Features of FX
Foreign exchange market is the largest market in the world with more than $3.2 trillion in daily turnover.
The liquidity and competitive pricing available in this market makes this an ideal investment instrument for professional and retail investors alike.
Trading FX
When you trade, you will always trade a combination of two currencies (a cross) in which one will be a long (bought) and the other, a short (sold) side. This means an investor is speculating on the prospect of one of the currencies appreciating in value in relation to the other. The terms trade currency and price currency are used to refer to each currency within a cross.
Using AUDUSD as an example, AUD (Australian Dollar) is the trade (or base) currency and USD (US Dollar) is the price (or variable) currency.
Below is a list of the major currency pairs;
EUR/USD | (Euro / U.S. dollar) |
GBP/USD | (British pound / U.S. dollar) |
USD/CHF | (U.S. dollar / Swiss franc) |
USD/JPY | (U.S. dollar / Japanese yen) |
USD/CAD | (U.S. dollar / Canadian dollar) |
AUD/USD | (Australian dollar / U.S. dollar) |
NZD/USD | (New Zealand dollar / U.S. dollar) |
Why Trade FX?
- The global FX market broadens trading capabilities, providing;
- Leverage – Margins from 1% allow you to increase your market exposure with reduced capital outlay
- Access greater Liquidity - FX is the most liquid market in the world and is available 24hrs a day 6 days a week.
- Benefit form a transparent, efficient and dynamic market
- Enjoy tight, low commissions. FX spreads are from 2 pips with no additional costs.