Foreign exchange, commonly known as Forex, is a global marketplace where currencies are traded. When one currency is sold, another is bought in exchange. The key factor in Forex trading is the exchange rate between two currencies, which constantly fluctuates. These fluctuations create opportunities for traders to profit from market movements.
With a staggering daily trading volume of $6.5 trillion, the Forex market surpasses even the New York Stock Exchange (NYSE), which sees a comparatively smaller daily volume of $22.4 billion.
The vast scale of the Forex market attracts a diverse group of participants, including central banks, investment managers, hedge funds, corporations, brokers, and retail traders. Notably, around 90% of market participants engage in Forex trading primarily for speculation.
Forex trading requires a good understanding of market dynamics and a well-thought-out strategy. It's important to manage risks and stay informed about global events that can impact currency values.
The Forex market operates Monday – Friday 00:05 – 23:50 GMT+1
| Symbol | Average Spread (pips | Spread As Low As (pips) | Max Leverage |
|---|---|---|---|
Australian Dollar Vs Canadian Dollar | 0.21 | 0.18 | 1:1000 |
Australian Dollar Vs Swiss Franc | 0.20 | 0.17 | 1:1000 |
Australian Dollar Vs Japanese Yen | 0.26 | 0.24 | 1:1000 |
Australian Dollar Vs New Zealand Dollar | 0.36 | 0.33 | 1:1000 |
Australian Dollar Vs U.S. Dollar | 0.22 | 0.20 | 1:1000 |
Canadian Dollar Vs Swiss Franc | 0.22 | 0.20 | 1:1000 |
Canadian Dollar Vs Japanese Yen | 0.29 | 0.26 | 1:1000 |
Swiss Franc Vs Japanese Yen | 0.30 | 0.28 | 1:1000 |
Euro Vs Canadian Dollar | 0.26 | 0.24 | 1:1000 |
Euro Vs Australian Dollar | 0.23 | 0.21 | 1:1000 |
Euro Vs Swiss Franc | 0.25 | 0.23 | 1:1000 |
Euro Vs British Pound | 0.22 | 0.20 | 1:1000 |
Euro Vs Japanese Yen | 0.24 | 0.21 | 1:1000 |
Euro Vs New Zealand Dollar | 0.35 | 0.31 | 1:1000 |
Euro Vs Singapore Dollar | 0.25 | 0.21 | 1:1000 |
Euro Vs Turkish Lira | 70.20 | 70.00 | 1:1000 |
Euro Vs U.S. Dollar | 0.15 | 0.11 | 1:1000 |
British Pound Vs Canadian Dollar | 0.28 | 0.25 | 1:1000 |
British Pound Vs Swiss Franc | 0.35 | 0.33 | 1:1000 |
British Pound Vs Japanese Yen | 0.31 | 0.27 | 1:1000 |
British pound Vs U.S. Dollar | 0.18 | 0.15 | 1:1000 |
British pound Vs Australian Dollar | 0.38 | 0.36 | 1:1000 |
British Pound Vs New Zealand Dollar | 0.29 | 0.26 | 1:1000 |
New Zealand Dollar Vs Canadian Dollar | 0.30 | 0.28 | 1:1000 |
New Zealand Dollar Vs Swiss Franc | 0.24 | 0.20 | 1:1000 |
New Zealand Dollar Vs Japanese Yen | 0.29 | 0.27 | 1:1000 |
New Zealand Dollar Vs U.S. Dollar | 0.23 | 0.20 | 1:1000 |
U.S. Dollar Vs Canadian Dollar | 0.22 | 0.20 | 1:1000 |
U.S. Dollar Vs Swiss Franc | 0.27 | 0.24 | 1:1000 |
U.S. Dollar Vs Hong Kong Dollar | 0.30 | 0.28 | 1:1000 |
U.S Dollar vs Japanese Yen | 0.22 | 0.20 | 1:1000 |
U.S. Dollar Vs Singapore Dollar | 0.31 | 0.29 | 1:1000 |
U.S. Dollar Vs Turkish lira | 4.90 | 4.70 | 1:1000 |
Account Leverage: 1:400
Account base currency: USD
Position: Open 10 lots BUY EURUSD at 1.21745
1 Lot size: 100,000 units
Notional value is: 10 * 100,000 * 1.21745 = 1,217,450 USD
Margin required is: 1,217,450 USD / 400 = 3,043.63 USD
FX trading is the buying and selling of currencies with the aim of making a profit. Currencies are traded in pairs - the first currency listed in a forex pair is called the ‘base’ currency while the second currency is called the ‘quote’ currency.
The EUR/USD (Euro/US Dollar) is the most traded currency pair in the world. The example below involves buying the Euro and selling the US dollar. In other words, the price represents the amount of US dollars that can be exchanged for one Euro.
EUR/USD = 1.2500
The FX market is open 24 hours a day, five days a week and traded online with price quotes changing constantly. This is due to a variety of factors such as interest rates, market factors and geopolitical risks that affect supply and demand for currencies.
As the largest and most-traded financial market in the world, foreign exchange offers ample opportunities for those who want to experience the highest volumes and liquidity.
At HotForex we offer Derivatives on Forex on a wide variety of currency pairs with exceptional trading conditions such as tight spreads and fast execution. Open a forex trading account and use our powerful trading platforms and professional tools to trade today’s markets with the advantage of tomorrow’s cutting-edge technology!
The value of each currency depends on the supply and demand for it, thus determining the ‘exchange rate’ between the two currencies, which is continually fluctuating. The exchange rate itself is basically the difference between the value of one currency against another.
It's this exchange rate that determines how much of one currency you get in exchange for another, e.g. how many pounds you get for your euros.
Now, when you’re trading forex, you’ll be trading currency pairs. So, two different currencies will be involved, and you’ll be speculating about their value in relation to each other.
Commodity is a raw material, such as natural resources or agricultural products, used in commerce. Coffee, Sugar and Copper are among the most commonly traded commodities in the markets.
Commodity prices are influenced by economic, political and environmental factors such as:
Commodities can be an important means for investors to diversify their portfolio. FinFlyMarkets offers traders and investors the opportunity to participate in the commodity markets by trading derivatives on a range of metals, energies and soft commodities with low margin requirements and hedging strategies allowed to manage their price exposure.
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Wide range of FX pairs
High liquidity
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Low transaction costs