What is Forex Trading


Forex/FX trading is an abbreviation used to describe foreign exchange trading, a highly popular method of trading based on continuous shifts in currency values.


Currency exchange rates, such as the worth of Sterling relative to the Dollar or the Euro to the Yen, change on a constant basis, as money markets react to world events. Examples of circumstances that can influence Forex rates include the release of macroeconomic figures, geopolitical crises, shifts in Central Bank policy and the rise or fall of financial indices. The potential for rapid volatility in the global currency markets means that Forex is an exciting, fast-paced method of trading.


In fact, between $3 and $5 trillion worth of Forex is traded on a daily basis.

Leveraged trading

Leveraged trading

Leveraged Trading

Leveraged trading

As with spread betting, Forex trading uses leverage, meaning that traders only need to deposit a fraction of the total price of the position they want to take in the currency markets. While leverage means that traders can potentially make a much greater profit if the market moves in the way they intend, if the market moves in the opposite way to the position taken it is possible for traders to lose their entire stake and more besides.

ETX Capital offers specific currency pairs with maximum leverage of up to 200:1, meaning that traders only need to put down a fraction of the actual market price in order to place a trade.

Traders should bear in mind that leverage settings can change based on market conditions and that increasing leverage increases risk.

Forex trading - 24 hours a day

forex_trading_24hours

The global nature of Forex means that the markets go non-stop from Sunday night all the way through to Friday evening, since it’s always daytime – and therefore trading time – somewhere in the world. When it’s 12 noon in London, it’s 7:00am in New York, 13:00 in Berlin, 19:00 in Hong Kong, 20:00 in Tokyo, 21:00 in Melbourne and 23:00 in Wellington. The constant activity and high sensitivity of currency markets makes Forex trading an exciting prospect.

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