A futures contract is a standardized agreement between two parties to take delivery of a currency at a future date and at a predetermined price. A French tourist in Egypt can’t pay in euros to see the pyramids because it’s not the locally accepted currency. The tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate. Dukascopy Bank SA is pleased to provide it’s service for iPhone users through the Swiss r application. The most innovative Forex trading platform available on the iPhone is finally here! Enjoy a genuine iPhone OS application that replicates all the main features of the Dukascopy platforms. An agency broker is one who acts in the best interest of its clients, and whose job it is to find the best deal price.
- In this page, we’ll cover how you can find out what makes it so popular first hand.
- A long position means that you want to buy the base currency and sell the quote currency.
- Over-the-counter derivatives are complex instruments and come with a high risk of losing substantially more than your initial investment rapidly due to leverage.
- This ‘currency pair’ is made up of a base currency and a quote currency, whereby you sell one to purchase another.
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. BUYa 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.
Serious technology for serious traders
The platforms contain a huge variety of tools, indicators and charts designed to allow you to monitor and analyse the markets in real-time. You can even build strategies to execute your trades using algorithms. You can read more and download the trading platforms from our trading platforms Forex page. FXTM offers hundreds of combinations of currency pairs to trade including the majors which are the most popular traded pairs in the forex market. These include the Euro against the US Dollar, the US Dollar against the Japanese Yen and the British Pound against the US Dollar.
Forex, foreign exchange, or simply FX, is the marketplace where companies, banks, individuals and governments exchange currencies. It’s the most actively traded market in the world, with over $5 trillion traded on average per day. When trading currencies on the foreign exchange market, currency pairs are often split into major, minor and exotic currency pairs. In addition to forwards and futures, options contracts are also traded on certain currency pairs. Forex options give holders the right, but not the obligation, to enter into a https://www.dukascopy.com/swiss/english/forex/trading/ at a future date and for a pre-set exchange rate, before the option expires.
Have some experience?
Approximately $5 trillion worth of forex transactions take place daily, which is an average of $220 billion per hour. It is the term used to describe the initial deposit you put up to open Forex news and maintain a leveraged position. When you are trading forex with margin, remember that your margin requirement will change depending on your broker, and how large your trade size is.
A currency trader needs to have a big-picture understanding of the economies of the various countries and their interconnectedness to grasp the fundamentals that drive currency values. Candlestick charts were first used by Japanese rice traders in the 18th century. They are visually more appealing and easier to read than the chart types described above. A down candle represents a period DotBig broker of declining prices and is shaded red or black, while an up candle is a period of increasing prices and is shaded green or white. Much like other instances in which they are used, bar charts are used to represent specific time periods for trading. Each bar chart represents one day of trading and contains the opening price, highest price, lowest price, and closing price for a trade.