Forex

FOREX TRADING

Despite all the variety of types of financial instruments in the Forex market, currency trading is the most popular asset class. 24-hour availability, high level of liquidity and a relatively simple approach to predicting the direction of movement of quotations make currency pairs the most profitable type of financial instruments for speculative trading.

 

HOW TO TRADE ON THE FOREX

Currencies are the most liquid commodity in the financial markets. Thanks to this, brokers provide maximum leverage for trading currency pairs, which in turn allows traders to extract the maximum possible profit from the least fluctuations in currency rates. Having a certain understanding of the mechanism of supply and demand for a particular currency, depending on global capital flows, as well as analyzing the macroeconomic situation in various countries and regions, Forex traders can accurately predict the direction of trends for profitable Forex trading.

TYPES OF FOREX CURRENCY PAIRS

The main instrument for trading on the Forex market is a currency pair, the quotes of which reflect the current exchange rate of one currency relative to another.

 

MAIN CURRENCY PAIRS

Six world currencies form the so-called main currency basket, the weighted average value of which is determined by the dollar index:
1. Euro;
2. British Pound;
3. Swiss Franc;
4. Japanese Yen;
5. Australian dollar;
6. Canadian dollar.
 

* Leverage depends on the value of the instrument at a certain point in time.

** Between 16:00 GMT and 06:00 GMT, the spreads for TRY pairs may be widened.

*** Between 16:00 GMT and 06:00 GMT, the spreads for PLN pairs can be extended up to 120 pips.

**** Between 21:00 GMT and 06:00 GMT, spreads for NOK, SEK pairs can be extended.