Forex

The foreign exchange market is a worldwide, decentralized, over-the-counter market. It is the largest financial market in the world with a volume of over €4.5 trillion a day worldwide.

What is Forex Trading?

Forex trading, or FX trading, allows you to simultaneously buy or sell one currency against another across a decentralized, over-the-counter (OTC) global market, without the need to physically deliver the underlying currency.

It is one of the world’s largest and most liquid markets, trading around the clock from Sunday through to Friday, with a daily total average turnover exceeding €4.5 trillion.

One of the key benefits to FX trading is the ability to trade on margin, or leveraged trading, which signifies the ability to open larger trading positions with a relatively small initial deposit. Clients of M4Markets can use leverage that can be as high as 1:500.

How does Forex Trading work?

When trading in foreign currency pairs, traders speculate on whether the value of one currency will rise or fall against another currency, and decide to buy (go long) or sell (go short) accordingly.

Example 1: Buying EUR/USD

The price of the Euro (base currency) against the US Dollar (quote or counter currency) is 1.10429/1.10436.

You decide to buy €10,000 (go long) because you predict that the price of EUR/USD will rise. EUR/USD has a leverage of 1:200 (margin rate 0.5%), meaning that you can open a position worth up to 200 times more than the required deposit for the trade.

The price goes up during the day to 1.10503/1.10510, making your prediction an accurate one. At this point you decide to close your long position by selling at the current sell price of 1.10503, which is a movement 67 points (1.10503 – 1.10436) in your favor. You are left with a profit of $6.7 ((€10,000 x 1.10503) – (€10,000 x 1.10436)).

Example 2: Selling EUR/USD

The price of the Euro against the US Dollar is 1.10479/1.10486.

Recent news of political instability suggests that the price of the Euro will probably fall against that of the US Dollar in the near future, prompting you to sell (go short) €10,000. The EUR/USD leverage remains at 1:200.

The price falls during the day to 1.10453/1.10462, validating your prediction. At this point you decide to close your short position by buying at the current buy price of 1.10462, which has moved 17 points (1.10479 – 1.10462) in your favor. You are left with a profit of $1.7 ((€10,000 x 1.10479) – (€10,000 x 1.10462)).

Trading CFDs involves significant risk of loss

Why Trade Forex at M4Markets

Forex markets are highly liquid and offer clients a large number of pairs that they can trade. At M4Markets clients can trade in all the major currencies in one place.

Licenses and regulations

M4Markets is authorized and regulated by key authorities providing the highest level of client safety

Segregated Client Funds

M4Markets client funds are held in segregated trust accounts

Raw spreads from 0.0 pips

M4Markets offers interbank better spreads with no hidden fees

Ultra-fast execution

Instant execution with no slippage and no re-quotes

Symbols Specifications*

* For live spread and swap rates please refer to the trading platform

Forex Minimum Price Fluctuation Value of 1 Lot Pip Value Per 1 Lot Type of Currency Pair
AUDCAD 0.00001 100000 AUD 10 CAD Minor
AUDCHF 0.00001 100000 AUD 10 CHF Minor
AUDJPY 0.001 100000 AUD 1000 JPY Minor
AUDNZD 0.00001 100000 AUD 10 NZD Minor
AUDUSD 0.00001 100000 AUD 10 USD Major
CADCHF 0.00001 100000 CAD 10 CHF Minor
CADJPY 0.001 100000 CAD 1000 JPY Minor
CHFJPY 0.001 100000 CHF 1000 JPY Minor
EURAUD 0.00001 100000 EUR 10 AUD Minor
EURCAD 0.00001 100000 EUR 10 CAD Minor
EURCHF 0.00001 100000 EUR 10 CHF Major
EURCZK 0.00001 100000 EUR 10 CZK Minor
EURDKK 0.00001 100000 EUR 10 DKK Exotic
EURGBP 0.00001 100000 EUR 10 GBP Major
EURHUF 0.00001 100000 EUR 1000 HUF Exotic
EURJPY 0.001 100000 EUR 1000 JPY Minor
EURNOK 0.00001 100000 EUR 10 NOK Exotic
EURNZD 0.00001 100000 EUR 10 NZD Minor
EURPLN 0.00001 100000 EUR 10 PLN Exotic
EURRUB 0.00001 100000 EUR 10 RUB Exotic
EURSEK 0.00001 100000 EUR 10 SEK Exotic
EURTRY 0.00001 100000 EUR 10 TRY Exotic
EURUSD 0.00001 100000 EUR 10 USD Major
GBPAUD 0.00001 100000 GBP 10 AUD Minor
GBPCAD 0.00001 100000 GBP 10 CAD Minor
GBPCHF 0.00001 100000 GBP 10 CHF Minor
GBPJPY 0.001 100000 GBP 1000 JPY Minor
GBPNZD 0.00001 100000 GBP 10 NZD Minor
GBPUSD 0.00001 100000 GBP 10 USD Major
NZDCAD 0.00001 100000 NZD 10 CAD Minor
NZDCHF 0.00001 100000 NZD 10 CHF Minor
NZDJPY 0.001 100000 NZD 1000 JPY Minor
NZDUSD 0.00001 100000 NZD 10 USD Major
USDCAD 0.00001 100000 USD 10 CAD Major
USDCHF 0.00001 100000 USD 10 CHF Major
USDCNH 0.00001 100000 USD 10 CNH Exotic
USDCNY 0.00001 100000 USD 10 CNY Exotic
USDCZK 0.00001 100000 USD 10 CZK Minor
USDDKK 0.00001 100000 USD 10 DKK Exotic
USDHKD 0.00001 100000 USD 10 HDK Exotic
USDHUF 0.00001 100000 USD 1000 HUF Exotic
USDJPY 0.001 100000 USD 1000 JPY Major
USDMXN 0.00001 100000 USD 10 MXN Exotic
USDNOK 0.00001 100000 USD 10 NOK Exotic
USDPLN 0.00001 100000 USD 10 PLN Exotic
USDRUB 0.00001 100000 USD 10 RUB Exotic
USDSEK 0.00001 100000 USD 10 SEK Exotic
USDSGD 0.00001 100000 USD 10 SGD Exotic
USDTRY 0.00001 100000 USD 10 TRY Exotic
USDZAR 0.00001 100000 USD 10 ZAR Exotic
 

Trading with M4Markets

Experience exceptional trading conditions with a broker you can trust

Trading CFDs involves significant risk of loss