Forex Trading at GlobeGlobal

The term 'forex' is short for foreign exchange. Forex trading is the process of buying and selling international currencies, with the objective of making a profit from fluctuations in the exchange rates between them.

So you might trade the euro against the US dollar (EUR/USD), for example. Buying the EUR/USD pair means that you are effectively speculating on the euro to increase in price against the dollar. Most currency pairs are priced to the fourth decimal, so a single point (pip) of movement relates to the fourth decimal place.

The forex market is the largest in the world by trading volume. It operates 24/5 and offers high liquidity, enabling you to typically enter and exit trades at your convenience. High liquidity often leads to tighter spreads, and it can also reduce the likelihood of slippage compared to trading in more illiquid markets.

While movements in the currency market can be small - less than 1% average daily movement under normal trading conditions - the fact that they are traded to the fourth decimal creates a very fertile trading environment. With us, leverage can amplify your exposure by up to 200:1 on selected currency pairs. This means you can control a position worth $20,000 with just $100 as your margin, although it's important to understand that leveraged trading means your losses as well as profits are amplified.