Currency trading is the most widely know financial market, having currencies as the basis of trade. It’s used as a medium of exchange for goods and services.
Why Trade Currencies Currencies are traded on a globally decentralized FX market which begins with the opening of Australia and continues until markets close in the US, making it accessible for any trader at any time.
In terms of volume of trading, it is by far the largest market in the world with a volume of $5.3 trillion a day. It describes the buying and selling of currency in the foreign exchange market, especially by investors and speculators.
Currency pairs can be traded either as a rolling spot FX or a CFD. It is always quoted in pairs as you always compare one currency to another. The first currency of a currency pair is called the base currency and the second currency is called the quote currency. The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.
RISK WARNING: CONTRACTS FOR DIFFERENCE (‘CFDS’) ARE COMPLEX FINANCIAL PRODUCTS THAT ARE TRADED ON MARGIN. TRADING FOREX AND CFDS CARRIES A HIGH LEVEL OF RISK SINCE LEVERAGE CAN WORK BOTH TO YOUR ADVANTAGE AND DISADVANTAGE. AS A RESULT, FOREX AND CFDS MAY NOT BE SUITABLE FOR ALL INVESTORS BECAUSE YOU MAY LOSE ALL YOUR INVESTED CAPITAL. YOU SHOULD NOT RISK MORE THAN YOU ARE PREPARED TO LOSE. BEFORE DECIDING TO TRADE, YOU NEED TO ENSURE THAT YOU UNDERSTAND THE RISKS INVOLVED TAKING INTO ACCOUNT YOUR INVESTMENT OBJECTIVES AND LEVEL OF EXPERIENCE. PAST PERFORMANCE OF FOREX AND CFDS IS NOT A RELIABLE INDICATOR OF FUTURE RESULTS. MOST CFDS HAVE NO SET MATURITY DATE. HENCE, A CFD POSITION MATURES ON THE DATE YOU CHOOSE TO CLOSE AN EXISTING OPEN POSITION. SEEK INDEPENDENT ADVICE, IF NECESSARY.
REGULATION & REGISTRATION: PRIME MARKETS S.A. IS REGISTERED IN SAINT VINCENT AND THE GRENADINES UNDER CORPORATE NUMBER 23072 IBC 2015 WITH LEGAL AND CORRESPONDENCE ADDRESS: TRUST HOUSE, 112 BONADIE STREET, P.O. BOX 613, KINGSTOWN, ST. VINCENT. WE ACT IN FULL COMPLIANCE WITH INTERNATIONAL LEGISLATION AND REGULATION STANDARDS.