FOREX Trading 

    Benefits of FOREX Trading
    New to FOREX?
    FOREX -vs- Futures
    Frequently Asked Questions
 
    Forex Platforms
    Forex CTA's
    Forex Systems

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The over-the-counter cash foreign exchange (FOREX or FX) market trades $1.4 trillion a day, an amount 46 times bigger than all the futures markets in the world combined. As a result, FX is the most liquid market in the world.

Just look at some of the benefits of trading in the cash FX market:

You pay zero brokerage commissions and no exchange fees.
You get great leverage - as low as 1% of the contract value.
You get firm prices and instantaneous fills off streaming quotes.
You get guaranteed fills on stop loss and limit orders.
You have peace of mind knowing you'll never be liable for a debit balance.
You have unlimited contract duration with automatic (and indefinite) FX position rollover.
You can trade easily and quickly online, 24 hours a day.
  

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No Commissions and No Exchange Fees:

With TraderView LLC, you pay zero commissions and zero transaction fees on all FOREX currency trades--either online or over the phone.

Like all traded financial products, FOREX trading involves a bid/ask spread, which represents the prices at which your counterparty is willing to make a trade. And, as is the standard practice in over-the-counter currency trading, dealers do not charge commission or transaction fees. Instead, a foreign exchange dealer builds a desired profit margin, as well as other factors such as position risk, into the bid/ask spread it is willing to offer.

You can count on the FXCM platform to offer tight bid/ask spreads off real-time streaming quotes.

Exceptional Leverage with Strictly Limited Risk:

FOREX traders enjoy a high degree of leverage because of the sheer size of the FOREX market (46 times greater than all futures markets combined). The resulting depth and liquidity mean that traders can count on getting out of an adverse position easily.
  
With LaSalle Futures Group Inc., you are able to select the degree of leverage that you wish to employ in trading. Unless you specify otherwise, FXCM sets your leverage level at our most lenient requirement, which varies according to the size of your account.
  
For example, for accounts less than $50,000, the margin requirement is $1,000 for every position (equal to about $100,000 of currencies). Thus, the margin requirement is about 1% of the total value of the currencies traded, for a 100-to-1 ratio. Click Here for a demo.

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Limited Risk:

The FXCM online trading platform performs two critical functions that strictly limit your risk of trading in the cash FOREX market.
 
First, an automatic pre-deal check for margin availability means that your trade will be executed only if you have sufficient margin funds in your account. This system also calculates the funds needed for current positions and displays this information so you can see it in real time. Second, the FXCM dealing desk will close all your open positions immediately if the funds in your account fall below the margin required to hold the positions. Thus, you can never lose more than the amount of money you have in your account.
  
Because of these benefits to the FXCM online trading platform, over-the-counter FOREX positions are similar to buying options in that there is a substantial, but strictly limited, risk. See for yourself how trading FOREX works by making some virtual trades right now with real-time prices.

Get Firm Prices, Guaranteed, on Orders Up To $1 Million:

TraderView LLC offers instantaneous execution and total price certainty on orders up to $1 million. When you trade on the FXCM Trading Station, you execute orders directly off real-time streaming prices, which means you get precise, firm prices even during volatile and fast-moving markets.
 
Real-time, streaming prices on the FXCM trading station also ensure that market orders, stops and limits are executed without slippage or partial fills. What's more, you get tight, competitive bid/ask spreads at any hour of the day or night because the currency market offers 'round-the-clock liquidity.

Instantaneous Fills:

On the FXCM trading station, you will execute directly off real-time streaming prices. There is no discrepancy between the displayed price and the execution price. This holds true even during volatile times and fast-moving markets. Real-time streaming prices ensure that market orders, stops and limits are executed without slippage or partial fills.

Guaranteed Fills on Stop-Loss and Limit Orders:

When you trade currencies with TraderView LLC, you get filled if the market hits your price on a limit order. Period. In fact, we guarantee it--even overnight and over the weekend. Enter a virtual trade right now with a close-in limit order, and see how it works.

