency in exchange for another.
Forex is one of the most liquid markets in the world, with a trading volume of $3 trillion per day. The US dollar is the most widely traded currency in the world. We offer forex trading as a CFD.
Why Trade Forex?
Often perceived as an easy moneymaking career, forex trading is actually quite difficult, though highly engaging. The foreign exchange market is the largest and most liquid market in the world, but trading currencies is very different from trading stocks or commodities.
Compared with any other financial market, the forex market has the largest notional value of daily trading. This provides the highest level of liquidity, which means even large orders of currency trades are easily filled efficiently without any large price deviations.
Forex trading can have very low costs (brokerage and commissions). There are no commissions in a real sense–most forex brokers make profits from the spreads between forex currencies. One does not have to worry about including separate brokerage charges, eliminating overhead costs.
Variety of Pairs to Trade
There are 28 major currency pairs involving eight major currencies. Criteria for choosing a pair can be convenient timing, volatility patterns, or economic developments. A forex trader who loves volatility can easily switch from one currency pair to another.
Benefits of FX Trading
You can trade forex CFDs using leverage, meaning you can gain a potentially higher market exposure by putting down just a fraction of the full value of your trade.
Higher exposure leads to bigger ups and bigger downs. With forex trading, you can speculate when one currency is rising as well as falling as compared to other currencies.