Forex trading
An introduction to Forex trading
All Forex Trading (FX Trading) is determined by a rate of exchange. FX traders simultaneously buy one currency and sell the other, with the hope of making a profit when the value of the currencies change.
An example of FX trading
- The US dollar is trading against the Japanese Yen at 116.99/117.02
- You think the US dollar will strengthen against the Yen so you decide to buy 500,000 USD at 117.02
- Later that day you see that the dollar has risen to 117.65/117.68 and you decide to sell your dollars at 117.65
Your revenue is calculated as follows:
$500,000 (size of position) x (117.65 [sell price] - 117.02 [buy price]) = ¥315,000. This is converted back into dollars ¥315,000 ÷ 117.65 = $2,677 – at the end of the day using the mid-close price.
I’m new to this
Find out how much FX trading costs, how to manage risk and what to do next.
Apply now
Call us on
0845 350 0100
Typetalk
18001 0845 350 0100
Lines are open:
Mon to Fri 8am- 6pm (excl. public holidays)
Calls may be recorded.