The foreign exchange (Forex) market is the largest and most liquid financial market globally, with participants trading currencies across international markets around the clock. Forex trading involves exchanging one currency for another at an agreed exchange rate, offering opportunities in both rising and falling markets.
With global accessibility, high liquidity, and continuous trading hours, Forex remains one of the most actively traded financial markets worldwide.
Forex trading takes place in an over-the-counter (OTC) market, meaning transactions are conducted directly between participants rather than through a centralized exchange. Trades are typically settled on a spot basis, allowing traders to enter buy or sell positions based on market movements without fixed maturity dates.
This flexibility enables traders to respond quickly to global economic events and market volatility.
Forex is traded through a global network of financial institutions and liquidity providers. As an OTC market, trading is not limited to a single exchange, allowing continuous price discovery and broad market participation.
This structure enables traders to access the market at any time during trading hours and provides opportunities to trade both long and short positions without restrictions.
Forex prices are typically quoted to five decimal places, with the exception of Japanese Yen currency pairs, which are quoted to three decimal places. This pricing format enhances accuracy and transparency when viewing market movements.
Spreads may vary depending on market conditions, liquidity, and volatility.
The Forex market operates 24 hours a day, 5 days a week, while the Precious Metals market operates 23 hours a day, 5 days a week.
Trading is continuous during standard market hours. When the market is closed, clients will not be able to place trades, stops, or limit orders.
| Server Time (GMT +2) | Trading Schedule |
|---|---|
| Forex Market | Open from Sunday 23:00 |
| Forex Market | Close on Friday 23:00 |
Lot Size Specifications
Standard Lot: 100,000 units of the base currency
Minimum Trade Size: 0.01 lot (1,000 units)
Maximum Trade Size: Subject to market liquidity and trading conditions
Trades above the minimum size may be placed in fractional increments.
Profit and loss calculations are automatically converted into the account’s base currency using the prevailing exchange rate at the time of settlement.
Margin is the amount of capital required to open and maintain a trading position. It acts as a performance bond rather than a transaction cost.
The margin requirement is calculated using the following formula:
Margin = (Lot Size × Contract Size × Opening Price) ÷ Leverage
With 100:1 leverage, a trader may control a $100,000 position with $1,000 margin.
With 200:1 leverage, the same position would require $500 margin.
Higher leverage increases market exposure but also increases risk.
A margin call occurs when account equity falls below the required margin level. Traders may be required to deposit additional funds or reduce open positions to maintain sufficient margin.
If account equity continues to decline and reaches the stop-out level, positions may be closed automatically to prevent further losses. Stop-out thresholds are designed to protect traders from excessive negative balances.
Margin call and stop-out levels may vary depending on account type and trading conditions.
Swaps, also known as rollover interest, are applied when a position is held overnight. They reflect the interest rate differential between the base currency and the quote currency of a trading pair.
Forex trades are typically settled on a spot basis, with rollover adjustments applied daily at the end of the trading session.
Positions held overnight from Friday to Monday may incur a triple swap charge to account for weekend interest when markets are closed.
Swap rates are subject to change based on market conditions and interest rate differentials.
Forex and CFD trading involves a high level of risk and may not be suitable for all investors. Leverage can amplify both gains and losses, and you may lose more than your initial investment. Before trading, please ensure you fully understand the risks involved and consider your financial situation, experience level, and investment objectives. Past performance does not guarantee future results.
Forex trading and CFDs are leveraged trading products. You may lose your original account principal or a considerable amount of investment capital. Leveraged trading involves high risk and may not be suitable for all investors. Therefore, carefully consider your investment objectives, investment experience, source of funds, risk tolerance, and other relevant circumstances. Before engaging in any transactions with your chosen broker, please carefully read and understand their risk disclosure policy. The information on this website is not directed at residents of the United States, Belgium, Cambodia, Hong Kong, New Zealand and the United Kingdom; nor is it intended for distribution or use by any person in any country or jurisdiction where the publication or use of such information would be contrary to local laws or regulations.
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