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Never Have a Debit Balance in Your TraderView Account:

Due to the currency market's liquidity and the risk-management capabilities of the FXCM trading station, you can never lose more than you have in your account.
  
In fact, we guarantee it. Because the FXCM trading platform immediately closes any position that cannot be supported by the margin funds in your account, you can never have an outstanding debit balance. You will never owe more than the amount of money you choose to deposit into your trading account.

Your Positions With TraderView Never Expire:

In the spot FOREX market, trades settle in two business days. For example, if you sell 100,000 euros on Tuesday, you must deliver 100,000 euros on Thursday (unless you roll the position). In order for you to avoid this position maintenance headache, FXCM automatically rolls over all your open positions (i.e., swaps the trade forward) to the next settlement date two business days in the future, at 5 p.m. (New York) daily.
  
There may be a carrying (rollover) cost associated with holding a position overnight. (For day traders that never hold a position overnight, there are no carrying costs whatsoever.) However, FOREX positions can actually make money on the rollover because your profit or cost is determined by the difference in interest rates between the two currencies.
  
Here's how it works: If you are long the currency with the higher interest rate, you will gain on the spot rollover due to its premium relationship to the short currency.
  
For example, the interest rate differential between the U.S. dollar and the Japanese yen may result in a rollover of just $2 per lot, while the interest rate differential between the British pound and the Japanese yen may indicate a rollover of $15. Rollover fees, shown in dollars, are posted in the "interest" column on the FXCM Trading Station every day at 3 p.m. (New York).

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Trade Online 24-Hours a Day:

If you are looking for that ideal trading situation of deep, liquid markets open when you want to trade combined with online trading execution, then look no further than TraderView LLC.
  
The spot foreign exchange market opens for business each week on Sunday at 5 p.m. (New York) in Sydney and Singapore. Tokyo opens two hours later, with London opening at 2 a.m. (New York). When New York opens at 8 a.m. Monday, the foreign exchange market is in full swing, 24 hours a day until New York closes at 4 p.m. Friday. As a result, you can trade immediately at any hour of the day or night. And, if you like to trade outside your normal work hours, the FOREX market provides that added flexibility.
 
The online FXCM Trading Station is not only robust, but also intuitive and user-friendly. The platform has a proven track record of reliability and stability, even during the most turbulent market conditions. Because the FXCM Trading Station is a Windows-based program rather than a server-based system, it is a safer, faster and more reliable platform for trading.
  
The user-friendly FXCM screens show all relevant trading information in one concise dealing screen. The prices you see are real-time and executable. And, those same quotes drive a real-time look at your account statement, including details on every open position, open order, margin position and generated profit/loss per trade. Plus, you can customize the FXCM Trading Station's user interface by changing fonts, colors, window size and window location.

TraderView LLC Offers Instantaneous Execution and Total Price Certainty on Orders Up To $1 Million:

When you trade on the FXCM Trading Station, you execute orders directly off real-time streaming prices, which means you get precise, firm prices even during volatile and fast-moving markets. Real-time, streaming prices on the FXCM trading station also ensure that market orders, stops and limits are executed without slippage or partial fills. What's more, you get tight, competitive bid/ask spreads at any hour of the day or night because the currency market offers 'round-the-clock liquidity.

  
Pay Zero Commissions and Exchange Fees:

With TraderView LLC you pay zero commissions or exchange fees. You deal directly with the market maker via a purely electronic online exchange, you eliminate both ticket costs and brokerage fees. There is still a cost to initiating any trade, but that cost is reflected in the typical bid/ask spread that all exchanges offer. However, FXCM offers tight and competitive spreads. To try out the FXCM trading station FREE demo, or to open an account right now, click here.

