What is Forex trading?
Foreign exchange, commonly known as Forex, is a global marketplace where currencies are traded, when one currency is sold, another is bought in exchange. The key factor in Forex trading is the exchange rate between two currencies, which constantly fluctuates. These fluctuations create opportunities for traders to profit from market movements.
With a staggering daily trading volume of $6.5 trillion, the Forex market surpasses even the New York Stock Exchange (NYSE), which sees a comparatively smaller daily volume of $22.4 billion.
The vast scale of the Forex market attracts a diverse group of participants, including central bonks, investment managers, hedge funds, corporations, brokers, and retail traders. Notably, around 90% of market participants engage in Forex trading primarily for speculation.
Why Trade Forex?
Accessibility :- The forex market is accessible to retail traders, with many online platforms available.
Flexibility :- The 24-hour nature of the market allows for trading at convenient times.
Diverse Opportunities :- With many currency pairs available, there are numerous opportunities to trade based on global economic events.
Forex trading requires a good understanding of market dynamics and a well-thought-out strategy. It's important to manage risks and stay informed about global events that can impact currency values.
Pick Your Pairs
The Forex market operates Monday – Friday 00:05 – 23:50 GMT+1
| Symbol | Average Spread (pips) | Spread As Low As (pips) | Max Leverage |
|---|---|---|---|
 AUDCAD Australian Dollar Vs Canadian Dollar | 0.21 | 0.18 | 1:1000 |
 AUDCHF Australian Dollar Vs Swiss Franc | 0.20 | 0.17 | 1:1000 |
 AUDJPY Australian Dollar Vs Japanese Yen | 0.26 | 0.24 | 1:1000 |
Australian Dollar Vs New Zealand Dollar | 0.36 | 0.33 | 1:1000 |
 AUDUSD Australian Dollar Vs U.S. Dollar | 0.22 | 0.20 | 1:1000 |
 CADCHF Canadian Dollar Vs Swiss Franc | 0.22 | 0.20 | 1:1000 |
 CADJPY Canadian Dollar Vs Japanese Yen | 0.29 | 0.26 | 1:1000 |
 CHFJPY Swiss Franc Vs Japanese Yen | 0.30 | 0.28 | 1:1000 |
 EURCAD Euro Vs Canadian Dollar | 0.26 | 0.24 | 1:1000 |
 EURAUD Euro Vs Australian Dollar | 0.23 | 0.21 | 1:1000 |
 EURCHF Euro Vs Swiss Franc | 0.25 | 0.23 | 1:1000 |
 EURGBP Euro Vs British Pound | 0.22 | 0.20 | 1:1000 |
 EURJPY Euro Vs Japanese Yen | 0.24 | 0.21 | 1:1000 |
 EURNZD Euro Vs New Zealand Dollar | 0.35 | 0.31 | 1:1000 |
 EURSGD Euro Vs Singapore Dollar | 0.25 | 0.21 | 1:1000 |
 EURTRY Euro Vs Turkish Lira | 70.20 | 70.00 | 1:1000 |
Euro Vs U.S. Dollar | 0.15 | 0.11 | 1:1000 |
 GBPCAD British Pound Vs Canadian Dollar | 0.28 | 0.25 | 1:1000 |
 GBPCHF British Pound Vs Swiss Franc | 0.35 | 0.33 | 1:1000 |
 GBPJPY British Pound Vs Japanese Yen | 0.31 | 0.27 | 1:1000 |
 GBPUSD British pound Vs U.S. Dollar | 0.18 | 0.15 | 1:1000 |
 GBPAUD British pound Vs Australian Dollar | 0.38 | 0.36 | 1:1000 |
 GBPNZD British Pound Vs New Zealand Dollar | 0.29 | 0.26 | 1:1000 |
 NZDCAD New Zealand Dollar Vs Canadian Dollar | 0.30 | 0.28 | 1:1000 |
 NZDCHF New Zealand Dollar Vs Swiss Franc | 0.24 | 0.20 | 1:1000 |
 NZDJPY New Zealand Dollar Vs Japanese Yen | 0.29 | 0.27 | 1:1000 |
 NZDUSD New Zealand Dollar Vs U.S. Dollar | 0.23 | 0.20 | 1:1000 |
 USDCAD U.S. Dollar Vs Canadian Dollar | 0.22 | 0.20 | 1:1000 |
U.S. Dollar Vs Swiss Franc | 0.27 | 0.24 | 1:1000 |
