Forex Trading

How does Forex CFD Trading work?

Open 24 hours a day 5 days a week, the foreign exchange market is the largest and most liquid market in the world with volumes of over $4 trillion a day surpassing any exchange based market.

Forex CFD trading is similar to trading CFDs on shares or futures except that when trading forex CFDs you are buying or selling one currency against another and you do not take delivery of the underlying currency. One of the key advantages Forex CFDs have over CFDs on other financial instruments is that relatively small lot sizes can be traded - lot sizes can be as small as 1000 units (one micro lot). Typically, Forex CFD trading also involves leverage which in some cases can be as high as 1:30, which is very different to trading shares where no leverage is involved.