Online Forex CFD Trading
Our versatile Web Trader platform allows you to trade Forex CFDs, providing you with the flexibility to trade from home or on-the-go. With over 55 FX pairs available, you can take advantage of tight spreads and fast order execution.
What is Forex?
Forex, also known as the foreign exchange market, is a digital platform where traders from around the world engage in buying and selling currency pairs. They monitor live exchange rates provided by online foreign exchange brokers to determine the best time to enter or exit a trade. As there is no central location where trading occurs, Forex operates in a decentralized manner, allowing for 24-hour trading and global accessibility.
Where can you trade Forex? Forex Major Trading Sessions
The Forex market has four trading sessions during which people can check the live rates of currencies: Sydney (Australia), Tokyo (Japan), London (UK), and New York (the US). Forex trading opens on Monday morning with the Sydney session and closes on Friday afternoon after the New York trading session ends.
The major FX pairs are those currency pairs that trade the most volume against the dollar. They include: EURUSD, USDJPY, GBPUSD, USDCHF, USDAUD and USDCAD.
The majors not only make up a large amount of volume related to economic transactions, they are also among some of the most heavily traded pairs for speculative purposes.
The minor currency pairs are those that are not associated with the US dollar and are referred to as minor or cross-currency pairs. The most popular in this group include: EURGBP, GBPJPY, EURCHF and AUDCAD.
As these pairs usually trade at lower volumes, they have slightly wider spreads and are not as liquid as the majors. The crosses that trade the most volume tend to be those which pair with a currency that belongs to the majors.
Some examples of crosses include EURGBP, GBPJPY and EURCHF.
These are currencies belonging to emerging or smaller economies associated with a major currency, such as USDMXN (US dollar against Mexican Peso). Compared to major and minor pairs, exotic pairs are less liquid and more volatile and come with much bigger spreads.
Most traders tend to speculate on these kinds of currencies only when a major economic event, such as a war, causes an extreme move, either up or down in price.
CFDs and Forex trading
Contracts for Difference (CFDs) are a financial instrument used for trading in various markets, including the foreign exchange (Forex) market. With Forex CFDs, you can trade on the movements of currency pairs without owning the underlying asset. This means that you don’t need to physically exchange currencies or hold them in a bank account.
When trading Forex CFDs, you work with a broker who provides access to the market and offers a trading platform to execute your trades. The broker earns a profit by charging you a spread or commission on each transaction.
To trade Forex CFDs, you need to anticipate the direction of the price movement of a particular currency pair, such as the Euro/US dollar (EUR/USD). You can go long (buy) if you expect the value of the Euro to increase against the US dollar or go short (sell) if you anticipate the opposite. Your profit or loss is determined by the difference between the opening and closing prices of the trade.
Forex CFDs are popular among investors because they offer the potential for high returns, flexibility, and the ability to trade 24/7 in a highly liquid market. However, they also come with risks, including leverage and the possibility of losing more than your initial investment. Therefore, it’s essential to have a good understanding of the market and to develop a sound trading strategy before investing in Forex CFDs
For example, if you trade the *EUR/USD pair and you think the Euro will rise against the American Dollar, you might want to go long (buy). If you think the Euro will fall, you might want to go short (sell). If you forecast correctly, you will win. If you’re wrong, you will lose.
*The first currency you can see in the pair is the base currency, and the second one is the quote currency. When the price of the base currency jumps, the pair’s value also goes up. When the price of the base currency reduces, then the pair’s value decreases.
Forex CFDs trading - key terms
Spread – the cost of trading CFDs relies on the spread (the difference between the sell and the buy price).
Leverage – leverage increases your buying power and lets you open positions with less capital, but also with increased risks. For monitoring your risks and keeping your investment under more control, you can use market orders such as stop loss or take profit.
To fund your amounts, Arrow Trade offers you
several simple payment methods