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What is Forex Trading

Forex trading - sometimes known as FX trading - is the widely used term for foreign exchange trading. This form of trading is based upon the fluctuations of currency values and their value respective to each other, such as Sterling to the Euro, for example, or the Australian Dollar to the US Dollar.


The exchange rates of currencies constantly shift as the markets respond to global events. Economic growth figures and geopolitical crises are just two out of many different examples of factors that have the potential to influence currency markets.


Every day between $3 and $5 trillion on average is traded on Forex, with the possibility of extreme volatility in the world’s currency markets making for a thrilling form of trading


Leveraged Trading

Forex trading utilises leverage, allowing currency market investors to only deposit a small percentage of the value of the position they wish to take. ETX offers leverage of up to 400:1 in certain circumstances for certain currency pairings, including EUR/USD, USD/CHF and EUR/GBP.

The use of leverage allows traders to potentially make a much larger profit if the market responds in the way they expect. Yet should the market move in the opposite direction that the trader expected, they stand to lose not just their stake but potentially much more, meaning that increasing leverage also increases the risk involved in a trade.

Forex trading throughout the day


It’s always day time somewhere in the world, which means that it’s also always trading time somewhere. From Sunday night 5PM Eastern time right through to the same time on Friday evening the world’s Forex markets are ready and open for business across the globe. This 24-hour trading culture, combined with fast-paced markets, ensures that Forex trading is an exciting prospect.

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