Open 24 hours a day, from Sunday to Friday (EST), the foreign exchange or forex for short is the largest and most liquid market in the world with volumes of over 5 trillion a day surpassing any exchange based market.
Foreign exchange trading involves trading one currency pair against another, predicting that one currency will rise or fall against another. Currencies are traded in pairs, like the Euro versus the US Dollar (EUR/USD). This market empowers anyone to seize trading opportunities based on currency fluctuations.
Join Traders from around the world and take advantage of the superior trading conditions offered by GCI and become an active trader in the global markets today!
Facts
Forex
- 40 currency pairs
- Spreads starting from 0.0 pips
- Leverage up to 1:1000
- Deep liquidity
- Trade 24 hours a day, Sunday to Friday (EST)
WHAT IS FOREX TRADING?
Forex or FX, short for foreign exchange, is a decentralized global market where currencies are traded. The primary advantage of forex trading is that it allows individuals and institutions to seize trading opportunities on currency volatility. This is because the value of currencies is constantly changing in response to various economic and geopolitical factors, such as interest rates, inflation, political instability, and natural disasters.
Trading Forex CFDs involves buying and selling currencies to profit from exchange rate differences. For instance, if you think the US Dollar will rise against the Euro, you can buy US Dollars with Euros. If the US Dollar's value increases as predicted, selling your US Dollars later can yield more Euros than you initially spent, resulting in a profit.
Additionally, forex trading has several other advantages that make it attractive. One such advantage is leveraged trading, which means you can control a larger position with a smaller amount of capital. This can potentially amplify your profits, but it's important to remember that it also increases the risk of losses.
Another advantage is high liquidity, which means there are always buyers and sellers available, making it easier to enter and exit trades at your desired price.
Moreover, forex trading typically involves low transaction costs compared to other forms of trading, such as stocks or commodities. This means you can keep more of your profits instead of paying hefty fees.
The Forex Market: Trading Hours
If you are new to forex trading, you may probably ask yourself, "when is the forex market open?". First, it is important to realize that there are four separate trading sessions in the forex market. There are the Sydney, Tokyo, London and New York sessions. These individual sessions open and close at different times of the day during a 24 hour period. The Sydney session starts of the week at 17:00 EST on Sunday evening and the New York session closes the week at 17:00 EST on Friday evening.
Checkout the image below to see how the forex market sessions works out.
Note: The time shown in the image is EST TIME
You’ve probably noticed that there are overlaps between the sessions. For example, at 03:00 (EST) both the Tokyo and London sessions are open. This is what ensures that the forex market provides traders with 24-hour access to trade from Sunday Evening to Friday Evening (the market closes over the weekend).
Forex Trading Example
1. Opening the Position
The price of the EURO against the US DOLLAR (EUR/USD) is 1.07992/1.07994 and you decide to sell 3 standard lots (the equivalent of €300,000) at 1.07992.
2. Closing the Position
One week later the EURO has fallen against the US DOLLAR to 1.05344/1.05345 and so you decide to take the profit by buying back 3 standard lots at 1.05345.
3. The gross profit on your trade is calculated as follows
Opening Price
€300,000 x 1.07992 = USD $323,976
Closing Price
€300,000 x 1.05345 = USD $316,035
Gross Profit on Trade
$323,976 - $316,035 = $7,941
Forex Contract Specifications
| Foreign Exchange | Approximate Value of 1 Lot in $ | Tick Value per Lot | Trading Hours (EST / New York Time) | Margin (per Lot, in $) |
|---|---|---|---|---|
| EUR/USD | 100,000 | 0.0001 = $10 | 24 hours | $250 |
| USD/JPY | 100,000 | 0.01 = 10 | 24 hours | 250 |
| USD/CHF | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| GBP/USD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| USD/CAD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| AUD/USD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| EUR/JPY | 100,000 | 0.01 = 10 | 24 hours | 250 |
| EUR/GBP | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| EUR/CHF | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| GBP/CHF | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| GBP/JPY | 100,000 | 0.01 = 10 | 24 hours | 250 |
| EUR/CAD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| NZD/USD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| USD/SEK | 100,000 | 0.0001 = 1.70 | 24 hours | 250 |
| EUR/SEK | 100,000 | 0.0001 = 1.70 | 24 hours | 250 |
| USD/NOK | 100,000 | 0.0001 = 1.48 | 24 hours | 250 |
| EUR/NOK | 100,000 | 0.0001 = 1.48 | 24 hours | 250 |
| USD/ZAR | 100,000 | 0.0001 = 1.44 | 24 hours | 250 |
| USD/MXN | 100,000 | 0.0001 = 0.82 | 24 hours | 250 |
| CHF/JPY | 100,000 | 0.01 = 10 | 24 hours | 250 |
| NZD/JPY | 100,000 | 0.01 = 10 | 24 hours | 250 |
| AUD/JPY | 100,000 | 0.01 = 10 | 24 hours | 250 |
| CAD/JPY | 100,000 | 0.01 = 10 | 24 hours | 250 |
| EUR/AUD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| AUD/NZD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| AUD/CAD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| GBP/CAD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| GBP/NZD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| GBP/AUD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| AUD/CHF | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| CAD/CHF | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| NZD/CHF | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| USD/INR | n.a. | n.a. | 24 hours | n.a. |
| EUR/INR | n.a. | n.a. | 24 hours | n.a. |
| GBP/INR | n.a. | n.a. | 24 hours | n.a. |
| EUR/NZD | 100,000 | 0.0001 = 10 | 24 hours | 250 |
| USD/RMB | n.a. | n.a. | 24 hours | n.a. |
| USD/TRY | 100,000 | 0.0001 = 3.50 | 24 hours | 250 |
| EUR/TRY | 100,000 | 0.0001 = 3.50 | 24 hours | 250 |
| JPY/INR | n.a. | n.a. | 24 hours | n.a. |
Important:
- - Swap values may be adjusted daily based on market conditions and rates provided by our Price Provider(s).
- This is applicable to all open positions.
- Triple swaps are applied every Wednesday. - Server Times: Eastern Standard Time - Sunday 17:00 to Friday 16:00.
Example - Calculating Forex Margin Requirements:
| Account Leverage: | 1:400 |
| Account base currency: | USD |
| Account base currency: | Open 5 lots to BUY EURUSD at 1.07552 |
| 1 Lot size: | 100,000 units |
| Notional value: | 5 x 100,000 x 1.07552 = $537,760 |
| Margin required: | $537,760 / 400 = $1,344.40 |