Foreign exchange (also known as forex or FX) refers to the global, over-the-counter market (OTC) where traders, investors, institutions and banks, exchange speculate on, buy and sell world currencies.

Trading is conducted over the ‘interbank market’, an online channel through which currencies are traded 24 hours a day, five days a week. Forex is one of the largest trading markets, with a global daily turnover estimated to exceed US$5 trillion.

Forex Contract Specifications

TRADING HOURS – Monday to Friday GMT+2 time zone (please note DST may apply)
Symbols Name Minimum Spreads Swap Long Swap Short Stop Level
AUDUSD Australian Dollar vs US Dollar 0 2.39 -6.42 15
EURUSD Euro vs US Dollar 0 -3.68 -3.31 15
GBPUSD Great Britain Pound vs US Dollar 0 -4.67 -2.89 15
NZDUSD New Zealand Dollar vs US Dollar 0.1 2.18 -4.49 15
USDCAD US Dollar vs Canadian Dollar 0 -1.73 -0.54 15
USDCHF US Dollar vs Swiss Franc 0 -0.60 -1.99 15
USDJPY US Dollar vs Japanese Yen 0 -0.04 -5.74 15
AUDCAD Australian Dollar vs Canadian Dollar 0.3 1.95 -4.22 15
AUDCHF Australian Dollar vs Swiss Franc 0.2 3.83 -5.69 15
AUDJPY Australian Dollar vs Japanese Yen 0 2.90 -7.75 15
AUDNZD Australian Dollar vs New Zealand Dollar 0.2 -0.70 -1.00 15
AUDSGD Australian Dollar vs Singapore Dollar 1.6 -3.24 -3.00 15
CADCHF Canadian Dollar vs Swiss Franc 0.3 0.05 -2.44 15
CADJPY Canadian Dollar vs Japanese Yen 0 1.88 -4.07 15
CHFJPY Swiss Franc vs Japanese Yen 0 -1.16 -1.89 15
EURAUD Euro vs Australian Dollar 0 -6.06 -2.95 15
EURCAD Euro vs Canadian Dollar 0.4 -3.85 -2.05 15
EURCHF Euro vs Swiss Franc 0 0.01 -4.81 15
EURGBP Euro vs Great Britain Pound 0 -0.30 -2.71 15
EURJPY Euro vs Japanese Yen 0 0.30 -4.76 15
EURNZD Euro vs New Zealand Dollar 0.4 -13.24 2.33 15
GBPAUD Great Britain Pound vs Australian Dollar 0.8 -14.96 10.30 15
GBPCAD Great Britain Pound vs Canadian Dollar 0.6 -4.94 -0.55 15
GBPCHF Great Britain Pound vs Swiss Franc 0.8 -1.53 -3.57 15
GBPJPY Great Britain Pound vs Japanese Yen 0.4 -0.81 -3.68 15
GBPNZD Great Britain Pound vs Zealand Dollar 1.2 -13.99 5.50 15
NZDCAD New Zealand Dollar vs Canadian Dollar 1 0.18 -4.39 15
NZDCHF New Zealand Dollar vs Swiss Franc 0.5 1.05 -4.64 15
NZDJPY New Zealand Dollar vs Japanese Yen 0.3 2.59 -4.99 15
CHFSGD Swiss Franc vs Singapore Dollar 0 -11.68 1.00 15
EURCZK Euro vs Czech Koruna 10 -51.00 -3.00 15
EURHUF Euro vs Forint 4 -42.63 -46.50 15
EURMXN Euro vs Mexican Peso 14 -435.90 226.89 15
EURNOK Euro vs Norwegian Krone 6 -43.34 1.50 15
EURPLN Euro vs Polish Zloty 5 -35.42 4.20 15
EURSEK Euro vs Swedish Krone 6 -42.30 1.00 15
EURSGD Euro vs Singapore Dollar 1.1 -10.35 0.00 15
EURTRY Euro vs Turkish Lira 2 -355.25 52.85 15
EURZAR Euro vs South Africa Rand 2 -485.93 103.50 15
GBPNOK Great Britain Pound vs Norwegian Krone 6 1.04 -9.00 15
GBPSEK Great Britain Pound vs Swedish Krone 7 2.56 -15.00 15
GBPSGD Great Britain Pound vs Singapore Dollar 1.3 -8.46 -7.50 15
GBPTRY Great Britain Pound vs Turkish Lira 4 -1055.28 157.50 15
NOKJPY Norwegian Krone vs Japanese Yens 1.5 -1.50 -1.50 15
NOKSEK Norwegian Krone vs Swedish Krone 6 -1.17 -2.42 15
SEKJPY Swedish Krone vs Japanese Yen 6 -0.22 -0.19 15
SGDJPY Singapore Dollar vs Japanese Yen 1 -1.90 -4.50 15
USDCNH US Dollar vs Chinese Renminbi 6.4 -42.99 6.21 15
USDCZK US Dollar vs Czech Koruna 3 -137.32 -24.47 15
USDHKD US Dollar vs Hong Kong Dollar 0.1 -76.30 10.58 15
USDHUF US Dollar vs Forint 4 -8.71 -1.25 15
USDMXN US Dollar vs Mexican Peso 5 -687.29 214.79 15
USDNOK US Dollar vs Norwegian Krone 1.5 -15.58 -23.69 15
USDPLN EUS Dollar vs Polish Zloty 6 -23.67 -0.50 15
USDRUB US Dollar vs Russian Ruble 22 -1753.62 608.05 15
USDSEK US Dollar vs Swedish Krone 6 -15.69 -35.29 15
USDSGD US Dollar vs Singapore Dollar 0.5 -5.30 -6.30 15
USDTHB US Dollar vs Thai Baht 10 -384.19 -75.19 15
USDTRY US Dollar vs Turkish Lira 1.2 -286.74 21.95 15
USDZAR US Dollar vs South Africa Rand 10 -421.70 92.50 15
ZARJPY South Africa Rand vs Japanese Yen 1 29.26 -129.00 15

