Forex trading, or FX trading, allows you to simultaneously buy or sell one currency against another across a decentralized market. When trading in foreign currency pairs, traders speculate on whether the value of one currency will rise or fall against another currency, and decide to buy (go long) or sell (go short) accordingly.
Why choose to Trade Forex
Freedom to decide at which price to buy or sell
Decentralized market with average turnover of $5 trillion+ daily
Trade 24/5 from anywhere
Potential to benefit during falling markets
Dedicated charts for informed decision-making
Ultra-low latency with superior execution
Intuitive MT4/MT5 trading platforms
Deep liquidity pool to ensure tight spreads
Spreads from 0.0 pips and commissions from $0
Wide range of funding methods
With more than 50 currency pairs available to trade, M4Markets offers access to the largest market in the world with real-time pricing and ultra-fast execution.
EUR/USD price at market OPEN: 1.21188/1.21190
You speculate that prices will go up within the day and decide to go long.
To buy 1 Lot of EUR/USD the required margin is 100,000 EUR. However, with a 1:100 leverage it means that you will only need 100,000/100 = 1000 EUR to buy 1 Lot of EUR/USD.
So in this example each pip move equals 10 Dollars.
If we assume that EUR/USD goes up as you had speculated, and the price at market close: 1.22190/1.22192 and you decide to close your long position and sell back to the market at the current price of 1.22190, you could be expected to make a profit of 100 pips, which is $1,000.
TO BECOME A TRADER
- Understand how trading forex works and the associated risks
- Open a risk-free demo account and practice
- Build your trading plan
- Switch to a live account
- Open, monitor and close your first trading position