Forex, also known as foreign exchange or FX, is the simultaneous buying of one currency while selling another. The forex market is available 24 hours a day, five days a week and it’s one of the largest, most liquid financial markets in the world. Just to compare, the New York Stock Exchange makes about $169 billion a day in volume and the Forex Market makes over $5 trillion a day in volume.

Forex is traded in currency pairs. Common currency pairs are the Euro/US Dollar, US Dollar/Japanese Yen, Great British Pound/US Dollar, and US Dollar/Canadian Dollar. You buy one currency and automatically sell another.

The Forex market is open 24 hours a day. It opens on Sunday at 10:00 pm GMT, and closes on Friday at 10:00 pm GMT:Sydney opens at 10:00 pm to 7:00 am GMTTokyo opens at 12:00 am to 9:00 am GMTLondon opens at 8:00 am to 5:00 pm GMTNew York opens at 1:00 pm to 10:00 pm GMT.

A lot is a transaction unit on the market. One standard lot contains 100,000 units of base currency. For example, one standard lot of EUR/USD equals 100,000 EUR. Bear in mind that on Cent accounts you trade cent lots, where one cent lot equals 1,000 units of base currency.

The USD is the basic currency (the first in the pair, i.e. the one you buy or sell). JPY is a counter currency (second in the pair).

The USD is the basic currency (the first in the pair, i.e. the one you buy or sell). JPY is a counter currency (second in the pair).

The unit of measurement to express the change in value between two currencies is called a “pip.” A pip is usually the last decimal place of a quotation. If EUR/USD moves from 1.1050 to 1.1051, that .0001 USD rise in value is ONE PIP.

The sum of your profit depends on the efficiency of your trading strategy, on how well you will learn to predict the alteration in rates tendency and a little on the amount of your deposit which allows you to sustain unfavorable situations during market movements.

You only need a computer with internet connection and a free demo account or a funded live account with FQMarkets to start. However, you should be equipped with proper Forex education and tools to minimize risks in the Forex market.

The spread is the difference between the bid and the ask price. The bid price is the rate at which you can sell a currency pair, and the ask price is the rate at which you can buy a currency pair. With us, you can trade a large range of instruments with flexible spreads. That gives you a greater degree of price transparency on your trades.

The rollover rate, also referred to as “swap” or “interest” rate, is simply the cost-of-carry that is applied to your account on a day-to-day basis. It is the difference between the interest rates of the two currencies which a trader either earns or pays when a position is kept open overnight.

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