Forex
Market Overview
- The foreign exchange market (Forex or FX) involves trading currency pairs, where one currency is exchanged for another.
- Traders can use leverage to amplify potential profits (or losses).
- Economic policies and interventions by central banks impact currency values.
- All forex trading transactions combined make up the largest and most liquid financial market, with an average daily volume of over $5 trillion.
- Forex operates 24 hours a day, five days a week, due to global time zone differences.
How can we help you?
FX is quoted in pairs, with each representing a global currency or economy. The first currency is called the ‘base’ currency (representing the volume you wish to trade) and the second is called the ‘term’ or ‘quote’ currency (representing the current exchange rate). You speculate on currency price movements to make a profit from the difference.
Forex Categories
The Forex market consists of many types of markets, including
- Spot FX
- Future derivatives
- Forward derivatives
- CFD derivatives (most popular)
Risk Factors
In forex trading, the spot price of a currency pair is influenced by several factors, such as
- The economic outlook of the country
- Geopolitical events in that region
- Positive or negative news data about the markets
💡What Are Forex CFDs?
Contracts for difference (CFDs), allow traders to buy (go long) or sell (go short), and make a profit or loss from price movements, without having to physically purchase and exchange the underlying currency.
The FX CFDs market is made up of buyers and sellers, the main participants being large international banks, who place orders via electronic trading systems.
This market is traded over-the-counter (OTC) (not traded on any regulated exchange). Hence, there is no uniform price. The main international banks provide their unique quotes with the spot market as the point of reference for the quotes provided.
With AdamCapitals, you can trade CFDs on 70+ FX pairs and benefit from tight spreads and fast order execution.
Choose AdamCapitals For Forex Trades
40+
Tradable currency pairs
8
Funding Options
<0.2 pip
Ultra-low spreads
7,000 orders
every second
<14 ms
Execution Speed
24X5
Dedicated expert support
Forex Market Insights
FX is quoted in pairs, with each representing a global currency or economy. The first currency is called the ‘base’ currency (representing the volume you wish to trade) and the second is called the ‘term’ or ‘quote’ currency (representing the current exchange rate). You speculate on currency price movements to make a profit from the difference.
Start Forex Trading
Trade 40+ currency pairs including major, minor, and cross pairs with ultra-low spreads and immediate execution.