Forex trading is similar to trading shares or futures except that when trading foreign exchange you are buying or selling one currency against another and you do not take delivery of the underlying currency.
One of the key advantages Forex has over other financial instruments is that relatively small lot sizes can be traded - lot sizes can be as small as 1000 units (one micro lot). Typically, foreign exchange also involves leverage which in some cases can be as high as 1:1000, which is very different to trading shares where no leverage is involved.
Foreign exchange trading involves trading one currency pair against another, predicting that one currency will rise or fall against another. Currencies are traded in pairs, like the Euro versus the US Dollar (EUR/USD).
Opening Price€200,000 x 1.33623 = USD $267,246
Closing Price€200,000 x 1.32129 = USD $264,258
Gross Profit on Trade$2988
The price of the Euro against the US Dollar (EUR/USD) is 1.33623/1.33624 and you decide to sell 2 standard lots (the equivalent of €200,000) at 1.33623.
One week later the Euro has fallen against the US Dollar to 1.32128/1.32129 and you decide to take your profit by buying back 2 standard lots at 1.32129.
Mazi Finance Global offers Forex traders some of the tightest spreads out of all Forex exchange brokers globally, with our EUR/USD spread averaging 0.1 pips. Tight spaces combined with our low latency enterprise-grade hardware make Mazi Finance Global the ideal choice for active day traders and those using Expert Advisors. The table at the bottom of this page shows our minimum and average spreads across all of the major currency pairs.
Over 61 currency pairs