Forex is our key product. We also have global stock indexes, commodities, crypto currencies and precious metals.
Also known as FX trading or currency trading, foreign exchange market refers to a decentralised, worldwide, over the counter market, where foreign currencies are exchanged at floating rates by financial institutions, companies, and individuals.
Wherever one currency is exchanged for another that is a part of the foreign exchange market and all those transactions create a total daily turnover of more than US $ 5 trillion per day in the global market, making it the largest financial market in the world. There is no central marketplace, and the market is open 24 hours a day, 5 days a week.
For the Forex trader, the foreign exchange market is a marketplace of possibilities as due to the vast size of the market and the sheer volume of transactions. The value of the currencies change against each other almost constantly and provide numerous trading opportunities each day for traders to exploit. These factors have helped contribute to making the forex market the largest and most liquid market in the world.
Forex Trading Example
|1||AUD/USD is now trading at 0.9300/0.9301|
|2||You decided to buy 1 lot (100,000) AUD at 0.9301|
|3||1 hour later AUD/USD is trading at 0.9350/0.9351|
|4||You decided to close your position at 0.9350|
|5||Your profits = (0.9350-0.9301)*100,000|
|6||Net profits = 490 USD (profits/loss are always calculated in term currency (currency on the right)|