FX Trading Guides
If you want to trade a certain FX market, or are just looking for more data, click on the relevant FX market in the table below.
Each FX guide answers the most popular FAQs for that market, including:
- Where to spread bet on the FX market?
- Where to trade the FX market commission-free?
- Where to practice trading the FX market?
- Where can I get live FX charts?
- Where to get live FX prices?
- How to spread bet on the FX market?
Live FX Prices and Charts |
Nearly all of the guides, including Euro-Dollar, Sterling-Dollar, Dollar-Yen, Euro-Sterling, Dollar-Swiss Franc etc. have both live prices and live charts.
For more information on FX spread betting, also see:
Major FX Market Trading Guides |
Click on the relevant link below for a detailed guide to that foreign exchange market:
Minor FX Market Trading Guides |
Click on the relevant link below for a detailed guide to that foreign exchange market:
Exotic FX Market Trading Guides |
Click on the relevant link below for a detailed guide to that foreign exchange market:
For the latest daily FX trading articles, please see below.
For more on the foreign exchange markets also see:
If an FX trader believes that the euro will appreciate, they can buy a certain quantity of the currency in the hope of selling it at a profit in the future.
The price of a foreign currency, such as the euro, is always quoted in relation to that of another currency, often the US dollar or the British pound. If we say the price of the euro is $1.41, it means you have to pay $1.41 to buy one euro.
There are many websites where you can sign up to spread bet on forex markets such as CMC Markets and ETX. However, if you are new to FX trading, it is often useful to try a free forex demo account.
With a demo account you will have the opportunity to develop your understanding of the marketplace before risking any of your hard earned money.
A highly promoted aspect of forex spread trading is leverage. With leveraged trading you only need to make a small deposit, often as little as 1%, of the purchase price.
This means that to buy a trade with a value of £10,000, for example, you do not have to deposit £10,000, you may only have to deposit £100.
Once you have entered the trade, you receive the benefit of any price movement on the full £10,000. The downside of this is that you will also have to stand any losses in full.
If you are forex spread trading and use a guaranteed stop loss you cannot, however, lose more than you risked on that particular trade.
In this example, should there be a 1% increase in the value of the pound, you would make £100 on the trade, which at a leverage of 100:1, equates to a 100% profit (of your deposit).
However, if the value of the currency fell by 1%, you would lose the same amount of money, i.e. the entire £100 you deposited for the trade.
In short, leverage amplifies your profits and your losses. This makes spread betting a high risk way of trading, so note that it is possible to lose more than your deposit.
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In forex spread betting, you do not have to pay any commission to buy or sell a market. The commission is built into what is known as the ‘spread,’ i.e. the difference between the buy price and the sell price of the forex market.
The price which you buy at is called the ‘offer price’ and the price at which you sell at is the ‘bid price.’ At any particular time, the bid price (sell price) is marginally lower than the offer price (buy price).
Let us assume that you buy euros at an offer price of £0.85792. At that moment the bid price will most likely be in the region of £0.85782; the actual spread differs from broker to broker. If you immediately sell your trade, you will therefore make a small loss, since the bid price is less than what you paid.
If you kept your trade open then the market might move up, with the bid price (sell price) moving higher than your original offer price (buy price). If so, you could close your trade for a profit. Unfortunately, if the market were to fall, you would make a loss.
Whilst there are no commissions on spread bets, if you use a rolling daily spread bet and keep your trade open overnight then you often pay a small overnight financing fee.
| EUR / USD Daily - Spread Size |
1 |
1 |
1 |
2 |
0.8 |
1 |
1 |
1 |
| EUR / USD Daily - Min Stake |
£1 |
£0.50 |
£0.50 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| GBP / USD Daily - Spread Size |
2 |
2 |
2 |
3 |
0.8 |
2 |
2 |
2 |
| GBP / USD Daily - Min Stake |
£1 |
£0.50 |
£0.50 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| EUR / GBP Daily - Spread Size |
1 |
2 |
2 |
1 |
1 |
1 |
1 |
2 |
| EUR / GBP Daily - Min Stake |
£1 |
£0.50 |
£0.50 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| USD / JPY Daily - Spread Size |
0.8 |
2 |
1 |
2 |
0.8 |
0.8 |
0.8 |
2 |
| USD / JPY Daily - Min Stake |
£1 |
£0.50 |
£0.50 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
Comparison Notes.
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'FX Trading Guides' by DB, updated 23-May-13
For related pages also see:
Forex Trading Guide, updated 15-May-13
Forex Trading Guide: the complete guide to trading the forex markets including live forex charts, live prices, where to trade, daily forex analysis, forex technical analysis, how to trade, the global forex markets and...read article: Forex Trading Guide.
FX Spread Betting, updated 15-May-13
FX Spread Betting: the complete FX spread betting guide with an FX price comparison, live FX spread betting prices & live charts. Plus analysis and factors that influence the foreign exchange markets as well as...read article: FX Spread Betting.
FX Trading Guides, updated 23-May-13
40+ individual FX trading and spread betting guides for Euro-Dollar, Sterling-Dollar, Dollar-Yen etc. Every guide covers live prices and charts, where to spread bet on the FX market, a worked trading example and...read article: FX Trading Guides.
Euro-Dollar Spread Betting, updated 07-May-13
The Euro/Dollar spread betting review: live Euro/Dollar charts and prices, where to spread bet tax-free* and with 0% commission, Euro/Dollar spreads comparison, a look at...read article: Euro-Dollar Spread Betting.
Dollar-Yen Spread Betting, updated 07-May-13
The Dollar/Yen spread betting review: live Dollar/Yen charts and prices, where to spread bet tax-free* and with 0% commission, Dollar/Yen spreads comparison, a look at...read article: Dollar-Yen Spread Betting.
Sterling-Dollar Spread Betting, updated 07-May-13
The Sterling/Dollar spread betting review: live Sterling/Dollar charts and prices, where to spread bet tax-free* and with 0% commission, Sterling/Dollar spreads comparison, a look at...read article: Sterling-Dollar Spread Betting.
Euro-Sterling Spread Betting, updated 07-May-13
The Euro/Sterling spread betting review: live Euro/Sterling charts and prices, where to spread bet tax-free* and with 0% commission, Euro/Sterling spreads comparison, a look at...read article: Euro-Sterling Spread Betting.
Dollar - Swiss Franc Spread Betting, updated 07-May-13
The complete Dollar/Swiss Franc spread betting review: live charts and prices for the Dollar/Swiss Franc market, which FX brokers offer commission-free spread betting, how to spread bet on the Dollar/Swiss Franc market and...read article: Dollar - Swiss Franc Spread Betting.
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