Currencies

The foreign exchange (FX) market is the largest and the most liquid market in the world, with average daily trading volume of about $4trilion[1]. As a fully decentralised market place, with no actual physical location, it operates over-the-counter (OTC) via a network of banks, financial institutions, hedging funds, investment management firms, broker and dealers. This structure enables the huge liquidity and trading 24h hours a day with minor gaps on weekends[2], meaning exchange rates can change virtually at any time, reacting to the latest market developments. This in turn means that you do not have to wait for an exchange to open in order to trade.


[1] As of 2010, source Bank for International Settlements

[2] The FX trading day starts in the Western Pacific, moves through New Zealand and Australia, followed by Tokyo, Hong Kong, Singapore, through to Middle East; later markets open in Europe and then in the US. While the trading comes to an end in the US the Asia-Pacific area readies itself for the next business day.

How does it work?

The concept is straightforward as it revolves around the notion of buying and selling money. Trading forex involves exchanging one currency for another one. That is why currencies are always traded in pairs, also known as crosses. By buying one currency you are simultaneously selling the other one and vice versa.

And as with any other commodity or asset, you would buy, if you expect the first currency in pair to appreciate. By doing it, you are concurrently selling the second one in pair. If you think the opposite is the case, i.e. the first currency in pair will depreciate, you sell it and simultaneously buy the second one.

If you trade for example GBPUSD, aka Cable, you trade the Sterling vs US Dollar. We provide you with a two-way quote, the bid and the offer, which represent the exchange rate for selling or buying GBP respectively. The bid price tells you how much you would get in USD, if you sold the GBP; the offer price shows the value in USD if you were to buy the Pound.

You can decide between mini and standard contracts. Our contract sizes are defined in the information window for the product. You can also decide on the leverage you want to use. This gives you the control over the margin you want to use and the extent your profits (but also your losses) are multiplied. You are in command of your trades.

Example CFD

What do you need to consider when trading FX?

FX trading is by its nature a risky business as its main purpose is to measure, price, accept and manage the risk. In that respect it does not differ much from trading other financial products. Your success will critically depend on your ability to evaluate and manage those risks effectively. For that reason it is crucial to only trade with funds that you can afford to lose and maintain trading discipline.

You can, however, be in charge of the degree of risk you are willing to take. By applying stop losses to your positions you can restrict potential losses. By varying the margin, you gain control over the scale of the leverage that is applied to your position as well.

Spot FX

ProductLast Trading
Day & Time
Settlement InfoQuotation
Cycle
Min Stake
Long / Short
Base Margin
Requirement
Indicative
Spread
per Unit
AUDCAD N/A N/A N/A 1 1.00% 5 0.0001
AUDCHF N/A N/A N/A 1 5.00% 6 0.0001
AUDJPY N/A N/A N/A 1 2.00% 4 0.01
AUDNZD N/A N/A N/A 1 0.80% 10 0.0001
AUDUSD N/A N/A N/A 1 2.00% 1.5 0.0001
CADCHF N/A N/A N/A 1 5.00% 6 0.0001
CADJPY N/A N/A N/A 1 1.00% 6 0.01
CHFJPY N/A N/A N/A 1 5.00% 10 0.0001
EURAUD N/A N/A N/A 1 1.00% 10 0.0001
EURCAD N/A N/A N/A 1 1.00% 5 0.0001
EURCHF N/A N/A N/A 1 10.00% 4 0.0001
EURDKK N/A N/A N/A 1 10.00% 15 0.0001
EURGBP N/A N/A N/A 1 0.80% 1 0.0001
EURJPY N/A N/A N/A 1 1.00% 2.5 0.0001
EURNOK N/A N/A N/A 1 2.00% 60 0.0001
EURSEK N/A N/A N/A 1 0.80% 60 0.0001
EURSGD N/A N/A N/A 1 0.80% 20 0.0001
EURUSD N/A N/A N/A 1 1.00% 0.8 0.0001
GBPAUD N/A N/A N/A 1 1.00% 16 0.0001
GBPCAD N/A N/A N/A 1 0.80% 12 0.0001
GBPCHF N/A N/A N/A 1 5.00% 7 0.0001
GBPJPY N/A N/A N/A 1 1.00% 3 0.01
GBPUSD N/A N/A N/A 1 1.00% 1.8 0.0001
NOKSEK N/A N/A N/A 1 0.80% 24 0.0001
NZDCAD N/A N/A N/A 1 1.00% 8 0.0001
NZDCHF N/A N/A N/A 1 5.00% 10 0.0001
NZDJPY N/A N/A N/A 1 2.00% 8 0.0001
NZDUSD N/A N/A N/A 1 2.00% 2 0.0001
USDCAD N/A N/A N/A 1 1.00% 2.5 0.0001
USDCHF N/A N/A N/A 1 5.00% 8 0.0001
USDJPY N/A N/A N/A 1 1.00% 1.5 0.01
USDNOK N/A N/A N/A 1 2.00% 60 0.0001
USDSEK N/A N/A N/A 1 2.00% 50 0.0001
USDSGD N/A N/A N/A 1 1.00% 6 0.0001
USDZAR N/A N/A N/A 1 2.00% 200 0.0001
Spot Metals
Spot Gold N/A N/A N/A 1 2.00% 5 0.1
Spot Silver N/A N/A N/A 1 5.00% 3 0.01
Spot Platinum N/A N/A N/A 1 2.00% 3 0.1