Forex (aka the snappy version of ‘Foreign Exchange’ and ‘FX’) is the biggest financial market in the world, with transactions totalling trillions (more zeros than you can count on your fingers!) of dollars happening every day.
Whilst other methods of trading have a central exchange, Forex trading can be done through banks, dealers and brokers, making it an international, 24/5 event, or ‘decentralised’ as the men in suits call it.
But, what does ‘Forex trading’ actually mean? Well, it’s ‘the buying and selling of global currencies’ with the goal of making a profit, and it can be performed by both businesses and individuals – that’s you!
Being a global market, Forex prices are easily influenced by:
Demand for imports and exports
As there are so many traders and so much money exchanging hands, price fluctuations can occur rapidly, making Forex trading extremely fast-paced and volatile.
If you already know the basics, why not jump ahead to our Forex Market page?
Now you know what Forex trading is, you might be keen to have a go yourself. But, how do you trade Forex? And what should you look out for?
First of all, you need to get a trading platform. At Core Spreads, you can trade Forex on both our platforms, but in different formats: our CoreTrader platform is for spread betting, whilst our MT4 platform is for CFDs.
Secondly, you need to decide which currency pair you want to trade. At Core Spreads, we have over 30 pairs available on both our platforms. When choosing which pair you want to trade, there are a few elements that you should think about:
During times of stability, there won’t be many price fluctuations within the pair, so chances at making a profit are smaller.
When things are turbulent (or if you’re trading with minor or exotic currencies), prices can rise and fall dramatically, increasing your chance to make gains, but also the likelihood of making losses – you need to stay on your toes!
If you want to trade in the world's largest market, sign up now
Need a little time to practice? That’s what our demos are for
At Core Spreads, we know that there can be lots of jargon in trading, regardless of what markets you’re interested in. To help you get to grips with Forex, we’ve compiled a glossary of key phrases. After all, it pays to start with the basics:
Want to know more about Forex Trading? Try our other Forex Trading page.