The foreign exchange market (forex, FX, or currency market) is a worldwide, decentralised, over-the-counter market for the trading of currencies. According to a statement issued by CLS, a major settler of trades, the daily traded volume in February 2018 hit $1.855 trillion*.

* Source: https://www.cls-group.com/news/cls-fx-trading-activity-march-2018/

FX trading involves buying one currency pair "base currency" against another currency pair "counter currency" anticipating that one currency will rise or fall against another.


Forex Trading example

Opening the position
The price of the AUD against the USD (AUD/USD) is 0.71706 bid /0.71707 ask. You would like to buy 1 standard lot (AUD100,000) at 0.71707 ask.
You have 5,000 AUD balance and the leverage is 1:100

Opening Price:
100,000 AUD x 0.71707 = 71,707 USD Opening value

Required margin:
100,000 AUD x 1% = 1,000 AUD require margin

Closing the position
Three days later, the price of AUD against the USD rises up to 0.72752 bid/0.72754 ask. Since you are in profit, you would like to close your position by selling 1 standard lot (AUD100,000) at 0.72752 bid.

Closing Price:

100,000 AUD x 0.72752 = 72,752 USD Closing value

Gross profit on trade USD 1,045.00 USD


Global Prime offers over 50+ currency pairs including spot metals.

  • AUDCAD
  • AUDCHF
  • AUDCNH
  • AUDJPY
  • AUDMXN
  • AUDNOK
  • AUDNZD
  • AUDSEK
  • AUDSGD
  • AUDTRY
  • AUDUSD
  • AUDZAR
  • CADCHF
  • CADJPY
  • CHFJPY
  • EURAUD
  • EURCAD
  • EURCHF
  • EURDKK
  • EURGBP
  • EURJPY
  • EURNOK
  • EURNZD
  • EURSEK
  • EURSGD
  • EURTRY
  • EURUSD
  • GBPAUD
  • GBPCAD
  • GBPCHF
  • GBPJPY
  • GBPNZD
  • GBPSEK
  • GBPUSD
  • NZDCAD
  • NZDCHF
  • NZDJPY
  • NZDUSD
  • SGDJPY
  • USDCAD
  • USDCHF
  • USDCNH
  • USDDKK
  • USDHKD
  • USDJPY
  • USDMXN
  • USDNOK
  • USDSEK
  • USDSGD
  • USDTRY
  • USDZAR
  • XAGUSD
  • XAUUSD

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