Forex/CFD Trading Guide

What are Forex/CFD?

Forex trading is exchanging a certain currency for another, generating profits or losses for the changes in the value of these currencies.

CFDs – contracts for difference, CFDs are a derivative product that a trader can trade on the difference between the prices on these assets.

Another benefit to forex trading is that anyone can participate with just a small initial investment.

There is a tradeoff however.

The small capital requirements in trading forex are due to the use of leverage when trading forex. For example, if the leverage used is 1:50, this means that an investor can control $5,000 worth of currencies with an investment of as little as $100.

While this can generate profits more rapidly, it can also lead to losses more rapidly and if the traders account is small they may soon find themselves the victim of a margin call and the loss of all their trading capital.

Trading on FX or CFD’s – This nature of trading can be risky and we recommend that our traders will make sure that they fully understand the commitment needed for trading.

The main advantage of trading on Forex and CFD’s is the volume involved and the non-stop liquidity (mainly in Forex) with a daily turnover, exceeding 5 trillion USD is active 24/5 and is extremely volatile, with prices constantly fluctuating.

 

Why Trade Forex?

Forex presents an extremely fast-moving and potentially lucrative opportunity for FX investors around the world. Trade our FX/CFD platform for a number of reasons.

 

Trade our FX/CFD platform for a number of reasons:

  • The forex market is decentralized in essence, with no one country, government, institution, company or other body able to fully control it. All market participants can exploit the same opportunities and are guaranteed fair pricing and access to the same financial information.
  • Forex/CFD trading enables you to buy or sell, taking advantage of market shifts in either direction.
  • On the Forex market, you can trade at your convenience, 24 hours a day. Benefit from currency movements in countries from every corner of the map according to local market opening hours.
  • When trading Forex/CFD you can use leverage, which enables you to increase the revenue from your initial investment if the position is in profit.

 

Trade Forex/CFD with OptionFair to Benefit from:

  • OptionFair’s exclusive forex offering, with its unique user interface, enables you to transition between forex and our other products at a click, all using a single wallet.
  • A user-friendly UI – completely accessible and intuitive.
  • Controlled risk- set exposure limits per trade with Stop Loss and Take Profit activated by default.
  •  Multiple trading tools – advanced in-window charts and technical indicators.
  • No negative balance- never lose more than you have in your account.
  • Attractive trading terms- tight spreads, flexible leverage (default leverage is 1:50) and no margins.
  • Exclusive educational resources- videos, eBooks, personal training, webinars etc.
  • Each trade is stand-alone- no single trade will impact any other open position.
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