Forex trading uk is a popular way to profit from the movement of different currencies. It is not without risk, however, and it requires a solid understanding of the market, effective trading strategies, discipline and proper money management to achieve consistent profits.
When you trade forex, you aren’t actually exchanging one currency for another (like you might at a foreign exchange desk when traveling). Instead, you are speculating on the future direction of currency pairs. You buy currencies that you expect to rise in value, and sell currencies that you anticipate will fall in value.
Navigating Forex Trading: Finding the Best Forex Trading Broker
Traders use leverage to control positions that are larger than their own capital. The amount of margin required varies between brokers and depends on market conditions. For example, during periods of extreme market volatility, forex brokers may increase the margin requirements for certain currency pairs.
FX prices are influenced by a variety of factors from across the globe. Economic news, employment figures and housing data have a direct impact on the market, as do political events such as elections or speeches by central bankers. Natural disasters and terrorist attacks also have the potential to move the market.
City Index offers more than 80 forex pairs to choose from, including major pairs like EUR/USD and GBP/USD, as well as minor and exotic pairs. Once you’ve funded your account, the next step is to pick a strategy and decide which currency pairs to focus on. Many traders begin with a few of the major pairs, such as EUR/USD or USD/JPY, and build from there.