Hours:The dealing desk is continually open between Sunday 5:15 PM New York time and Friday 4:00 PM New York time.Mode of Dealing:Quotations, Order Placement, and Confirmation available over the telephone or via the Internet.
Hours
Mode of Dealing
Bid/Ask Spread
Order Sizes
Types of Orders
Margin
Margin Requirement By Currency Pair
Rollover/Interest Policy
Bid/Ask Spread4-5 pips on the Majors and 5-20 pips on the Crosses: • U.S. Dollar / Japanese Yen (5 pips)• U.S. Dollar / Swiss Franc (7 pips)• U.S. Dollar / Canadian Dollar (5 pips)• Euro / U.S. Dollar (5 pips)• Euro / Great Britain Pound (5 pips)• Euro / Japanese Yen (5 pips)• Euro / Swiss Franc (7 pips)• Euro / Canadian Dollar (10 pips)• Euro / Australian Dollar (20 pips)• Great Britain Pound / U.S. Dollar (5 pips)• Great Britain Pound / Japanese Yen (10 pips)• Great Britain pound / Swiss Franc (15 pips)• Swiss Franc / Japanese Yen (10 pips)• Australian Dollar / U.S. Dollar (5 pips)• Australian Dollar / Canadian Dollar (20 pips)• Australian Dollar / Japanese Yen (10 pips)• New Zealand Dollar / U.S. Dollar (5 pips)Order Sizes:On the GFM trading platform all trades are executed in standard sizes of 10,000 base currency per one lot. There is no maximum trading volume on the GFM Trading Station, however, for trading sizes larger than $10,000,000 traders must request a quote over the telephone.Here are some examples:• U.S. Dollar/ Japanese Yen (10,000 U.S. Dollars)• Euro/ U.S. Dollar (10,000 Euros)• Euro/ Great Britain Pound (10,000 Euros)• Euro/ Japanese Yen (10,000 Euros) Types of Orders:The trading platform provides sophisticated order entry and tracking of market orders, entry orders, stop/limit entry orders, and stop-loss orders. All of the above orders are Good Until Cancelled (GTC), which is valid until the order is executed or cancelled. Click here to learn more about the different types of orders.Margin:GFM enables currency trading to be conducted on a highly leveraged basis. Every trader is able to select the degree of leverage or gearing that the trader wishes to employ in trading. Unless the trader specifies otherwise, GFM sets the leverage level at GFM's most lenient requirement. The requirements for leverage vary with account size, and may be changed from time to time at the sole discretion of the dealing desk, based on volume traded and market conditions.Margin Requirement By Currency Pair:
Currency
Mini Account
EUR Based Currency Pairs(EUR/USD, EUR/GBP, EUR/JPY, EUR/CHF, EUR/CAD, EUR/ AUD)
$130 Per Lot *
GBP Based Currency Pairs(GBP/USD, GBP/JPY, GBP/CHF)
$200 Per Lot**
All Other Currency Pairs(USD/JPY, USD/CHF, USD/CAD, AUD/USD, AUD/CAD, AUD/JPY, NZD/AUD, NZD/USD)
$100 Per Lot**
• In the event that EUR/USD moves above 1.3000, the margin requirement for EUR based currency pairs will be adjusted upward to comply with NFA regulations.• In the event that GBP/USD moves above 1.8000, the margin requirement for GBP based currency pairs will be adjusted upward to comply with NFA regulations.Clients must have approximately 1% of the value of the positions they hold in their account for each lot of currency being traded (approximately 100:1 leverage). This amount does not change after 5:00 PM New York time, which is the rollover cut off, but stays constant at approximately 1% per lot the entire day and overnight. There is also an important safety feature imbedded in this system that prevents clients from losing more money than they have in the account. Once the account equity -- meaning the total floating value of the account -- falls below the margin requirement of approximately 1% per lot, the dealing desk will close all positions. Rollover/Interest Policy:In the spot forex market, trades must be settled in two business days. If a trader sells 10,000 euros on Tuesday, the trader must deliver 10,000 euros on Thursday, unless the position is rolled over. As a service to our traders, GFM automatically rolls over all open positions to the next settlement date at 5:00 PM New York time. Rollover involves exchanging the position being held for a position expiring the following settlement date. The positions being exchanged are usually not valued at the same price. The amount of the difference varies greatly based on the currency pair, the interest rate differential between the two currencies, and fluctuates day to day with the movement of prices. On any given day, the rollover is approximately $1 per lot.At 5:00 PM New York Time, funds are subtracted or added to accounts with open positions because of the automatic rollover. For accounts that have a margin requirement of 2% or more, funds are added to the account for positions in which the client is long (holding) the currency bearing the higher interest rate. Funds are deducted in the opposite circumstance. For accounts that do not have a 2% margin requirement, the rollover amount is deducted from the account for each position regardless of the account's holdings. This 2% margin requirement is the most generous policy available to traders in the forex industry, as many firms require 3-5% minimum margin before traders can benefit from rollover. Note: On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position tends to be around three times the usual amount. This "3-Day" rollover accounts for settlement of trades through the weekend period.