 USDHKD U.S. Dollar Vs Hong Kong Dollar | 0.30 | 0.28 | 1:1000 |
 USDJPY U.S Dollar vs Japanese Yen | 0.22 | 0.20 | 1:1000 |
U.S. Dollar Vs Singapore Dollar | 0.31 | 0.29 | 1:1000 |
 USDTRY U.S. Dollar Vs Turkish lira | 4.90 | 4.70 | 1:1000 |
| Symbol | Average Spread (pips) | Spread As Low As (pips) | Max Leverage |
|---|---|---|---|
 AUDCAD Australian Dollar Vs Canada | 0.11 | 0.08 | 1:1000 |
| AUDCHF Australian Dollar Vs Swiss Franc | 0.10 | 0.07 | 1:1000 |
| AUDJPY Australian Dollar Vs Japanese Yen | 0.15 | 0.13 | 1:1000 |
 AUDNZD Australian Dollar Vs New Zealand Dollar | 0.13 | 0.10 | 1:1000 |
| AUDUSD Australian Dollar Vs U.S. Dollar | 0.08 | 0.07 | 1:1000 |
| CADCHF Canadian Dollar Vs Swiss Franc | 0.10 | 0.09 | 1:1000 |
| CADJPY Canadian Dollar Vs Japanese Yen | 0.11 | 0.09 | 1:1000 |
| CHFJPY Swiss Franc Vs Japanese Yen | 0.16 | 0.14 | 1:1000 |
| EURAUD Euro Vs Australian Dollar | 0.15 | 0.13 | 1:1000 |
| EURCAD Euro Vs Canadian Dollar | 0.12 | 0.09 | 1:1000 |
| EURCHF Euro Vs Swiss Franc | 0.10 | 0.08 | 1:1000 |
| EURGBP Euro Vs British Pound | 0.08 | 0.07 | 1:1000 |
 EURJPY Euro Vs Japanese Yen | 0.06 | 0.05 | 1:1000 |
 EURNZD Euro Vs New Zealand | 0.13 | 0.11 | 1:1000 |
 EURSGD Euro Vs Singapore Dollar | 0.12 | 0.09 | 1:1000 |
 EURTRY Euro Vs Turkish Lira | 50.20 | 50.00 | 1:1000 |
 EURUSD Euro Vs U.S Dollar | 0.02 | 0.01 | 1:1000 |
| GBPAUD British Pound Vs Australian Dollar | 0.14 | 0.12 | 1:1000 |
| GBPCAD British Pound Vs Canadian Dollar | 0.10 | 0.08 | 1:1000 |
| GBPCHF British Pound Vs Swiss Franc | 0.13 | 0.11 | 1:1000 |
 GBPJPY British Pound Vs Japanese Yen | 0.18 | 0.15 | 1:1000 |
| GBPNZD British Pound Vs New Zealand Dollar | 0.22 | 0.18 | 1:1000 |
| GBPUSD British pound Vs U.S. Dollar | 0.08 | 0.06 | 1:1000 |
| NZDCAD New Zealand Dollar Vs Canadian Dollar | 0.13 | 0.11 | 1:1000 |
 NZDCHF New Zealand Dollar Vs Swiss Franc | 0.10 | 0.08 | 1:1000 |
 NZDJPY New Zealand Dollar Vs Japanese Yen | 0.10 | 0.08 | 1:1000 |
 NZDUSD New Zealand Dollar Vs U.S. Dollar | 0.07 | 0.05 | 1:1000 |
 USDCAD U.S. Dollar Vs Canadian Dollar | 0.06 | 0.04 | 1:1000 |
 USDCHF U.S. Dollar Vs Swiss Franc | 0.10 | 0.08 | 1:1000 |
| USDHKD U.S Dollar Vs Hong Kong Dollar | 0.15 | 0.13 | 1:1000 |
 USDJPY U.S Dollar Vs Japanese Yen | 0.03 | 0.02 | 1:1000 |
 USDSGD U.S Dollar Vs Singapore Dollar | 0.07 | 0.05 | 1:1000 |
 USDTRY U.S Dollar to Turkish lira | 3.88 | 3.70 | 1:1000 |
| Symbol | Average Spread (pips) | Spread As Low As (pips) | Max Leverage |
|---|---|---|---|
| AUDCAD Australian Dollar Vs Canada | 0.11 | 0.08 | 1:1000 |
| AUDCHF Australian Dollar Vs Swiss Franc | 0.10 | 0.07 | 1:1000 |
| AUDJPY Australian Dollar Vs Japanese Yen | 0.15 | 0.13 | 1:1000 |
| AUDNZD Australian Dollar Vs New Zealand Dollar | 0.13 | 0.10 | 1:1000 |
| AUDUSD Australian Dollar Vs U.S. Dollar | 0.08 | 0.07 | 1:1000 |
| CADCHF Canadian Dollar Vs Swiss Franc | 0.10 | 0.09 | 1:1000 |
| CADJPY Canadian Dollar Vs Japanese Yen | 0.11 | 0.09 | 1:1000 |
| CHFJPY Swiss Franc Vs Japanese Yen | 0.16 | 0.14 | 1:1000 |
| EURAUD Euro Vs Australian Dollar | 0.15 | 0.13 | 1:1000 |
| EURCAD Euro Vs Canadian Dollar | 0.12 | 0.09 | 1:1000 |
| EURCHF Euro Vs Swiss Franc | 0.10 | 0.08 | 1:1000 |
| EURGBP Euro Vs British Pound | 0.08 | 0.07 | 1:1000 |
| EURJPY Euro Vs Japanese Yen | 0.06 | 0.05 | 1:1000 |
| EURNZD Euro Vs New Zealand | 0.13 | 0.11 | 1:1000 |
| EURSGD Euro Vs Singapore Dollar | 0.12 | 0.09 | 1:1000 |
