Foreign Exchange Trading is the simultaneous buying of one currency and selling of another currency. Foreign exchange is often referred to as Forex or FX. Forex trading is conducted in the over-the-counter market and is the world’s most traded market.
Forex is traded on margin. Margin is the amount of capital required to be deposited with a broker before engaging in margin transactions. Leverage, also known as gearing, allows you to hold a position greater in value than that of your equity. For example, if you are required to have 0.5% of the value of a position, this would be 200 times leverage on your investment. Our Product Listing includes maximum leverage per contract.
For Forex trading, financing is applicable to spot (cash) positions held overnight. With Forex financing, if the first named currency has a higher interest rate, then you are typically credited the financing for having a long position and debited for having a short position. Likewise, if the first named currency has a lower interest rate, then you are normally debited financing for holding a long position and credited for having a short position.
Risk management is an essential part of Forex trading. WWM offers various Risk Management features and types of orders to help traders execute in the Forex markets. One should study the basics and learn Forex trading through a demo account. Trading in Forex involves various strategies, including fundamental analysis, technical analysis, and model trading, and Forex industry-specific terms.