Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where the world buys and sells currency. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $6.6 trillion
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 over $6 trillion per day. The US dollar is the most widely traded currency in the world. We offer forex trading as a CFD, which allows you to speculate on price movements in the forex markets.
The foreign currency exchange offers an abundance of potential opportunities for veteran traders as well as those new to the markets. If you are searching for a target-rich environment for active trading, look no further than the forex.
The majors and the commodity pairs are the most liquid and most widely traded currency pairs in the forex market. These pairs and their combinations (EUR/JPY, GBP/JPY and EUR/GBP) make up the vast majority of all trading on the forex. Due to the fact they attract the largest volume of buyers and sellers, spreads are typically the tightest.
However, there are other currency pairs that allow you to take advantage of macroeconomic events in specific international markets, such as the USD/MXN (US Dollar/Mexican Peso).
The international currency trade furnishes participants with an unparalleled collection of opportunities. Given the depth and liquidity of the forex, it is possible to implement almost any viable strategy with maximum efficiency. From short-term intraday approaches to multi-session swing trading plans, profiting from periodic exchange rate fluctuations can become not only possible but probable.
Perhaps the single most beneficial attribute of the forex is flexibility. Unlike in more conventional trading modules such as stocks, ,forex trading profits are not limited only to buying low and selling high. You are able to make money from being either long or short a specific market, increasing the number of potential trading opportunities exponentially.
Whether your outlook on a currency is bullish or bearish, you have the ability to capitalise upon the idea. Buy low and sell high or sell high and buy low ― the forex does not limit your trading options or your money-making potential.
As it pertains to any business ― active trading or otherwise ― profit is the difference between gains and losses minus operating expenses. The beauty of forex trading is that quantifying profit is straightforward because expenses are limited, and gains and losses are easily accounted for.
The best way to manage profit is through regularly referencing your trading platform. Software suites such as Trading Station, Metatrader 4 and ZuluTrade calculate gains and losses on a pip-by-pip basis. As the market moves, your account balance is updated automatically via the functionality of your platform.
At the end of the day, making money is the goal of any trader. With FXCM, you will always know your P&L, freeing up time for active trading.
If you are an active forex trader, then producing positive returns is your job. Fortunately, figuring P&L doesn't have to be an exhaustive task. All you need is your account currency, pair, trade size and opening/closing prices—the Profit Calculator does the rest.
When it comes to risk management in forex trading, it's all about pip value. Knowing how much your trade's pips are worth is key to not overextending your account. The Pip Calculator can help you do just that, automatically. In addition, it is always a good idea to know where your account stands in relation to utilised margin and brokerage requirements. While doing math longhand is a challenge, the Margin Calculator makes short work of even the most intricate positions.
One of the greatest advantages to trading forex in the modern era is access to technology that aids in the application of indicators such as Pivot Points. Pivot points are a go-to technical tool for traders interested in building unique support and resistance levels to use for market entry or exit. Whether you practice a Classic, Woodie's, Demark's, or Camarilla methodology, the Pivot Point Calculator can quickly generate a set of practical values.
Asset values of $10-250 million Attractive basis with above-average supply/demand dynamics Solid credit fundamentals Strong market position with competitive economic advantage Experienced, properly-incentivized sponsorship team with demonstrated track record Appropriately structured and documented investment Return opportunity that compensates for perceived risk
One of the largest advantages to trading forex is the minimal amount of capital necessary to get started. Retail traders with limited resources are afforded access to the same markets as institutional participants. In fact, FXCM offers interested individuals the ability to begin trading with as little as $50.
Conventional financial wisdom suggests that it takes a lot of money to participate in the markets. That is the beauty of the forex ― you don't need to be a millionaire to trade. Utilize the potential of your risk capital.
Of course, as you gain experience in the markets, your goals and resources will often change. In order to cater to the needs of the evolving trader, FXCM offers a variety of account types. Rest assured that no matter your resources and trade-related objectives, FXCM can furnish an alternative designed to enhance your trading experience in the forex market.