Forex is the most popularly traded market in the world and when you look at the specific features of forex trading, it is easy to understand why.
Forex is the most liquid market in the world, meaning that forex market spreads tend to remain tight throughout most of the day, whilst traders have the safety of the knowledge that positions and orders can always be executed. With an average turnover in excess of US$4 trillion per day being traded by governments, central banks, financial institutions, corporations and professional and retail traders, foreign exchange is the largest financial market in the world. In comparison, the New York Stock Exchange has a daily turnover of around US$50 billion.
As a City Index FX Trader, you can trade 37 currency pairs including majors, minors and exotic pairs. See our range of forex markets and spreads.
Forex is a 24-hour market, and is traded continuously round the clock, except on weekends, meaning that traders have unlimited access.
At City Index, our offering matches the underlying market, meaning that our platform is available to trade 24-hours a day, from Sunday evening GMT to Friday night GMT.
Forex trading is leveraged and traders utilise this leverage to increase their exposure to currencies and magnify their potential profits. With leverage, you can control a relatively large exposure for only a small initial deposit amount in your trading account, potentially maximising your return on investment.
At City Index, we offer some of the most competitive margin rates in the retail forex industry and our ‘Leverage to Suit’ model enables you to select your preferred leverage ratios to suit your specific trading strategy and style.
It is important to remember however that leveraged forex trading involves greater risk of loss and may not be suitable for everyone. You can lose more than your initial deposit if the market moves against you. We offer a wide range of trading tools to help you manage your trading risk.
Find out more about risks and see our Terms and Policies.
Foreign exchange rates can change rapidly in response to any real-time economic and political events. This offers great opportunities for traders to make profits in the forex markets. Of course, volatility can be a double-edged sword, and losses can accumulate just as quickly.
Ability to go long and short
Unlike traditional equity markets, forex trading allows you to trade and profit on any price movement up or down. As a forex trader, you can go long (buy) on a currency pair when you expect the first currency will strengthen (appreciate) against the second currency and your profits will rise in line with any increase as the exchange rate goes up. You can also go short (sell) on the currency pair when you expect the first currency will weaken (depreciate) against the second currency and your profits will rise in line with any fall in the exchange rate.
At City Index, you can trade 37 currency pairs including majors, minors and exotic pairs. See our range of forex markets and spreads. This means that you can gain instant exposure to currencies such as the Kiwi or Nokki as much as Dollar or Euro.
Spread betting, CFDs and Forex trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
*Spread betting and CFD trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
+Margin Factor is shown here as a guide only. For the current margin factor applicable to your position please refer to the Market Information on our Trading Platform.
†1 point spreads available on the FTSE 100, Wall Street, Germany 30, France 40 and Australia 200 during market hours on daily funded trades & daily future spread bets and CFDs (excluding futures).
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