More Leverage Than Futures - With Strictly Limited Risk:

The sheer size of the FOREX market (46 times greater than all futures markets combined) and the greater price stability allow you to trade with a much higher degree of leverage than is typical with futures contracts -- up to 100 to 1. Plus, you are able to select the degree of leverage that you wish to employ in trading. Unless you specify otherwise, FXCM sets your leverage level at their most lenient requirement. The actual margin requirements for leverage vary with account size. For example if your account has $30,000 in it, then the margin requirement is $1,000 for every position (approximately equal to $100,000 worth of currencies). Thus, the margin requirement is just 1% of the total value of the currencies traded - a 100 to 1 ratio. Click here for a demo.

Never Be Liable for a Debit Balance:

With FXCM, you can NEVER have a debit balance! In the event that funds in your account fall below margin requirements, the FXCM Dealing Desk will simply close all open positions. That means that, even if you are dead wrong and there is a catastrophic market move against you, you can never lose more than the amount of money you have in your account. That provides you with tremendous peace of mind. See for yourself by making a few risk-free virtual trades in your Trading Station demo account.

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Get Maximum Liquidity:

Due to its enormous size (46 times bigger than all futures markets combined), the FOREX market is the most liquid market in the world. The spot FOREX market is a $1.4 trillion daily market, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market. This means that positions can be liquidated and stop orders executed without slippage.

Trade Easily, 24-Hours a Day:

The FOREX market is a seamless, 24-hour market. At 5 PM Sunday, New York time, trading begins as markets open in Sydney and Singapore. At 7 PM the Tokyo market opens, followed by London at 2 AM, and finally New York at 8 AM. As a trader, this allows you to react to favorable or unfavorable news by trading immediately. It also gives you the added flexibility of determining your trading day. You get instantaneous execution and firm prices!
With FXCM FOREX trading you get instantaneous execution and price certainty on all orders up to $1 million. On the FX trading station, you trade directly off real time streaming prices. There is no discrepancy between the displayed price and the execution price. This holds true even during volatile times and fast moving markets. Real time streaming prices ensure that market orders, stops, and limits are executed without slippage and/or partial fills.

Never Worry About Rolling Over Your Positions:

With FXCM, open positions are rolled over automatically every two days. As a service to you, at 5:00 PM New York time FXCM automatically rolls over all your open positions (swaps the trade forward) to the next settlement date two business days in the future. As is true with futures, there is often a carrying cost associated with rolling over a position. Moreover, FOREX positions sometimes can actually make you money on the roll-over. That is because your profit/cost is determined by the difference in interest rates between the two currencies. Thus, if you are long the currency with the higher interest rate in the pair, you will actually gain on the spot rollover through the premium relationship of that currency relative to the short currency. The amount of the gain is determined by the interest rate differential between the two currencies, and fluctuates day to day with the movement of prices. For instance, on any given day, the rollover can be $2 per lot for USD/JPY and $15 for GBP/JPY.
  
Rollover fees are shown in dollars, and are posted in the "interest column" on the FXCM Trading Station every day at 3:00 pm New York time. For day traders that never hold a position overnight, there are no carrying costs whatsoever. Try out the Trade Station with a virtual account.

What is Foreign Exchange (Forex or FX)?
Where is the central location of the FX Market?
Who are the participants in the FX Market?
When is the FX Market open for trading?
What are the most commonly traded currencies in the FX Market?
Is Forex trading "capital" intensive?
What is "margin"?
What does it mean to have a "long" or "short" position?
What about terms like "bid/ask", "spread" or "rollover"?
What is the difference between an "intraday" and "overnight" position?
How are currency prices determined?
How do I manage risk?
What kind of trading strategy should I see?
How often are trades made?
How long are positions maintained?
How does the margin call work?
I am interested in foreign exchange trading but would like additional information, any suggestions?

What is Foreign Exchange?

Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen. With a daily average turnover of approximately US$1.4 trillion, the Foreign Exchange market, also known as the "Forex" or "FX" market, is the largest financial market in the world.