Sunday, February 8, 2009
Mini Trading
Why Trade a Mini Account?
Develop a Disciplined Trading Strategy without Focusing on P/L
Why Trade a Mini Account?The GFM Mini account is designed for those new to online currency trading and those with limited investment capital. There is a smaller deposit required to open a GFM Mini account and trading sizes are 1/10th the size of a regular account. The smaller trade size greatly reduces the risk associated with currency trading. Although the GFM Mini account provides as much leverage as a regular account, clients have the opportunity to take smaller size positions, taking on less total risk. The GFM Mini is intended to introduce traders to the excitement of currency trading while minimizing risk. Develop a Disciplined Trading Strategy without Focusing on P/LThe Mini account can be a useful asset in assisting traders to cultivate a disciplined trading strategy without focusing on P/L. When trading larger volumes on the standard account, traders with smaller account balances tend to watch their equity fluctuate and base trading decisions on emotional reactions to these fluctuations. For example, traders tend to resist closing-out trades at a loss, using the rationale that the market will turn around. Traders also tend to immediately take their profits when the market is moving in their direction, rather than maximizing their gains by letting their profits run. For example, a 20-pip profit on a 100,000 Euro trade is $200. For a $5000 account, this is equivalent to 4% of the account equity, compelling the average trader to take their profit, though the trade has a 100-pip profit potential. On the reverse side, no one wants to realize a $200 loss, so traders tend to hold a losing position until the loss is too much to bear. On the Mini account, this same example would translate to $20, which takes all the emotion out of the P/L, since $20 is insignificant to most traders. A Mini account allows traders to focus on the proper chart points, trade signals, and really learn currency trading without paying attention to their $P/L. In the long run, this will lead to more profits and less losses. Until clients are completely comfortable trading currencies on a highly leveraged basis, trading smaller amounts on The GFM Mini is highly recommended.
Develop a Disciplined Trading Strategy without Focusing on P/L
Why Trade a Mini Account?The GFM Mini account is designed for those new to online currency trading and those with limited investment capital. There is a smaller deposit required to open a GFM Mini account and trading sizes are 1/10th the size of a regular account. The smaller trade size greatly reduces the risk associated with currency trading. Although the GFM Mini account provides as much leverage as a regular account, clients have the opportunity to take smaller size positions, taking on less total risk. The GFM Mini is intended to introduce traders to the excitement of currency trading while minimizing risk. Develop a Disciplined Trading Strategy without Focusing on P/LThe Mini account can be a useful asset in assisting traders to cultivate a disciplined trading strategy without focusing on P/L. When trading larger volumes on the standard account, traders with smaller account balances tend to watch their equity fluctuate and base trading decisions on emotional reactions to these fluctuations. For example, traders tend to resist closing-out trades at a loss, using the rationale that the market will turn around. Traders also tend to immediately take their profits when the market is moving in their direction, rather than maximizing their gains by letting their profits run. For example, a 20-pip profit on a 100,000 Euro trade is $200. For a $5000 account, this is equivalent to 4% of the account equity, compelling the average trader to take their profit, though the trade has a 100-pip profit potential. On the reverse side, no one wants to realize a $200 loss, so traders tend to hold a losing position until the loss is too much to bear. On the Mini account, this same example would translate to $20, which takes all the emotion out of the P/L, since $20 is insignificant to most traders. A Mini account allows traders to focus on the proper chart points, trade signals, and really learn currency trading without paying attention to their $P/L. In the long run, this will lead to more profits and less losses. Until clients are completely comfortable trading currencies on a highly leveraged basis, trading smaller amounts on The GFM Mini is highly recommended.