The spreads indicated here are minimum spread throughout the day. They tend to be narrower under normal market conditions. However, spreads may widen as a result of important news announcements, during political uncertainty, because of unexpected events that can lead to volatile market conditions, or at the close of the business day, or at the weekends when liquidity is lower. When you trade at our company, CK Markets is your counter-party. Your trades are matched and any next exposure above the predefined thresholds is hedged with our liquidity providers at the current market spread. However, during volatile and illiquid market conditions our liquidity providers quote spreads larger than normal. At such times, CK Markets is forced to pass on some of the spread increases to its clients.

If you leave an open position for the next trading day, you pay or you obtain the certain amount, calculated on the basis of interest rates difference of two currencies in currency pair. This operation is called “swap.” In the trading terminal, “swap” is automatically converted into the deposit currency. The operation is conducted at 00.00 (GMT+2 time zone, please note DST may apply) and can take several minutes. From Wednesday to Thursday swap is charged for three days.

About Forex Trading

Forex trading, or currency trading, or FX trading, as it can be also abbreviated, are all terms that describe the currency exchange market as we know it today, which in simple language refers to the global, decentralized marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

The current floating rates system, which we know today, was adopted after World War II and has been in effect ever since. Prior to the current forex trading rates system, a monetary management system called the Bretton Woods Agreement was in existence, in which the exchange prices of currencies against each other were tied and correlated to the reserves of gold in possession of the two countries that were the originators of the actual currencies related to a transaction.

Forex Trading Marketplace

The forex trading marketplace, as it stands today, is the world’s largest and most liquid market due to a number of factors which include, but are not limited to, ease of performing transactions over the internet, the modern development of travelling, ease of international communication and modern transportation, which have made our world a smaller place.

By making our world a smaller and more global place, this automatically means that people, goods and services can travel faster and more easily. This also means that a necessity of currencies to be traded against each other is needed in order for this to happen. All these factors have determined a growing forex trading marketplace, which will only continue to grow and become more dynamic, liquid and responsive.

Online Forex Trading

Among the main participants of the forex trading market, one of the most growing segments of the total pool of participants of the marketplace, are retail foreign exchange traders (individuals) who participate in online forex trading for mainly speculative reasons with the ultimate goal of generating a profit from currency fluctuations (market changes), or hedging unwanted currency risk.

This segment participates in the forex trading marketplace via a broker, or via a bank. In this case, the bank or the broker will issue the retail client a trading account that will be funded in a base currency (usually the local currency of the region where the client is domiciled), and the client will have the opportunity to buy and sell currencies both online and over the phone with the goal of deriving profit.

Forex Trading via a Broker

Participating in the forex trading marketplace via a broker like CK Markets means that the client receives access to real-time pricing of the forex marketplace and is quoted buy and sell prices for a number of instruments via an online trading platform (or via the phone). The client has the freedom to decide at which price they decide to buy or sell, and vice versa, and can execute a transaction at any time they wish.

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