Foreign exchange is shortened to forex. The exchange of currencies takes place in the forex market. As of 2019, it ranked as the world's largest and most liquid financial market, with an average daily turnover of 6.6 trillion US dollars. Exchange rate variations are the foundation of the foreign exchange market. Forex traders speculate on currency pair price movements in an effort to profit from the difference between purchasing and selling prices.
What is Margin?
The amount of money a trader needs to initiate a new position is known as their margin. Based on the magnitude of your trade, which is expressed in lots, the margin is estimated. A typical lot has 100,000 pieces. Additionally, we offer micro lots (1,000 units), nano lots (100 units), and mini lots (10,000 units). The margin amount increases with the size of the lot. By using margin, you can trade with leverage and make trades that are greater than the amount of your trading capital. The margin amount is influenced by leverage as well.
What is leverage?
Leverage is the ability to trade positions larger than the amount of capital you possess. This
mechanism allows traders to use extra funds from a broker in order to increase the size of their trades.
For example, 1:100 leverage means that a trader who has deposited $1,000 into his or her account can trade
with $100,000. Although leverage lets traders increase their trade size and, consequently, potential
gains, it magnifies their potential losses putting their capital at risk.
When is the forex market open?
Due to different time zones, the international forex market is open 24 hours a day — from 5 p.m.
Eastern Standard Time (EST) on Sunday to 4 p.m. EST on Friday, except holidays. Markets first open in
Australasia, then in Europe and afterwards in North America. So, when the market closes in Australia,
traders can have access to markets in other regions. The 24-hour availability of the forex market is what
makes it so attractive to millions of traders.
