Introduction to Forex Trading

If you want to learn how to trade Forex, you need to take into account that it will take time, effort and willingness. IFC Markets offers you not to spend much time on looking for materials and instead study everything directly with us. The currency exchange market nowadays is one of the most popular spheres for everyone, since the daily turnover on this market is above 4 trillion.
This section reveals the main concepts of Forex trading and gives a great opportunity to learn how to trade in forex market.

You need to get involved in all the details to have full understanding of the market, how it works, what instruments are traded, what are the main concepts in trading, what analytical tools there are for making accurate predictions, which instruments have high liquidity and many more. You might be confused at the beginning but it is not difficult if you treat it seriously. In this section you will find out who are the market players, what main concepts are there that should be remembered and taken into consideration, how to calculate profit/loss and much more.

If you have finally decided to take part in Forex trading and learn how to trade online, then this is the very start point and you need to grasp this information so as to go ahead and use it in practice. So, a specific terminology and trading logic exist, that should be studied before taking any practical step. Besides reading these articles, you can also open a Demo account to see all those concepts on the terminal – the visual memory will help you to understand everything faster and, moreover, for a beginner it is very important to start with a Demo account so as not to waste money.

In addition, we recommend you to follow political and financial events taking place all over the world, as any episode happening in these spheres directly influences the market and its behavior. Overall, you can start trading on a Real account as soon as you see that you are already having profits on your Demo account.

  • Forex Players

    Market players mainly are commercial banks executing orders from exporters, importers, investment institutions, insurance and retirement funds, hedgers and private investors. Commercial banks also perform trading operations in their own interests and at their own expenses. Daily turnover of the largest banks often exceeds several billions of U.S. Dollars and many make their main profit by speculative operations with currency.

  • Misconceptions about Forex | Forex Myths

    Forex is not a roulette because in the core of currency price fluctuations there are certain principles. First of all, currency price depends on its country's economic performance. Secondly, it is linked to preferences and expectations of Forex players. It is all a subject of prognosis which is proved by market analysis containing objective factors rather than casuality.

  • Margin Trading – Trading on Margin

    Typical transaction volume in the interbank trading estimates millions and even billions of US dollars. The participants of the interbank market include banks and their clients - the largest multinational corporations, hedge funds and private investors. Thus, it is evident that the transaction volumes on this market are too high for the majority of private investors.

  • What is Bitcoin

    Bitcoin represents itself a digital currency invented in 2009. Satoshi Nakamoto is the person behind the creation of Bitcoin whose identity has not been confirmed yet. The present market cap for bitcoins available for use surpasses $134 billion. Bitcoin guarantees lower charges for transactions than online payment systems and is controlled by a decentralized authority.

  • What is Margin Trading – Trading Volume

    Foreign Exchange market is the largest decentralized market where the volume of daily transactions equals to billions of dollars. The minimum volume of the transaction in the interbank market is too high and is assuredly not accessible for private investors owning small means. Due to margin trading individual investors have possessed an oportunity to make online transactions with various currency pairs.

  • Bid/Ask Prices and Spread

    A currency pair is always quoted in two prices: Bid for sale and Ask for purchase of a base currency for the quote one.

  • Fixed Spread vs Floating Spread

    Brokers, operating in Forex and CFD markets, offer their clients various types of trading accounts. These accounts have different trading conditions with various methods of spread formation.

  • What is Pip (Percentage in Point)

    For investors interested in trading currencies, understanding What is Pip is an important element in analysing currency and market movements. It helps them determining the overall cost and profit that can be generated by a trade.

  • Swap Rates | Forex Rollover

    Swap operations emerge in the “very top” of the currency market that is in the Interbank Market, and then go down affecting all levels of its hierarchy.

  • FX Swap Calculation Example

    When opening a long/short position, a purchase/sale of the base currency and a reverse operation with the quoted currency take place. In case of rolling a position on the currency pair AUDUSD over to the next day, in IFC Markets Libor/Libid overnight rates on the US Dollar and Australian Dollar Overnight Deposit/Lending Rate for the Australian currency are used.

  • How to Calculate Your Profit and Loss

    Each trading operation results in either profit or loss the calculation of which is performed automatically in the trading platform server. However, it is useful to know how this calculation is formulated. There are 3 important things to consider during the calculation: the volume of the opened position, the asset quotation and the direction of the position (Buy/Sell).

  • Stock Market Indexes

    The stock market index is an indicator of the dynamical state of the security market. By comparing current market index value to its previous values it is possible to estimate the market behavior, its reaction to macroeconomic changes and corporate events (mergers, acquisitions, etc.).