Margin Forex Trading

What is margin Forex trading?

forexThe foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading of currencies. To start trading margin FX, you need to open a trading account with margin FX provider. There is no physical currency convertion while you trade margin FX. You are only speculating the exchange rate differences.

The main participants in this market are the large banks, financial institutions, import & export organisations, retail & wholesale investors. Financial centres around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.

Features of Forex Trading

24-Hour Market

forex-24-hoursForex trades can be made 24 hours a day, 5 days a week. It starts Monday morning and finishes Saturday morning.

High Liquidity

low-transaction-costsWith daily turnover exceeding 5.3 trillion USD, forex market is exceptionally liquid. Making entering and exiting a trade is relatively simple. You will always have someone to trade on different directions. With massive corporations and central banks trading forex, the liquidity is deep.

Go long or go short

01-12Margin Forex has no centralized clearing house. It’s an OTC (over -the-counter) derivative trading instrument, retail traders can participate trading with their FX broker.  Retail investers can trade the price up or trade the price down. They can trade in any directions.

Leveraged Trading

01-32The margin FX is also trading on leverage. Traders can use samll perentage of fund to gain full control of the exposure. Leverage can work both ways. It can magnify your return if you traded the right direction. It can alao magnified your risk if you traded the wrong direction.

Risk Warning

Margin FX trading can be risky. It doesn’t have physical currency exchange. It is not suitable for all investors. Please ensure you fully understand the risks involved, including leverage, margin call and close out.  You can find details from our Product Disclosure Statement. You can also click here for detailed risks explanation.