Online Forex Trading Introduction
The online Forex market, also known simply as Forex, FX or the foreign exchange market is the biggest trading market in the world, with daily Forex trading that exceed $2 trillion.
Even tough we are talking about a huge market, Forex trading is quite simply - the buying of one currency while at the same time selling of another currency. If the trader can predict correctly which currencies will drop and which will rise - he will benefit from his investment.
There are a lot of benefits in Forex investing over other investment markets.
Why is Online Forex Trading Profitable?
The online Forex market has existed since the early 70's. Only in the past few years though, it has become accessible to millions of people through the development of the internet. Because the Forex market is available 24 hours a day, it's the only market that allows you to trade at your convenient time.
Today, because the economy is much more dynamic than it used to be, and the world has become a global village, economic conditions in various countries are also constantly changing, according to such factors as production rate, inflation and unemployment.
As a result, the rate of a specific currency changes and moves up and down in comparison to other currencies. This is the main reason of the process of rate fluctuations in the online Forex market.
In order to evaluate and predict these Forex market changes a trader can use fundamental analysis or technical analysis as a tool for investment. Where as fundamental analysis is a more broad exploration into the economic factors influencing the online Forex, technical analysis uses charts and other indicators to asses price patterns taht re-occur over time and can help predict the forex market.
Foreign Currency exchange rate
Currency exchange rate is the ratio of one currency valued against another. For example, "EUR/USD exchange rate is 1.2505" means that one euro is traded for 1.2505 dollars. If you've already invested in other markets before, you'll find the Forex trading system quite similar, and the transaction to online Forex trading smooth. An example of a Forex trade: During October 2006 you buy 10,000 BRP when the BRP/USD rate was 0.56. A month later, the exchange rate grew to 0.58. This means a profit of $350 in less than a month time.
Online Forex Trading Profits
Another example of an online Forex trade: If you buy EUR/USD, this means you are buying euros, and simultaneously are selling dollars. Your expectation therefore is that the euro will appreciate (go up) relative to the US dollar.
If you believe that the US economy will weaken and this will hurt the US dollar, you would execute a buy EUR/USD order. By doing so you will buy euros in the expectation that the currency will appreciate against the US dollar. If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a sell EUR/USD order. By doing so you have sold euros in the expectation that they will depreciate against the US dollar. More information concerning online Forex trading is available at Forex Floor.
Brat Milman - Managing Editor
Even tough we are talking about a huge market, Forex trading is quite simply - the buying of one currency while at the same time selling of another currency. If the trader can predict correctly which currencies will drop and which will rise - he will benefit from his investment.
There are a lot of benefits in Forex investing over other investment markets.
Why is Online Forex Trading Profitable?
The online Forex market has existed since the early 70's. Only in the past few years though, it has become accessible to millions of people through the development of the internet. Because the Forex market is available 24 hours a day, it's the only market that allows you to trade at your convenient time.
Today, because the economy is much more dynamic than it used to be, and the world has become a global village, economic conditions in various countries are also constantly changing, according to such factors as production rate, inflation and unemployment.
As a result, the rate of a specific currency changes and moves up and down in comparison to other currencies. This is the main reason of the process of rate fluctuations in the online Forex market.
In order to evaluate and predict these Forex market changes a trader can use fundamental analysis or technical analysis as a tool for investment. Where as fundamental analysis is a more broad exploration into the economic factors influencing the online Forex, technical analysis uses charts and other indicators to asses price patterns taht re-occur over time and can help predict the forex market.
