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