Trade our wide range of currency pairs,
including majors such as EURUSD and GBPUSD,
and take advantage of dynamic opportunities
for a 24-hour experience.
Trade our wide range of currency pairs, including majors such as EURUSD and GBPUSD,and take advantage of dynamic opportunities for a 24-hour experience.
Explore opportunities across a wide range of 60+ currency pairs around the clock.
Go long or short, starting from micro lots (1,000 units), for ultimate flexibility and risk management.
Stonefort’s deep liquidity pools means low latency, fast execution in one of the biggest markets in the world.
Multiple platforms, same efficient execution and pricing.
Forex trading, also known as FX trading, involves buying and selling currencies with the aim of profiting from fluctuations in their exchange rates. It's essentially a decentralized marketplace for exchanging currencies. Although many foreign exchange transactions are carried out for pragmatic reasons, forex traders primarily convert currencies in order to make a profit. Before you begin trading forex, be mindful that the volume of the whole Forex market that is transacted daily is extremely big. In other words, it’s highly liquid but can also cause some currency pairs to swing wildly and move in an erratic manner.
Learn more about trading Forex in our extensive Trading Guides.
Compared to other markets like stocks or indices, the forex market draws traders for a variety of reasons including longer trading hours, and higher leverage. Without ignoring the fact that there are risks involved while trading, few of the benefits of FX trading are:
Trading forex works in a similar way as any other transaction when you buy a single asset with a currency. The market price tells a trader how much one currency costs versus another. To buy one pound, for example, one may see how many US dollars are required based on the market price of the GBP/USD currency pair.
Each currency has a distinct code that enables traders to identify it as one of a pair right away.
The currency market is the largest and most liquid market in the world. Participants from all over the world exchange trillions of dollars every day. The first thing newcomers to the world of forex markets should do is familiarize themselves with the world's major currencies, which are the most traded and popular ones there.
The following is a list of the main currencies traded in forex:
Explore all the currencies you can trade with Stonefort.
You don’t need much money to start trading Forex. The currency market is quite accessible and that means you can start with as little as $10. Depending on your trading style and the reason you started trading forex, you may be ready to deposit a different amount. Goals also affect the amount of money needed for foreign exchange trading. You should always deposit an amount that you are comfortable losing so that your livelihood and lifestyle are not affected. Risk is always present when trading any leveraged products including Forex and you should not invest more funds than you can afford to loose.
In forex trading, "pips" are considered a unit of measurement, used to describe changes in the exchange rate of a currency pair. The term "pip" stands for "percentage in point" or "price interest point," and it represents the smallest price move that a given exchange rate can make based on market convention.
A pip is typically the smallest price move that an exchange rate can make based on market convention. For most currency pairs, it represents the fourth decimal place (0.0001), except for pairs involving the Japanese yen, where it represents the second decimal place (0.01).
Example: If the EUR/USD currency pair moves from 1.1200 to 1.1201, it has moved 1 pip. Similarly, if the USD/JPY pair moves from 110.50 to 110.51, it has also moved 1 pip.
Understanding pips is fundamental for forex traders as it helps them gauge price movements, calculate risk, and manage their trades effectively. Learn more.
In Forex trading, a currency pair is a quotation of two different currencies, where one currency is quoted against the other. It represents the exchange rate between the two currencies.
A currency pair consists of two currencies listed together, separated by a slash ("/"). For example, in the currency pair EUR/USD: EUR (Euro) is the base currency, USD (US Dollar) is the quoted currency.
The exchange rate quoted for this pair (e.g., 1.1200) indicates how much of the quoted currency (USD) is needed to purchase one unit of the base currency (EUR).
Currency pairs are traded in the forex market where traders speculate on the exchange rate movements between the paired currencies. The price of currency pairs fluctuate based on market demand, economic data releases, geopolitical events, and a variety of other factors influencing supply and demand dynamics. Get a detailed guide dedicated to Understanding Currency Pairs here.
Starting forex trading involves several key steps to ensure you understand the market, manage risks effectively, and have the necessary tools and knowledge to make informed trading decisions. Learn more about risk management strategies here.
The first and furthermore step is to educate yourself by understanding the basics of forex trading i.e. how the market operates, what factors influence exchange rates and understand the importance of risk management. Learn more about trading Forex in our extensive Trading Guides.
After learning and understanding, the next step is to find a reliable broker. While researched to find a Company to create an account with you need to consider the Company’s licenses, level of Client’s Protection, as well as all other trading-related factors like the number of financial products and available platforms to choose from.
The last step is to fund your account and start trading. It is advisable to start with a small amount and execute smaller trades while staying informed with the global trends that may impact currency markets. Remember that the most important thing while trading is Knowledge and understanding of the Market. It’s important to regularly review your trading performance and adjust your strategies as needed. Learning from your trading history is crucial for long-term success. Access our extensive Trading Guides to trade like a pro.
Leverage in forex trading refers to the ability to control a larger position size with a smaller amount of capital. It allows traders to magnify their potential profits, but also increases the potential risk. Leverage is typically represented as a ratio, such as 50:1, 100:1, or 500:1. This ratio indicates how much of a position a trader can control with a given amount of margin (the amount of money required to open a position).
Ratio Example: If a broker offers a leverage of 100:1, it means for every $1 of your capital, you can control a position worth $100 in the forex market. Another example: If you have $1,000 in your trading account and use 100:1 leverage, you can control a maximum position size of $100,000.
Leverage in forex trading allows traders to amplify their exposure to currency movements, but it also increases the potential risk of significant losses. It’s a powerful tool that should be used with caution and only after gaining a solid understanding of its effects on trading outcomes. Learn more about Leveraged Trading with Stonefort.
Traders come in all shapes and sizes. Some like the adrenaline inducing quick trading while others prefer a longer-term approach with less stress and more time for everything else in life. Let’s take a look at some of the different types of traders:
Short-term traders are those who trade small price moves, usually in and out within seconds or minutes. They use price action, technical indicators, or simply follow the momentum. Analyzing such timeframes is usually difficult since it's very short-term.
Day traders are a bit more relaxed, holding trades throughout the day. They still trade often and are constantly monitoring their trades, yet they can afford to take breaks and spread their strategy over a couple of hours.
Swing and position traders are long-term, holding positions anywhere from days to weeks and even months. They prefer a more laid back approach and would rather hit the jackpot and ride trends than trade all day.
News traders are those who wait for impactful news and decide to either pre-empt the potential move, or simply ride the momentum afterwards.
Last but not least, fundamental traders are those that analyze different macro themes and decide whether a financial product is likely to go higher or lower.
Stonefort Securities Limited has its registered office on the 11th floor, Bramer House, Hotel Avenue, Ebene, Mauritius, its Registration Number is : 209470.Stonefort Securities Limited is Licensed from the Financial Services Commission (FSC), Mauritius with License Number GB 24202921. Email: [email protected]
Risk Disclosure: Foreign exchange (forex, FX) and Contracts for Difference (CFDs) on Currencies, Commodities, Indices, or Equities are all margin-traded products and carry a high level of risk that may not be suitable for all investors. Before deciding to trade FX/CFD instruments offered by Stonefort Securities Limited, please seek independent advice. You should carefully consider your objectives, financial situation, needs, experience level and risk tolerance.You should not trade any margined product unless you fully understand all the risks involved and you are able to sustain any losses. Risk Disclosure for further details.
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