Foreign Currency exchange rate
Currency exchange rate is the ratio of one currency valued against another. For example, "EUR/USD exchange rate is 1.2505" means that one euro is traded for 1.2505 dollars. If you've already invested in other markets before, you'll find the Forex trading system quite similar, and the transaction to online Forex trading smooth. An example of a Forex trade: During October 2006 you buy 10,000 BRP when the BRP/USD rate was 0.56. A month later, the exchange rate grew to 0.58. This means a profit of $350 in less than a month time.
Online Forex Trading Profits
Another example of an online Forex trade: If you buy EUR/USD, this means you are buying euros, and simultaneously are selling dollars. Your expectation therefore is that the euro will appreciate (go up) relative to the US dollar.
If you believe that the US economy will weaken and this will hurt the US dollar, you would execute a buy EUR/USD order. By doing so you will buy euros in the expectation that the currency will appreciate against the US dollar. If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a sell EUR/USD order. By doing so you have sold euros in the expectation that they will depreciate against the US dollar. More information concerning online Forex trading is available at Forex Floor.
Brat Milman - Managing Editor
Forex trading History Explained
The modern online Forex history begins in 1973. Even though has been around since the times of ancient Egypt, which at that time the market was extremely primitive, and there were no advance trading tools as today'sfor example.
The first currency coins were used at the times of the pharos, and the first paper notes were then introduced by the Babylonians. Later on, the roman coin called aureus was used, which was followed by the denarius. Both coins had worldwide use, making them the first global foreign currency coins.
The Bretton Woods System (1944-1973), came after the great instability of World War II. England and other European countries were left in ruins, after the war ended, while the US's economy was left relatively stable and strong.
The USD became the prominent currency after WWII, mainly because of the war. The Dollar also became the new global reserve currency, and remained so throughout the rest of the Forex history. This was agreed upon in the Bretton Woods conference, when all of the other foreign currencies were pegged to the USD, and a new international financial network was formed.
In 1971, the Smithsonian Agreement was signed by ten of the major financial powers, but it's attempt to improve stability to the current Forex history failed.
Free Floating exchange rates came into use when the Bretton Woods agreement ended. This occurred after this international financial system was in operation for three decades in the Forex history.
During 1973, the UK, facing financial problems, floated it's currency. Other currencies began to lose value, and this led the European economies to also float their currencies.
1994 saw the first online currency trading introduced to Forex history. This had a large impact on the development of the Euro currency, and introduced a new major contender to the control of the USD in the Forex history. By 2002 the Euro became the official currency for 12 European nations, and in the past few years more nations have joined this agreement. The modern online forex history offered new options for the online trader, such as to leverage investments, and this is all thanks to the contribution of the internet to the forex history.
Jim Barns, Market Analyst
The first currency coins were used at the times of the pharos, and the first paper notes were then introduced by the Babylonians. Later on, the roman coin called aureus was used, which was followed by the denarius. Both coins had worldwide use, making them the first global foreign currency coins.
The Bretton Woods System (1944-1973), came after the great instability of World War II. England and other European countries were left in ruins, after the war ended, while the US's economy was left relatively stable and strong.
The USD became the prominent currency after WWII, mainly because of the war. The Dollar also became the new global reserve currency, and remained so throughout the rest of the Forex history. This was agreed upon in the Bretton Woods conference, when all of the other foreign currencies were pegged to the USD, and a new international financial network was formed.
In 1971, the Smithsonian Agreement was signed by ten of the major financial powers, but it's attempt to improve stability to the current Forex history failed.
Free Floating exchange rates came into use when the Bretton Woods agreement ended. This occurred after this international financial system was in operation for three decades in the Forex history.
During 1973, the UK, facing financial problems, floated it's currency. Other currencies began to lose value, and this led the European economies to also float their currencies.
1994 saw the first online currency trading introduced to Forex history. This had a large impact on the development of the Euro currency, and introduced a new major contender to the control of the USD in the Forex history. By 2002 the Euro became the official currency for 12 European nations, and in the past few years more nations have joined this agreement. The modern online forex history offered new options for the online trader, such as to leverage investments, and this is all thanks to the contribution of the internet to the forex history.
Jim Barns, Market Analyst
Why Forex Trading
If you want to know why the Forex trading market is superiors to other investor options such as or then you can rest assure that you'll find the answer in this page.
