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With leverage, you only have to put up a fraction of your position's full value to open a trade.
The amount you are required to put up is known as your margin. Find out more about forex leverage and margin.
The first step to opening a forex trade is to decide which currency pair you wish to trade. There are over 80 to choose from. There are three main categories of forex pair: majors , minors or major crosses and exotics. There are two main ways to trade forex: derivatives such as Spread Betting and CFDs, or spot forex trading. They all enable you to go long and short on currency pairs, but they work in slightly different ways.
Spot FX is when you buy and sell currencies — for instance by buying US dollars and selling euros. You open your trade by deciding how much of the base currency you want to buy or sell. Forex derivatives are markets that enable you to speculate on the price movements of forex pairs without buying or selling any currencies. When spread betting, you bet pounds per point of movement in the underlying currency. When trading CFDs, you choose how many contracts you want to buy or sell.
In addition to choosing how to trade forex, you can pick a different market for each currency pair. The two main types of forex market are spot and futures. All forex is quoted in terms of one currency versus another. The base currency is the currency on the left of the currency pair and the quote currency is on the right. Essentially, when trading foreign currencies, you:. BUY a currency pair if you believe that the base currency will strengthen against the quote currency, or the quote currency will weaken against the base currency.
SELL a currency pair if you believe that the value of the currency pair will decrease — meaning the base currency will weaken in value against the quote currency, or the quote currency will strengthen against the base currency. The spread is the difference between the buy and sell prices of a forex pair. The difference between them is the spread, which covers the cost of the trade. Risk management is crucial for successful forex trading — and a key element of risk management is the use of orders. There are two main types of order: stop loss orders and take profit orders sometimes called a limit.
Both act as instructions to automatically close a position when its price reaches a specific level predetermined by you.
A stop loss order is an instruction to close out a trade at a price worse than the current market level and, as the name suggests, is used to help minimise losses. There are three types of stop loss orders: standard, trailing and guaranteed. A standard stop loss order , once triggered, closes the trade at the best available price. There is a risk therefore that the closing price could be different from the order level if market prices gap.
Integral Forex, a branch of Integral Securities is a Turkey-based financial trading services provider specialized in foreign exchange (forex) and contract for. Forex Trading. From Wikipedia, the free encyclopedia. Redirect page. Jump to navigation Jump to search. Redirect to: Foreign exchange market. Retrieved from.
A guaranteed stop loss however, for which a small premium is charged upon trigger, guarantees to close your trade at the stop loss level you have determined, regardless of any market gapping. A limit order or take profit is an instruction to close out a trade at a price that is better than the current market level and is used to help lock in price targets. Standard stop losses and limit orders are free to place and can be implemented in the dealing ticket when you first place your trade, and you can also attach orders to existing open positions. Learn more about risk management here.
When you are ready to close your trade, you do the opposite to the opening trade. By closing the trade, your net open profit and loss will be realised and immediately reflected in your account cash balance.
To read more about this please visit our help and support section. One important aspect of trading currencies is learning what affects their prices. Remember, forex pair prices will move based on the relative strengths of both currencies — so keep an eye out for any developments that might move either the base or the quote when trading. Inflation, unemployment numbers, payrolls or other key economic data can often have a major impact on forex prices. Central banks buy and sell large amounts of their own currency, attempting to keep it within a certain level.
They also set interest rates and dictate money flow, which will have a big influence on exchange rates. The forex market is regulated by several different governmental and independent bodies all around the world. Some of these include:. These bodies set the standards by which every forex broker must comply, which helps ensure that currency trading is ethical and fair.
That makes it the biggest financial market in the world by volume — by some distance. English India. Please leave a message and we will get back to you. Your name Subject Message Send. Trade hundreds of financial instruments Choose from over CFDs and take advantage of market opportunities. See additional rates.
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