Foreign Exchange is the buying of one currency and selling of another. it's really quite simple if you remember two things: 1) The first currency listed is the base currency and 2) the value of the base currency is always 1. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). The Forex market is considered an Over The Counter (OTC) due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as with the stock and futures markets. Trade on dealing spreads as low as 1-2 pips on the most widely traded currency pairs. What is a pip? In the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the fourth decimal point, which is 1/100th of 1% in Forex. The major currencies, the only exception to that rule is the Japanese yen. In USD/JPY, the quotation is only taken out to two decimal points
In Forex, the risk is only limited to funds on deposit. Because there are no margin calls in forex trading, for your protection we will automatically close out all of your open positions if your account equity falls below the required margin level. Think of this as a final, automatic stop. Trade on spreads as low as 1-2 pips on the most widely traded currencies. As always, you pay no commissions at Forex, only the bid/offer spread. Our fractional pip pricing is the most precise quoting currently available to Forex traders anywhere and is designed to help you take advantage of smaller price movements, more info here
In Forex, the risk is only limited to funds on deposit. Because there are no margin calls in forex trading, for your protection we will automatically close out all of your open positions if your account equity falls below the required margin level. Think of this as a final, automatic stop. Trade on spreads as low as 1-2 pips on the most widely traded currencies. As always, you pay no commissions at Forex, only the bid/offer spread. Our fractional pip pricing is the most precise quoting currently available to Forex traders anywhere and is designed to help you take advantage of smaller price movements, more info here
