How to Trade Forex
What is Forex Trading?
SELL
The Foreign Exchange market or Forex is the worlds largest financial market trading seamlessly 24 hours a day from Sunday 22:00 GMT to Friday 21:00 GMT and runs via a network of banks, there is no actual trading floor or exchange. Over 6.6 Trillion dollars a day are traded.
BUY
Companies round the global will use the FX market to exchange currencies to settle commerce. For example a company in the UK needs to settle a US purchase they would exchange SELL Pounds and BUY US dollars.
kr
C$
Fr HK$
P R$
A$
R
NZ$
The US Dollar or USD remains the worlds biggest currency and forms part of most forex transactions. The largest currency pairs are:
Euro
US Dollar
US Dollar
Japanese Yen
British Pound
US Dollar
Australian Dollar
US Dollar
US Dollar
Canadian Dollar
US Dollar
Swiss Franc
NZ Dollar
US Dollar
As well as currency pairs we can also have currency cross rates which do not involve the USD for example the British Pound against the Japanese Yen.
How A Forex Pair is traded A large part of the daily turnover comes from trading done by banks but today thanks to Deriv.com smaller investors and speculators can also participate in this market. You would profit from making trades on one currency gaining or weakening against another.
British Pound US Dollar
If you think the US Dollar will strengthen then you should SELL
If you think the British Pound will strengthen then you should BUY
SELL
BUY
GBP
USD
GBP
USD
There is no commission charged to trade Forex however there is a spread which is the difference between the buying and selling price known as the Bid and Offer. Tighter the spread the quicker your trade can move into profit.
SELL 1.30 85 5
BUY
1.5
1.30 87 0
SPREAD
Learn more about Forex Want to learn more about the Forex market and practice trade? Then grab your Free eBook and a Deriv Demo account by going to:
www.derivtrade.net Disclaimer
RISK WARNING CFDs offered by Deriv Investments (Europe) Ltd are considered complex derivatives and may not be suitable for retail clients. They may be affected by changes in currency exchange rates; If you invest in this product you may lose some or all of the money you invest; The value of your investment may go down as well as up. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with Deriv Investments (Europe) ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This information is for educational purposes only and it is not intended as financial or investment advice. The company will not accept any liability in this respect. This graphic is being brought to you by Deriv Investments (Europe) Ltd. Registered office: W Business Centre, Level 3, Triq Dun Karm, Birkirkara, BKR 9033, Malta. Deriv Investments (Europe) Ltd. is licensed in Malta and regulated by the Malta Financial Services Authority, under the Investment Services Act to provide investment services in the European Union. It is also authorised and subject to limited regulation by the Financial Conduct Authority in the UK. Details about the extent of our authorisation and regulation by the Financial Conduct Authority are available from us on request. The company is authorised to deal on its own account and is both the Manufacturer and Distributor of its Products”.