What is forex trading and how does it work.

Forex trading meaning Foreign exchange, also known as forex or FX, is the exchange of different currencies on a decentralized global market. It’s one of the largest and most liquid financial markets in the world. Forex trading involves the simultaneous buying and selling of the world’s currencies on this market.

Foreign exchange rates between different currency pairs show the rates at which one currency will be exchanged for another. It plays a vital role in foreign trade and business as products or services bought in a foreign country must be paid for using that country’s currency. You can trade currency pairs via forex spread betting or through CFDs.

LEVERAGE AND MARGIN TRADING

Many trading platforms offer leverage, or access to margin when opening positions. Forex margins are typically in the form of a ratio, such as 30:1. With a margin of 30:1, for instance, a trader has access to 30 times more than the required deposit to open a trade. In essence, he/she can control $45,000 with only $1500 in his/her account.

The majors and the commodity

The majors and the commodity pairs are the most liquid and most widely traded currency pairs in the forex market. These pairs and their combinations (EUR/JPY, GBP/JPY and EUR/GBP) make up the vast majority of all trading on the forex. Due to the fact they attract the largest volume of buyers and sellers, spreads are typically the tightest.

• Majors: EUR/USD, USD/JPY, GBP/USD, USD/CHF
• Commodity Pairs: AUD/USD, USD/CAD, NZD/USD

However, there are other currency pairs that allow you to take advantage of macroeconomic events in specific international markets, such as the USD/MXN (US Dollar/Mexican Peso).

Forex Trading Platforms

fxpro.uk offers a free forex trading account with no initiation fees or monthly account fees.

Kindly check the Legal Documents section on About Us page, where you will find a complete list of required documents per country to open an account.

Note that all documents should be clear and provided in color where applicable. Both the front and the back of any submitted cards or identification documents must be scanned and submitted together.

If you experience difficulty with the application or document uploading process, or are unable to provide certain documents, kindly contact our client services department for assistance. In certain cases, possible alternatives may be offered.