Forex Currency Trading
Key Reasons to Trade Forex
- Market liquidity
- Huge choice of financial instruments
- Low minimum deposits
What is Currency Trading?
Investors always trade currencies in pairs, with the first currency to come in the pair called the base currency and the second called the quote currency. Forex traders simultaneously buy one currency in the pair and sell the other, according to how they think the currencies’ values will change in relation to each other. See our forex trading for beginners guide for a more detailed explanation.
Currency values are affected by a vast number of fundamental factors that impact the health of that nation’s economy, such as inflation and interest rates, government debt levels and political stability. Typically, forex investors find the greatest volatility before and after key economic or political announcements as traders speculate on their potential impact.
In currency trading, pairs are split into three categories. Major currency pairs are the most traded pairs in the forex industry and therefore enjoy the most liquidity. Many include the US dollar as one half of the pair like the EUR/USD and the USD/JPY. Other commonly traded pairs include the EUR/JPY and the EUR/GBP.
The minor currency pairs are the less popular combinations that still contain major currencies. They are also sometimes called 'Crosses'. Examples include the EUR/NZD and the AUD/CHF.
Leverage increases your buying power. At GS FOREX we offer fixed leverage based on the trading instrument (up to 1:400). Don’t forget that using leverage increases your potential losses as well as potential profits.
Take advantage of tight spreads. The spread is the difference between the buy and sell prices and represents the cost of making the trade. At GS FOREX spreads start from 0.0 pips on the PRO trading account and from 0.4 pips on the STANDARD trading accounts.
You can trade currencies with GS FOREX whenever is convenient for you. Our trading services are available 24 hours a day, 5 days a week. The nature of this international, decentralised online marketplace means that there’s often plenty of action even when domestic markets have closed.
Lots describe the number of currency units you are trading in one transaction. At GS FOREX, micro, mini and standard lots are available (depending on account type) so you have the flexibility to choose how you want to trade. Your experience and the kinds of trades you wish to make will inform which lot size will best suit you.