Trading on future price movements of global currency markets can open up multiple trading opportunities for investors
Introduction to Forex Trading Trading on future price movements of global currency markets can open up multiple trading opportunities for investors. Foreign exchange, also known as ‘forex’ and ‘fx’, is the exchange of one currency for another at an agreed exchange price on the over-the-counter (OCO) market. As the world’s most traded market, it has an average turnover in excess of US $4 trillion per day. How to Trade Forex Trading forex is the act of simultaneously buying one currency while selling another, primarily for the purpose of speculation. When trading a currency pair, for example EUR/USD (Euro/US dollar), you are speculating on the first currency in that pair, against the second currency. In this example, that would be whether the euro will rise or fall against the US dollar. If you think the value of the Euro will fall or ‘depreciate’ against the US dollar, you would go short and sell. If you think the value of the Euro will rise or ‘appreciate’ against the US dollar, you would go long and buy. In the event you are correct and the market moves in favour of your position, you will profit. However, if the market moves against your position, you will incur a loss. Tight Spreads Through a City Index forex trading account, you can take advantage of both tight fixed spreads between 8am and 6.30pm as well as Capped Variable Spreads (CVS). These spreads are some of the tightest available to retail forex traders – giving you the edge over other traders in the market. during our fixed spreads hours, you can trade GBP/USD from a fixed spread of just 1.5 pips. The Capped Variable Spreads feature enables City Index to place a ‘cap’ or ‘ceiling’ on the maximum amount that a forex spread can go to, for example, the spread on the GBP/USD pair is capped at 4 pips. This means that when trading GBP/USD, if the underlying market spread moves to 8 pips, the spread will remain fixed at 4 pips on the City Index trading platform until the underlying markets spread retraces back below the capped four-pip limit. Start Trading Forex To start trading forex across a range of trading platforms – including mobile – you can apply for a forex trading account by clicking the button below.
Introduction to Forex Trading Trading on future price movements of global currency markets can open up multiple trading opportunities for investors. Foreign exchange, also known as ‘forex’ and ‘fx’, is the exchange of one currency for another at an agreed exchange price on the over-the-counter (OCO) market. As the world’s most traded market, it has an average turnover in excess of US $4 trillion per day. How to Trade Forex Trading forex is the act of simultaneously buying one currency while selling another, primarily for the purpose of speculation. When trading a currency pair, for example EUR/USD (Euro/US dollar), you are speculating on the first currency in that pair, against the second currency. In this example, that would be whether the euro will rise or fall against the US dollar. If you think the value of the Euro will fall or ‘depreciate’ against the US dollar, you would go short and sell. If you think the value of the Euro will rise or ‘appreciate’ against the US dollar, you would go long and buy. In the event you are correct and the market moves in favour of your position, you will profit. However, if the market moves against your position, you will incur a loss. Tight Spreads Through a City Index forex trading account, you can take advantage of both tight fixed spreads between 8am and 6.30pm as well as Capped Variable Spreads (CVS). These spreads are some of the tightest available to retail forex traders – giving you the edge over other traders in the market. during our fixed spreads hours, you can trade GBP/USD from a fixed spread of just 1.5 pips. The Capped Variable Spreads feature enables City Index to place a ‘cap’ or ‘ceiling’ on the maximum amount that a forex spread can go to, for example, the spread on the GBP/USD pair is capped at 4 pips. This means that when trading GBP/USD, if the underlying market spread moves to 8 pips, the spread will remain fixed at 4 pips on the City Index trading platform until the underlying markets spread retraces back below the capped four-pip limit. Start Trading Forex To start trading forex across a range of trading platforms – including mobile – you can apply for a forex trading account by clicking the button below.
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