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How to trade the FX market
How to trade the FX market
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Written by Online Support
Updated over a week ago

How to trade the FX market

There are a many ways to trade on the forex market, all of which follow the previously mentioned principle of simultaneously buying and selling currencies. If you believe an FX ‘base currency’ will rise relative to the price of the ‘counter currency’, you may wish to ‘go long’ (buy) that currency pair. If you believe the opposite will happen and the market will fall, you may wish to ‘go short’ (sell) the currency pair. To help you understand how forex trading works, you may find it useful to view some of our forex CFD examples.

The forex market was historically traded via a forex broker. However, with the rise of online trading companies, you can take a position on forex price movements with an MT4 or our proprietory Next Generation CFD trading account. Both the MT4 and Next Generation CFD trading accounts provide a form of derivative FX trading where you do not own the underlying asset, but rather speculate on its price movements. Derivative trading can provide opportunities to trade forex with leverage.

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