The best way to clarify the advantages of the Forex market is through a real example. In 1929, the stock market collapsed, causing many people and businesses from around the world to go broke. This also happened when the high tech bubble burst. The fear of a market crash is a concern that constantly dwells in the minds of investors, both professional and beginner ones.
In the online Forex trading market, There is no way for the market to crash. If you have read about , then you know that when you buy a certain currency, you are at the same time selling another currency. When some currencies' price false, others' price rise.
So this is the most important advantage of Unlike other markets, where in some cases all traders lose money, with Forex trading there are always traders that make a profit, at any given time.
Here are some other advantages of the Forex trading market:
No commissions. Only in the Forex trading market are there no government fees, brokerage commissions, exchange fees and other unnecessary losses of cash. There are also low transaction costs between the
No middlemen. In this market there are no investors that take a percentage of the investment or the profit, and you transact directly with the pricing market agent.
You can choose the size of your investment. The Forex trading lot is dynamic, and is set according to your preference. This lot can vary between large lots worth $10,000 to mini lots worth $25.
High liquidity. In the Forex trading market you can buy and sell your currency at any time and place, regardless of the currency position, when the trade itself is done almost instantaneously.
Trading in the margin. Forex trading consists of that increase your chances for higher profits by increasing your money's worth.
Opened 24 hours a day. Because it's worldwide and operates in several time zones, the Forex trading market is the only market that you can trade in 24 hours a day.
With all of these wonderful advantages, there is no wonder more and more investors choose Forex trading as there main fund for investment. Because all transactions can be done online, you don't even have to leave your house! Tania Raven, Market Analyst
The best way to clarify the advantages of the Forex market is through a real example. In 1929, the stock market collapsed, causing many people and businesses from around the world to go broke. This also happened when the high tech bubble burst. The fear of a market crash is a concern that constantly dwells in the minds of investors, both professional and beginner ones.
In the online Forex trading market, There is no way for the market to crash. If you have read about , then you know that when you buy a certain currency, you are at the same time selling another currency. When some currencies' price false, others' price rise.
So this is the most important advantage of Unlike other markets, where in some cases all traders lose money, with Forex trading there are always traders that make a profit, at any given time.
Here are some other advantages of the Forex trading market:
No commissions. Only in the Forex trading market are there no government fees, brokerage commissions, exchange fees and other unnecessary losses of cash. There are also low transaction costs between the
No middlemen. In this market there are no investors that take a percentage of the investment or the profit, and you transact directly with the pricing market agent.
You can choose the size of your investment. The Forex trading lot is dynamic, and is set according to your preference. This lot can vary between large lots worth $10,000 to mini lots worth $25.
High liquidity. In the Forex trading market you can buy and sell your currency at any time and place, regardless of the currency position, when the trade itself is done almost instantaneously.
Trading in the margin. Forex trading consists of that increase your chances for higher profits by increasing your money's worth.
Opened 24 hours a day. Because it's worldwide and operates in several time zones, the Forex trading market is the only market that you can trade in 24 hours a day.
With all of these wonderful advantages, there is no wonder more and more investors choose Forex trading as there main fund for investment. Because all transactions can be done online, you don't even have to leave your house! Tania Raven, Market Analyst
Forex Vs Currency Futures
If you have read our article you probably already know why Forex is a superior market in measuring up to the equities market. In this article we will evaluate the Forex market in conjunction with the currency futures market. Of course there are various points of distinction between each of these markets – historical, philosophical and technical to name a few. In this article we will review some significant differences between the two markets that reflect the way you trade and make money in each of them.
One of the biggest advantages the Forex market has to offer is its unparalleled volume. In fact, the amount of money traded every day on the Forex market is over 50 times bigger than the volume on the futures market. If you have read our previous Forex trading articles you probably already know that the Forex market is the biggest financial market in the world. Fact is that this size does not only indicate the popularity of the market but most of all it shows the amount of trading opportunities you can find on this market. The Forex market offers a place for any trader, from the smallest pastime traders to the professional, high-rollers.
