Learn how to open an FxPro trading account.
The foreign exchange market is one of the most exciting, fast-paced and largest markets available with daily average forex trading volumes of an estimated $3.98 trillion.
With the introduction of the World Wide Web the FX market is now accessible to anyone with internet access and a currency trading platform is no longer restricted to large financial institutions.
Forex currencies are quoted in pairs because in every foreign exchange currency transaction, the forex trader is simultaneously buying one currency and selling another.
An example of a foreign exchange rate for the U.S. dollar versus the British pound:
USD (Base currency) / GBP (Quote currency) = 1.63469
When buying a forex currency pair, the exchange rate indicates the amount you are paying in units of the quoted currency, to buy one unit of the base currency.
When selling, the exchange rate informs you how many unites of the quote currency pair you receive for selling one unit of the base currency.
The base currency is the “basis” for forex trading. If you buy GBP/EUR this means that you are buying the base currency and selling the quote currency.
Wide liquidity and the availability of high leverage have been key factors in expanding the forex market’s growth and trading volume.
Forex trading positions can be opened and closed within minutes or even be held open for months at times.
Currency prices are determined by the basic principles of FX demand and supply.
The objective considerations of demand and supply cannot therefore be manipulated by large corporations because the vast size of the market does not allow for moving prices at will.
Understanding forex quotes and currency prices provides a foundation for investors or traders who are new to the foreign exchange market.
Risk Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Past performance of CFDs is not a reliable indicator of future results. Most CFDs have no set maturity date. Hence, a CFD position matures on the date you choose to close an existing open position. Seek independent advice, if necessary. Please read FxPro’s full ‘Risk Disclosure Statement’.
FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (previously, Financial Services Authority) (registration no. 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence no. 078/07).
FxPro Group Limited is a holding company that controls FxPro Financial Services Limited. FxPro UK Limited is a direct operating subsidiary of FxPro Financial Services Limited. FxPro Financial Services Limited and FxPro UK Limited do not offer Contracts for Difference to residents of certain jurisdictions such as United States of America and the Islamic Republic of Iran.