Forex

Forex Exchange
The forex exchange market is the number one and the largest financial market with an average daily turnover of $5.5 trillion in the world. It is traded by speculating on the value of one currency compared to another.

Why trade FX?

Flexibility: 24-hour market and you can trade any time anywhere in the world
Transparency: an average daily trading volume of $5.5 trillion and no one can corner the market
Lower transaction costs: no commissions charged and only the spreads applicable
Leveraged trading: maximise the utilisation of your funds
Go long or short: no bear market in FX

Why trade with Fxcg? Lower spreads • Leverage up to 1000:1 • Institutional grade trade execution

How to trade FX?

Forex trading is essentially the buying of one currency and the simultaneous selling of another. Therefore when trading currencies we will always see them quoted in pairs.

There are three kinds of currency pairs:

Major currency pairs: all contain the US Dollar on one side – either on the base side or quote side. They are the most frequently traded pairs in the forex market, for instance, EUR/USD.
Cross-currency pairs: Currency pairs that do not contain the US Dollar are known as cross-currency pairs or simply “crosses”. The most active crosses are derived from the three major non-US dollar currencies (EUR/JPY and GBP/JPY).
Exotic currency pairs: they are made up of a major currency paired with the cur-rency of an emerging or a strong but smaller economy from a global perspective such as Hong Kong or Singapore and European countries outside of the Euro Zone, for instance EUR/TRY.

Forex Trading Examples

Your trading gross profit is calculated as follows:

Open price

￡200,000 x 1.29983 = USD $259,966

Closing price

￡200,000 x 1.26712 = USD $253,424

Profit from exchange

$6542

Open a position

The price of British pounds to US dollars (pounds / US dollars) is 1.29983 / 1.29984, and you decide to sell 2 standard lots (equivalent to ￡ 200,000) at 1.29983.

Close out

The British pound fell to 1.26710 / 1.26712 after a week, and you decided to buy back 2 standard lots at 1.26712.