Forex Trading

Forex is short for foreign exchange. The forex market is a place where currencies are traded. It is the largest and most liquid financial market in the world with an average daily turnover of 6.6 trillion U.S. dollars as of 2019. The basis of the forex market is the fluctuations of exchange rates. Forex traders speculate on the price fluctuations of currency pairs, making money on the difference between buying and selling prices.

What is Margin?

The amount of money a trader needs to initiate a new position is known as the margin. The size of your trade, which is expressed in lots, determines the anticipated margin. A typical lot consists of 100,000 units. Mini lots (10,000 units), micro lots (1,000 units), and nano lots (100 units) are also available from us. The margin amount increases with the size of the lot. With the use of margin, you can trade with leverage and make trades that are bigger than your trading capital. The margin amount is also impacted by leverage.

What is leverage?

Leverage is the ability to trade positions larger than the amount of capital you possess. This technique allows traders to use extra funds from a broker in order to raise the size of their trades. With a 1:100 leverage ratio, for instance, a trader with a $1,000 account deposit can trade with $100,000. Leverage puts traders' capital at risk by magnifying their potential losses even though it allows them to raise the amount of their trades and, therefore, their potential rewards.

When is the forex market open?

Due to different time zones, the international forex market is open 24 hours a day — from 5 p.m. Eastern Standard Time (EST) on Sunday to 4 p.m. EST on Friday, except holidays. Markets first open in Australasia, then in Europe and afterwards in North America. So, when the market closes in Australia, traders can have access to markets in other regions. The 24-hour availability of the forex market is what makes it so attractive to millions of traders.