What is Forex ?

Foreign exchange, or Forex, is the buying and selling of currencies in order to make a profit from their changing values. With over $5 trillion traded daily, it's the world's largest market and has high liquidity. This makes it attractive to both beginner and experienced traders

The Forex Market

The Forex market is the most liquid market in the world, with an estimated $6 trillion traded each day. This high liquidity allows for buyers to purchase any currency at any time during the market's open hours. The Forex market is open 24/5, spanning from Monday morning in Australia to Friday night in the US. Trading begins with the opening of the Australian market and goes around the globe, ending with the close of the cryptocurrency market on Saturday night. The foreign exchange market has different start and end times depending on the season. During the summer, it starts on Sunday at 9:00pm GMT and ends on Friday at 9:00pm GMT. In the winter, it’s 10:00pm-10:00pm accordingly. This allows currencies to be traded at all times of the day or night. In contrast to other markets, there are always buyers and sellers in the foreign exchange market

Currency Pairs

There are hundreds of currencies in the world, each identified by a three letter symbol. For instance, the American Dollar is USD, Euros are EUR, Swiss Francs are CHF, and British Pounds are GBP. There are two main types of currency – major and minor currencies. The major currencies originate from some of the most powerful economies in the world, including the US, Japan, the UK, the Eurozone, Canada, Australia, Switzerland and New Zealand. These currencies are paired against one another to see how they compare. If, for instance, the GBP rises in value against the USD, then the USD falls in value. When purchasing products for our household, we are essentially exchanging one valuable asset for another. For example, when we trade currency, we buy or sell one currency for the other. The currencies in a pair are often referred to as “one against the other”. There are three types of forex pairs: Major pairs, Minor pairs and Exotic pairs. The Major pairs always involve the USD, and are the most traded ones; the seven major pairs are EURUSD, USDJPY, GBPUSD, USDCAD, USDCHF, AUDUSD and NZDUSD. In the Minor pairs, the major currencies are traded between each other, excluding the USD; these can be EURGBP, GBPJPY and others. The exotic

Forex Trading Basic Terms

The most popular currency pair is the Euro vs. the American Dollar, or EURUSD. The base currency is the one on the left, and we wish to buy or sell it; the secondary currency is on the right. Each pair has two prices – the price for selling the base currency (ask) and a price for buying it (bid). The difference between them is called a spread, and represents the amount brokers charge to open the position. The more a currency is traded, i. The wider the spreads will be for a rarer pair, as this usually signifies low liquidity and increased volatility. The increased risk involved with this volatility is why the spreads are typically wider for rarer pairs. The quotation format is used to indicate the price of a security or currencyAny change in a currency's value is typically reflected on the fourth decimal place (the "pip"). Spreads, profits and losses are generally expressed in pips. Some key terms to be aware of in online forex trading include ‘Going long’ and ‘Going short’, which respectively refer to ‘buying’ and ‘selling’. A trader who believes that the market will rise is called a ‘Bullish Trader’ – imagine a bull charging ahead aggressively. On the other side stands the ‘Bearish Trader’, who is more on the defensive side – imagine a bear hiding in the A bull market is a period of time in which stock prices are rising, while a bear market refers to when stock prices are decreasing. Experienced traders will adapt their trading strategies depending on the market trend, and stay apprised of all relevant events so that they can speculate on the market's movement correctly. However, losses are an ever-present possibility, which is why traders must never invest more than they can afford to lose. Traders in the past would call their brokers to give them instructions on how to trade. However, with the advent of trading platforms, clients can now conduct trades directly on the software. There are many different trading platforms available, including ones that can be accessed through a computer desktop, internet browser, or mobile/tablet device. As a trader, it is important to develop your own trading strategy and find a platform that will enable you to execute it in the most effective way possible

What affects the Forex Market?

The forex market has high liquidity, due to an elevated supply and demand rate. Traders apply transactions based on financial events, as well as general events. Naturally, when a currency will be on a high demand, its value will raise comparing to the other currencies, and vice versa. Financial events are statements or data releases made by countries, central banks or other financial institutions, on topics such as the unemployment rate, manufacturing numbers, consumer spending and many more. Prior to these figures being releases, investors release their anticipated figures. If the release exceeds expectation, this can push up the price of the relevant assets. However, if the release falls below expectation than this can push down the price of the asset lined to the data. For instance a decrease in a country’s unemployment rate can indicate that the economy is strong, and this can lead to an increase of the local currency. If it’s a major one it will affect other currencies as well. Before the event takes place traders speculate on its content, and based on these speculations open positions. All the events can be seen and followed on the economic calendar

Why Trade Forex with ?

When trading forex, as well as any other instrument, you must be able to trade with confidence. Profits can never be guaranteed, and any type of trading has its advantages and disadvantages, as well as the risk of losing funds. At we are committed to a set of values which define our relationship with our customers. As such, we provide the best trading experience possible, offering level multilingual customer service and the most advanced and user-friendly trading platforms, as well as the unique risk- limiting tool AvaProtect. You can also use our teaching materials in the education tab on out site. You will find there a wide collection of articles, video tutorials and many more tools that will assist you every step of the way. We know trading might be a bit overwhelming and even scary at times, but we do all we can to make sure you are fully prepared to begin trading in the real world. These tools and many others allow you to trade comfortably and know that Spotchain has your back. Everything we provide is to the highest possible level, and we go to great measures to constantly innovate and improve them for you.