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Where is the central location of the FX Market?

Unlike the stock and futures markets, FX Trading is not centralized on an exchange. Due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network, the FX market is considered an Over the Counter (OTC) or 'Interbank' market.

Who are the participants in the FX Market?

The reason that the FOREX market is referred to as an 'Interbank' market is due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.

When is the FX market open for trading?

FOREX is a true 24-hour market and trading begins each day in Sydney, and then moves around the globe as the business day begins in each financial center- first to Tokyo, then London, and finally New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social, and political events at the time they occur - day or night.

What are the most commonly traded currencies in the FX markets?

The most frequently traded or 'liquid' currencies are those of countries with stable governments, respected central banks, and low inflation. Nowadays, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar.

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Is Forex trading capital intensive?

No. TraderView requires a minimum deposit of just $2000 for opening a regular FOREX trading account, and only $300 for opening a mini account. TraderView enables currency trading to be conducted on a highly leveraged basis. You are able to select the degree of leverage or gearing that you wish to employ in trading. Unless you specify otherwise, TraderView sets your leverage level at the most lenient requirement. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great.

What is Margin?

Margin is a performance bond, or good faith deposit, to ensure against trading losses. The margin requirement allows you to hold a position much larger than your actual account value. FXCM' s online trading platform performs an automatic pre-trade check for margin availability, and will only execute the trade if you have sufficient margin funds in your account. The system also calculates the funds needed for current positions and displays this information to you in real time. In the event that funds in your account fall below margin requirements, the FXCM Trading Station will close all open positions. This prevents your account from ever falling below the available equity even in a highly volatile, fast moving market.

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What does it mean have a 'long' or 'short' position?

A long position is simply one in which a trader buys a currency at one price and aims to sell it later at a higher price. In this scenario, the investor benefits from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate. In this scenario, the investor benefits from a declining market. However, it is important to remember that every FX position requires an investor to go long in one currency and short the other.

What about terms like "bid/ask", "spread", and "rollover"?

TraderView LLC has an extensive Glossary, under the Resources section that provides detailed definitions of all FOREX and futures related terms.

What is the difference between an "intraday" and "overnight position"?

Intraday positions are all positions opened and closed before 5:00 PM EST (rollover cutoff i.e. the end of the international trading day). Overnight positions are positions that are held through 5:00 PM EST (rollover cutoff), which are automatically rolled by TraderView.

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How are currency prices determined?

Currency prices are affected by a variety of economic and political conditions, but probably the most important are interest rates, inflation and political stability. Sometimes governments actually participate in the FOREX market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the FOREX market makes it impossible for any one entity to "drive" the market for any length of time.

How do I manage risk?

The limit order and the stop loss order are the most common risk management tools in FX trading. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the FOREX market ensures that limit order and stop loss orders can be easily executed. TraderView guarantees execution of stop loss and other limit orders, at the specified price, on all orders up to $1 million.

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What kind of trading strategy should I use?

Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumors. The most dramatic price movements, however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.

How often are trades made?

Market conditions dictate trading activity on any given day. As a reference, the average small to medium trader might trade as often as 10 times a day. Most importantly, by offering no commission and offering tight spreads, TraderView customers can take positions as often as necessary without worrying about excessive transaction costs.

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How long are positions maintained?

As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and you need these funds.

How does the Margin Call work?

If the equity balance in your account falls below the margin requirement, a margin call will be generated. In the event that an account exceeds its maximum allowable leverage, ALL open positions will be liquidated immediately, regardless of the size or the nature of positions held within the account. In this situation, clients are not notified prior to the liquidation of their positions.

I am interested in foreign exchange trading, but would like some additional information.
Any suggestions?

In the New To FOREX section we describe the foreign exchange market in some detail. In order to gain a practical understanding of foreign exchange trading, there is no better way than to open a demo account, where you can experience what it's like to trade the FOREX market without risking any capital.