Forex Trading

Forex Trading

What is Forex Trading?

Forex or foreign exchange can be understood as the network of currency buyers and sellers who exchange currencies at specific prices. From banks to brokerages and individuals, currencies are exchanged and converted. An individual can change a currency into another when traveling or a trader can sell one and buy another one in order to profit from the price movement.


Due to its volatility, the foreign exchange market is especially attractive to forex traders who can profit from price fluctuations. Trading forex involves buying one currency while selling another, which can be done via a forex broker. More recently, it has become very popular to trade forex by using derivatives like CFD trading.


CFDs are leveraged products which enable you to open a position without committing the full value of the trade. With leveraged products, you do not own the asset directly, but take a position, speculating on whether the market will go up or down. The number of people interested in the financial markets has grown the last few years and the forex industry has shown remarkable perseverance despite the recent challenges to the global economy.

Who are the Forex Affiliates we Help?

  • Forex or foreign exchange can be understood as the network of currency buyers and sellers who exchange currencies at specific prices. From banks to brokerages and individuals, currencies are exchanged and converted. An individual can change a currency into another when traveling or a trader can sell one and buy another one in order to profit from the price movement.

  • Due to its volatility, the foreign exchange market is especially attractive to forex traders who can profit from price fluctuations. Trading forex involves buying one currency while selling another, which can be done via a forex broker. More recently, it has become very popular to trade forex by using derivatives like CFD trading.

  • CFDs are leveraged products which enable you to open a position without committing the full value of the trade. With leveraged products, you do not own the asset directly, but take a position, speculating on whether the market will go up or down. The number of people interested in the financial markets has grown the last few years and the forex industry has shown remarkable perseverance despite the recent challenges to the global economy.

How do currency markets work?

How do currency markets work?

Forex trading occurs between two parties, in an over-the-counter (OTC) market. The forex market consists of a global network of banks across four major forex trading centres in London, New York, Sydney and Tokyo. Foreign exchange is a unique market with 24-hour availability, low margins, high leverage and traders from around the world. Currency trading is then quite different than other markets, with its own specific rules, strategies and practices. The trading volume of the global forex market has grown immensely with daily transactions worth trillions.

The foreign exchange market is sometimes categorised into the spot market and forward market based on the period a transaction is carried out.
Forex trading occurs between two parties, in an over-the-counter (OTC) market. The forex market consists of a global network of banks across four major forex trading centres in London, New York, Sydney and Tokyo. Foreign exchange is a unique market with 24-hour availability, low margins, high leverage and traders from around the world. Currency trading is then quite different than other markets, with its own specific rules, strategies and practices. The trading volume of the global forex market has grown immensely with daily transactions worth trillions.

The foreign exchange market is sometimes categorised into the spot market and forward market based on the period a transaction is carried out.

Spot Market

The spot market or current market deals with spot or current transactions in foreign exchange. The transactions are influenced by the current rate of exchange at that point of time. The exchange rate in the spot market for foreign exchange is called Spot Rate. The spot rate of exchange is the rate at which a currency is available on the spot.

Forward Market

The forward market refers to foreign exchange bought and sold for future delivery. Selling and buying a currency might be contracted today but delivered some time in the future. The exchange rate in such a market is called Forward Rate. A forward rate is the rate at which a future contract for a currency is made. The rate might be settled now, but the actual transaction takes place in the future.

Spot Market

The spot market or current market deals with spot or current transactions in foreign exchange. The transactions are influenced by the current rate of exchange at that point of time. The exchange rate in the spot market for foreign exchange is called Spot Rate. The spot rate of exchange is the rate at which a currency is available on the spot.

Forward Market

The forward market refers to foreign exchange bought and sold for future delivery. Selling and buying a currency might be contracted today but delivered some time in the future. The exchange rate in such a market is called Forward Rate. A forward rate is the rate at which a future contract for a currency is made. The rate might be settled now, but the actual transaction takes place in the future.

Why trade Forex?

Why trade Forex?

Trading forex is simply appealing to its participants. Multinational corporations and financial institutions often hedge against risk or increase their profits by speculating on the changing values of currencies. While initially the arena of big players, the forex market appeals to individual traders. As a global marketplace, the forex market is based on interbank relationships among currencies, as currencies in different countries can affect other ones from different parts of the world.


Forex trading is a 24-hour activity and anything that happens in the world at any time can be traded in the forex market without waiting for an exchange to open.

Trading forex is simply appealing to its participants. Multinational corporations and financial institutions often hedge against risk or increase their profits by speculating on the changing values of currencies. While initially the arena of big players, the forex market appeals to individual traders. As a global marketplace, the forex market is based on interbank relationships among currencies, as currencies in different countries can affect other ones from different parts of the world.

Forex trading is a 24-hour activity and anything that happens in the world at any time can be traded in the forex market without waiting for an exchange to open.

Leverage is another appealing factor of the forex market. When you are trading forex, you only have to put up a small amount of money to control large positions, so relatively small changes can result in big returns. Of course, leverage works both ways so it is always recommended to trade carefully and rationally, without emotions.


Trading forex is also attractive because of the amount of information available to traders. Traders are always watching the news or following the latest releases so they are aware of how the markets might move. From economic reports, political developments, trade issues, fundamentals and other financial events, there is plenty of economic data to examine, analyse and watch.


The forex market is a good market for the longer-term trader, but also for the day-trader as markets move intraday on unexpected events. So there is ample trading opportunities in a market that is volatile, but rather orderly.

Leverage is another appealing factor of the forex market. When you are trading forex, you only have to put up a small amount of money to control large positions, so relatively small changes can result in big returns. Of course, leverage works both ways so it is always recommended to trade carefully and rationally, without emotions.

Trading forex is also attractive because of the amount of information available to traders. Traders are always watching the news or following the latest releases so they are aware of how the markets might move. From economic reports, political developments, trade issues, fundamentals and other financial events, there is plenty of economic data to examine, analyse and watch.

The forex market is a good market for the longer-term trader, but also for the day-trader as markets move intraday on unexpected events. So there is ample trading opportunities in a market that is volatile, but rather orderly.

Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.

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