FX or Forex describes the Foreign Exchange Market, a marketplace where the world’s various currencies are traded. Its huge volume and fluidity made the Forex market the largest and most significant financial market in the world, with well over $4 trillion traded daily which is almost 10 times larger than the stock market. Due to the fact that forex currency trading has no centralised marketplace, currencies can be traded in whatever market is open at any given time, creating a great opportunity for traders to buy and sell currencies around the clock 24 hours a day, 5 days a week with the exception of weekends.
Uniglobemarkets offers its clients one the most advanced forex trading platform enabling you to trade currency pairs ranging from majors to exotic pairs. Our team of specialists is fully trained to offer any trading platform assistance required and assist with setting up an account for you.
Discover the currency markets for yourself today by simply opening up an account with us, or contact us for further information.
Forex Trading Example
Opening the Position
Opening price of the EURO against the US Dollar (EUR/USD) is 1.25412
You decide to sell 1 standard lot (the equivalent of $100,000) at 1.25412.
Margin required to open the position is USD $125,412/300 = USD $418.04.
Closing the Position
Closing price of the EURO against the US Dollar (EUR/USD) is 1.24323
One week later the EURO has fallen against the US Dollar to 1.24323, you decide to take your profit by closing your selling position.
Market movement = 1.25412 – 1.24323 = 1089 points =108.9 pips
1 pip of EUR/USD (per 1 lot) = $10
Gross profit on Trade = USD $10*108.9 = USD $ 1,089