Learn Forex Trading

  • Still can’t find the answer to your problem? Please contact the City Index Client Management Team either via chat or by filling in our Contact Us form located on our Contact Us page and we will endeavour to resolve your problem as soon as we can.  

    Q: What are the trading hours of the forex market? 

    Forex is a true round-the-clock 24-hour market open from Sunday evening until Friday night. 

    Please note that our support hours are different from our trading hours.

    Q: What are the most commonly traded currency pairs at City Index FX?

    In general the most popular currencies traded at City Index are: EUR/USD, GBP/USD, USD/JPY and AUD/USD. You can trade 37 currency pairs with your City Index FX account. See our Spot Markets page for more information.

    Q: What do terms like "bid/ask" and "spread" mean?

    All currency prices are quoted with a bid/ask spread, e.g. EUR/USD 1.41230 (bid)/1.41240 (ask). The bid is where City Index are prepared to buy (you will sell), the ask is where City Index are prepared to sell (you will buy). See the Financial Trading Glossary for more definitions.

    Q: What is the difference between an "intraday" and "overnight" position?

    If a position is opened and closed during the trading day this is commonly referred to as” intraday”. There is no financing to pay/receive for positions that are opened or closed on the same day. For positions that are maintained overnight or rolled to the next day, these may be susceptible to a small overnight financing charge.

    Q: What does Tolerance mean?

    Tolerance allows you to determine the amount of slippage you are willing to accept on any individual trade. Slippage is the difference between the price quoted at the time the order is submitted and the price quoted when the order is executed. In this way during ‘fast markets’ or adverse market conditions there is a greater opportunity to execute a trade on or around the requested trade level. This however, depends on the tolerance set.

    For example if the tolerance on EUR/USD was set at 2 pips and our quoted price was 1.45382 – 1.45402, should the underlying market suddenly move, any market orders to buy would automatically be filled up to a level of 1.45422 and any sell orders completed down to 1.45362.Alternatively if the market moves in favour of the trade, i.e. moves down as a buy order is submitted, price improvements will be given extending beyond the tolerance levels.

    Q: How do I change my 'Tolerance' level?

    Tolerance can be easily changed on the Advantage Web platform via the 'Market Information' sheets within the deal ticket for each product.

    Q: What is a hedge trade?

    A hedge trade is a new equal and opposite trade to an existing position which aims to nullify risk. For example, let's assume you buy 150,000 EUR/USD at 1.38500, you believe the market will continue to move significantly higher, but you are concerned about your risk exposure across the announcement of the US non-farm payroll numbers. Rather than close the position, you choose to sell 150,000 EUR/USD at 1.40523, this is called a 'hedge' trade as it has the impact of reducing your risk exposure by opening a new trade.

    Q: How are forex prices determined?

    Put simply, foreign exchange prices are determined by supply and demand. This essentially means that the amount of currency available to buy or sell at prices dealers are willing to buy or sell them. Foreign exchange trading prices fluctuate with events in the economic, political, and social spheres, from interest rate changes and inflation to political instability, any of which can result in relevant forex news.

    Q: How do I learn about foreign exchange trading and technical analysis?

    Please see our Learn to Trade section for more information.