Margin accounts and leveraging in the Forex market is quite different from the currency futures market. Currency futures brokers give different margin and take different commissions for 'day trade' and 'overnight' positions. Also, the margin rates that the futures brokers give usually depend on the size of the deal. On the other hand, Forex brokers offer the same leverage and the same margin rates at all times, day or night and with no concern to the size of the trade.
The learning curve of a new trader in the Forex market is not as steep as the one in the futures market. The methodology and quotes used in the Forex market are very easily understood and are quite intuitive, even to new traders. The futures market on the other hand is completely different. The price quotes of currency futures are inversions of regular prices that are used only in this market. Furthermore, the futures market demands many complicated adjustments. To name a few, the futures prices include time factors, interest rates and discrepancies between interest rates of different currencies. This turns the futures market into a much less intuitive and friendly market.
In summary, the Forex market has many significant advantages over the currency futures market that turn it into the natural choice for any entrepreneur or smart investor.
Brat Milman, Editor
One of the biggest advantages the Forex market has to offer is its unparalleled volume. In fact, the amount of money traded every day on the Forex market is over 50 times bigger than the volume on the futures market. If you have read our previous Forex trading articles you probably already know that the Forex market is the biggest financial market in the world. Fact is that this size does not only indicate the popularity of the market but most of all it shows the amount of trading opportunities you can find on this market. The Forex market offers a place for any trader, from the smallest pastime traders to the professional, high-rollers.
Margin accounts and leveraging in the Forex market is quite different from the currency futures market. Currency futures brokers give different margin and take different commissions for 'day trade' and 'overnight' positions. Also, the margin rates that the futures brokers give usually depend on the size of the deal. On the other hand, Forex brokers offer the same leverage and the same margin rates at all times, day or night and with no concern to the size of the trade.
The learning curve of a new trader in the Forex market is not as steep as the one in the futures market. The methodology and quotes used in the Forex market are very easily understood and are quite intuitive, even to new traders. The futures market on the other hand is completely different. The price quotes of currency futures are inversions of regular prices that are used only in this market. Furthermore, the futures market demands many complicated adjustments. To name a few, the futures prices include time factors, interest rates and discrepancies between interest rates of different currencies. This turns the futures market into a much less intuitive and friendly market.
In summary, the Forex market has many significant advantages over the currency futures market that turn it into the natural choice for any entrepreneur or smart investor.
Brat Milman, Editor
Forex Vs Equities
Any novice Forex trader questions himself sooner or later – "Why did I choose the Forex market, is it definitely the best financial market for me?" Usually this question arises from curiosity and nothing else, but curiosity must be satisfied.
In the next two articles our team will point the evident advantages the Forex market has over other well-known financial markets, starting with the famous US equities market. Any person with a feel for economics and trading experiences some sensation to the sound of Wall Street, but does it truly measure up to the colossal forex market?
First, the key benefit the forex market offers is its 24-hour accessibility. When you are trading forex it doesn’t matter at all whether it is 5am or 5pm. Time differences and market dynamics make sure there will always be an eager trader somewhere around the globe looking for a deal. This feature gives you the privilege to respond to any financial developments, as soon as they transpire. Furthermore, the prices of forex can not be affected from after-hours trade.
An additional key aspect of the forex market is its unmatched liquidity. This legendary liquidity is derived from the market's immense size, more than 50 times larger than the total trade in the US stock exchange. None the less, it's seemingly impossible size, which sometimes creates certain repulsion, and its liquidity creates stability like in no other market. The forex market is one of the most solid financial markets throughout the modern financial history.
Online forex has many advantages that the equities market can't even dream of. The leveraging that online forex brokers present is significantly better than any possible offer you can find on the equities market. The margin that the online forex firms can offer is extremely larger than the standard 2:1 you'll get from your equity broker. The margin you get while trading forex can go even up to 100:1, and in some cases even 200:1. You are welcome to learn more about margin and leveraging in our "Margin trading overview.
Read more about the advantages in the next article that will compare the forex market to the equities market.
In the next two articles our team will point the evident advantages the Forex market has over other well-known financial markets, starting with the famous US equities market. Any person with a feel for economics and trading experiences some sensation to the sound of Wall Street, but does it truly measure up to the colossal forex market?
