Forex
Forex Exchange
The forex exchange market is the number one and the largest financial market with an average daily turnover of $5.5 trillion in the world. It is traded by speculating on the value of one currency compared to another.
Why trade FX?
- Flexibility: 24-hour market and you can trade any time anywhere in the world
- Transparency: an average daily trading volume of $5.5 trillion and no one can corner the market
- Lower transaction costs: no commissions charged and only the spreads applicable
- Leveraged trading: maximise the utilisation of your funds
- Go long or short: no bear market in FX
Why trade with Capstone? Lower spreads • Leverage up to 400:1 • Institutional grade trade execution
How to trade FX?
Forex trading is essentially the buying of one currency and the simultaneous selling of another. Therefore when trading currencies we will always see them quoted in pairs.
There are three kinds of currency pairs:
- Major currency pairs: all contain the US Dollar on one side – either on the base side or quote side. They are the most frequently traded pairs in the forex market, for instance, EUR/USD.
- Cross-currency pairs: Currency pairs that do not contain the US Dollar are known as cross-currency pairs or simply “crosses”. The most active crosses are derived from the three major non-US dollar currencies (EUR/JPY and GBP/JPY).
- Exotic currency pairs: they are made up of a major currency paired with the cur-rency of an emerging or a strong but smaller economy from a global perspective such as Hong Kong or Singapore and European countries outside of the Euro Zone, for instance EUR/TRY.