What is forex trading?

Forex, also known as foreign exchange or FX trading, is the conversion of one currency into another. It is one of the most actively traded markets in the world, with an average daily trading volume of $5 trillion. Start trading today.

What is a forex CFD?

A forex CFD is a contract in which you agree to exchange the difference in price of a currency pair from when you open your position to when you close it. Open a long position, and if the currency pair increases in price you’ll make a profit. If it drops in price, you’ll make a loss. Open a short position, and the opposite is true.

What makes the forex market unique?

The forex market is unique for several reasons, the main one being its size. Trading volume is generally very large. As an example, trading in foreign exchange markets averaged $6.6 trillion per day in 2019, according to the Bank for International Settlements (BIS). This exceeds global equities (stocks) trading volumes by roughly 25 times.

Which country regulates forex trades?

Europe is the largest market for forex trades. The Financial Conduct Authority (FCA) monitors and regulates forex trades in the United Kingdom. Which Currencies Can I Trade in?