First, the key benefit the forex market offers is its 24-hour accessibility. When you are trading forex it doesn’t matter at all whether it is 5am or 5pm. Time differences and market dynamics make sure there will always be an eager trader somewhere around the globe looking for a deal. This feature gives you the privilege to respond to any financial developments, as soon as they transpire. Furthermore, the prices of forex can not be affected from after-hours trade.
An additional key aspect of the forex market is its unmatched liquidity. This legendary liquidity is derived from the market's immense size, more than 50 times larger than the total trade in the US stock exchange. None the less, it's seemingly impossible size, which sometimes creates certain repulsion, and its liquidity creates stability like in no other market. The forex market is one of the most solid financial markets throughout the modern financial history.
Online forex has many advantages that the equities market can't even dream of. The leveraging that online forex brokers present is significantly better than any possible offer you can find on the equities market. The margin that the online forex firms can offer is extremely larger than the standard 2:1 you'll get from your equity broker. The margin you get while trading forex can go even up to 100:1, and in some cases even 200:1. You are welcome to learn more about margin and leveraging in our "Margin trading overview.
Read more about the advantages in the next article that will compare the forex market to the equities market.
Understanding and Trading Forex Currency Pairs
Any Forex trading transaction is made of the buying of one currency and the simultaneous selling of another currency. The two Forex trading currencies being traded are called the currency pair. A currency quote is made of these two pairs of Forex trading currencies, situated together and divided by a line (for example, EUR/USD).
There are various Forex currency pairs to choose from. These are divided into major and minor currencies. Major currencies are the seven most frequently traded currencies, which include the USD, EUR, JPY, GBP, CHF, CAD and AUD. All other currencies are called minor currencies, and include the NZD (the New Zealand dollar) and the ZAR (the South African rand).
Cross currencies are types of Forex trading currency pairs that both do not consist of the USD. For example; the pair CHF/JPY, worth 84.50 which would mean that one Swiss franc is equal to 84.50 Japanese yen. Sometimes not all of the currencies are available for you to buy and sell, so you should check this factor out when .
The first currency in a pair is called the base currency. In most Forex trading options this is the USD. The main exceptions for this are the EUR, GBP and the AUD currencies, which appear before the USD in a quote. The base currency will also appear before the quote currency when you use with charts of different sorts.
The second currency in a currency pair is called the quote currency. This currency shows your profits and losses for the
Following are example of major currency pairs:
EUR/USD – Here the base currency is the EUR, and the quote is the USD.
USD/JPY
GBP/USD
USD/CHF
EUR/CHF – This is an example of a cross currency.
AUD/USD
USD/CAD
NZD/USD
EUR/GBP
EUR/JPY
BP/JPY
CHF/JPY
GBP/CHF
EUR/AUD
Jim Barns, Market Analyst
There are various Forex currency pairs to choose from. These are divided into major and minor currencies. Major currencies are the seven most frequently traded currencies, which include the USD, EUR, JPY, GBP, CHF, CAD and AUD. All other currencies are called minor currencies, and include the NZD (the New Zealand dollar) and the ZAR (the South African rand).
Cross currencies are types of Forex trading currency pairs that both do not consist of the USD. For example; the pair CHF/JPY, worth 84.50 which would mean that one Swiss franc is equal to 84.50 Japanese yen. Sometimes not all of the currencies are available for you to buy and sell, so you should check this factor out when .
The first currency in a pair is called the base currency. In most Forex trading options this is the USD. The main exceptions for this are the EUR, GBP and the AUD currencies, which appear before the USD in a quote. The base currency will also appear before the quote currency when you use with charts of different sorts.
The second currency in a currency pair is called the quote currency. This currency shows your profits and losses for the
Following are example of major currency pairs:
EUR/USD – Here the base currency is the EUR, and the quote is the USD.
USD/JPY
GBP/USD
USD/CHF
EUR/CHF – This is an example of a cross currency.
AUD/USD
USD/CAD
NZD/USD
EUR/GBP
EUR/JPY
BP/JPY
CHF/JPY
GBP/CHF
EUR/AUD
Jim Barns, Market Analyst
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