| EURTRY Euro Vs Turkish Lira | 50.20 | 50.00 | 1:1000 |
| EURUSD Euro Vs U.S Dollar | 0.02 | 0.01 | 1:1000 |
| GBPAUD British Pound Vs Australian Dollar | 0.14 | 0.12 | 1:1000 |
| GBPCAD British Pound Vs Canadian Dollar | 0.10 | 0.08 | 1:1000 |
| GBPCHF British Pound Vs Swiss Franc | 0.13 | 0.11 | 1:1000 |
| GBPJPY British Pound Vs Japanese Yen | 0.18 | 0.15 | 1:1000 |
| GBPNZD British Pound Vs New Zealand Dollar | 0.22 | 0.18 | 1:1000 |
| GBPUSD British pound Vs U.S. Dollar | 0.08 | 0.06 | 1:1000 |
| NZDCAD New Zealand Dollar Vs Canadian Dollar | 0.13 | 0.11 | 1:1000 |
| NZDCHF New Zealand Dollar Vs Swiss Franc | 0.10 | 0.08 | 1:1000 |
| NZDJPY New Zealand Dollar Vs Japanese Yen | 0.10 | 0.08 | 1:1000 |
| NZDUSD New Zealand Dollar Vs U.S. Dollar | 0.07 | 0.05 | 1:1000 |
| USDCAD U.S. Dollar Vs Canadian Dollar | 0.06 | 0.04 | 1:1000 |
| USDCHF U.S. Dollar Vs Swiss Franc | 0.10 | 0.08 | 1:1000 |
| USDHKD U.S Dollar Vs Hong Kong Dollar | 0.15 | 0.13 | 1:1000 |
| USDJPY U.S Dollar Vs Japanese Yen | 0.03 | 0.02 | 1:1000 |
| USDSGD U.S Dollar Vs Singapore Dollar | 0.07 | 0.05 | 1:1000 |
| USDTRY U.S Dollar to Turkish lira | 3.88 | 3.70 | 1:1000 |
Important
1. Swaps values may be adjusted daily based on market conditions and rates provided by our Price Provider applicable to all open positions. Triple swaps are applied every Wednesday.
2. Server Times: Winter: GMT+2 and Summer: GMT+3 (DST) (last Sunday of March and ends last Sunday of October).
3. During the time period from 23:55 to 00:05 server time, increased spreads and decreased liquidity can take place due to daily bank rollover. In case of inadequate liquidity/spreads during bank rollover, widened spreads and excessive slippage may occur. Therefore, orders may not be executed during these times.
Calculating Forex Margin Requirements – Example
Account Leverage: 1:400
Account base currency: USD
Position: Open 10 lots BUY EURUSD at 1.21745
1 Lot size: 100,000 units
Notional value is: 10 × 100,000 × 1.21745 = 1,217,450 USD
Margin required is: 1,217,450 USD ÷ 400 = 3,043.63 USD
What is Forex trading?
FX trading is the buying and selling of currencies with the aim of making a profit. Currencies are traded in pairs – the first currency listed in a forex pair is called the ‘base’ currency while the second currency is called the ‘quote’ currency.
The EUR/USD (Euro/US Dollar) is the most traded currency pair in the world. The example below involves buying the Euro and selling the US dollar. In other words, the price represents the amount of US dollars that can be exchanged for one Euro.
EUR/USD = 1.2500
The FX market is open 24 hours a day, five days a week and traded online with price quotes changing constantly. This is due to a variety of factors such as interest rates, market factors and geopolitical risks that affect supply and demand for currencies.
As the largest and most-traded financial market in the world, foreign exchange offers ample opportunities for those who want to experience the highest volumes and liquidity.
At HotForex we offer Derivatives on Forex on a wide variety of currency pairs with exceptional trading conditions such as tight spreads and fast execution. Open a forex trading account and use our powerful trading platforms and professional tools to trade today’s markets with the advantage of tomorrow’s cutting-edge technology!